GCEDC

A service company from Bethany will receive $45,956 in tax abatements to assist in its expansion and relocation to Stafford, announced the Genesee County Economic Development Center today.

Adams Welding and Fabrication is constructing a new 5,616-square-foot building at 5782 Main Road, Stafford (next to the Batavia Party House).

The project will create half a job and retain one.

Adams is investing $175,000 in the project.

The estimated PILOT (payment in lieu of taxes) on the project is $39,131. Adams will also receive a sales tax exemption on construction materials of $5,200 and a mortgage tax exemption of $1,625.

The company is also seeking $25,000 from GCEDC's revolving loan fund.

The direct economic benefit to the community is estimated at $855,000 ($18.61 for every $1 of abatement).

Press release:

The Genesee County Economic Development Center’s (GCEDC) Advanced Manufacturing and Nano-Technology Certificate training program has passed the halfway point and 24 students are on track to graduate on Nov. 18, 2011. Students have engaged in classroom work at Genesee Community College (GCC) and hands-on training at Rochester Institute of Technology (RIT).

“Going to RIT was one of the most exciting days so far, Statistical Processing Control was fascinating,” said Dawn Hart, program participant. “Finally I understand how some of the formulas we learned during statistics class can be applied to the manufacturing process."

The Advanced Manufacturing and Nano-Technology program is funded by a grant from the New York State Office of Community Renewal and is free to the current participants. The training program is designed to prepare participants for entry level manufacturing positions by introducing them to the skill sets necessary to succeed in a high-tech and advanced- manufacturing environment. GCEDC, in conjunction with GCC and RIT have developed the program in an effort to bridge the gap between employers and prospective employees.

Not only are the students learning lean manufacturing, blueprint reading, CAD, programmable systems and other core skills, but they have the opportunity to tour local manufacturing operations and hear from industry experts. Greatbach Medical, Automotive Corp., Liberty Pumps, Syntec Optics, Sigma LLC, and Alpina Foods have all participated in the training program, connecting with students and further validating the need for this type of training. 

“I was pleasantly surprised with the type of questions asked by the class when I had completed the condensed employee orientation presentation,” said Doug Smith, plant manager at Automotive Corp. in Batavia. “I believe that the class represents an excellent first group for the launch of the program and their efforts will result in contributing to the future of the program."

Successful program participants will earn a certificate in Advanced Manufacturing and Nano-Technology and have an opportunity to meet with local employers at the conclusion of the program. Participants will be surveyed in the future to gain further insight into the program’s success in placing persons into jobs, or fostering an interest in an individual to continue in this field of study. 

With many local manufacturers expressing an interest in the graduates of this program, the GCEDC, in conjunction with GCC and RIT, will continue to seek funding for this certificate program.

By this time next year, there will be a factory in Batavia turning out 4,000 tons of yogurt on an annual basis, employing 55 people and buying milk from local dairy farmers.

The first step toward that goal was taken today with a ceremonial groundbreaking by South America-based Alpina Products at the site of its planned 40,000-square-foot facility.

“Alpina’s decision to locate in Batavia is a success for the entire region,” said Town of Batavia Supervisor Greg Post.

Alpina started marketing yogurt products aimed at U.S. consumers in the Northeast several years ago. The Batavia plant will be its first U.S.-based manufacturing facility.

Managing Director Carlos Ramirez Zavarce said Alpina was built on European tradition and now embraces American pride in expansion in New York.

Batavia, he said, was part of a list of 50 potential sites for the plant when Alpina first started planning for growth, but quickly moved to the head of the class.

Besides a strong dairy tradition and an abundant supply of milk, as well as trained workers and easy access to a market area of 125 million potential consumers, local leaders demonstrated, he said, that they would be as committed to Alpina's success as the company's executives.

"We understood that you got the message that if we were successful, you would be successful," Ramirez said. "That was very important for us. We have no doubt we're going to have success here. This is the right location, the right place."

After the groundbreaking, attendees were invited to sample Alpina's yogurt products and there was a strong sense of excitement about this initial factory opening in the long-anticipated agri-business park.

“Today’s groundbreaking of Alpina Foods’ first manufacturing facility in the United States is proof that Batavia is a great place to do business,” said Sen. Michael Ranzenhofer. “Alpina’s $15 million investment and its decision to create 50 jobs sends a clear message that other private-sector companies should consider Genesee County for their next investment.”

GCEDC CEO Steve Hyde has said previously that there are other prospects for the business park in the pipeline, but until deals are signed, he is unable to provide public details.

VIDEO: Promotional video from Alpina.

Alpina CEO Julian Jaramillo

Alpina Managing Director Carlos Ramirez Zavarce

Roger Parkhurst, who will be director of operations at the new plant

Sen. Mike Ranzenhoffer and Assemblyman Steve Hawley

GCEDC CEO Steve Hyde

The plans for growth are aggressive, even lofty, according to Batavia City Manager Jason Molino, but if GCEDC is successful in building the Genesee Valley Agri-Business Park to capacity, it could be a boon for Batavia's sewer system and the ratepayers who support it.

The increase in revenue could potentially allow the city to both lower rates -- already among the lowest sewer rates in Western New York -- and fund replacement of aging sewer lines.

Even though the agri-park is in the Town of Batavia, the sewer effluent flows at some point through the city to the city-operated wastewater plant. The town pays the city a fee to ship effluent from the town to the plant. Every thousand of gallons of effluent that flows to the plant will generate $2.81 for the city. (NOTE: Paragraph re-written to clarify the agreement between the town and the city.)

