Work Could Begin on Regeneron Pharmaceutical’s $1.4 Billion Expansion Project This Spring
John Jordan | February 28, 2022
WHITE PLAINS—Regeneron Pharmaceuticals, Inc. believes work could begin as early as this April on its $1.394-billion “Loop Road” expansion project in the Town of Greenburgh if the company secures necessary incentives from the Westchester County Industrial Development Agency and other sources totaling approximately $172.9 million and another $100 million in other public incentives.
The Tarrytown-based company’s proposed project in Westchester County received a major boost on Friday, Feb. 25 when the Westchester County Industrial Development Agency in a unanimous 7-0 vote approved the preliminary inducement of the sought-after sales tax and real property tax incentives for Regeneron.
Regeneron representatives noted that the company is also considering unspecified sites in New Jersey for the expansion project. At the session, Regeneron officials noted that the biopharmaceutical company had already begun construction on its Parcel D expansion project at its headquarters campus property in Greenburgh that is valued at $480 million, which secured incentives from the Westchester County IDA last year. The Parcel D project involves the construction of a new two-story, 207,000-square-foot building, along with a parking structure and other infrastructure.
The Loop Road expansion project would be an additional expansion involving the construction of eight new buildings, three parking garages and a central utility plant totaling approximately 724,000 square feet at 777 OId Saw Mill River Road. The development would be located on a portion of the 100 acres the company acquired for $72 million in 2015.
Therefore, the company’s expansion projects could total 921,000 square feet of space and a total investment of $1.87 billion.
The proposed Loop Road capital investment would serve to locate and staff multiple new R&D laboratories, administrative buildings, and amenities. Regeneron, which currently employs more than 3,300 full time employees at its corporate headquarters facilities in Tarrytown, stated that the project would retain 250 jobs at its campus property in Greenburgh, Mount Pleasant and Tarrytown and add another 700 new jobs at the property.
The construction of the project will result in approximately 2,500 construction jobs. In connection with the project, a study commissioned by the Westchester County IDA estimates that the construction project would generate $208.8 million in direct spending in Westchester County.
Regeneron, in its filings with the IDA, noted that “there is considerable interest” in expanding at the Westchester site, it is also considering less-costlier alternative sites in New Jersey. “The recent consolidation within the life sciences industry sector has made multiple real estate options with existing buildings available throughout the state. The estimated cost to locate Regeneron’s proposed facilities and new workforce in New Jersey over a 10-year period is significantly lower than the Tarrytown greenfield option. New Jersey also presents an attractive answer from a qualified labor pool perspective. Given Regeneron’s sizeable local workforce, the majority of which are New York residents, identifying, recruiting, hiring, onboarding, and training new employees is becoming more difficult and costly. New Jersey presents an advantage in this regard—the state has the highest concentration of scientists and engineers in the country and the fourth largest share of STEM graduates,” Regeneron stated.
The company later stated in filings with the IDA, “Given these considerations, if Applicant is unable to obtain Agency Financial Assistance for the proposed project, it will not materialize in New York. Wherever this project is ultimately located will likely become home to future expansion activity of a similar nature.”
Regeneron stated that if all approvals are secured and its selects Westchester for the Loop Road expansion, the acquisition of equipment could begin in April with site work on the property commencing between April and June of this year. Project completion on the phased project is estimated for Dec. 31, 2027. The project has secured approval from the Town of Greenburgh’s Planning Department.
Westchester County Executive George Latimer said of Regeneron’s planned investment and the IDA’s actions, “This investment is one of the most major developments we have seen in Westchester County in recent history. Regeneron has been on the cutting edge of the bioscience industry. We are pleased the IDA can be a significant part of it. We are proud Regeneron has chosen Westchester County as their home.”
A public hearing on Regeneron’s proposed Loop Road project must be held before the Westchester County IDA can finalize the approval of the incentives for Regeneron. The next Westchester County IDA meeting is scheduled for Thursday, March 24.