September 03, 2013
[statement]“While securing the economic development benefits for this client may have been our biggest challenge, it’s the seamless collaboration of colleagues from throughout our firm that may have the greatest impact on his ongoing success.” – John Racanelli, Partner[/statement]
Securing a substantial economic development package for a business start-up purchasing two Suffolk County, NY, buildings helped to start a solid relationship between the growing health products manufacturer and Farrell Fritz.
After Farrell Fritz assisted the entrepreneur in setting up the corporate structure of this new entity and planned for its eventual transfer to the next generation, the entrepreneur turned to the firm’s commercial real estate attorneys to guide him in the purchase of properties that would be converted into factories, an office and warehouse in Babylon and Islip.
As part of the $21 million transaction, partner Peter Curry and counsel David M. Curry secured for the start-up more than $1.83 million in tax credits and breaks from the Empire State Development Corporation and each town’s Industrial Development Agency, as well as a discount from the Long Island Power Authority (LIPA).
“Securing these economic benefits for this client was our biggest challenge,” said John. “Timing was critical. We were coordinating with four different entities under tight deadlines. But our persistence and experience paid off.”
Since closing on the purchase of the properties and negotiating the related construction contracts, Farrell Fritz has helped the manufacturer expand its operation with the acquisition of a smaller company and manage its human resources-related issues. The firm now serves as the manufacturer’s general corporate counsel.