GCEDC

Press release:

The Board of Directors of the Genesee County Economic Development Center (GCEDC) today adopted its 2018 budget at the agency’s Sept. 7 board meeting.

Revenues include $25.5 million in grants (remaining funds from the original $33 million Buffalo Billion allocation) that are earmarked for infrastructure at the Western New York Science and Technology Advanced Manufacturing Park (WNY STAMP). The remaining projected revenue is comprised of project origination fees of $375,000; an allocation from Genesee County of $193,000; and, Revolving Loan Fund interest revenue of $4,600.   

Cash payments totaling $300,000 will be collected through project origination fee annuity streams that are attributed to projects that closed in prior years. Another $300,000 will be received from the Genesee Gateway Local Development Corporation (GGLDC) to support the agency’s overall Economic Development Program.

“We are always cognizant of our fiduciary responsibilities on behalf of the taxpayers of Genesee County,” said Lezlie Farrell, CFO of the GCEDC. “We continue to work hard to control and reduce operating expenses wherever possible despite a 12-percent increase in health insurance premiums in 2018 based on current estimates.”

As a public benefit corporation, the GCEDC generates fees from economic development projects and other sources to run the agency’s operations, programs, and services. Grant funds secured do not include any coverage for grant administration or other operating costs.

“For the last full year of data available in 2016, GCEDC projects contributed approximately $4.8 million in combined PILOT payments and property taxes to local taxing jurisdictions,” said GCEDC Board Chairman Paul Battaglia.

“This is a $22 dollar return on each dollar Genesee County allocates to GCEDC operations. We are extremely grateful for this support and believe it is providing the County with a significant return on its investment to our agency.”

Press release:

The Genesee County Economic Development Center approved incentives for development projects by Yancey's Fancy in Pembroke and Gateway GS LLC in the Town of Batavia at the agency’s Sept. 7 board meeting.

Yancey's Fancy is investing $5.5 million to renovate the original Kutters Cheese facility at 857 Main St. in Pembroke. The renovations will allow the company to nearly double its natural cheese making capacity by expanding the facility by 6,000 square feet, bringing the total size to 34,000 square feet. The project is anticipated to create 15 new jobs.

Yancey's Fancy was approved for approximately $173,000 in sales, and property tax exemptions. For every $1 of public investment, Yancey's Fancy will invest $117 into the local economy.

Gateway GS LLC is investing $2.6 million to construct a 25,000-square-foot shell spec built facility intended to attract warehouse, distribution, light manufacturing, technology and office space tenants. The building will be engineered as a shell so that prospective tenants will control the buildout, making it more flexible as compared to fitting out the entire building. It is expected that a complete build-out will occur in five phases.

Gateway GS LLC was approved for approximately $140,000 for sales tax and mortgage tax incentives. For every $1 of public investment, Gateway GS LLC will invest $6.90 into the local economy.

“As important as it is to bring new companies and investment to our community such as Gateway GS, it is just as important to help companies such as Yancey's Fancy that are already here to grow and retain and create new jobs,” said GCEDC Board Chairman Paul Battaglia.

Press release:

The Genesee County Economic Development Center (GCEDC) will consider approving incentives for a $5.5 million capital investment by Yancey's Fancy and a $2.6 million capital investment by Gateway GS LLC. Both matters will be considered at the Sept. 7 GCEDC Board meeting.   

Gateway GS LLC has applied for approximately $140,000 for sales tax and mortgage tax incentives for the new company’s proposed 25,000-square-foot spec building at the Gateway II office park.

Artisan cheese maker Yancey's Fancy is proposing to invest $5.5 million to expand and renovate the Kutter's Cheese facility on Main Road in Corfu. The project is expected to create 15 new jobs. Yancey's Fancy has applied for approximately $1.2 million in sales and property tax exemptions.

All GCEDC Board meetings are open to the public. The Sept. 7 meeting will take place at 4 p.m. in the Innovation Zone board room on 99 Medtech Drive, Batavia.

More than a decade of planning, preparation, promotion, lobbying, public hearings, and approvals have finally culminated in the first shovel in the ground for the Western New York Science and Technology Advanced Manufacturing Park (STAMP) in the northwest corner of Genesee County.

Contractors are making room for roads along with water, sewer, and electrical transmission lines, clearing brush and trees and grading the ground to specifications.

"We're pretty excited to be moving forward on infrastructure and breaking ground and turning it into a modern business park," said Mark Masse, VP of operations for Genesee County Economic Development Corporation.

The infrastructure project, which includes a new water main being installed down Judge Road in Oakfield to Route 77 and then out to STAMP, is covered by a $33 million budget appropriations in New York's 2014 state budget. 

The new sewer system is still in the design and approval process and electrical won't be completed until the first tenant -- probably 1366 Technologies -- designs its project and specifies its electrical needs, but all of that infrastructure will be covered by the 2014 budget appropriations.

The new Oakfield-Alabama water line will carry 200,000 gallons of water a day to the Town of Alabama and STAMP. A second water line will also be installed from Pembroke to STAMP, which will provide 600,000 to 800,000 gallons per day of capacity, giving STAMP access to nearly one million gallons of water a day.

