GCEDC

The picture came a bit clearer today at the annual Genesee County Economic Development Center luncheon on how the agency landed a $206 million joint-venture Greek yogurt plant for Batavia.

Mark Koenig, director of engineering and technology at the PepsiCo Global Nutrition Group, said while there were a few reasons Pepsi and the Theo Muller Group picked the Genesee Valley Agri-Business Park for Project Wave, a key was getting site-grading permits within 15 days.

Koenig, who heads up similar projects for Pepsi all over the world, lost a bet with Chris Suozzi, VP of Business Development for GCEDC.

"I bet him my house, my wife and my salary that he couldn't get us permitted in 15 days," Koenig said. "I've never seen a greenfield site get permitted in 15 days. I said, 'there's no way.'"

He added, "This team delivered."

The 15-day permitting process allowed Wave Holding LLC to fast-track its development plans, which Suozzi agreed after the meeting was absolutely critical in bringing the project to Batavia.

Without the 15-day permitting, Pepsi and Muller would have been looking at a 30-month process to get its new Greek yogurt products to market. The current timeline is 18 months, all because Town of Batavia officials were able to move the permitting process along quickly.

Earlier this week, GCEDC CEO Steve Hyde told county legislators that Souzzi was instrumental in getting Batavia from the B-list for the project to the final four possible sites.

Koenig also said of critical importance to Pepsi and Muller was the world-class dairy industry in Western New York.

"This is an ag area that is the best in class and that's why we're here," Koenig said. "You have a good milk supply and your milk is the best in its class."

It also helps that from Batavia, Wave Holding can easily reach a third of the potential market in the U.S. for its new Greek yogurt.

Pepsi partnered with Germany-based Muller, Koenig said, because Muller has proprietary recipes and world-class technology for producing yogurt.

The incentive package put together by NYS and GCEDC was also important, Koenig said, but Pepsi was also impressed by the warm welcome the company has received from the community.

"The community support has been fantastic," Koenig said. "All signs say this is going to be a success with the community for years to come and in future growth."

Top: Koenig; bottom, Hanno Lehmann, a senior project manager from the Muller Group.

Executives from PepsiCo and the Muller Group will be keynote speakers March 23 at the Genesee County Economic Development Center's annual meeting at the college.

The two companies are behind Project Wave, the $206 million yogurt plant being built at Genesee Valley Agri-Business Park.

Mark Koenig, director of engineering and technology at the PepsiCo Global Nutrition Group -- who was in town when grading started in November although Pepsi's involvement was still officially a secret -- will be joined for a keynote presentation by Hanno Lehmann, a senior project manager from the Mueller Group.

Wave Holding, LLC -- the official name of the joint venture -- is expected to employ nearly 200 people in the near term and perhaps as many as 600 people if the new line of Greek yogurt is as successful as Pepsi and Muller project.

The new joint venture is receiving more than $11 million in tax abatements to build the plant in Batavia, which was initially not even a top-tier choice in the site selection process.

Also speaking at the event will be Rep. Kathy Hochul, State Sen. Michael Ranzenhofer, Assemblyman Steve Hawley and County Legislature Chairwoman Mary Pat Hancock.

GCEDC CEO Steve Hyde will make a presentation on some of the agency's 2011 highlights.

The luncheon is from noon until 1:30 p.m., March 23, at Genesee Community College. Tickets are $15 or $20 at the door. For reservation and tickets in advance, call 343-4866.

In a very short time, Genesee County has become a big player in the global agricultural community, Jim Vincent told the Ways and Means Committee on Wednesday. He's vice chairman of the Genesee County Economic Development Center Board of Directors.

Vincent commented little during the half-hour meeting in which CEO Steve Hyde provided a quarterly review for members of the county legislature. But he did note that with Alpina building here, followed by Pepsi/Theo Muller and now Bonduelle buying food processing plants in Oakfield and Bergen from Allen's Foods, Genesee County's place in the ag community has been transformed.

Hyde pointed out that the Bonduelle purchase probably saved more than 250 jobs in Genesee County.