It would take only one O-AT-KA Milk Products-sized plant to make a huge difference, Molino said.

"If you were to see something like another O-AT-KA come in overnight, you could see a huge benefit," Molino said.

The city manager's remarks followed a special meeting of Batavia City Council where the council unanimously approved a plan to provide sewer service to the agri-business park (Councilman Bill Cox recused himself because of a potential conflict of interest).

The development of the park received a significant boost this spring when Alpina Products agreed to build a new yogurt factory on the site. Escrow on the sale of that parcel is expected to close Monday.

The sewer agreement between the city, Town of Batavia and the Genesee County Economic Development Center is key to closing the Alpina deal. 

It calls for the GCEDC, with a contribution from O-AT-KA, to use state grants to build a sewer system for the agri-business park and the O-AT-KA facility. The system would include two new pump stations -- one within the jurisdiction of the town and the other within city limits on O-AT-KA's property. The city and town would take possession of the completed pumps and sewer lines.

Just expanding capacity for O-AT-KA is a huge benefit to the city, Molino said.

"O-AT-KA is our biggest sewer user, our biggest water user," Molino said. "It is one of the largest employers in the county. It gets a larger sewer line to discharge into, so they’re not constrained anymore and they have the opportunity to grow. That infrastructure is coming to us free, no cost to the city users. The other thing is that Ellicott Street (sewer line) is going to be open now for greater growth. So we’ve got two opportunities there."

Some of the sewer lines in Batavia are up to 50 years old. 100 years old, many more are at least 50 years old. It's infrastructure that needs to be replaced pretty soon. And while the city has one of the most aggressive capital improvement projects for its sewer and water systems in the state, there is still a huge need to move quickly to replace old lines.

"To me, that’s really exciting (if the agri-park is successful), to be able to do sewer line after sewer line project, to replace aging infrastructure," Molino said. "That's really exciting."

During the council meeting, Steve Hyde, CEO of GCEDC (inset photo), told the council that the current gravity system on the Ellicott Street line, the one currently used by O-AT-KA, can only handle 500,000 gallons per year and O-AT-KA needs significantly more capacity to grow. The expansion will give O-AT-KA up to 2.5 million gallons per year of potential flow.

He said the agreement with Alpina is a huge step forward for the project and Genesee County.

"When is the last time we saw a major manufacturer come into the greater Batavia area?" Hyde said. "Maybe 40 or 50 years? We’ve seen a lot of them move out, but not too many move in. Maybe this is the start of something good for our community."

It could also be the basis for pushing forward consolidation between the town and city, one council member observed.

The joint agreement has the Town of Batavia buying sewer capacity from the city and reselling it to agri-park tenants.

The town and the city already have a joint agreement in place for processing effluent in the city's wastewater plant, but the agri-business park highlights the difference in sewer rates between the town and the city.

The town's rate is $5.35 per thousand gallons. If the city and town consolidated, town landowners, including agri-park tenants could potentially pay the city's current retail rate of $3.14 per thousand gallons.

An agri-business park plant producing 15,000 gallons per day would save nearly $12,000 annually paying the city's rate.

Regardless of the rate paid by agri-park tenants, the effluent is all flowing to the same treatment plant, and the quality and efficiency of that plant is the main reason city rates are so low, Molino said.

"That plant is a resource that I don’t think people understand," Molino said. "It’s a special plant. It’s 350 acres. It’s one of the largest lagoon plants east of the Mississippi. It doesn’t use chemical treatment. It’s natural treatment, so there’s no chemical cost. Only four people run it, seven days a week. You find me a sewer plant that has low labor costs like that, low treatment costs -- that's why our sewer rates are some of the lowest in Western New York."

A group of people who either hold the purse strings or are in a position to influence business owners who might be willing to relocate to Genesee County received a tour Thursday of the shovel-ready business parks in Genesee County.

The group included representatives of commercial lending institutions in Rochester and Buffalo, real estate agents and staff from the Small Business Forum and the USDA Rural Development office.

Also on the bus were representatives from Sen. Kristen Gillibrand's office and the office of Sen. Mike Ranzenhofer.

After lunch and a briefing at Batavia Downs, the group stopped first at the planned site of Alpina Products in the Genesee Valley Agri-Business Park. From there they headed out to Bergen, then to the Med-Tech Park, then Town of Batavia's Gateway project, then Pembroke and Buffalo East, followed by the location of the proposed STAMP project in Alabama.

The management of Blue Heron Construction, out of Jordan, is a little baffled about why they didn't get the contract for the sewer project at the Genesee Valley Agri-Business Park.

Genesee County Economic Development Center awarded the contract to Sergi Construction out of East Aurora even though Blue Heron's bid was $200,000 lower than Sergi's.

"It just seemed quite strange to award the contract to the second bidder," said C.W. Gregory, chief of operations for Blue Heron.

Blue Heron bid $2,024,101.50. Sergi bid $2,227,810.

Mark Masse, VP of operations for GCEDC, listed three main reasons the agency went with Sergi over Blue Heron.

First, according to Masse, Blue Heron officials admitted that they didn't have time to fully review the specs for the job. Clark Patterson Lee, the architect of the project, raised a concern that Blue Heron's bid didn't fully account for all the possible variables in the project.