As for 1366, the company continues to be engaged with GCEDC in preparations for construction of its solar wafer manufacturing plant, but is still awaiting final approval of a loan guarantee by the Department of Energy. The Trump Administration has yet to fill vacancies on the DoE's board, which must authorize final approval.

Rachael J. Tabelski, GCEDC's director of marketing and communications, said both Rep. Chris Collins and the office of Sen. Charles Schumer have been engaged in trying to help move the process along.

Tabelski also said tech companies looking for locations such at STAMP have shown a good deal of interest in the project. GCEDC has received 14 requests for information and hosted 10 site visits. The projects combined represent a total of $11.5 billion in investments.

"The sales funnel is full," Tabelski said. "There's a lot of interest in STAMP, so it's a matter of when not if."

When that when arrives, Genesee County and the entire region will be expected to provide the employees for these new companies, so GCEDC is also aggressively pursuing workforce development projects with area schools, colleges and universities, Tabelski said.

"There is going to be a need in mechatronics, nano technology, and STEM at all levels of these companies," Tabelski said. "We will have a need for all of these kinds of workers."

(STEM: Science, Technology, Engineering (and) Math.)

Press release:

Start-Up Genesee will hold the next “Think & Drink” event from 4 to 6 p.m. on Thursday, Aug. 31^st at The Harvester Center at 56 Harvester Ave. in Batavia, NY. 

The launch of the Think and Drink series hosted by Start-Up Genesee officially kicked off on Sept. 1 at The Harvester Center where regional business leaders and elected officials gathered to recognize and celebrate the entrepreneurial spirit in Genesee County.

“A lot has happened at the Harvester Center since the last Think and Drink event was launched almost a year ago,” said Tom Mancuso, owner of Mancuso Business Development Group. “I think this speaks to the entrepreneurial spirit of our community and the fact that this facility and space helps bring out that type of creative thinking.”

Guests are asked to meet at the Moon Java Café, which will be followed by tours of businesses and viewings of available space as well as demonstrations of the various business services available at the Harvester Makerspace. This event is free and open to the public.

The tour will include remarks from business owners, Renee Smart of Moon Java Café and James Dillon of the Harvester Makerspace. They will provide insight and share their experiences on how entrepreneurs can successfully work in shared spaces.

Resurgence Brewing Company, which recently announced it is opening a brewery in Batavia at Ellicott Station, will provide samples of its various craft beer selections. Resurgence specializes in making sour, wild and barrel-aged craft beers.

Sponsors for the event include Canandaigua National Bank & Trust, FreedMaxick, Merrill Lynch, Del Plato Casey Law Firm LLP, the University at Buffalo New York State Center of Excellence in Material Informatics and Bioinformatics & Life Sciences, Tompkins Bank of Castile and Tompkins Insurance.

For more information or to RSVP, please contact Rachael Tabelski at 585-343-4866 or rtabelski@gcedc.com.

A Rochester-based company is working on plans to build five structures in the industrial park bounded by Oak Orchard Road and West Saile Drive, known as Gateway II, that investors hope will attract new business and jobs to the area.

The Genesee County Planning Board was asked to review the site plan for five buildings that will be a mix of warehouse and office space on an 18.8-acres lot and last night the board recommended approval.

Dave Cuirzynski, representing Gateway LS LLC, a subsidiary of Gallina Development Corp., said the company plans to start with one structure, find a tenant and use that to attract more tenants for the other four structures.

"This gives us some added space for companies to come in and attract more businesses," Cuirzynski said. "We can start developing Gateway so it can do what it was intended to do."

Gateway II is a shovel-ready industrial park developed by the Genesee County Economic Development Center. It is 57 acres and includes facilities for Ashley Furniture and Milton Caterpillar.

Gallina is planning a $2.625 million investment in the project, leading to the construction of 25,000 square feet of building that a potential tenant can modify to meet any business need, from office space to warehouse to light industrial.

The other four buildings could be as large as 27,000 square feet.

According to GCEDC officials, the agency regularly received requests for proposals for ready-to-use space, but it often isn't available locally. This new construction will help fill that gap.

The company is seeking sales and property tax exemptions of approximately $140,000. A public hearing on the request will be held on a date yet to be announced.

Press release:

The Genesee County Economic Development Center (GCEDC) approved incentives for the $17.6 million Ellicott Station project by Savarino Companies in the City of Batavia at the agency’s Aug. 3 board meeting. The GCEDC Board also accepted an application for assistance from Gateway GS LLC, which is proposing to invest $2.625 million for a phase one development of a 25,000-square-foot spec structure in the Gateway II Corporate Park.

The $17.6 million development by Savarino is anticipated to create approximately 60 new jobs. It was recently announced that the first tenant for the site will be the Resurgence Brewing Company. This project would contribute to the Batavia Pathway to Prosperity (BP2) redevelopment fund and be eligible to draw funds out of the fund to support the project investment related to infrastructure and related improvements in and around the site which offers a “public benefit.”