Allen's may have been on the verge of closing the plants if they hadn't been sold, Hyde indicated.

While GCEDC wasn't directly involved in the purchase, officials have been speaking with Bonduelle executives and something may be in the works to help the company grow locally.

The four plants purchased by Bonduelle are the first production facilities owned by the France-based company in the United States.

Members of the committee and other legislators at the meeting made few comments and asked few questions.

Hyde was able to point to other successes for GCEDC and its business development partners, such as Java Equipment planning a location in Batavia and Premier Credit opening a phone room on Mill Street.

Hyde said Premier initially planned on 50 jobs -- which pay $12 an hour plus incentives -- but may soon add another 50 positions.

VP of Business Development Chris Suozzi deserves a lot of credit for bringing both Premier and Pepsi to town, Hyde said.

According to Hyde, when GCEDC first learned of Pepsi's plans, the Genesee County Agri-Business Park was only on the B-list.

But Souzi started working his contacts and managed to convince Pepsi officials to make a site visit.

"After the site visit, we went from the B-list to the A-list, from one of 16, to one of the final four, and then being very fortunate to land this project," Hyde said.

Hyde also gave credit to Sen. Michael Ranzenhofer for giving a "yeoman's effort" on behalf the STAMP project in Alabama. GCEDC needs to secure $18 million in grants and Ranzenhofer has been instrumental in arranging key meetings with Senate leaders and lining up support for legislation that might make it possible.

Vincent told legislators that for every dollar the county government invests in the GCEDC, a total of $18.60 is returned to the local economy.

Hyde said that when he started with GCEDC in 2002, the agency and its affiliates did $600,000 in revenue. This last year, it generated $4.4 million in revenue. It turned a profit of $1.3 million.

"Those profits, of course, go right back into helping us create shovel-ready projects," Hyde said. "We try to build our community, build our tax base, create jobs and create success for our community."

PepsiCo and the Theo Muller Group -- partnering on Project Wave in Batavia -- will receive more than $11 million in tax relief for the planned yogurt plant in the Genesee Valley Agri-Business Park.

The incentive package was approved by the Genesee County Economic Development Center Board on Monday.

The PILOT on the project -- relief from taxes on the increased value of the assessment -- is 100 percent for the first six years and 50 percent in years seven through 10.

The total PILOT abatement is estimated at $5.6 million over 10 years.

The companies will also receive $5.4 million in sales tax abatement on materials and supplies for construction of the facility.

The project will add 186 new jobs to the local economy, and early planning for the plant projected as many as 600 jobs by 2033.

Wave Holding, LLC (the company formed by Pepsi and Muller for the project) will spend $206 million on construction of a 363,000-square-foot facility.

Construction on the project began in November.

The agreement calls for the first 186 jobs to be filled within three years of Wave Holding receiving a certificate of occupancy.

GCEDC competed with shovel-ready sites in Avon and Pennsylvania.

According to a GCEDC press release, for every $1 invested by Waving Holding the local economy will benefit by $14.47.

Press release:

For the eighth consecutive year Site Selection Magazine has recognized Batavia/Genesee County as one of the top micropolitans in the United States, including the number-one ranking in the Northeast. The criteria for receiving the recognition includes capital investment and job creation. Through the Genesee County Economic Development Center (GCEDC), approximately $51.3 million in new capital investments were made in the county creating approximately 172 new jobs in 2011.

“Through the collaboration of the Genesee County Legislature, the City and Town of Batavia, and many others in our community, we had another successful year in our economic development efforts,” said Steve Hyde, president and CEO of the GCEDC. "With the recent announcement of Premiere Credit and Java Equipment projects, 2012 is off to a tremendous start.”

In 2011 the GCEDC was able to participate in 30 project “wins," including four major projects that have significant employment impacts for the region. Alpina Foods, one of the most recognized dairy companies in the world, and a leading dairy producing company in Colombia and South America, will open its first specialty yogurt manufacturing plant in the United States and will be the first occupant of the Genesee Valley Agri-Business Park. Alpina will create 50 jobs and invest more than $15 million in the construction and occupation of its new manufacturing plant.

