HP Hood

There just isn't enough room in the Genesee Valley Ag Park on the east side of the Town of Batavia for a project as large as the Fairlife plant announced today in Monroe County.

The 745,000-square-foot facility will be built by Coca-Cola and create an estimated 250 jobs in the Town of Webster.  The company is expected to invest $650 million in the project.

Asked if the Genesee County Economic Development Center competed for the project, Jim Krencik, senior director of marketing and communications for GCEDC, said it is against agency policy to discuss what companies might have looked at Genesee County as a possible site location for a facility.

"The huge winners here are the dairy farmers," Krencik said. "Wherever it's located in our region, the dairy farmers are the biggest winners."

When asked a follow-up question, he said with HP Hood and Upstate Niagara Milk Cooperative operating in the park along with planned expansions, the Coca-Cola facility wouldn't fit in the park.

Asked about potential sites in Genesee County for such a facility, he said there could be, but that would depend on available infrastructure, and he reiterated the policy of not discussing negotiations with businesses.

HP Hood is the largest land owner in the Ag Park. Its current facility sits on 80 acres, and the company also owns a 22-acre parcel to the factory's north, and 30-acre and 17-acre parcels to the west. All three of those parcels are currently vacant.

The Coca-Cola project in Monroe County has echoes of another soda company's foray into the dairy business -- when Pepsi Co teamed up with the Theo Muller Group to build a Greek yogurt factory in the ag park.  Pepsi and Muller invested $206 million into the project only to close the doors less than three years later.

Pepsi sold the 363,000-square-foot plant to the Dairy Farmers of America for $60 million.

Hood purchased the plant in 2018 from DFA for $54 million. Hood immediately expanded the plant by at least another 100,000 square feet.

The other failed Greek yogurt project, the plant built by Alpina, is now a dairy processing facility for Upstate Niagara Milk Cooperative.

The big difference, perhaps, between the Pepsi and Coke projects is that Pepsi was trying to start a new business line and enter the emerging and competitive market of Greek yogurt. And the product, some critics pointed out, wasn't really Greek yogurt. Pepsi Muller found it hard to get its products on grocery store shelves. 

In Coke's case, its Fairlife brand was launched in 2012 and is widely distributed, having already hit $1 billion in sales.

According to the company's website, Fairlife is an ultra-filtered, flavored dairy drink. The process reportedly removes the lactose and much of the sugar and leaves behind more protein and calcium.

Gov. Kathy Hochul praised Coca-Cola for selecting Monroe County as the location for its new plant.

"This decision by Fairlife to expand their operations in Monroe County marks the next chapter in New York's agricultural success story," Hochul said. "New York's dairy industry serves as a crucial economic engine for our state, and this $650 million investment from Fairlife will create jobs and drive economic impact, particularly in the Finger Lakes."

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The Batavia Town Planning Board on Tuesday night approved site plans for additions to the Imagination Station child care center at 5079 Clinton Street Road and HP Hood at the Genesee Valley Agri-Business Park on East Main Street Road.

“The day care center will be adding two classrooms in the back,” Planning Board Chair Kathy Jasinski said, noting that the State Environmental Quality Review revealed no negative impact to the area. “We’re happy they are doing a successful business and it was unanimously approved.”

The 2,800-square-foot addition measures 78 feet wide by 36 feet deep. The project’s estimated cost is $250,000, according to documents submitted by owners Kelly and Eric Kronbeck of Alden.

At HP Hood, plans call for construction of a 7,200-square-foot commercial cooler for more storage at the processing plant.

Previously, both site plans were recommended for approval by the Genesee County Planning Board.

A zoning text amendment that would add “public garages” to the list of allowed uses with a special use permit in all Industrial Districts in the City of Batavia is back in City Council’s hands after a recommendation of approval Thursday night from the Genesee County Planning Board.

County planners had no issues with the zoning change that was initiated back in January when Batavia businessman Eric Biscaro sought the city’s permission to build an auto service station on his Ellicott Street property that currently houses Classic Home Improvements and Armor Building Supply.

Initially, county planners denied Biscaro’s request for a use variance because the city code allowed auto repair shops only in the Batavia Industrial Park, and in a C-2 (Commercial) zone with a special use permit.

In July, the City of Batavia Planning & Development Committee decided to open the I-1 (Industrial) zone to include public garages, setting the stage for another review by the Genesee County Planning Board and, ultimately, a public hearing set by City Council.

Genesee County Planning Director Felipe Oltramari said that last night’s planning board action is “the middle step” in the process and could see things working out for Biscaro, and any others who wish to pursue similar ventures in the I-1 zones.