As a part of the project, the Batavia Development Corporation (BDC) will submit a “certificate of consistency” and infrastructure development plan, which is a requirement to enable funding to flow from the BP2 redevelopment fund.

Savarino is receiving approximately $1.5 million in sales and mortgage tax and property tax exemptions. For every dollar of public benefit, the company is investing $21 into the local economy.​

A Rochester area developer has created an LLC and is planning to invest $2.625 million to build a 25,000-square-foot “shell” spec building at Gateway II in the Town of Batavia. The building allows potential customers the flexibility in final design while reducing construction lead time. The master plan will build out in four or five phases of 27,000-square-foot facilities, each on 10 acres.

The GCEDC receives several RFPs annually from companies looking for “ready to go” warehouse, distribution, light manufacturing, technology and office space tenants. This has been a market opportunity that the agency has been unable to pursue in the past.

The company is seeking sales and property tax exemptions of approximately $140,000. Since the incentives being sought are more than $100,000 a public hearing will be held at a date and time to be determined.

“We are anxious to see work get started at Ellicott Station as this is a major investment in the City of Batavia under the B2P program,” said GCEDC Board Chair Paul Battaglia. “The spec building being proposed at Gateway aligns with our success in taking the ‘build it and they will come approach’ at our various business parks which has proven to be a successful business model.”

(Photo of HP Hood Chairman John A. Kaneb taken this afternoon at his company's new processing facility in Batavia's Genesee Valley Agri-Business Park.)

With existing plants at capacity and demand growing, HP Hood was looking for a facility the company could get up and running quickly for long-shelf-life dairy and nondairy products, said its Chairman John A. Kaneb today in an exclusive interview with The Batavian at the company's new processing facility in the Genesee Valley Agri-Business Park. 

The plant was built in 2012 for $206 million as a joint venture between PepsiCo and Theo Muller Group and became known as the Quaker Muller Dairy plant.

Now, it's the HP Hood plant, which Hood acquired June 30 from Dairy Farmers of America for $54 million.

Kaneb said Hood knows Upstate New York well -- with four existing plants -- and knew the area had a good supply of raw milk, so when the plant became available, Hood took a keen interest.

"This plant happens to be located fairly well for us -- not ideally -- but fairly well," Kaneb said.  "The availability of the plant, that overcame a lot of, let's say, whatever reluctance we would have because we have to do a lot of very expensive repurposing here. We're moving from a plant that was designed for mass production of lots of yogurt to two fluid products. So that there were some warts and such, but we're very happy to be here."

The staff at Genesee County Economic Development Center made the whole process easy, understood it needed to be expedited, and that added to Hood's interest in locating in Genesee County, Kaneb said.

"Your economic development people here are superb," Kaneb said. "I mean they really are good and they're knowledgeable and they're friendly to business. Hopefully, we will not disappoint them."

Scott Blake, senior vice president of operations for HP Hood, added that the GCEDC staff provided a wealth of information on the area, businesses, and people, which helped them get comfortable with the decision to open a plant here.

HP Hood has committed to creating 230 jobs at the plant. They will take on the original PILOT (Payment In Lieu of Taxes) agreement signed by Muller Quaker to receive $7 million in tax abatements over 10 years. The state is also providing a $2 million capital grant from the Upstate Revitalization Initiative.

If employment goals are met, Hood is also eligible for $5 million in performance-based Excelsior Jobs Program tax credits. 

The 170-year-old, Lynnfield, Mass.-based company is adding 100,000 square feet of refrigerated warehouse space to the plant, which is already 363,000 square feet. After the expansion, with retooling the plant, and the purchase price, Hood will have sunk nearly $200 million into the new facility by the time it goes into production in early 2019.

There has been a rumor recently that the Hood plant could eventually employ 500 people. That's too far down the road to think about, Kaneb said, and he doesn't want to promise that level of growth. He believes they will hit the 230 employee target, but in the first priority is hiring 140 people over the next 12 months.

"I think we're we're confident that it will be reached, but I don't want to get into when we get to 230 or 250 or whatever," Kaneb said. "As far as going beyond that, I hope so. I will tell you that the only other situation that's halfway comparable to this is a greenfield plant we built from the ground up in Winchester, Virginia. We built that in basically 2000 to 2001. Today, 17 years later, here it is employing about 600 people. This plant has the acreage and, et cetera, et cetera, to do something like that, but that took 17 years."

(For photos of the Winchester plant, click here.)

Kaneb is a former Navy man. He graduated from Harvard in 1956, before joining the Navy, with a bachelor's degree in Economics. He acquired a controlling interest in Gulf Oil, tripled its sales to $4.5 billion, and got out of the business in 2005.

The Kaneb family acquired HP Hood in 1985.

It was almost happenstance that the family got into the dairy business, Kaneb said. The only way to grow the oil business was through acquisition, and with growth opportunities limited, they were sitting on excess capital that needed to be put to work. Hood was a great brand and as a native New Englander, Kaneb grew up drinking HP Hood milk. So did his children. But the company had fallen on hard times.