The expansion at Graham Corporation will create 26 new jobs while a green technology firm, Vegetal I.D., which creates green roofs, will be adding 20 jobs over the next three years. In the Gateway I park, a new Holiday Inn Express is under construction that will create 19 jobs. The new hotel will be attached to an existing banquet hall.

“Congratulations are in order and Genesee County should be very proud of the achievements of our GCEDC,” said Mary Pat Hancock, chairwoman of the Genesee County Legislature. “The recent groundbreaking by Alpina in our newly opened agricultural park, and the recent activity at the park promises a substantial investment in the economic health of our area.

"There were additional achievements, new cooperative workforce-training programs, businesses expanding, jobs retained; do not think that all this would have happened without the inspired and dedicated work of the GCEDC and their team. Their success is our success."

The City of Batavia, in partnership with Mancuso Business Development Group, was able to complete the Masse Gateway Redevelopment Project which included the demolition of 40,000 square feet of vacant industrial space in the Batavia Industrial Center, and the renovation of approximately 120,000 square feet for commercial, residential and light industrial use. In December 2011, the first new business in the Masse Gateway Redevelopment project was secured and in January 2012 the second business was secured. Both expect to be open by Spring/Summer 2012.

“We appreciate the recognition and will continue to build upon our rich entrepreneurial history and facilitate collaborative partnerships that support and enhance opportunities for all community residents,” said Batavia City Manager Jason Molino.

Upstate New York’s City of Batavia, the hub of the Batavia Micropolitan region, continues to reinvent itself in the wake of the national Site Selection recognition. An empowered Batavia Development Corporation -- the city’s strategic alliance and economic development agency -- invested in personnel, small business development and infrastructure initiatives to support the continued growth and success of the area in 2011.

“New staff was hired, more small business loans were distributed and a newly defined action plan for adaptive re-use was adopted,” said Ray Chaya, president of the Batavia Development Corporation (BDC). “The BDC has seen confidence return to the community."

The city's Business Improvement District completed six façade improvement projects totaling more than $17,000 in reinvestment in downtown properties, with another six projects that are expected to be completed by the end of this month. The BID is also pleased to announce that it paid off early the $250,000 bond for the Ellicott Street streetscape project, which was done in conjunction with the City of Batavia.

“The Batavia Business Improvement District is extremely proud of having four new downtown businesses, which includes a Save-A-Lot Food Store. This means approximately another 35 individuals being employed within the district,” said Don Burkle, executive director of the BID.

“I can only express my deepest appreciation for the all of the partners, municipalities, and employees who continue to collaborate and are dedicated to the strategic vision of growth for our community,” said Greg Post, supervisor of the Town of Batavia. “This success is because of the partnerships that have been fostered over the last 10 years and the willingness of everyone to work together as a team to achieve a common goal for economic success."

“The chamber congratulates all of the economic development partners in Genesee County on receiving this award. It is always gratifying to be recognized for a job well done — particularly when the hard work is often done ‘behind the scenes’,” said Lynn Freeman, director of the Genesee County Chamber of Commerce.

“The investment being made in our community, as a result of our economic development groups and the chamber, is bringing more and better paying jobs to Genesee County that will in turn improve the quality of life for all of us."

The Genesee County Economic Development Center Board approved the following two projects for tax-abatement assistance:

University Eye/Lassiter Properties, 217 Summit St., Batavia. Planned 1,961-square-foot expansion, six new jobs, total capital investment of $755,000. Sales tax exemption on building materials and supplies of $26,000 and a PILOT tax exemption on the increased value of the property of $52,500 over 10 years.

R & D Electronics, 5272 Clinton St. Road, Stafford. Planned 10,800-square-foot expansion, six new jobs. The company will construct a warehouse facility and move its current electronics repair business into the new space. The company will use its existing space to expand its Ebay sales business selling refurbished and factory returned products. Total capital investment of $312,000. Sales tax exemption on building materials and supplies of $10,800, mortgage tax exemption of $2,500, PILOT tax exemption based on $76,700 of increased property value.