Second, Clark Patterson's staff expressed concern that Blue Heron underestimated the amount of epoxy that would be needed to complete the project. The difference could mean from $20,000 to $60,000 in additional cost, while, according to Masse, Sergi overestimated the amount of epoxy needed by $60,000.

Third, Blue Heron, Masse said, has more projects in the pipeline than Sergi.

"Blue Heron has a sizable backlog of work," Masse said. "We were concerned that they would not be able to meet the aggressive time line that we needed them to meet in order to complete the project on time."

The first project in the agri-business park, Alpina products, is scheduled to break ground before the end of summer and GCEDC is contractually obligated to deliver a sewer system up to spec and on time.

Matt Rodenhizer, V.P. of Blue Heron, said he doesn't think GCEDC can legally bypass the low bidder based on the amount of work the low bidder has under contract. He also said that even if more epoxy was need, the Blue Heron bid would still be more than $70,000 lower than Sergi's.

The company is considering legal action and is also waiting on a letter of explanation from Clark Patterson that Rodenhizer said he isn't sure they will get, even though they've requested one.

Gregory said when it came to specifications for epoxy, the bid document and the spec document weren't necessarily aligned and even Clark Patterson's reps seemed confused on the point when Blue Heron interviewed for the job.

Gregory and Rodenhizer disputed Masse's claim that Blue Heron hadn't thoroughly reviewed the documents.

They also said the company has more than enough manpower to complete the project on time.

"They don't know how big of a company we are," Gregory said. "We could have put two or three crews on the project to get it done on time."

Currently, Blue Heron has four contracts totaling more than $5 million on other projects through Clark Patterson that are closing out or well under way, said Rodenhizer.

"We've never had a problem with Clark Patterson before," Gregory said. "We've worked well with them and it was a shock after the fact not to get the contract."

O-AT-KA Milk Products Cooperative, Inc., is receiving $204,000 in tax abatements through the Genesee County Economic Development Center (GDEDC) for an expansion at its facility at 700 Ellicott St., Batavia.

O-AT-KA intends to build a two-story dairy processing facility for producing dairy-based beverages and "ultra-filtered" milk ingredients. The project summary reads, "The additional dairy batch blend capacity allows more dairy-based products to be manufactured at O-AT-KA for shipment both nationally as well as exports."

Both projects would use milk produced exclusively in New York. O-AT-KA is receiving sales-tax exemption on construction material of $204,000. The estimated 10-year return on investment into the local economy is $21.2 million.

Graham Corp., of 20 Florence Ave., Batavia, is receiving a tax abatement of $125,906, through the GCEDC for the addition of a 10,000-square-foot sandblasting and painting building. Graham is receiving an $89,088 property-tax exemption (PILOT) and a sales-tax exemption on building materials of $36,818. The estimated 10-year economic impact is $89.8 million

Marktec Products, Inc., has been approved by the GCEDC for $57,109 in tax abatements for relocation to the Genesee Valley Agri-Business Park. Marktec, owned by Bill Cox, will build a 5,002-square-foot building on two acres of land in the park. The company will receive a property-tax exemption (a 60 percent PILOT) of $32,739, a sales-tax exemption on building material of $18,800 and a mortgage-tax exemption of $5,570. The project is expected to retain four jobs and create two new jobs. The estimated return on investment over 10 years for the local economy is $2.45 million.

Press release from the Genesee County Economic Development Center:

For the second year in a row Genesee County has been recognized in the top five of the rankings for Metro Food Processing Industry Growth by the National Site Selection publication, Business Facilities Magazine (July/August Edition). Genesee County has New York State's highest percentage of classified farmland, three of the top 100 vegetable farms nationwide and is first in agriculture sales statewide. More than two-thirds of Genesee County's acreage is used for agriculture and employs more than 1,500 workers.

Agri-Business is the number one industry in Genesee County and naturally where the crop is grown and the cows are plenty, food processing plants spring up. Genesee County is home to O-AT-KA Milk, Yancey’s Fancy, Allan’s Canning, and the new home of Alpina Foods, LLC. 

“The completion of the Genesee Valley Agri-Business Park and the announcement of Colombia-based Alpina Foods, LLC’s decision to build its first U.S. manufacturing plant at the park underscores the strength of our region’s food and beverage manufacturing sector,” stated Steve Hyde, president and CEO of Genesee County Economic Development Center (GCEDC). “We have strategically invested in building an infrastructure to attract food and dairy processing companies."

Alpina, one of the most recognized dairy companies in the world and a leading dairy producing company in Colombia and South America, has decided to open its first specialty yogurt manufacturing plant in the United States by mid-August and will be the first occupant of the Genesee Valley Agri-Business Park. 

The GCEDC has developed the largest agri-business park in the nation.  The Genesee Valley Agri-Business Park, a public-private partnership between GCEDC and Farm Credit East, encompasses 202 shovel-ready, pre-permitted acres in the center of Western New York.

The park was designed with food-processing companies in mind, and on site there is access to low cost process water via a local aquifer – that produces more than 6+ million gallons per day and a pretreatment facility (Ecolab). A robust utility infrastructure throughout includes rail access. In 2010 municipal water lines were brought into the park as well as gas and electric and the main roadway was constructed. Recently the GCEDC was awarded a $3.9 million New York State grant to bring rail and a cross dock into the park. 