"(Hood) was a company with a great reputation and a great name," Kaneb said. "It was in some difficulty. In fact, a lot of difficulty. As we looked at we thought it might benefit from management that was highly motivated and with energy, et cetera. We thought we could bring some money to the table. We said, 'you know this isn't the business we know but it doesn't look like a complex business. It looks like a basic blocking and tackling business.' "

Since the acquisition, HP Hood has grown to $2 billion in annual sales and has opened new facilities around the Northeast and around the country, such as Virginia, California and Minnesota.

Hood’s portfolio includes its own brands and licensed products. The familiar names include Crowley Foods, Simply Smart Milk, Heluva Good!, Lactaid, Baileys Coffee Creamers, Hershey's Milk and Milkshakes, and Blue Diamond Almond Breeze.

When the Kaneb family took over Hood, they replaced much of the management, though they also identified some bright young talent, such as Blake, Kaneb said. Since then, Hood's executive team has been stable.

"(Blake) is certainly one of those stars who could take on more responsibility," Kaneb said. "We found those who had the skills that have helped us build the company into what it is today," Kaneb said. "It's really common sense, frankly, having a true partnership with your employees. If you want to put a motto on it, how we as owners look at the business and the employees, is that 'You take care of us, we take care of you.' Very simple."

Kaneb said he thinks that approach has been good for the company and it's what potential employees can expect in Batavia.

"You take care of us, we take care of you," Kaneb repeated when asked about company culture. "I mean, do your job and do it well and then you'll find the company will appreciate it and take care of you. We prize low turnover and we have low turnover, I would say, very low turnover, at every level."

As for the kind of corporate citizen Hood will be in Batavia, Kaneb said getting involved in the community is something Hood will strive to do, but the first order of business is getting the plant into production.

"First of all, get our business set up," Kaneb said. "We need to get to the level of employees we need to get going. I would call that, from my Navy days, as the shakedown period. Then we can be open to being a reasonably active corporate citizen. I don't think it's a great idea for us to do anything but get ourselves comfortable here, with the employees we need, and get our production going and so on. That should be our sole activity for the foreseeable future."

Public Notice:

NOTICE IS HEREBY GIVEN, that the Genesee County Legislature will hold a public hearing on the submission of an application for Community Development Block Grant funding from the New York State Office of Community Renewal to provide financing to assist in the establishment of milk processing operations at the former Muller Quaker Dairy facility at the Genesee Valley Agri-Business Park in the Town of Batavia, New York by HP Hood LLC.  More detailed information regarding the project will be presented at the hearing.

NOTICE IS FURTHER GIVEN that the public hearing will be held at the Old Courthouse, 7 Main Street, Batavia, NY on the 19^th day of July, 2017 at 5:30 PM. All persons who wish to speak will be heard. Written comments are invited and will be accepted upon delivery to: Clerk, Genesee County Legislature, 7 Main Street, Batavia, NY 14020 prior to the hearing. The hearing location is in compliance with accessibility standards under the Americans with Disabilities Act.

Announcement: 

From Governor Andrew M. Cuomo:

Fellow New Yorker,

New York is one of the largest dairy producers in the country, being home to nearly 5,000 dairy farms and more than 600,000 dairy cows.

And the majority of the farms in the state are family-run operations -- that's why it's crucial the state invest in hard working New York families and ensure they have the support they need to succeed.

Tomorrow, I am announcing the details of a new partnership that will create hundreds of new jobs at an idle dairy facility in New York.

Join me tomorrow, July 11th at 12:30 p.m. as I unveil the details of this new investment.

WHAT: Announcing new investment in New York dairy industry
WHEN: Tuesday, July 11th at 12:30 p.m.
WHERE: Genesee Valley Agri-Business Park
5140 Ag Park Drive, Batavia 14020

Thank you for your support, ever upward.

Governor Andrew M. Cuomo

Press release:

The Genesee County Economic Development Center (GCEDC) will consider approving incentives for three projects at its meeting on Thursday, July 13, in the Innovation Zone board room on 99 Medtech Drive, starting at 4 p.m.

The Board will vote on whether to approve incentives for a $7.1 million expansion for a new 40,000-square-foot warehouse and service center for West Seneca-based Freightliner Western Star.

The expansion will create 24 new jobs and the center will be located adjacent to the New York State Thruway and next door to the Genesee Valley Educational Partnership (GVEP).

The GVEP graduates are seen as an "ideal" workforce for the new facility. Freightliner Western Star is seeking approximately $662,000 in sales, mortgage and property tax exemptions.

The popular Coach Tony’s, which makes a wide variety of food sauces, is seeking to expand its operations in the Town of Bergen. The company is expanding and planning on constructing a 5,000-square-foot building on three acres at Apple Tree Acres. The project will create three new jobs. Coach Tony’s is seeking approximately $50,000 in sales, mortgage and property tax exemptions.