Press release:

Information addressing the comments of the Western New York Science Technology and Advanced Manufacturing Park (WNY STAMP) Final Generic Impact Statement (FGEIS) was discussed on January 26th at the Town of Alabama Fire Hall. Over 100 residents and interested constituents were on hand to receive an update on the progress of the WNY STAMP project.

A general overview of the project, the environmental review process, and responses to common topics from the Draft Generic Impact Statement (DGEIS) were presented by the GCEDC. Residents were given an opportunity to ask questions and provide additional feedback on the project.

On February 9, 2012 the GCEDC board, lead agency of the environmental review process, will consider a written findings statement for the WNY STAMP project. If the findings statement is approved, the environmental review process for the WNY STAMP project will be complete. At that point, the GCEDC will seek approval for the project from the Town of Alabama. The following steps will follow:

• Negotiation and adoption by the GCEDC, and the Town of Alabama on an incentive zoning agreement that will provide relief from some of the Town’s zoning laws in exchange for amenities provided by the GCEDC to the Town.

• Once the incentive zoning agreement is in place the Town of Alabama Planning Board and the Town of Alabama will begin consideration of the GCEDC’s application to rezone the STAMP site to a Technology Park and to amend the Town of Alabama Comprehensive Plan to address the STAMP project.

• In conjunction with the Town’s rezoning process, the County Planning Board will hold a public meeting, review, and make recommendations to the Alabama Town Board on the rezoning application.

To further assist the Town with its decision-making process, a public opinion survey of the project will be distributed to the residents of the Town of Alabama. The survey will be conducted by a third party legal, and market research company that specializes in public opinion polling. The results of the survey will be presented to the Town for their consideration at the conclusion of the survey.

After the planning agencies return comments to the Town of Alabama, the board will hold a public hearing on the rezoning application. This public hearing will give the residents of Alabama another opportunity to comment, on the record, regarding the proposed rezoning of the WNY STAMP site.

Simultaneously, with the Town’s approval process the GCEDC, in conjunction with state and federal representatives, will continue to pursue funding sources that will be used in the event the STAMP project is approved by the Town of Alabama.

State Senator Michael Ranzenhofer and National Grid have, and continue to be of assistance to the GCEDC to obtain funding for this important project. Senator Ranzenhofer’s recognition of the regional impact of this project and his commitment to it are reflected in his recent state budget request for funding of the STAMP project.

This comprehensive environmental review process, as outlined in the State Environmental Conservation Law, is the same process that was conducted for the Genesee Valley Agri-Business Park in the Town of Batavia.

If, after careful review and consideration the Town of Alabama approves the GCEDC application to rezone the STAMP property, the GCEDC can begin to work with engineers to develop infrastructure plans for the site and strategically engage in a sales and marketing process to attract the first tenant to the STAMP site.

The county is scheduled to receive a $7,200 grant to help fund training for potential food-processing workers, as part of the Finger Lakes Food Processing Cluster Initiative.

The grant will likely assist Genesee Community College in developing food-training classes, said Scott Gage, director of the Job Development Center, and comes at a good time, with companies like Alpina opening factories in Batavia, along with existing businesses such as Yancey's Fancy in Corfu.

"Workers need to learn manufacturing techniques, process control, and health and safety issues," Gage said. "We’re seeing this as a tool to help us with these new businesses moving into the town."

Steve Hyde, CEO of the Genesee County Economic Development Center, said there is an effort going forward from government agencies, schools and food-processing companies themselves to create a better trained work force for these types of businesses.

He said developing such tech-based job-training programs (and food processing is now a tech-based job) is hugely important for the region.

"We are better aligning education with industry needs," Hyde said. "If you really start being able to deliver (a better trained work force), boy, you are at a key strategic advantage (for attracting new businesses to the area)."