“This is the way it is supposed to work,” Oltramari said, comparing this situation to the referral pertaining to an event venue in the Town of Darien that also was on Thursday’s agenda.

The planning board also approved, with modifications, a special use permit for West Seneca business partners Glenn Laben and Kelsey Dellaneve to build The Barn at Flower Creek, a 3,120-square-foot gambrel roof gathering facility to accommodate up to 220 guests for weddings, parties, graduations, etc., located at 388 Broadway Road, Darien.

The estimated $500,000 project also will include an access driveway, parking lot for 85 vehicles, and an onsite wastewater treatment system meeting health department requirements.

Required modifications are obtaining a driveway permit from the state Department of Transportation prior to approval by the Darien Town Planning Board and completing a Stormwater Pollution Prevention Plan prior to final approval from the Town.

Two years ago, the couple was denied a use variance and, as was the case with Biscaro, needed to seek a zoning amendment from the Town of Darien – this one to allow gathering halls in Low Density Residential Districts with a special use permit.

A public hearing on their proposal is set for 7:45 p.m. Sept. 21 at Darien Town Hall, 10569 Alleghany Road.

In other action, planners approved the following site plans:

• For HP Hood to construct a 7,200-square-foot commercial cooler addition to the existing structure at its plant in the Genesee Valley Agri-Business Park, East Main Street Road, Batavia. Neil Zinsmeyer, of Napierala Consulting, representing the company, said the cooler will provide overflow storage and will have little impact upon traffic or staffing levels.
• For a 2,800-square-foot addition (78 feet by 36 feet) to the rear of the Imagination Station child care center at 5079 Clinton Street Road, Batavia.
• For Holland Resources of East Bethany to put up a 45- by 100-foot addition (six more bays) to the north side of an existing self-service Recreational Vehicle storage building at 5545 Route 5, Stafford.
• For a new real estate office in a Commercial District (C-2) at 7133 W. Main Road, Le Roy. Documents submitted by applicant Nancy Crocker, of SB Gee’s LLC indicate that Empire Realty Group, will be moving into the location.

Previous story: Genesee County planners to address special use permit for The Barn at Flower Creek in Darien​

The passing of a resolution authorizing the Town of Batavia to apply for a $750,000 New York State grant is welcome news to officials of Upstate Niagara Cooperative Inc., the dairy farmer-owned conglomerate that purchased the former Alpina Foods plant in the Genesee Valley Agri-Business Park on East Main Street Road.

“We’re targeting on opening as soon as reasonably possible pending the OCR (Office of Community Renewal Community Development Block Grant) approval and equipment ordering, as we need additional equipment for the facility,” said Mike Patterson, chief financial officer for the company – formed in 2006 as a result of a merger between Upstate Farms Cooperative and Niagara Milk Cooperative.

The Batavia Town Board this afternoon passed the measure, along with another OCR grant application for the same amount for a $21.6 million project at HP Hood LLC, in the Agri-Business Park to install a new filler line. The HP Hood plan would created about 56 new jobs, including positions that would provide entry-level employee training.

The Alpina plant has been vacant for the last 18 months following Upstate’s $22.5 million purchase of what was a $60 million investment by Alpina, a Colombia-based company that attempted to break into the U.S. Greek yogurt market more than six years ago.

Patterson said company leaders have been “trying to figure out the best use for the plant,” adding that they spent another $1 million since the acquisition and are investing an additional $4,040,000 to get the processing plant up and running.

Currently, Upstate has employees working at its membership office in the R.E. Chapin building and at the O-At-Ka Milk Products facility, both on Ellicott Street Road.

All told, the cooperative employs 1,800 people in New York, Patterson said, with the opening of the Batavia plant expected to create 50 more jobs.

Patterson said the OCR grant will support the purchase of necessary equipment and the training of new employees.

“One of the toughest issues we face in this area is finding qualified help, so we’re trying to get employees that are ready to be trained, and they will be brought into our manufacturing sites – not only for us but for Hood and O-At-Ka and other places,” he said. “It was all part of this project.”

The Genesee Gateway Local Development Corporation, an arm of the Genesee County Economic Development Center, is acting as a pass-through for the grant/loan to reach Upstate.

“We get involved with the Office of Community Renewal and have done a bunch of these projects throughout time when we get great companies investing in Genesee County,” said Chris Suozzi, GCEDC vice president of Business Development. “We want to be able to help them out.”

He said the OCR program has been “our friend” and is confident that Upstate will receive the grant.