Supporting the agri-business industry of Genesee County are world-class Universities including Cornell and Rochester Institute of Technology (RIT). Cornell University is the leader in food science research and transfers research-based information and technology for the food systems of New York State. Within the department of Food Science, six organizations specifically provide direct support to the dairy industry.

RIT’s Packaging Science Department works closely with a variety of companies in Genesee County and across the U.S. to create sustainable environmentally friendly packaging. The university also explores cooperative global opportunities for students to work in manufacturing facilities.

The university resources, skilled workforce and available facilities, combined with the area’s steep agri-business and manufacturing heritage give rise to unbridled growth in Genesee County’s food processing capabilities.

In business, it often comes down to location, and Bill Cox thinks he's found the perfect location to move his business -- to the new Genesee Valley Agri-Business Park.

"I have the opportunity, if all the stars align, to do a significant amount of business (in the new park)," Cox said following a Town of Batavia Planning Board meeting Tuesday evening.

The board approved a site plan for Cox to build a 5,002 sq. ft. facility on two acres of land just inside the new park.

There had been some question as to whether Cox's business, Marktec, was sufficiently agriculture related to be allowed in the park, but Cox said almost all of his customers are food processing companies.

Marktec makes the machines that encode information -- the little laser-printed use-by dates -- on food and beverage packaging.  

The Batavia city councilman currently has an office on Ellicott Street across from the Chapin plant and Oatka Milk headquarters. Moving into the town, Cox said, is going to help him convert new tenants of the agri-park into customers.

Being right in the park will give Marktec greater visibility with the food processing companies anticipated to move in. (So far, only Alpina Products has committed to building in the agri-park.)  That should translate into more sales of his high-speed label machines. It will also give food processing companies a convenient local vendor for supplies and service of existing equipment.

Chris Suozzi, VP of business development for Genesee County Economic Development Center, said Marktec fits well with the proscribed types of businesses being allowed into the ag park. The parcel Marktec will build on is also not prime real estate. While it's near Route 5, it's not right at the entrance and the location is not well suited for construction of a manufacturing facility.

Cox said he is founder, sole owner, president and chief sales person for Marktec, which has been in business for 28 years.

The company currently has four full-time and one part-time employees. With the move, Cox said he anticipates hiring another salesperson and a second full-time tech within the next three years.

The following projects have been approved for tax abatements for job-creation and retention projects, according to the Genesee County Economic Development Center:

• An $18,000 sales tax exemption has been approved by the GCEDC board for Ken Barrett Chevrolet, 229 W. Main St., Batavia, for expansion of its collision shop. The shop will expand from 7,833 square feet to 15,536 square feet and will cost $635,000. Three new jobs will be created and 10 jobs retained.
• Graham Manufacturing, 20 Florence Ave., is planning an expansion of its finishing (sandblasting and painting) operation. GCEDC has granted a sales tax exemption of $36,818 and a PILOT tax abatement of $89,088. The project will create an estimated 30 new jobs and help retain 278 existing jobs. The $1.8 million expansion will add 10,000 square feet of manufacturing space to the facility.
• Angelica Textile Services, Inc., 1-3 Apollo Drive, will receive a $15,125 mortgage tax exemption to help refinance its current $1.2 million mortgage. The project will help retain 78 jobs in Batavia.
• J&L Feed is planning on converting current greenhouses at 47 West Main St., Corfu, into a project called "The Market," which will create a floral shop, fresh meat and deli market and a general store. An approximately 3,400-square-foot building will be constructed and existing greenhouses will be demolished. J&L will receive a $22,000 property tax exemption, $4,800 sales tax exemption and a $1,250 mortgage tax exemption. An estimated three jobs will be created.

Press release:

The Genesee County Economic Development Center (GCEDC) is pleased to announce the addition of Michael J. Bakos as grant program coordinator for the center's Advanced Manufacturing and Nano-Tech Certificate Training Program. Bakos has more than 30 years of managerial experience in the biomedical industry and holds an A.A.S. degree in Electronic Technology from Erie Community College (ECC) as well as a B.S. degree in Management from the Rochester Institute of Technology (RIT). He is a resident of Genesee County, serves on the Town of Pembroke Planning Board, and is president of the Akron-Newstead Rotary Club.

In his role as grant project coordinator, Mr. Bakos will manage, coordinate, implement, support and evaluate a noncredit certificate training program that will prepare participants for entry level positions in advanced-manufacturing and high-tech industries such as microelectronics and photovoltaics. The program was developed to satisfy the demands of this growth sector in Genesee County and the surrounding Western New York and Western Finger Lakes regions.

Program participants will receive an introduction to the skill sets necessary to succeed in a high-tech and advanced-manufacturing environment. The program is a joint-venture partnership between the GCEDC, Genesee Community College (GCC), the Rochester Institute of Technology (RIT) and Genesee County, with training taking place at the Genesee Community College and Rochester Institute of Technology campuses.

"Mike’s background, training and experiences with a large high-tech, life-science company will be an asset to our program," says John Jakubowski, GCEDC workforce development consultant.

"This is an exciting opportunity for myself and for the residents of our community that are planning to enter or re-enter the local workforce," says Mr. Bakos. "The program covers a diversity of topics including teambuilding, LEAN Manufacturing concepts, computer applications, work readiness activities, and technical subjects such as microelectronics, surface mount technology, and polymer processing."

The program is offered "free" to qualifying applicants. Applications for the program are now being accepted and are available through The Genesee County Career Center, 587 E. Main St., Suite 100, East Town Plaza, Batavia, NY 14020.