Press release:

State Senator Michael H. Ranzenhofer has written to Governor Andrew M. Cuomo, requesting his continued support in the form of a $9 million investment in the STAMP project for each of the next two years to bring the project to Shovel-Ready-Lite status.

“Support is now needed in the form of a funding commitment to complete the process needed to bring this site to Shovel-Ready-Lite status. Over the next several years, this is anticipated to require funding of $20 million. The 2011-12 SFY Budget has already committed $2 million to this project,” Senator Ranzenhofer said.

“A commitment for an additional $9 million per year over the next two fiscal years to assure timely Shovel-Ready-Lite status will allow immediate marketing of the STAMP site to national and international tech companies to expedite the successful build out of this project.”

The STAMP project has the potential to create up to 10,000 high-paying jobs at full development, in addition to jobs created during construction and development of the site, and up to $2.5 billion in private investment. In the letter to Governor Cuomo, Senator Ranzenhofer also noted the possible economic benefits to residents beyond the Buffalo and Rochester regions.

“This project, with its offer of advanced manufacturing, is the only one of its kind in Western New York. In fact, we believe that it is the only remaining available Mega-site in New York State. It provides the legitimate promise of a significant private investment and thousands of desperately needed high-paying jobs for the residents of the Buffalo and Rochester areas as well as all the residents of the region including Erie, Monroe, Niagara, Genesee, Orleans, Livingston and Wyoming counties.”

Senator Ranzenhofer forwarded copies of the letter to Senate Majority Leader Dean Skelos, Speaker of the Assembly Sheldon Silver, Genesee County Legislature Chair Mary Pat Hancock, Empire State Development Corporation President and CEO Kenneth Adams and Genesee County Economic Development Center President and CEO Steve Hyde.

The Science and Technology Advanced Manufacturing Park (STAMP) is a 1,243 acre mega-site modeled after the Albany area’s Luther Forest development. Located in the Town of Alabama, the site is strategically ideal due to its access to three high-level electric transmission circuits, close proximity to the Empire pipeline – a 24-inch natural gas line– and only five miles distance from the New York State Thruway.

The next phase in seeking approval for a 1,200-acre high-tech industrial complex in the Town of Alabama is to sell it to the town board.

And by sell, we mean, offer incentives attractive enough to please residents and for the board to approve a change in zoning for the land that Genesee Economic Devlopment Center officials hope to turn into a lucrative and bustling complex employing 9,300 people.

Mark Masse, VP of operations for GCEDC, said negotiations are starting on the incentive package with the town and they will include financial assistance with the needs of the town to accommodate the project as well as possible cash grants for a "community chest" (money that can be spent on whatever the town board decides to spend it on).

Information on the final Final Generic Environmental Impact Statement for the project known as STAMP (Science Technology and Advanced Manufacturing Park) was presented Thursday night to about 100 area residents at the Alabama Fire Hall.

With the GEIS done, the town board will be given an opportunity wthin the next month or so to either green light the project or not.

Prior to the vote, GCEDC officials will try to come up with a package of incentives that might help sway town residents and the board to support the project.

Once the incentives are hammered out, there will be a public meeting where the package will be presented and the public will be given a chance to comment on the proposal.

Attorney Adam S. Walters (top inset photo), representing GCEDC, said if the town board doesn't approve the zoning change for STAMP, the project is dead.

One audience member pressed Walters on whether GCEDC or anybody else could sue the town if it doesn't change the zoning to GCEDC's liking. Walters said he knew of no legal grounds to support such a suit and the town's attorney, Mark Boylan, nodded in agreement.

The time is ripe, according to Masse for the town to approve the project. He indicated there is a company that is looking to build a million-square-foot high-tech manufacturing facility. The company will be ready to start its site selection process in 2014.

Asked if it was a foreign company, Masse said, "It's American."

No company, especially one looking at building a million-square-foot facility, will even consider a site that doesn't already have zoning approval, Masse said, since such approvals take so long to get. 