“It’s one of the great grant or low-interest loan programs,” he said. “The grant program is kind of how we’ve devised it with the companies, and it helps them continue to grow.”

Patterson said the current project does not include any tax incentives from the GCEDC.

“The original IDA (Industrial Development Agency) tax abatements were given to Alpina when they built the facility. There is no new additional IDA money that way for that (but) there would be on any future expansion.”

Press release:

The Genesee County Economic Development Center (GCEDC) has announced that HP Hood will receive the Economic Development Partner of the Year award at the agency’s annual business meeting on Friday, March 6 at Batavia Downs.

Approximately 250 business, government, community and economic developments leaders are expected to attend the annual meeting.

HP Hood is one of the country’s largest branded food and beverage companies with 13 manufacturing plants throughout the United States. More than 250 food and beverage professionals are now employed at HP Hood’s Batavia facility in the Genesee Valley Agri-Business Park.

Theresa Bresten, vice president and treasurer for HP Hood, will be accepting the award on behalf of the company.

“Since opening its doors in Genesee County in 2017, HP Hood has been a model for success,” said GCEDC President and CEO Steve Hyde. “The company continues to create jobs and is the latest success story in Genesee County’s proud dairy industry.”

HP Hood has invested more than $200 million in expanding, improving and operating its world-class 448,000-square-foot facility at the Agri-Business Park. The facility occupies 82 acres there and it recently purchased 22 additional acres to accommodate future growth.

“HP Hood is honored to have been selected as the GCEDC 2020 Partner of the Year,” said Hood spokesperson Theresa Bresten. “We’re proud of the work we’ve done together to bring new jobs to the local community.

“We look forward to continuing our partnership with GCEDC in enriching the economy of Genesee County and New York.”

The theme of the 2020 annual meeting is “Success Starts Here,” including the growth of Batavia’s food and beverage hub.

In the past 10 years, companies in the Genesee Valley Agri-Business Park and surrounding companies have invested more than $500 million into facilities that employ more than 700 professionals and operate over 1 million square feet of operations.

The event will focus on the GCEDC’s business accomplishments in 2019 and economic development goals and objectives for 2020.

Register to attend the GCEDC Annual Meeting and Luncheon by visiting GCEDC.com.

Press release:

The Genesee Gateway Local Development Corporation (GGLDC) Board of Directors approved the sale of 28 acres of land parcels in the Genesee Valley Agri-Business Park at its Feb. 6 board meeting.

HP Hood is purchasing 22 acres and Upstate Niagara Cooperative is purchasing six acres. Both companies have plans to grow and expand their businesses in the Ag Park over the next several years. 

HP Hood and Upstate Niagara Cooperative are part of a food and beverage manufacturing hub that has invested more than $500 million into a food and beverage manufacturing hub that including the Genesee Valley Agri-Business Park has more than 1 million square feet of facilities and more than 700 workers.

With the sale of the 28 acres, there are approximately 80 acres remaining in the Ag Park, including a 30-acre site with direct railroad access and a retail-friendly parcel at the park’s entrance on Route 5.

The Batavia Town Planning Board on Tuesday night advanced a pair of projects – one industrial and the other residential – to the public hearing stage next month.

Planners lined up in favor of a 4,000-square-foot boiler room expansion at HP Hood LLC, 5140 Ag Park Drive West, an endeavor that will give the food processing facility greater capacity as business increases.

Kevin Moyer, the company’s project engineer manager, and Scott Blair, construction project manager for Design Group out of Concord, N.H., addressed the board during the site plan review.

Moyer said the addition will be adjacent to the existing boiler room with a roll-up door at the front.

Construction specifications are consistent with the rest of the building, Blair added.

 “(The project) is redundancy more than anything else,” Moyer said, noting that putting in a third boiler gives the facility a spare during times of inspection and the expansion provides room for a fourth in the future.

The request, which the board said does not pose any significant adverse environmental impact, will go to the Town Zoning Board of Appeals on Jan. 14 for a public hearing and back to the Town Planning Board the next night.

Planners also set a public hearing for Jan. 15 to consider a special use permit to allow Maren and Matt Holman of 45 Edgewood Drive to operate an appointment-only hair salon as a Home Occupation 1 in a Residential District.

Maren, a licensed cosmetologist for 14 years, and her husband have set up a 200-square-foot room behind the garage of their ranch home for the business.

Planners inquired about the Genesee County Planning Board’s recommendation that a turn-around on the driveway should be included to prevent customers from having to back their vehicles into the street.

Matt Holman said that is their plan but, for the time being, there is a 15-foot wide driveway of asphalt fillings that would act as a turn-around.

