Submitted by Howard B. Owens on June 17, 2014 - 10:13pm
The public is invited to weigh in during a public hearing at 4 p.m.
Monday Tuesday, June 24, on a proposal to provide U.S. Gypsum with tax incentives for a major upgrade to its Oakfield plant.
The proposed tax abatements total $375,748.
U.S. Gypsum is considering investing $23.6 million in the plant, adding production capabilities that would create 12 new production jobs within three years after the project is completed.
The United States Gypsum Corporation (USG) is considering upgrading its Oakfield, NY, paper mill, which currently supplies USG wallboard plants with the back paper "newsline" for sheetrock wallboard, to include face paper "manila" production capacity.
The Project includes replacing and relocating the hydropulper and detrashing equipment, stock cleaning, and manila production. Management has been considering upgrades to the facility as it is more efficient to produce the back as well as the front paper applications. Completing this Project will improve safety, quality, and efficiency to ensure the longevity of the facility as well as the retention and creation of manufacturing jobs.
The investment for the Project is expected to be approximately $23 million and will be implemented in three separate phases. Phase I activities, which are expected to commence approximately in the second quarter of 2014, will include replacing and relocating the filler pulper. Phase II will require stock cleaning which will commence in 2015. During Phase III, the facility will begin manila production which will commence in 2016.
If completed, the project is expected to retain 98 jobs at the Oakfield plant.
The proposed tax relief package includes $132,960 in sales tax exemption and $242,788 in property tax abatements on an 18,400-square-foot addition, creating an increased assessed value.
U.S. Gypsum would save $242,788 in taxes on the increase assessed value (while continuing to pay current property taxes) over 10 years.
The public hearing is scheduled to be held at the Oakfield Town Hall, 3219 Drake St., Oakfield.