Press Release:

Washington, D.C. – U.S. Senator Kirsten Gillibrand is urging U.S. Commerce Secretary Gary Locke to approve the application submitted by the Genesee County Economic Development Corporation (GCEDC) and the Genesee Gateway Local Development Corporation (GCLDC) for a Foreign Trade Zone (FTZ), a measure that could help attract more businesses to the region, help local businesses find new markets, and create more local jobs. 

In her letter to Secretary Locke, Senator Gillibrand wrote, “This designation would allow for important incentives that could help reduce the cost of doing business for participating companies, increase their competitiveness, and help them access new opportunities to expand their markets. The foreign trade zone designation will also minimize the need for businesses to shift their operations to foreign countries to be nearer to new markets, keeping more jobs within the United States.”

“A foreign trade zone designation for Genesee County will allow existing companies to compete in the global marketplace and attract new companies to Western New York,” stated Steve Hyde, President and CEO of the GCEDC. “Many existing companies will save money on parts they import allowing them to hire more local employees.”

Specifically, an FTZ designation allows for substantial cost savings for businesses on import duties, merchandise processing fees, faster delivery, and higher security. Thousands of businesses use FTZs to handle both foreign and domestic products each year, with more than $30 billion in merchandise exported from FTZs to foreign markets.

The GCEDC is an organization devoted to fostering increased economic activity in local communities throughout the Genesee County region. The GCEDC’s efforts include actively marketing the county to businesses and facilitating capital investment that contributes to the creation of jobs in the region. In fact, GCEDC has sponsored 160 projects, leveraging nearly $45 million in private investment into local businesses, and helping to create or save nearly 6,000 local jobs in the last six years alone.

Comments will continue to be accepted until June 23 on the Western New York Science Technology and Advanced Manufacturing Park -- known as the STAMP project.

At the request of the Alabama Town Board, the Genesee County Economic Development Center (GCEDC) has extended the deadline for residents to submit comments on the Draft Generic Environmental Impact Statement, or DGEIS.

Anyone wanting to weigh in on the Final Generic Impact Statement and what it should address or include can write to: Mark Masse, senior vice president of operations at GCEDC, 99 MedTech Drive, Suite 106, Batavia.

Last night, residents attended a public hearing at the town hall to voice their concerns, such as increased traffic, possible discharges into water during manufacturing processes and how Alabama would benefit by allowing the park to locate within its jurisdiction.

“The purpose of the meeting [last night] was to solicit comments and feedback from the public on the DGEIS which has been released for public review. The GCEDC believes that objectives of the meeting were met,” Masse said in a statement.

The site consists of about 1,300 acres along Route 77.

“The purpose of the project is to develop a high technology manufacturing center with a focus on renewable energy and to provide economic development opportunities within the region,” according to the draft plan.

While the first phase of construction could begin within the next few years, the park may not be fully developed for another 10 to 25 years.

The document says, “The DGEIS analyzes several alternatives for the STAMP site. The Preferred Alternative includes 6.1-million square feet of development, including, among other things, technology manufacturing facilities; flex space and support facilities, office space, retail support uses, a new multi-use Town Hall building site, and a network of open space and trails that meander throughout the property.”

In regard to bringing water to the proposed park, the DGEIS explains that a “phased approach” would be necessary.

“Water resources and large diameter water mains are very limited in the vicinity of the project area. This results in a challenging and complex situation to providing an adequate water supply to the STAMP site.”

Many sources were considered and studied because such a high-volume of water demand calls for more than one supplier, according to the document. A summary of the alternatives considered can be found here.

The DGEIS also includes -- in the Economic Impact Analysis -- projected decreases in property tax rates as follows:

The Town of Alabama could realize a decrease in the tax rate per $1,000 in value from $1.11 to 11 cents.

Genesee County could realize a decrease in the tax rate per $1,000 in value from $9.82 to $7.97.

Oakfield-Alabama School District could realize a decrease in the tax rate per $1,000 in value from $23.73 to $16.94.

GCEDC officials made clear in a statement that all comments received would be compiled into the Final Generic Impact Statement which, when finished, will be made available to the public at the Alabama Town Hall, GCEDC offices and online.

Press Release from GCEDC:

On April 14, during a board meeting of the Genesee County Economic Development Center (GCEDC) a resolution to approve the Draft Generic Impact Statement (DGEIS) for the Western New York Science Technology and Advanced Manufacturing Park was approved. The DGEIS has been completed and accepted by the GCEDC as Lead Agency for the proposed action.

On February 10, reports to the public of the preliminary findings of the DGEIS were presented at a public information meeting at the Town of Alabama Fire Hall.

The completed DGEIS, which was approved by the GCEDC board, includes an economic impact study, environmental studies, master plan update, traffic impact study, utility plan summary, proposed Comprehensive Plan amendment and farmland protection plan. The contents of the completed DGEIS have not changed significantly from what was presented in February.

The proposed action being examined by the DGEIS is the construction and operation of approximately 6.1 million square feet of advanced technology manufacturing and ancillary facilities, along with on-site utility improvements, on 1,337.20 acres of land in the Town of Alabama.

The WNY STAMP site is located along New York State highways 77 and 63, approximately 5 miles north of the I-90 New York State Thruway. The proposed action will involve rezoning the property pursuant to the Town of Alabama Zoning Laws. 