Earlier, town Planning Board Member Lorna Klotzbach (inset photo below) expressed concern that, the way the plan is written out, the entire 1,200 acres could just fill up with a lot of small companies.

"If this site is allowed to be gobbled up by a database company here, a retail store there, a warehouse over here -- what's the chance that a big anchor company is going to want to come in if all of these other uses take up all the space?" Klotzbach asked.

Walters said that, as a practical matter, that isn't going to happen.

The big anchor tenant is needed first so the infrastructure can be built to support all of the smaller tenants that will help fill out the park and provide support services to the large tenants.

"The concept is to form the park around high tech manufacturing," Walters said. "That's the goal of this project and to do it in a way that makes sense. What keeps a Tim Horton's or a couple of warehouses from coming in first is the dollars necessary for the infrastructure. The smaller projects can't afford it.

"The plan calls for a million-square-feet high-tech manufacturer in phase one," Walters added. "If you don't have that, you don't have the money to put in the infrastructure to make any of the other stuff happen."

Until then, Masse and Walters explained, the arable land within the park's proposed footprint will still be farmed and the people living in houses will still live in their houses.

In fact, soon-to-be-former Village of Oakfield resident Joseph Bradt (bottom inset photo) expressed a unique concern about what will happen to residents living within the STAMP area.

Bradt said he recently bought a home in Alabama in order to move his family out of the village.

Pointing at the site plan on the projector screen, Bradt said, "My house is off the map and I haven’t even moved in yet."

Masse said that until a portion of the park is needed for a new tenant, no offers to buy out residential homes will be made, and when they are made, the offers will be at fair market value or or just above assessed value.

Ask if eminent domain would be used to remove people from their homes if they didn't want to sell, Masse said, "no."

"If you don't want to sell you're property, we'll figure out how design around it or if we can move the project to another part of the park," Masse said.

As for Brandt, Masse said it could be up to 20 years before it's time to try and buy him out of his house.

The final GEIS addresses at least some of the concerns raised by residents over the past couple of years.

Regarding the John White Wildlife Management Area, that's been completely removed from the site plan and won't be developed.

Regarding lost agricultural land, the crop land that will displaced represents only .65 percent of the 148,584 acres of farmland in Genesee County and only .23 percent of the total prime farmland.

There are also at least 17 possible farm-protection strategies for the town board to consider to protect the remaining farmland. Some of them, according to Walters, are very expensive. Some, such as rezoning, cost nothing.

On wetlands mitigation, the footprint of the building space was reconfigured to protect more of the wetlands within the park. One of the early plans would have destroyed 69 of 106 acres of wetlands within the park area. The new plan protects all but 10 acres of the land.

The acres protected will be enhanced and restored.

"Many of those wetlands are not in great shape today, and without this project, they would be subject to further degradation," said Roger Person, the consultant heading up the environmental review process.

The report also deals with impacts on the Tonawanda Indian Reservation and traffic flow.

Officials are working with representatives of Tonawanda to minimize impacts and while traffic will increase in areas, some of the proposed improvements to roadways and intersections will bring relief to some traffic flow problems already present in Alabama, Person said.

When a member of the public expressed concern that if the zoning change were approved, what would stop developers from doing something different than what residents are being told now would happen?

Walters explained that the way the process works, the final GEIS acts as a box.  The box contains everything that is currently permissible within the STAMP project area.

"If a proposal comes along that doesn’t fit inside that box, it requires a supplemental analysis and perhaps a supplemental environmental impact study," Walters said. "Everything has to fit within the box."

We've heard for some time that while PepsiCo is paying for grading for a possible construction of a food processing plant in Batavia, the same work is "being done in three other locations."

One of those locations is in Avon, and as WHAM13's Sean Carroll discovered yesterday, no site work is taking place in Avon at all.

At the same time, however, the economic development directer in Livingston County says the site is much closer to being "shovel ready" than the Genesee Valley Agri-Business Park. His park, he said, doesn't need a USDA grant for sewer and water because it already has all the infrastructure in place.