Press release:

State-of-the-art production equipment from the former Muller/Quaker Dairy greek yogurt plant in Batavia, New York, will be offered at auction Sept. 13 by Harry Davis & Company.

Dairy Farmers of America (DFA) this week announced the facility — originally constructed by Muller-Quaker to process yogurt via a joint venture formed in 2011 between PepsiCo’s Quaker Oats Co. unit and Germany’s Theo Müller Group — has been purchased by HP Hood LLC. HP Hood will invest more than $200 million over several years to repurpose the 363,000-square-foot, currently idle processing facility to produce extended shelf-life beverages.

Meanwhile, the remaining state-of-the-art production equipment is being offered at auction by Harry Davis & Company.

Leonard Davis, president and senior appraiser for Harry Davis & Company, says this is a rare opportunity for processors to purchase equipment from 2012 or newer that was used for only 18 months of production time.

“This is a virtual showroom of equipment,” he says. “It’s a tremendous opportunity for the dairy world to purchase this equipment.”

He notes in particular the equipment available for production of Greek yogurt, which has soared in popularity at retail.

In addition to getting ultra-modern equipment at significant savings, Davis says it’s a rare opportunity to get equipment of this quality so quickly.

“Typically, if you wanted to get one of these filling machines, you’re looking at 18-24 months of lead time,” he says. “This is an opportunity to acquire like-new equipment well below new cost and have it installed and running in a matter of weeks.”

Some of the featured equipment, valued at $200 million, includes: • Aseptic S/S Silos & Tanks
• Pasteurization, Homogenization & Culture Injection
• Finnah Horizontal Form, Fill & Seal Packaging Lines
• Hamba/Oystar A+F Filling Line
• Kasag Fruit Batch Cooking Plant.

Since the former yogurt plant added fruit to some of its varieties, state-of-the-art fruit processing equipment also is available, including a fruit receiving, sorting and cutting system, Davis notes.

“There’s a complete fruit production sub-facility within this plant,” he says. “It’s highly desirable not only for other yogurt manufacturers, but also those involved in jam and other fruit manufacturing.”

Additional general plant and spare parts also are available.

Harry Davis & Company is seeking buyers from North America, South America and Europe. Interested parties can access the auction online at http://bit.ly/MullerHDC. The auction will be held at 9:30 a.m. Eastern Time Sept. 13. 

Photos provided. (click here for more photos)

(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.

Some businesses fail and some thrive, and if New York is going to grow economically, it needs to take the risk that not every business that receives state aid will live up to expectations.

That was the theme of comments by Gov. Andrew Cuomo and Howard Zemsky, president and CEO of Empire State Development, today in Batavia.

Muller Quaker Dairy didn't work out after being promised millions of dollars in state aid (most of which the project never received), but Cuomo and Zemsky are confident HP Hood is a good company for the state to assist as Hood prepares to expand the 363,000-square-foot facility in the Genesee Valley Agri-Business Park.

"If you want to be in the economic development business, you have to get accustomed to the adjustments," Cuomo said. "You know, only 50 percent of the businesses that start exist after five years. Fifty percent. By the time you get to the 10-year mark, only one-third are still in business. That's the nature of business.

"In the state of New York, we're doing economic development," he added. "We're creating hundreds of businesses, creating thousands of businesses. Well, then, you have to be prepared to have that number of defaults because that is the way the world works. The trick is to keep the fundamentals sound. Keep taxes low. Stay pro-business."

Both Cuomo and Zemsky said they believe Hood will succeed in Batavia.

"Think about the spectrum of industries out there," Zemsky said. "On the one hand, you've got relatively low-risk industries -- I would consider fluid milk to be a pretty stable. We're not figuring out if consumers like milk or not. You're not breaking new ground and producing milk.

"So milk is a pretty low-risk investment in the whole spectrum of things. On the other side, you've got chip fabs or really next-generation industries. We do take some calculated risk, but I'd say this is very low on the scale of calculating risk."

HP Hood is a 170-year-old company based in Lynnfield, Mass., with four other locations in New York. The company is licensed to produce, or has produced, brand-name dairy and non-dairy products throughout the United States.

Hood’s portfolio includes its own brand, Crowley Foods, Simply Smart Milk, Heluva Good!, Lactaid, Baileys Coffee Creamers, Hershey's Milk and Milkshakes, and Blue Diamond Almond Breeze.

The former Muller Dairy plant is the largest dairy processing plant -- even before Hood adds 100,000 square feet of the refrigerated warehouse -- in the United States and in the middle of Upstate dairy country. It cost PepsiCo and Theo Muller Group $206 million to construct. Pepsi took a $60 million write-off when the plant closed. It's unknown how much money Muller lost on the venture.