According to the DGEIS the buildable area of the WNY STAMP project is 46 percent of the entire site. The remainder of the land would remain as open space. The intent of the master plan design is to blend the manufacturing park into the existing fabric of the community.

The Hamlet of Alabama is separated from the STAMP site by a subtle ridgeline and gracious landscape setbacks from existing uses. As part of the open space system, only 9.5 acres of wetlands would be impacted by the current design, and the site will retain its rural nature.

The park will be built to high-tech industry standards, in line with employee expectations, and will respect its surrounding context and environment. 

The WNY STAMP site has seen several interested companies who were looking for locations on the East Coast and close to Canada. The companies were excited about the site, but it was not “shovel-ready” enough for their purposes.

“Planning, preparing and developing a shovel-ready site designed for appropriate industries, and having local community approval will help to secure companies at the WNY STAMP site,” stated Steve Hyde, president and CEO of the GCEDC.

"Developing the necessary infrastructure to attract investment from outside the region is one of the most important roles that the GCEDC takes on for our county. A site zoned for a particular purpose, where a company can begin building quickly, at the speed of business, is the best way to bring jobs to our community.”

A public hearing is scheduled for May 12 at the Town of Alabama Fire Hall. The hearing will begin at 7 p.m., and residents are welcome to attend and comment on the DGEIS. Postcards will be sent to the residents of the Town of Alabama next week as a reminder of the meeting. 

Copies of the DGEIS are available at <http://www.gcedc.com>, in print at the GCEDC offices, located at 99 MedTech Drive in Batavia, and at the Town of Alabama office.

Press release:

The Genesee County Economic Development Center (GCEDC)  is offering a pilot training program in Advanced and High Tech Manufacturing that will be offered this fall.

The program will be funded through a grant secured by the GCEDC in cooperation with Genesee County.

The minimum qualification to apply is a high school diploma or its equivalent.  Current high school seniors, who will graduate in June 2011, are eligible to apply.

The 11-week training program will take place on the campuses of Genesee Community College (GCC) and the Rochester Institute of Technology (RIT). There is no cost to applicants selected to participate in the pilot program and transportation between the GCC and RIT campus will be provided.

Individuals selected to participate will have the opportunity to attend sessions that will train them in the basic skills needed for jobs in advanced manufacturing and nano-technology. Course work will include work readiness skills, metrics, and an introduction to lean manufacturing to name a few of the topics at GCC.

Hands-on experiences will continue at RIT in lean and advanced manufacturing and nano-tech workshops in quality control, microelectronics, photovoltaics, surface mount technology and optics among others. Successful participants will receive a non-credit Certificate in Advanced Manufacturing and Nano-Tech Concepts from GCC.

A more detailed program description and information on the application process is available on the GCEDC Web site at www.gcedc.com <http://www.gcedc.com>. To locate, go to the GCEDC home page, click on “About Genesee County” and the tab “Workforce Development." Applications are available through the Genesee County Career Center, located in the East Town Plaza, 587 E. Main St., Suite 100, Batavia.

As a matter of "consistency," the Genesee Economic Development Center Board on Thursday approved tax abatements for a proposed Holiday Inn Express near the Thruway in Batavia.

The project will get a 60-percent PILOT (Payment in Lieu of Taxes), and relief from mortgage taxes and sales taxes on construction materials.

Several local hotel owners showed up for the meeting at the Upstate MedTech Center, but none where given a chance to speak. They previously expressed their concerns at a public hearing attended by GCEDC staff, but no board members. Last month, staff members presented a detailed report to the board on the owners' objections.

Mark Masse, senior VP of operations, said in a brief statement to the board today that he researched some of the claims made by hotel owners -- about the impact more hotel rooms would have on occupancy rates -- and concluded, "an analysis of the data could be interpreted in many different ways."

Past hotel projects that received GCEDC assistance included construction of the Best Western in 2002 and the Hampton Inn in 2002. In 2008 and 2010, local acquisitions of hotels received tax abatements (but no PILOT) and the Travel Lodge and Clarion have recently received PILOTs.

Masse concluded, "It's my recommendation as a policy decision to either be consistent with previous 60-percent PILOTS, mortgage tax and sales tax abatements, or is it the decision of the board not to help these types of projects going forward."

Board Chairman Hollis Upson spoke in favor of being consistent.

"There is some argument for the fact that additional rooms could be brought into the market without severe impact to existing hotels," Upson said. "It's certainly not the EDC's intention to harm any existing business, but we also want to be consistent."

After the meeting, the attorney for the existing hotel owners argued that there is no precedent for these tax abatements. He said the prior abatements for more rooms were granted years ago before the market was saturated.

"All of the data is that the 12-month occupancy rate never gets above 50 percent," said Thomas J. Warth, of Hiscock & Barclay. "Most of the properties are in the 40-percent area, and that's distressed property range."

Amid all of the controversy surrounding the Genesee County Economic Development Center three months ago, Senior VP of Operation Mark Masse suggested an informational meeting where everything about how the GCEDC works and what it is working on could be explained to the public.

He booked a room that could seat 150 people and was worried it might not be enough space.

On Monday night GCEDC hosted its first public information meeting in a conference room at the Upstate MedTech Center.  

Twelve people showed up.  

None of the attendees were people who have publicly criticized GCEDC. No one asked pointed questions or raised any substantial concerns about how GCEDC operates.

Masse made a straightforward presentation about why GCEDC exists, what it is up against in New York, how tax abatements work and what projects are in the pipeline.