"If they chose this site, and we made it very clear, literally they could plug in and all the utilities are in the ground and there's no infrastructure needed here or at the sewage treatment plant," Rountree explained

While Genesee County clearly has the lead in the race to land the project, Livingstone County isn't giving up.

The support of a U.S. Senator and the fact that dirt is actually being moved at the Batavia site appears to indicate Project Wave’s final destination may only be a formality at this point in the process. Yet Rountree and his team are staying optimistic after an aggressive pitch that included top representatives from Barilla.

Either way, regional dairy farmers will be pleased with either outcome.

"I think for the dairy industry in this area specifically it spells a good feeling about long-term stability," Coyne explained. "To have end-product manufacturing this close, it just adds to the confidence that we can invest in our own farms long-term and be able to be in business."

The other two supposedly competitive sites are in Pennsylvania. A contractor familiar with the project told me some time ago that those sites are graded and have infrastructure in place, but we currently have no way to confirm that assertion.

The following projects were approved for tax abatements by the Genesee County Economic Development Center Board:

Premier Credit of North America: Total capital investment, $150,000; Sales tax exemption on equipment purchases, $12,000; Anticipated new jobs, 50; Premier will be leasing 8,500 square feet and up to 13,500 square feet at 1 Mill St., Batavia (the former Pioneer Credit location). Premier will be hiring 50 full-time employees with a target start date of March 1; Premier originally sought locations in Hamburg, Springville, East Aurora, Orchard Park and West Seneca, but not Batavia; GCEDC won the bid with the sales tax exemption, according to the GCEDC-produced project summary.

Tri County Welding: Total capital investment, $111,000; Sales tax exemption, $4,440, Mortgage tax exemption, $938, PILOT, $24,945; Jobs retained, five, new jobs, two and a half; Tri County is expanding its facility to support an increase in business. The expansion includes a 35 x 85 foot addition during the first quarter of 2012.

Als Enterprises (Batavia Pediatrics): Total capital investment, $150,000; Sales tax exemption, $6,000; Retained jobs, eight, new jobs, two; Batavia Pediatrics is planning on renovating its office space of 6,700 square feet, including 1,000 square feet of space not currently being used. The sales tax exemption will apply to new equipment purchases.

The following project received a loan from GCEDC's revolving loan fund:

Batavia Enclosures, Inc: Batavia Enclosures is moving from the Batavia Industrial Center (Harvester Center) to 6 Treadeasy Ave., Batavia (the former Prime Materials Manufacturing location). GCEDC is providing a $50,000 loan from the revolving loan fund, payable over seven years at a fix rate of 80 percent of prime, with a floor of 3 percent. The loan will be used to assist with purchase of the building. Batavia Enclosures intends to create three new full-time positions (a punch press operator, programmer and press brake operator).

The Genesee County Economic Development Center can generate a lot of money for itself, Legislator Ray Cianfrini said Wednesday, so he would like the county legislative body to start looking at how much this Industrial Development Agency gets from the county budget.

"I just think we should look very close at their budget and revenue," Cianfrini said. "I’m sensitive to the fact that we had to cut a lot of things out of the budget for nonprofits that do not generate revenues and they’re hurt by the fact that we cut them."

His comments followed a Ways and Means Committee meeting in which a resolution was approved authorizing the county to accept, on GCEDC's behalf, a $750,000 state grant to help bring a mushroom farm to the Genesee Valley Agri-Business Park.

While Cianfrini was less direct about his concerns during the meeting, afterward, he said, yes, he does question bonuses being paid to GCEDC's executives while the county is providing $234,000 in supplemental funding to the agency.

"I personally received a lot of phone calls from constituents," Cianfrini said. "This riles them and they’re angry over the bonuses. I think that maybe that I, as a legislator, and we as legislative board, should be looking at GCEDC a little more closely and say, 'if you have the money to pay the bonuses, should we be funding you at the current level?' "

The bonus issue has been controversial for a year now, sparked by a state audit report that questioned the method of bonus disbursement, and it reignited a month ago when $120,000 in new bonuses were announced.