The third project for consideration by the GCEDC is a $170,749 GAIN! loan fund for First Light Creamery in East Bethany. The loan will be used to assist with its existing production of goats' milk cheese from local distribution to regional distribution by adding to their barn, and associated infrastructure, to house more goats.

The GCEDC Board meeting is open to the public.

Update:

A planned public hearing at Tuesday night's City Planning & Development Committee meeting was postponed until next month to give Ellicott Station offiicals more time to deal with State Environmental Quality Review and other issues, said Duane Preston, chair of the planning board.

"We did a sketch plan review and overall it seems to be a great project," Preston said.

He said questions from the board focused on the height of the five-story apartment building -- "it will result in a bit of an up-and-down skyline," Preston said -- as well as the amount of parking and the size of a glass front facade.

---------------

No one from the public spoke at a public hearing on Tuesday afternoon at City Hall where $1.5 million in mortgage, sales and property tax abatements for the Ellicott Station project were presented.

The hearing was officiated by Chris Suozzi, Genesee County Economic Development Center vice president of business development. The completion of the public hearing now sets the stage for the GCEDC Board of Directors to approve the tax incentives as outlined in a press release below.

Samuel Savarino, president of Savarino Companies and developer of Ellicott Station, attended the public hearing, along with Julie Pacatte, Pier Cipollone and Mary Valle of the Batavia Development Corporation.

Savarino noted that he would be at the meeting of the Batavia Planning & Development Committee tonight, along with the project's architect and site engineer.

The Buffalo businessman said he has encountered numerous "challenges" with the project, but the biggest one -- getting proper financial aid -- already has been overcome.

"We have surmounted the major hurdle, closing the $5 million gap with help from Empire State Development and new market tax credits to make this happen," he said. "Overarching development costs make it difficult to make the economics work (without state assistance)."

Savarino also pointed out that the site of the former Santy's Tire Sales and Soccio & Della Penna Construction companies also presents flood hazards, is part of the Brownfield Opportunity Area (which warrants remedial work) and sits on top of what is being called a "grand canal" or tunnel that runs from the corner of Ellicott and Jackson streets right through the Ellicott Station property.

A portion of the canal, which is being utilized by the city, is located directly under where one of Savarino's apartment/retail buildings would be constructed.

On a positive note, he said he has encoutered similar problems in his many years as a developer and is optimistic that engineers will be able to work around this water-filled obstacle.

Savarino added that he has lined up investors and lenders, and hopes to start demolition and construction by this fall, with an eye on being "open for business" in the fall of 2018.

The mixed-use development will consist of a retail brewery/restaurant operated by Resurgence Brewing along with 16,800 square feet of office space and a five-story apartment building.

Savarino said rent for a one-bedroom, top floor corner unit will be around $1,200 per month while a two-bedroom unit with two full bathrooms will go for around $1,600 per month. Each apartment will feature a washer and dryer and a balcony, and the 51-unit building will include a fitness center and ground floor parking.

Pacatte said the BDC is looking at Ellicott Station as its "beacon of hope" for the city's bid to receive a $10 million Downtown Revitalization Initiative award (see story below).

"We're using Ellicott Station as the anchor for our DRI proposal, focusing on the quality of life piece -- especially on the south side of the city," she said.

Valle, owner of Valle Jewelers on Jackson Street, said that major improvements on Ellicott Street "will raise the bar for all of us" in regards to building upkeep and maintenance.

Press release:

The Genesee County Economic Development Center will hold a public hearing at 4 this afternoon to consider financial incentives for the Savarino Companies for the redevelopment of Ellicott Station in downtown Batavia. The public hearing will take place at City Hall.

The approximate 64,000-square-foot development will be a mix use of residential, office and retail spaces; a brewery; small beverage warehouse and hops processing facility; entertainment and event area; outside seating; and integration of the new Ellicott Trail pedestrian pathway.

The $17.6 million project is estimated to create up to 60 good paying full-time jobs.

The proposed incentives include $897,293 in sales tax savings, $128,232 mortgage tax savings and $537,398 in property tax savings. 

The project is being done through the “Batavia Pathway to Prosperity” (BP2) program which was created through an inter-municipal agreement between the City of Batavia, Genesee County, the Batavia City School District, the Batavia Development Corporation and the GCEDC.

BP2 was conceived to pool resources in order to invest in distressed areas in the City of Batavia. The BP2 program will be implemented though PILOT increment financing (PIF), referred to as the “BP2 fund,” which is the first of its kind in New York State where all local taxing jurisdictions are participating. 

Supported by the redirection of 50% of new project PILOT payments, the BP2 fund will play a critical role in generating development within the Batavia Brownfield Opportunity Area (BOA), a 366-acre area within the City of Batavia containing five strategic redevelopment sites.

Press release:

The Genesee County Economic Development Center will hold a public hearing at 4 this afternoon to consider financial incentives for the Savarino Companies for the redevelopment of Ellicott Station in downtown Batavia. The public hearing will take place at City Hall.

The approximate 64,000-square foot development will be a mix use of residential, office and retail spaces; a brewery; small beverage warehouse and hops processing facility; entertainment and event area; outside seating; and integration of the new Ellicott Trail pedestrian pathway.

