Cresco Labs (OTC:CRLBF) is redeveloping a former knife factory in Ulster County (two and a half hours from NYC), into a cannabis complex.
The complex will allow the cultivation, processing, packaging and distribution of cannabis to licensed dispensaries in NYC. “Cresco Labs is looking to secure a foothold in New York’s potentially massive cannabis market,” reported regional media.
As major cannabis companies position themselves to supply New York’s legal cannabis market, small towns can reap some economic benefits.
Economic Boost
In its first stage of building renovations, the project will employ 75 full-time workers. The cannabis firm plans to construct a new building spanning 380,000 square feet which will employ 375 full-time construction workers.
Ulster County Economic Development Director Tim Weidemann wrote in a March statement the project will be “transformative” for the region.
After meeting and hearing from the community in April, County Executive, Pat Ryan, announced that Cresco Labs' updated proposal would see a doubling of capital investments and expanded job numbers.
In May, Cresco was granted a payment-in-lieu-of-taxes (PILOT) tax break by the Ulster County Industrial Development Agency (IDA). At the time, Cresco said in exchange it would build a new $209 million facility.
“Cresco Labs had requested a $27.99 million reduction in property taxes over 15 years and $10 million in sales tax exemptions for the construction of the plant,” reported journalist Cloe Callahan for the Times Union.
From Mid-Hudson Valley To Brooklyn And Long Island
According to the application, the value of the property is estimated to increase to $93 million after the facility is operational. Meanwhile, the total project cost, from land acquisition to construction is over $209 million. The facility will supply its cannabis dispensaries (Sunnyside) in Rockland County, Oneida County, Brooklyn, and Long Island.
“That means none of the annual sales will be subject to local sales tax, but the estimated value of annual supplies, raw materials, and vendor services to be purchased in the mid-Hudson Economic Development Region is estimated at $20 million (...) The majority of jobs at the facility will pay between $12.86 and $19.28 in hourly wages, with a goal of having 75 to 85 percent of the jobs filled by mid-Hudson region residents, according to the application.”
The firm will hold the groundbreaking ceremony on Thursday, Oct. 27.
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Photo By Clay Banks On Unsplash.
