New York State taxpayers have been subsidizing two gun manufacturers in New York, Remington Arms and Kimber Manufacturing, with more than $11.4 million in public funds while the products created by both companies continue to kill and injure thousands of innocent New Yorkers and they refuse to do anything to help.
Various tax-payer funded economic development agencies in New York, the majority coming from the Empire State Development Corporation, have given millions of dollars in the name of economic development to gun manufacturers that oppose simple, low-cost solutions to gun violence like microstamping that is supported by more than 80 police departments in New York. The firearm manufacturers refuse to take steps to protect public safety in New York despite the millions of dollars in public funds they have received.
To make matters worse, documents obtained by New Yorkers Against Gun Violence via FOIA requests and other research demonstrates that not only has Remington Arms received more than $9 million in tax payer funded grants but Remington is getting better treatment than almost all other companies and is getting the definition of a sweetheart deal. Since 2010, Economic Development Fund grants from ESDC have been awarded to more than 100 companies and the grants pay for an average of 10% of the overall project cost of the awarded company. Remington’s grant paid for a whopping 28% of the total project cost. At 28%, ESDC paid nearly 3x the average for Remington. When all other public funds are accounted for, New York tax payers footed the bill for 44% of Remington’s project.
New York Public Funding Awarded to Remington Arms
1999: $750,000 Empire State Development Corporation (ESDC) capital grant
2001: $250,000 ESDC training grant
2009: $1,500,000 ESDC JOBS Now Program grant
2009: $1,500,000 ESDC Development Assistance Program
2010: $1,655,000 ESDC Economic Development Fund
2010: $200,000 in electricity cost subsidies
2010: $750,000 NYS Community Block Development Grant
2010: $2,400,000 Congressional earmark
New York Public Funding Awarded to Kimber Manufacturing
2009: $700,000 ESDC Economic Development Fund
2011: $1,700,000 Yonkers Industrial Development Agency
Graph: Total public funding for Remington and Kimber since 1999
ACTUAL IMPACT OF EMPIRE STATE DEVELOPMENT CORPORATION TO REMINGTON
The Empire State Development Corporation and Remington Arms tout that the $1.665 million tax-payer grant awarded to Remington in 2010 would create 78 new jobs and retain 892 existing jobs. Both ESDC and Remington use these statistics to economically justify the millions of tax-payers dollars given to Remington.
The 892 jobs Remington says it will retain are dishonest and misleading. As can be seen in the image on the right, Remington states in its application, which is dated September 20, 2010 to ESDC that:
“On March 25, 2010 we announced a strategic rationalization decision that will result in the closure of our manufacturing facility in North Haven, Connecticut (the “Rationalization Decision”). The Rationalization Decision is expected to provide improved efficiencies and ultimately result in lower costs to customers and end users. We expect the closure to be completed by the end of June 2011. We will be relocating the production of the North Haven products to Ilion, New York, Mayfield, Kentucky, and Lexington, Missouri.”
In the application to ESDC, Remington was required to state how many jobs will be retained that would otherwise be lost but for the project support from ESDC. Remington stated that it would retain 900 jobs in Ilion, NY that would otherwise be lost but for the support from ESDC. The problem is that according to Remington’s own statement on the application, the decision to close the facility in North Haven, CT was made 6 month prior to Remington even submitting this application to ESDC for project support. The Ilion, NY plant was never going to close so Remington and ESDC should not claim that New York tax-payers funding from ESDC would retain 900 jobs in New York.
- ESDC 2010 Grant to Remington: $1,665,000
- Jobs Created from 2010 ESDC Grant to Remington: 78
- Cost Per Job from 2010 ESDC Grant to Remington: $21,346