The $17.6 million project is estimated to create up to 60 good paying full-time jobs.

The proposed incentives include $897,293 in sales tax savings, $128,232 mortgage tax savings and $537,398 in property tax savings. 

The project is being done through the “Batavia Pathway to Prosperity” (BP2) program which was created through an inter-municipal agreement between the City of Batavia, Genesee County, the Batavia City School District, the Batavia Development Corporation and the GCEDC.

BP2 was conceived to pool resources in order to invest in distressed areas in the City of Batavia. The BP2 program will be implemented though PILOT increment financing (PIF), referred to as the “BP2 fund,” which is the first of its kind in New York State where all local taxing jurisdictions are participating. 

Supported by the redirection of 50% of new project PILOT payments, the BP2 fund will play a critical role in generating development within the Batavia Brownfield Opportunity Area (BOA), a 366-acre area within the City of Batavia containing five strategic redevelopment sites. 

Press release:

Genesee Community College's Board of Trustees Monday evening approved its first-ever application for participation in the Start-Up New York program, which permits eligible companies to operate tax-free on or near SUNY campuses for 10 years. Trustees approved Tencar Inc. for participation, a medical equipment manufacturing firm founded in 2011 by Georgann M. Carrubba, of Basom, a 2003 graduate of GCC's Nursing program.

Tencar will operate in the Genesee County Economic Development Center's Med Tech Park, located on the south side of Hawley Drive, across from the Batavia Campus. Genesee Community College designated the Med Tech Park as part of the Start-Up NY zone two years ago.

The Start-Up NY application will now be forwarded to the New York State Empire Development Corporation and State University of New York for review and final approval. Reid J. Smalley, executive director of Workforce Development, said that approval may come within the next 60 days, permitting Carrubba to begin operating in the Med Tech Park.

Carrubba, who serves as CEO of the company, developed and patented an innovative ostomy device that prevents awkward leakage and odor among patients with colostomies and related conditions. The product is expected to go to market later this year. Product components will be 100-percent made in the United States, and Carrubba has concluded an agreement with the 3M Company to use its products in the manufacturing of TenCar devices.

The Start-Up NY program is open to new or expanding businesses that align their operations or products with academic disciplines taught at SUNY campuses and some private college and university campuses. Genesee Community College students in the Nursing, Fashion Design and Business programs will have the opportunity to learn product design, customer service, business operations, and entrepreneurship principles from TenCar. The company hopes to make internships available to GCC students and hire GCC graduates in the future.

Prior to the Board's decision, the College's Start-Up NY Committee scrutinized the company's plans and operations, and determined that the company's presence in the GCC Start-Up NY Zone would benefit the College and its students.

President James M. Sunser said that he and the staff were proud of Carrubba, and believed that TenCar, a graduate-founded company, is an especially appropriate choice for Start-Up NY participation. Several trustees praised Carrubba and said they believe her company's innovative product will make a significant difference in the lives of ostomy patients.

Press release:

The marketing efforts of the Genesee County Economic Development Center (GCEDC) were recognized during the New York State Economic Development Council’s (NYSEDC) annual meeting in Cooperstown on May 24^th and 25^th.

The GCEDC received Certificates in Excellence in the categories of Multimedia Advertising and Printed & Electronic Newsletter and Honorable Mention in the Brochure and Annual Report categories.

The Multimedia Advertising Award is shared between the City of Batavia, the Batavia Development Corporation and the GCEDC. That award recognized the “Bet on Batavia” video produced in 2016 for the Downtown Revitalization Initiative competition

“We were very proud of the collaboration to produce the ‘Bet on Batavia’ video,” said Jason Molino, Batavia city manager. “We will once again utilize the video, and other social media platforms and strategies as we pursue funding from New York State’s Downtown Revitalization Initiative."

“Collaboration is an extremely important component of economic development especially in presenting a unified vision for a community and region,” said Pierluigi Cipollone, president of the Batavia Development Corporation. “In this instance, the video told a powerful story about the uniqueness and pride we have in our city.”

The NYSEDC annually recognizes the economic development marketing efforts of its member organizations.

“These awards demonstrate creativity, impact, and visual appeal by our members who are effectively marketing their communities for economic development purposes,” said Brian McMahon, executive director of the New York State Economic Development Council.

“Economic development is extremely competitive with regions, states and countries competing against each other, so it is imperative that our marketing materials stand out among those making investment decisions in Batavia and Genesee County,” said Steve Hyde, president and CEO, GCEDC.

“Our marketing team under Rachel Tabelski and the marketing professionals at our economic development partners do a tremendous job in distinguishing our region through the materials they collaborate on to produce.”

NYSEDC has been the state’s principle organization representing economic development professionals, businesses, and colleges and universities for more than 40 years.

Press release:

The Genesee County Economic Development Center (GCEDC) Board of Directors approved the selection of LeChase Construction Services of Rochester at the agency’s June 1 board meeting. The GCEDC Board approved the selection based on the recommendation of the members of the GCEDC STAMP Committee.

