Regeneron’s Multi-Year Expansion in Westchester Now Pegged at Nearly $2 Billion
John Jordan | July 16, 2021
TARRYTOWN—The planned expansion of Westchester County-based Regeneron Pharmaceuticals has exponentially increased and is now valued at $1.8 billion.
The firm, which is seeking approvals from the Town of Greenburgh for an expansion plan valued at $480 million, is now moving forward with a multi-year expansion that will approach nearly $2-billion. The Tarrytown-headquartered firm’s updated expansion plans were announced by New York Gov. Andrew Cuomo on July 15.
The company will expand its research, preclinical manufacturing and support facilities at the company’s Westchester County campus in Tarrytown and create 1,000 new full-time, high-skill jobs in the Mid-Hudson Region over the next five years. Gov. Cuomo said that in return, Empire State Development is offering the company up to $100 million in Excelsior Jobs Program tax credits if its hiring goals are achieved. Regeneron considered several potential sites in the tri-state area before deciding to expand in the Mid-Hudson region, according to the governor’s announcement.
Regeneron intends to substantially expand its research and development capabilities in Tarrytown, which will include the addition of new preclinical manufacturing and process development suites, laboratories and office space. The project will encompass the design and construction and fit out of up to eight buildings, three parking garages and a central utility plant totaling approximately 900,000 square feet. Road infrastructure improvements will be necessary to support additional buildings at their existing Headquarters and R&D campus. The project is planned to take place in two phases over six years.
The direct and indirect fiscal benefit to state and local government is estimated to be more than $283.3 million and the estimated economic benefit to New York is nearly $2 billion. Construction planning will begin this summer and project construction will be completed in 2027.
“New York is proud to be at the forefront of the life sciences industry and the home of global biotech leaders like Regeneron,” Gov. Cuomo said. “The continued growth of Regeneron here in New York is yet another indication that we are leading the way in the life sciences and attracting the jobs of tomorrow. Not only will this expansion further drive economic growth in the Mid-Hudson Region, but fuel lifesaving innovation and development that benefits the entire world.”
Regeneron President and Chief Executive Officer Leonard S. Schleifer, M.D., Ph.D., said, “The COVID-19 pandemic has highlighted the importance of continued and long-term investment in the biopharmaceutical industry, and Regeneron is proud to pursue life-changing science and technology from our labs and manufacturing facilities in New York State. In 2020 and 2021, the Regeneron team has worked tirelessly, bringing forward new treatments for people with COVID-19, Ebola, multiple forms of cancer and pediatric atopic dermatitis. As we expand our team and site, we look forward to bringing even more medical breakthroughs to patients in need.”
Regeneron had recently amended an earlier expansion plan on property in the Town of Greenburgh from approximately $149 million to $480 million. Greenburgh Town Supervisor Paul Feiner tells Real Estate In-Depth that the proposal is nearing final approvals.
Garrett Duquesne, commissioner of community development & conservation for the Town of Greenburgh, stated that Regeneron’s expansion plan is before the Town Board, Planning Board, Zoning Board of Appeals. Decisions on the proposal are anticipated in August and September. Regeneron has previously secured approvals for an expansion of its campus of approximately 1 million square feet at 555 Saw Mill River Road. That project has yet to be constructed.
“We are very excited that Regeneron is expanding their Greenburgh campus- creating jobs, helping us with our tax base. It’s also great for property values—their future employees will want to live nearby. Many will purchase homes here,” Greenburgh Supervisor Feiner said.
On April 22, representatives of Regeneron Pharmaceuticals, Inc. made a presentation to the Westchester County Industrial Development Agency on an amended expansion plan for property in the Town of Greenburgh.
Janet Giris, a partner with the law firm DelBello, Donnellan & Weingarten, Wise & Wiederkeher, LLP who represented Regeneron at the IDA session, noted that the new project is an expansion of its Parcel D project originally proposed in 2015 as a building not to exceed 192,000 square feet that secured Westchester IDA approval, but never moved forward.
“Recently, Regeneron has been reevaluating its long-term space needs and determined that the originally approved Building D no longer meets its needs,” she said.
Giris said that Regeneron plans to submit an amended incentives application with the IDA for its new project that would involve the construction of a new two-story, 207,000-square-foot building, along with a parking structure and other infrastructure that will increase the development cost of the project (including equipment) by approximately $331 million to $480 million. The original plan called for the construction of a building totaling approximately 128,000 square feet of mixed lab/office space.
In its presentation, Regeneron estimates that construction costs will total $310 million, design costs $21.7 million and FF&E (furniture, fixtures and equipment) $148.9 million. The cost of the original project was estimated at $150 million. The firm estimated the tax savings it will secure will net approximately $7.7 million.
The new building will primarily house Regeneron’s pre-clinical manufacturing and process development operations. She reported that Regeneron recently applied to the Town of Greenburgh for amended land use approval on the Parcel D building.
According to a project timeline submitted to the IDA, Regeneron hopes to secure approvals from the Town of Greenburgh and necessary permits that would allow construction to begin sometime in the third or fourth quarter of this year with project completion slated for mid-2024.
To date, Regeneron has not appeared before the IDA since to discuss its amended plan. The next Westchester County IDA meeting is scheduled for Thursday, July 22. According to an agenda posted on its website, the IDA is expected to hear a cost benefit analysis of the Regeneron project.
Empire State Development Acting Commissioner and President and CEO-Designate Eric Gertler called Regeneron’s expansion “a game changer for the regional economy” that will “cement New York State as a world leader in the life sciences industry.”
Westchester County Executive George Latimer added, “Congratulations to Regeneron and thank you to Empire State Development. Westchester County is continuing to lead the way in the biotech industry. Not only is our county becoming a central location for the industry, but the people working here are living here and raising their families here. This expansion will not only create jobs and inspire future generations interested in pursuing a biotech career to stay right here in Westchester.”