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GCEDC approves two projects for tax breaks

By Howard B. Owens

Sanzo and Sons, a beverage distributor with locations in Olean, Salamanca and Batavia has been approved for $30,000 in tax exemptions by Genesee County Economic Development Center as part of its plans to expand locally.

The company plans to spend more than $250,000, which it will borrow, to add new space to its facility at 11 Apollo Drive for offices and storage. It also plans to put on a new roof and upgrade equipment, including forklifts and delivery trucks.

The space at the facility will be expanded by 1,222 square feet and company officials say the improvements will help make it more efficient.

Vanderhoof Electric Supply is a new company that is purchasing the assets of Falcone Electric. It will be located at 385 W. Main St., Batavia.

Falcone Electric began in 1955 and has been a very stable wholesale electric supply business. The new owner is looking to keep the same trade name and staff.

Vanderhoof plans to invest $50k in computer warehouse management system in a few months and  a $50k upgrade building facade next spring.

The company has been approved for $16,000 in tax incentives.  It is also looking to borrow $100,000 from GCEDC's revolving loan fund. The company's total capital investment will total $400,000.

William Cox

City Taxpayers,

The GCEDC continues to erode the tax base of the city. They just approved a tax incentive of $16,000.for Vanderhoof Electric Supply who purchased Falcone Electric. I wish Vanderhoof Electic a good future and profitability and welcome them to the city, but to immediately take this business off the tax rolls is wrong and it increases the tax burden on everyone else. It also creates unfair competition for other city businesses in the electric supply business. When a company buys out another one of this size, $14,000. is a nice "plum" to get but it is not a make-break decision. The GCEDC needs to stop taking property and businesses off the tax roles or everyone and every business will be in jeopardy.

Bill Cox
Councilman - First Ward

Oct 7, 2009, 7:14pm Permalink
Howard B. Owens

Bill, I think your points are valid. I'm particularly concerned when tax credits are given to non-local businesses, such as Coffee Culture.

But here's a question for you: What can we do to stimulate business growth, especially new businesses, either retail or manufacturing, without using taxpayer subsidies?

I have some ideas, but I'd like to hear your thoughts.

Oct 7, 2009, 9:35pm Permalink

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