The $3.18 million project includes the trenching and installation of approximately 50,000 square feet of pipe that will extend from the Town of Oakfield to the site of the Science, Technology and Advanced Manufacturing Park (STAMP). The work also will include connecting some households on Church Street and Maple Road in the Town of Alabama.

The project is being funded through $33 million allocated to STAMP by New York State to make the 1,250 mega-site shovel ready for advanced manufacturing operations, including 1366 Technologies.

“It’s exciting to see the first substantive infrastructure work that starts the process of making STAMP a shovel ready site,” said Steve Hyde, president and CEO of the GCEDC. “It really enhances our opportunities to market the site to those who are in the planning process of identifying shovel ready sites to build the next generation of advanced manufacturing facilities.”

Press release:

The Genesee County Economic Development Center (GCEDC) accepted an application for assistance from the Savarino Companies for the redevelopment of Ellicott Station in Downtown Batavia at the agency’s June 1 board meeting.

The approximate 64,000-square-foot development will be a mix use of residential, office and retail spaces; a brewery; small beverage warehouse and hops processing facility; entertainment and event area; outside seating; and integration of the new Ellicott Trail pedestrian pathway.

The $17.6 million project is estimated to create up to 60 good-paying full-time jobs. For every dollar of public sector investment there is an anticipated private sector investment of approximately $25.

The project is being done through the “Batavia Pathway to Prosperity” (BP2) program which was created through an inter-municipal agreement between the City of Batavia, Genesee County, the Batavia City School District, the Batavia Development Corporation and the GCEDC. 

BP2 was conceived to pool resources in order to invest in distressed areas in the City of Batavia. The BP2 program will be implemented though PILOT increment financing (PIF), referred to as the “BP2 fund,” which is the first of its kind in New York State where all local taxing jurisdictions are participating.

Supported by the redirection of 50% of new project PILOT payments, the BP2 fund will play a critical role in generating development within the Batavia Brownfield Opportunity Area (BOA), a 366-acre area within the City of Batavia containing five strategic redevelopment sites.  

”The collaboration among various government jurisdictions is simply smart economic development,” said Paul Battaglia, GCEDC Board chairman. “The BP2 program is an opportunity to attract development and jobs to the urban core of Genesee County and just as important, create vibrant neighborhoods in economically disadvantaged areas of the city.”

As anticipated, Buffalo-based Savarino Companies has applied for financial assistance from the Genesee County Economic Development Center to help offset the costs of environmental cleanup and redevelopment of the long-vacant Della Penna property on Ellicott Street in the City of Batavia.

The GCEDC board will consider the application for the $17.6 million rehabilitation project at its meeting tomorrow.

Savarino is planning to replace most of the structures on the property and replace them with a 64,000-square-foot development that will include apartments, office space and a brewery and restaurant.

Once completed, there will be 47 market-rate apartments on the border of Downtown Batavia and businesses employing at least 60 full-time workers.

The terms of the application were negotiated by the city and GCEDC during the process of attracting a developer for the brownfield project and include $897,293 in sales tax abatement on materials during construction, relief on $128,232 in mortgage taxes and $537,398 in property taxes.

Savarino has already announced an anchor tenant for the Ellicott Station project, Resurgence Brewing Company of Buffalo, which plans to use the facility to increase production of a new product, a sour beer, as well as serve on tap its full line of beers that have proven popular in Buffalo.

The project is part of the Batavia Pathway to Prosperity (BP2) initiative, which is a cooperative endeavor between the city, GCEDC, Batavia Development Corp., City Schools and Genesee County.

BP2 was created to offer a tax abatement known as a PIF (PILOT (payment in lieu of taxes incremental financing), which is the first of its kind in New York. Half of the PIF payments will be used to help fund future brownfield redevelopment in Batavia, with the other half being returned to the original taxing jurisdictions.

The Batavia Opportunity Area (the brownfield redevelopment area) covers 366 acres in the city's core and contains five strategic redevelopment sites.

There should be no lack of motivation for Dairy Farmers of America to start production back up at the former Muller Quaker Dairy plant in Batavia it acquired in January 2016 for $60 million.

That was a big outlay on a plant that is considered state-of-the-art, is USDA certified, close to milk supplies, in the midst of a transportation hub, and cost PepsiCo and Theo Muller Group more than $200 million to construct.

There is also more milk being produced than there are places to process it in the Northeast and that has led to some milk dumping so it doesn't get added to the market supply.

Finally, there is the whopping $655,155 tax bill DFA paid in 2017 over and above what their obligation could have been with a new PILOT (Payment In Lieu of Taxes) agreement, which is wholly contingent on Kansas City, Kansas-based DFA putting the plant to productive use.

Genesee County Economic Development Center CEO Steve Hyde notified officials with City Schools, Genesee County and the Town of Batavia in January that those jurisdictions could expect suspension of the PILOT agreement Muller Quaker received to build the plant because there was no clear indication what DFA planned to do to live up the basic premise of the PILOT, which is that there would be people working at the plant.