GCEDC exists because other jurisdictions are also competing for business development, and the competition isn't necessarily in states that have an image problem.

"Companies think New York is closed for business," said Masse. "When they think of New York, they think of taxes, regulations and unions."

The challenge for GCEDC is to break through that image and present Genesee County and Western New York's benefits, which includes median home prices of $85,000, about two million qualified workers, major universities nearby such as RIT, U of R and UB and attractive lifestyle amenities.

While GCEDC doesn't always win the location competition, once the case is made, the decision by the company to take a pass, if it does, usually comes down to factors out of GCEDC's control, Masse said, such as the business climate changing for the business (and expansion being put on hold) or change in leadership in the relocation team that changes the company's agenda.

Masse said part of his presentation was also designed to address the myth that GCEDC is giving away taxpayer money to companies. In truth, the tax breaks companies get is on taxes that would never be paid if the company didn't expand or relocate, Masse said.

In the example Masse gave, if a company does locate to a facility in Genesee County, local tax revenue actually increases at the same time the company saves a substantial amount of money.

The example: Acme Corp. will build a $15.5 million facility with a promise to create 50 new jobs in the first two years. It will purchase 10 acres of land and build a 30,000 square-foot factory. 

GCEDC will likely offer a sales tax exemption on manufacturing materials for construction of the factory, a mortgage tax exemption and a PILOT (Payment in Lieu of Taxes) contract over the first 10 years of the increased assessment on the property.

The PILOT only covers the value of increased assessment. Property taxes remain the same on the original assessment (also, any fire district taxes cannot be abated, even on the increased assessment). 

So, if the new assessed value is $3.5 million, the company would still pay the $6,130 in taxes on the original assessed value, but in the first two years, pay no taxes on the increase in assessed value. 

In the third and fourth year, the company pays 20 percent of the new taxes, or $21,826 in each of the years.  

The amount of taxes graduates from there every two years.

By the 10th and final year of the PILOT, the company is paying 80 percent of the increased assessment, or $87,304.

If the company had been paying full assessed value each of those 10 years, it would have been paying $109,130 in taxes annually.

Over the course of the 10 years, at full value, it would have paid $1,091,300 in property taxes. Under the PILOT, the property taxes paid over 10 years are $436,520 on the increased assessed value, while paying $61,300 on the original value.

If the company hadn't built the project, the property would have generated only $61,300 in taxes instead of more than $500,000 in taxes.

At the same time, the company has saved more than $500,000 in taxes over the full assessed value rate.

Masse also shared GCEDC's financial results from 2010 (previously reported here).

He then explained the purpose and progress of each of GCEDC's major projects, which are Gateway I, Gateway II, Apple Tree Acres, Buffalo East Tech Park, WNY STAMP, Genesee Valley Agri-Business Park, Upstate MedTech Park and Oatka Hills I and II.

New York's regulatory environment is a big problem GCEDC's CEO Steve Hyde told legislator's during a meeting in the Old Courthouse on Wednesday afternoon.

A "making it up on the fly" attitude among mid-level bureaucrats helps to chase business away from the state and makes it harder for Genesee Economic Development to operate, Hyde said.

His examples: A Department of Labor opinion saying GCEDC should have paid prevailing wage in the construction of the MedTech facility; the Authorities Budget Office compensation report; and new difficulty in getting a rail line built into the Agri-Business park.

"It’s funny when you're trying to do progressive business development, how bureaucrats who really don't understand business development will make up new regulations on the fly," said Hyde during a meeting of the Ways and Means Committee.

Hyde also provided financial data on GCEDC's performance, noting that the county's $250,000 (approximate) annual investment in GCEDC has been leveraged into: $18.7 million in capital investment by area businesses; 116 PILOT projects that currently generate $2.2 million in new tax revenue -- and will eventually generate $4 million for local governments; and an increase of $2.2 million in sales tax revenue.

According to Hyde, for every $1 invested by Genesee County in 2010 in GCEDC, $16.54 in tax payments are returned to the various taxing jurisdictions in the county.

Much of this information will be presented at a public information meeting April 11, but so far, only 11 people have signed up to attend.

As for the regulatory climate, Hyde started off talking about the Department of Labor opinion and the conclusion of its attorney that the Genesee Gateway Local Development Corp. should have paid prevailing wage on construction the MedTech facility.

"We had an attorney from the Department of Labor unilaterally write a decision against our nonprofit LDL because the LDL has some sort of association with the (Industrial Development Agency)," Hyde said. "I don't know how one attorney in a single regulatory agency can issue an opinion that pierces the veil of state and federal law on nonprofits."

He called the idea of labeling a nonprofit corporation a public entity a "travesty" and "disrespectful of nonprofit laws in this country."

"If we fail on this one, it will be a very expensive issue not just for us, but could effect the college and the county directly," Hyde said.

On the Authorities Budget Office report, Hyde called the agency a young regulatory body that engages primarily in writing new rules for IDAs to follow -- regulations that haven't been enacted by elected officials.

"They come up with interpretations that are far reaching beyond any legislation," Hyde said. 

On the Agri-Business Park, Hyde said that no major food processor will want to move into the park without it being connected to rail lines. The GCEDC has received a grant to build a rail line, but one "mid-level" bureaucrat in the Department of Transportation office in Rochester is holding up the funding.

"He's got us jammed up right now," Hyde said. "Now I'm going to have to work the chain, go to Hawley or Ranzenhofer. I told him, 'It's not your job to make regulations on the fly.'"