Muller Quaker was attempting to enter an already crowded and competitive Greek yogurt market with a product that tried to position itself as Greek yogurt but really wasn't.  

Dairy Farmers of America purchased the plant shortly after it closed in December 2015 for $60 million. News broke in June (as first reported by The Batavian) that HP Hood was acquiring the plant from DFA and last week, Hood closed the deal for $54 million.

To assist Hood with its $200 million investment in the plant, Empire State Development will provide up to $5 million in performance-based Excelsior Jobs Program tax credits. As with Muller Quaker, these tax incentives are withheld until employment targets are met.

There is also a $2 million capital grant from the Upstate Revitalization Initiative.

The Genesee County Economic Development Center is also amending the current PILOT (Payment In Lieu Of Taxes), which will provide Hood with more than $7 million in tax abatements over 10 years.

In return, Hood is planning upgrades and equipment purchases and labor costs for reconstruction of more than $150 million. Construction will create more than 500 jobs. There will be another 230 to 250 permanent jobs at the plant.

The support the state is providing HP Hood has an immediate payoff, regardless of what comes down the road, Zemsky said. He called the support a "no brainer."

"This is huge for the dairy farmers," Zemsky said. "It's huge for the whole footprint of the dairy industry. The returns are immediate. Fifty-four million to buy the plant, about $150 million to repurpose it. Two hundred and fifty jobs. That's more than was here at the peak when it was Muller."

During his public remarks, Cuomo said he's trying to reverse 40 years of Albany's neglect of Upstate's business needs, that includes commiting more than $25 million to the Finger Lakes Region for economic development. He said that's more than any governor in history.

"You keep raising taxes, you make it difficult for businesses to be here," Cuomo said. "I'll tell you what's going to happen at one point -- they're going to leave. And they did. We had what I call a 'hangover New York arrogance.' Well, wait, the businesses will stay here. Where else are they gonna go?

"There are actually other places they can go. You look at a map you will see around the State of New York other shapes squares and triangles. Those are called other states. If you force people, they will leave New York and we have essentially forced people (to leave). It's been a tough business, high-tax environment, high-regulation environment.

He expanded on that theme with the press after his speech.

"We have businesses in New York who just get calls at their desk from other states -- come to my state and you won't have to pay any taxes and we'll send the plane and we'll bring you and your wife for the weekend," Cuomo said.

"It is amazing, the competition. So if you said, 'Well, I'm not going to try to do economic development,' you would just be sitting there as a target for every other state.

"One by one they would pick off your companies, and in a relatively short period of time, you'd be sitting there alone -- losing jobs, losing people, which is what happened to Upstate New York."

Representing Hood at the event was Vice President Jeffrey Kaneb. He is the son of John Kaneb, who first tripled revenue for Gulf Oil to $4.6 billion before selling it in 2005.  The Kaneb family acquired Hood in 1995, growing annual revenue from $600 million to more than $2.3 billion. 

"We're very excited to have this opportunity to grow our business here," Kaneb said. "We are very very grateful for the support that we've gotten from the governor's office, from his staff, from the county, from the entire community, in getting us to this point. We look forward to becoming a supportive member of this community, a good neighbor, and an employer of choice here in Batavia."

Hood is hiring. People interested in a job should call (1-800) 428-6329.

As for STAMP (Science, Technology and Advanced Manufacturing Park), the super site in Alabama intended to attract high-tech manufacturers, Zemsky said he thinks it's inevitable that big businesses start to move into that park, because of the location and its access to hydropower and fresh water.

However, Zemsky sounded a cautious tone about whether 1366 Technologies, the solar wafer startup from Massachusetts, that was the first announced tenant for the park, ever breaks ground. 

"I have met with them," Zemsky said. "I haven't talked to them in a while and I think, again, these businesses are competitive. They have to raise capital. I think they have some more capital to raise, so whether or not it happens depends, but it's not going to be all state-financed."

One of the holdups may be the change in presidential administration, from one that supported renewable energy to one that may be more skeptical about the need to support wind and solar. While 1366 has raised substantial private equity, receiving backing from the Department of Energy seems to be a key component of its financial package. The company was previously promised a $150 million loan guarantee from the DOE.

"I think, like anything, the changing of the landscape politically through regulations of the federal government, the vagaries of the financing market, the price of alternative energies -- these are all factors that make being in business really difficult," Zemsky said.

Hood VP Jeffrey Kaneb.