The commitment is in place but there is still a lot of work to be done before construction can begin on the new manufacturing facility Edwards Vacuum plans to build at WNY STAMP.
Steve Hyde, CEO of GCEDC, said the proposed project, once built out, with 600 jobs, will be the largest new manufacturing plant in Genesee County history.
"That's about a 20 percent increase in our manufacturing employment," Hyde said.
But before the first person can be hired, there are permits to be obtained, an environmental review process to complete, site plans to review, and an incentive package with GCEDC to negotiate.
The permitting process will make the coming months a bit busier for officials in the Town of Alabama.
Typically, job-creation projects receive three primary tax breaks. The first is a PILOT, or payment in lieu of taxes. The PILOT forgives a portion of property taxes (the portion derived from an increase in assessed value) in exchange for payments to local governments. The second is a sales tax abatement on construction materials. And the third is a mortgage tax abatement.
GCEDC has yet to reach an agreement with Edwards on those incentives, which will require a public hearing and board approval once the details are worked out.
"All of that comes down to a fundamental thing -- is it a competitive world or not?" Hyde said. "And it's a very competitive world, especially for projects in the semiconductor industry. So you know, those are all important pieces that are negotiated."
Edwards doesn't hold all the cards in any negotiation, however. In prior interviews, both Hyde and Sen. Charles Schumer pointed out that STAMP is located along a growing semiconductor corridor between Fishkill and Ohio, and the Micron Technologies plant announced last month for the Syracuse area is a significant large potential customer for Edwards. And a source in Gov. Kathy Hochul's office pointed out in an email today Wolfspeed and Global Foundries, among others along the I-90 corridor, are existing or potential customers for Edwards.
STAMP also benefits from a renewable energy source, Niagara Falls.
Edwards Vacuum also stands to benefit from $20 million in incentives from the State of New York. Most of that money comes in the form of Excelsior Jobs Tax Credits. The company only receives the tax credits if they make the qualifying hires.
There is also a workforce development grant that Edwards can earn as it builds out its staff.
The increase in new plant development across the nation is being driven largely by the CHIPS and Science Act, a bill authored by Schumer, that provides $59 billion in grants along with tax credits for companies building out the nation's capacity for producing computer chips.
Edwards is moving forward with its plans even though the company cannot yet apply for CHIPS assistance.
"(Edwards) has plans to put in their own version of a CHIPS application," Hyde said. "But no one has an official commitment yet because the window isn't even open to put the applications in. The Department of Commerce says, I think, it's February when they'll start taking applications. And I know these guys plan on putting in a very thoughtful application as well."
If all goes to plan -- and Hyde said the GCEDC staff is committed to getting through the process smoothly -- contractors for Edwards could put the first shovel into the ground in the spring.
Edwards has committed to an 80-acre parcel in the northeast quadrant of STAMP, all east of Crosby Road.
One additional job for GCEDC is building out the infrastructure, such as sewer and water, for the site. Hyde said GCEDC will apply for a new state grant program to help pay for building infrastructure.
Edwards is planning to invest $319 million to build a manufacturing plant in two phases. The first phase will be 255,000 square feet, with 240,000 square feet dedicated to manufacturing. The remaining floor space will be used for a warehouse and administration. The second phase will be 130,000 square feet.
The company hopes to complete the first phase by the fourth quarter of 2024 and in that first phase, will employ from 300 to 350 people. The second phase will round out the anticipated 600 new hires sometime in 2026.
"They're not letting any grass grow under their feet on this project," Hyde said.
Photo: File photo.