At the same time, the county has been forced to cut some programs, such as Meals on Wheels.

Cianfrini used the mushroom farm grant as an example of how GCEDC and its nonprofit Genesee Gateway Local Development Corp. generate significant profits.

With the $750,000, GCEDC will be able to sell the land for the mushroom farm and make a profit, make a loan and get the principle repaid plus interest, and collect a $16,000 fee for the operations expense of putting the deal together.

"This is a great moneymaker for the LDC," Cianfrini said. "And what do they put into it? Nothing. What are they going to get out of it? A lot.

"I just wanted people to understand how this works," Cianfrini added. "The state puts up the money. We dispurse it. They get to loan it out. They get income, they get revenue, they get operating expenses."

Cianfrini said the GCEDC executives are well compensated for what they do, but he's opposed to bonuses.

"If they continue to pay bonuses, then I’ll look at their funding and see if it's legtimate," Cianfrini said.

Press release:

Information addressing the comments of the Western New York Science Technology and Advanced Manufacturing Park (WNY STAMP) Draft Generic Impact Statement (DGEIS) will be discussed at 7 p.m. on Jan. 26 at the Town of Alabama Fire Hall. All property owners in the Town of Alabama will receive a postcard announcing the meeting and the public is welcomed to attend.

A general overview of the WNY STAMP project, the environmental review process and responses to common topics from the DGEIS will be presented. The major topics that were brought up in response to the DGEIS, and that will be covered at the informational meeting include: traffic, chemicals, water and wastewater.

The proposed action, 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 five 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 Law.

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 completed DGEIS, which was approved by the GCEDC board, can be found on the GCEDC’s website www.gcedc.com

The Corfu-based artisan cheese maker Yancey's Fancy is planning a $296,000 expansion and will receive $20,000 in tax abatement, the Genesee Economic Development Center announced today.

The tax exemptions were ratified by the GCEDC board on Tuesday on the promise from Yancey's Fancy of 100 jobs retained.

No new jobs are expected to be created by the expansion.

The 60 percent PILOT will save Yancy's Fancy $13,000 in property taxes over 10 years.

The company also gets a $6,900 sales tax exemption on construction materials.

Information on the nature of the expansion was not released by the GCEDC.

Yancey's Fancy is located at 856 Main Road.

A six-figure bonus package approved for staff members of the Genesee County Economic Development Center were earned by a great performance in 2011, said outgoing county Legislator Hollis Upson today after the perks were announced.

He characterized 2011, which saw, according to the GCEDC, 172 jobs created and more than $3 million in strategic investment approved, a great year for the center.

"The year was better than our expectations at the beginning of the year and better than anyone could have anticipated under the circumstances," Upson said.

Upson is finishing up his time on the legislature. It will be up to the legislature in 2012 to determine whether he continues to represent the county on the GCEDC board.

The bonus payments total $120,000 with $72,000 going to the CEO, Steve Hyde. It will be up to Hyde to determine how the remaining pot of money gets divided among the rest of the staff.

Asked if Hyde's bonus is justified in a county where the median annual income is just over $40,000, Upson said that, of course, he would like to get that kind of bonus himself, but he doesn't have a problem with it.

"I feel he deserves it," Upson said. "I know the work he's doing and if you compare it to what he does with the private sector, what he could be getting in the private sector would be much more."

The whole staff, Upson said, deserves credit for a job well done in 2011.

"They exceeded all of the goals we set for them," Upson said.

The GCEDC press release said 172 jobs were created; the goal for capital investment commitments was $13.8 million, and there were $51.3 million in commitments in 2011; and, two, rather than just one, major projects of at least $10 million in investment were signed (Alpina and expansion at O-AT-KA).

The only goal not met was for GCEDC to close a mega project deal worth more than $50 million.However, Upson noted, the Project Wave deal is just a few details away from being finalized.

"It was a pretty significant year for us when you consider that everybody else (in other jurisdictions) is in pretty dire circumstances," Upson said.

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