"They will pay full taxes until it's back in productive use and people are back to work," Hyde told The Batavian. "DFA has been good with us and good to work with, but we want to see the plant back in productive use, and they want their members to be able to ship milk to that plant."

The Batavian obtained copies of the letters sent to local officials through a FOIL (Freedom of Infomation Act letter) request. The letters show that City Schools received an extra $427,397, the county received $180,476, and the Town received $47,282.

Hyde said the payment requirement was consistent with the original terms of the PILOT and would not have come as a surprise to DFA.

As for DFA's plans, spokeswoman Kim O'Brien said the plans are taking shape. It's a lot of work to bring a number of big players together to get a plant like this back into production, but she said DFA would announce its plans within weeks.

It's unclear if DFA will operate the plant itself, partner with other companies, lease it or sell it, and O'Brien said she couldn't comment beyond acknowledging that DFA would make an announcement soon.

There are reportedly other major players in the dairy industry interested in the plant and Shelly Stein, a co-owner of Stein Farms in Le Roy, a DFA member, said it's common knowledge that DFA has had the plant on the market, but she also doesn't know what DFA's plans are. She said she's just eager to see it processing milk again to help alleviate the oversupply problem for dairy farmers.

"In the dairy business, there are a lot of partnerships and relationships that go into running plants like this, and that's the model DFA uses," Stein said. "I believe that is still the thought process and as a member of the cooperative, I look forward to that plant being up and running, but at this point, all of the stars have to line up. The size of that plant means it's not going to be an overnight fix."

Sarah Noble Moag, of Noblehurst Farms in Linwood, and also a DFA member, said they are eager to see the plant reopen, but they also understand why it's taking so long to get something going.

"After having seen Muller Quaker come in with its business plan and fail, we want to see something for our local economy and our local jobs that is more stable, and if that takes a little more time to plan, then so be it," Noble Moag said. "We all know in this business how long those negotiations can take, especially for an asset that size."

According to documents obtained by The Batavian as part of a FOIL request, there was active communication between GCEDC and DFA, but in July, the communication, at least the written communication, abruptly stopped. We are told that's an accurate reflection of the state of things from that point forward, that there isn't any communication not part of the response to the FOIL request.

In February of 2016, DFA officials were diligent about making sure its logo was added to the business part sign along Route 5. In March, Chris Suozzi, VP of business development, started trying to find out from DFA officials what their plans were so he could put together a new incentive package that recognized the expense of the retooling of the plant.

Jackie Klippenstein, with DFA, asked for clarification on possible incentives on April 28, telling Suozzi, "it appears discussions at the end of the hall are intensifying."

In response, Suozzi wanted to know how much DFA was planning to invest in the plant. 

The number he got back was $250,000 for equipment and $100,000, rough estimate, for labor.

On April 29, 2016, he emailed Jackie Klippenstein to try and clarify DFA's plans.

"Based on other food processing facilities in our county, that number appears low, unless you're making yogurt," Suozzi wrote. "Can you share what products will be produced? Maybe I can understand better. Will you be using existing equipment from Muller Quaker Dairy? Do you already own equipment that you're bringing in? If so we will need to understand the capital expense."

He also asked, "is the 150 jobs to start or is a ramp-up schedule over the course of time (i.e. 2-year ramp up)?"

Suozzi apparently didn't get a response and followed up on May 3 and suggested a phone call.

Klippenstein responded May 10 and said, "We aren't quite ready -- but I expect information in the next 2-3 weeks. Stop and go, stop and go ... sorry but feeling optimistic."

Suozzi again followed up on June 1, 2016, and Klippenstein responded, "Thanks for checking in. I've been told July is the golden month when things will start to come together -- decisions made."

On July 6, 2016, Suozzi again requested a project update and the documents obtained by The Batavian, which we are told are complete, contains no response from Klippenstein or anybody else from DFA.

As part of the documents obtained by The Batavian, there is a state form DFA was required to fill out which lists employees and wages paid for 2016. The NYS-45-ATT shows DFA had seven employees at the plant with a total payroll of $408,006. The names of the employees are redacted, but the top gross pay was $72,195, with one other employee earning more than $70,000, two making more than $50,000, one making $41,883, and three earning at least $35,000. Their job duties are not listed as part of the form.

Hyde, like other officials we've talked to around the county, remains optimistic that the plant, so big, so well situated and well suited to dairy processing, will eventually be put to productive use. It's just a matter of time.

"It's not perfect what happened, but we have a couple hundred million dollar processing plant that is essentially new and largely funded on the backs of PepsiCo and Theo Muller," Hyde said. "We'll eventually have a production facility in there. It's a great asset to have in our community."

Stein, who is also a county legislator, agreed.

"It’s an asset that continues that get a lot of traction," Stein said. "I’m glad it’s in DFA’s hands. It’s the largest dairy cooperative in the nation. As a member, when a deal is worked out, whomever or whatever it’s going to be, it's going to be good for all milk producers in the area one way or another because it’s still milk."