Photo from Lynne Bohan's social media account.
A revised wastewater agreement between the town and city of Batavia may rectify a capacity issue between those two municipalities, however, it came too late for HP Hood’s $120 million expansion project, says Lynne Bohan, group vice president of Communications & Government Affairs for HP Hood LLC.
HP Hood altered its course after being notified that permitting was not approved for the project in the Batavia Agri-Business Park, Bohan said. The expansion was to be 32,500 square feet and was to create 48 new jobs and retain 455 full-time jobs at Genesee Valley Agri-Business Park for a projected local economic impact of $49.87 million in wages and tax revenue.
“Hood implemented a tactical pause on the expansion projects in progress. We remained in contact with local government representatives to gain an understanding of constraints to approving permits,” Bohan said to The Batavian Friday. “Discussions continued regarding project support while we worked on contingency plans. This was not an immediate decision and was just finalized recently as we reviewed our updated business strategy.”
Hood officials opted to expand the scope of “a similar expansion project already in progress at a similar Hood facility on the East Coast,” Bohan said, adding that the company will consider future projects at the Batavia site. “Yes, we have other expansion projects for our Batavia site proposed. Timing is dependent on business needs and appropriate support from the community.”
The city of Batavia temporarily halted Hood’s $120 million expansion project in the town of Batavia due to “violations of the town’s contracted wastewater capacity limit” earlier this year as both municipalities then worked to rectify the situation, City Manager Rachael Tabelski had said.
Tabelski sent the town Planning Board a letter on March 13 notifying the group that the city had not been informed in a timely manner that the town had been established as lead agency for the proposed expansion of process lines at HP Hood on Feb. 13, 2024, and the city did not receive word of that until March 4. The city objected to the town acting as the lead agency, Tabelski said.
Tabelski said during council’s Tuesday meeting that the situation had potentially been rectified with a revised wastewater agreement between the town and city of Batavia. She also said that “we will lift the SEQR challenge to the HP Hood project,” regarding a state environmental review.
Genesee County Economic Development Center had approved sales tax exemptions estimated at $4.52 million, a property tax abatement estimated at $549,705 base on an incremental increase in assessed value, and a mortgage tax exemption estimated at $536,000, bringing the value of the proposed financial agreement to approximately $5.6 million.
GCEDC President Mark Masse was not available for comment Friday.
