A South American-based dairy processing company will get $767,096 in tax incentives to help the company establish a new yogurt factory in Batavia, the Genesee County Economic Development Center announced.
The incentive package for Alpina Products includes a property tax abatement, a sales tax exemption and a reduction of mortgage taxes.
GCEDC announced in April that Alpina agreed to become the first tenant for the Genesee Valley Agri-Business Park off Route 5 in Batavia.
The plant, when completed, is expected to add 50 jobs to the local economy and if successful, Alpina officials said they would expect to expand their operations in Batavia.
More than half of the tax incentive package comes in the form of a PILOT (payment in lieu of taxes) arrangement that will reduce the amount of anticipated property taxes paid by Alpina by more than $458,000 over 10 years.
Alpina will pay property taxes on the current assessed value of its 10-acre facility, but because building the plant will increase the land's value, Alpina will get a break on that increased assessment for 10 years. During the first five years, Alpina will pay no taxes on the difference between the current assessed value and the new assessed value. Starting in year six through year 10, Alpina will pay 50 percent of the increase in additional taxes, and pay 100 percent from that point forward.
The sales tax exemption of $260,000 will be on construction materials and office equipment, but not manufacturing equipment.
The mortgage tax exemption is $48,750.
The anticipated economic benefit to Genesee County is expected to exceed $30 million over 10 years.
Alpina will invest $15 million to purchase the 10-acre parcel and construct the plant.
In other GCEDC news, Wellsville Carpet Town at 3990 Call Parkway, Batavia, will receive a $14,375 mortgage tax exemption to help the company refinance its current $1.5 million real estate loan. GCEDC says the abatement will help retain 45 jobs in the county.
When the GCEDC forgives sales
When the GCEDC forgives sales taxes as it is doing for Alpina, it requires the company to pay something else instead. How much will Alpina pay instead of its share of sales tax? Where does that money go? My understanding is that it goes from the Genesee County and Town coffers into the GCEDC's bank account. Is this really a good deal for the county and towns?
No one makes Yogurt locally?
No one makes Yogurt locally? I mean, I hate it too, but WTF? Actually it is good when breaded and deep fried with chicken or beef fat and I'm drunk. Oh, I meant Tofu, Yogurt still sucks.