Besides the difficulty the GCEDC is facing with its own regulators, Hyde said the Department of Environmental Conservation is making it harder for businesses to build and expand in New York. As an example, Hyde said the DEC is expanding its "short form" environmental impact application from one page to four.

"One of the questions is about 'environmental justice,'" Hyde said. "How do you like that term, 'environmental justice'? It's just absurd."

Senior VP of Operations Mark Masse said the regulatory environment is one of the reasons an agency like GCEDC is needed, to help level the playing field with other states.

"We think it's bad living in NewYork, but there are people outside of New York who think we're closed for business because of these issues," Masse said. 

But there may be help on the way. Hyde, and Legislator Hollis Upson, reiterated that that the Cuomo administration seems to be taking concerns about over-regulation seriously.

Members of the GCEDC recently met with Lt. Gov. Robert Duffy, Hyde said, and Duffy was quite concerned about what he heard and promised specifically to look into the Department of Labor and ABO issues. 

"Duffy really did seem interested in trying to knock down some of this bureaucracy," Hyde said.

To look at a reported $592,000 in profit and $4 million in assets for GCEDC, it seems obvious to wonder if the oft-criticized industrial development agency is going to give back some of the $238,000 it received from Genesee County taxpayers in 2010.

It's not that simple.

First, what we often refer to as GCEDC is really two organizations. There is the Genesee County Industrial Development Agency -- doing business as the Genesee County Economic Development Center, which is a public-benefit corporation -- and there is the Genesee Gateway Local Development Corp., a not-for-profit corporation.

As far as profits go, GCEDC generated a positive cash flow of $4,860 in 2010.

The GGLDC reported net unspent revenue of $589,183.

But it's not like that money is sitting a bank somewhere with the GCEDC having free reign on its distribution.

Much of the money comes from grants, both from state and federal agencies and entities such as National Grid and can only be used for designated purposes. It's money received but not yet spent and, though it will be spent, it can only be spent on specified projects and programs.

A $1.3 million increase in 2010 in operating revenue for GGLDC comes from a $900,000 Empire State Development Grant for the STAMP project in Alabama; and new rent revenue of $300,000 from tenants of the MedTech Center, opened in 2010.

Other grant revenue included $19,353 from National Grid for gas meters and service at MedTech; $175,000 from National Grid for STAMP; and a state grant of $752,716 for phase II development of STAMP.

In all, GGDLC had operating revenues in 2010 of $1.778 million and operating expenses of $1.189 million.

In 2010, GCEDC had $935,592 in revenue, which included a 77-percent increase over 2009 in fees from companies receiving GCEDC assistance. In 2009, there were $361,152 in fees paid. For 2010, that figure was $639,550.

Total operating expenses for GCEDC in 2010 was $930,732, which included $689,100 in salaries, wages and benefits.

As for GCEDC sitting on $4.4 million in assets, that includes $1.89 million in land held for development.

Assets also includes nearly $600,000 due this year and in following years from Darien Lake Theme Park in fees.

There's also more than $2 million in bank accounts.

Mark Masse, senior VP of operations, explained a portion of the accounts this way: $469,000 is from grants for revolving loan funds; $729,000 set aside for specific park projects and the work force development program; $230,000 in the operations checking account; $292,000 in savings that mostly came from the sale of One Mill (the former GCEDC office) and is a set aside for emergency expenditures.

Asked about all of the revenue and seeming profits of GCEDC, County Manager Jay Gsell said, "It's not that simple."

In some counties, the IDAs need to come to their legislators and ask for money for road and sewer improvements, Gsell said. That doesn't happen with GCEDC.

"You’ve got to look at the bigger picture," Gsell said. "What is that they’re doing? What is their game plan? What else have they got that money leveraged for? You know, there are a lot of things they’ve been doing that -- as far as infrastructure improvements in other parts of the county -- precludes the county from actually having to participate."

As far as changing the county's contribution to GCEDC, it's too soon to say, Gsell said.

“Certainly, it’s not something, as far as the budget is concerned, that I’m ready to say to the legislature, 'well let’s do this or let’s do that' as far as 2012 is concerned," Gsell said.

Chairwoman Mary Pat Hancock said she is certain any profits from GCEDC are being reinvested on behalf of the taxpayers, but she did say, reducing the county's share of contribution -- designed primarily to cover about half of the GCEDC's personnel expenses -- is not off the table.

“We look at that every year and certainly, this is a tough budget year," Hancock said. "This isn’t a discussion we haven’t had, that we’re afraid to have and that we won’t have.”

A farm supply company on Route 98 in Batavia will receive nearly $60,000 in tax abatements to help fund expansion and create four new jobs within the next four years, the Genesee County Economic Development Center has announced.

Monroe Tractor, 7941 Oak Orchard Road (the corner of Route 98 and West Saile Drive), plans to add 6,000 square feet to its existing 16,800-square-foot facility.

The total project cost is $514,000.

GCEDC said the tax abatements will not only create four new jobs, they will help retain 20 jobs.

For this project, according to GCEDC, for every $1 of tax abatement, $313 will be returned to the local economy over 10 years.

The Henrietta-based company, which has 11 locations in western and central New York, will receive a $39,287 property tax exemption and an estimated $20,000 sales tax exemption on materials used in the construction project.

The property tax exemption is designed to offset the increase in assessed value the project will generate.