GCEDC

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

The plans for growth are aggressive, even lofty, according to Batavia City Manager Jason Molino, but if GCEDC is successful in building the Genesee Valley Agri-Business Park to capacity, it could be a boon for Batavia's sewer system and the ratepayers who support it.

The increase in revenue could potentially allow the city to both lower rates -- already among the lowest sewer rates in Western New York -- and fund replacement of aging sewer lines.

Even though the agri-park is in the Town of Batavia, the sewer effluent flows at some point through the city to the city-operated wastewater plant. The town pays the city a fee to ship effluent from the town to the plant. Every thousand of gallons of effluent that flows to the plant will generate $2.81 for the city. (NOTE: Paragraph re-written to clarify the agreement between the town and the city.)

It would take only one O-AT-KA Milk Products-sized plant to make a huge difference, Molino said.

"If you were to see something like another O-AT-KA come in overnight, you could see a huge benefit," Molino said.

The city manager's remarks followed a special meeting of Batavia City Council where the council unanimously approved a plan to provide sewer service to the agri-business park (Councilman Bill Cox recused himself because of a potential conflict of interest).

The development of the park received a significant boost this spring when Alpina Products agreed to build a new yogurt factory on the site. Escrow on the sale of that parcel is expected to close Monday.

The sewer agreement between the city, Town of Batavia and the Genesee County Economic Development Center is key to closing the Alpina deal. 

It calls for the GCEDC, with a contribution from O-AT-KA, to use state grants to build a sewer system for the agri-business park and the O-AT-KA facility. The system would include two new pump stations -- one within the jurisdiction of the town and the other within city limits on O-AT-KA's property. The city and town would take possession of the completed pumps and sewer lines.

Just expanding capacity for O-AT-KA is a huge benefit to the city, Molino said.

"O-AT-KA is our biggest sewer user, our biggest water user," Molino said. "It is one of the largest employers in the county. It gets a larger sewer line to discharge into, so they’re not constrained anymore and they have the opportunity to grow. That infrastructure is coming to us free, no cost to the city users. The other thing is that Ellicott Street (sewer line) is going to be open now for greater growth. So we’ve got two opportunities there."

Some of the sewer lines in Batavia are up to 50 years old. 100 years old, many more are at least 50 years old. It's infrastructure that needs to be replaced pretty soon. And while the city has one of the most aggressive capital improvement projects for its sewer and water systems in the state, there is still a huge need to move quickly to replace old lines.

"To me, that’s really exciting (if the agri-park is successful), to be able to do sewer line after sewer line project, to replace aging infrastructure," Molino said. "That's really exciting."

During the council meeting, Steve Hyde, CEO of GCEDC (inset photo), told the council that the current gravity system on the Ellicott Street line, the one currently used by O-AT-KA, can only handle 500,000 gallons per year and O-AT-KA needs significantly more capacity to grow. The expansion will give O-AT-KA up to 2.5 million gallons per year of potential flow.

He said the agreement with Alpina is a huge step forward for the project and Genesee County.

"When is the last time we saw a major manufacturer come into the greater Batavia area?" Hyde said. "Maybe 40 or 50 years? We’ve seen a lot of them move out, but not too many move in. Maybe this is the start of something good for our community."

It could also be the basis for pushing forward consolidation between the town and city, one council member observed.

The joint agreement has the Town of Batavia buying sewer capacity from the city and reselling it to agri-park tenants.

The town and the city already have a joint agreement in place for processing effluent in the city's wastewater plant, but the agri-business park highlights the difference in sewer rates between the town and the city.

The town's rate is $5.35 per thousand gallons. If the city and town consolidated, town landowners, including agri-park tenants could potentially pay the city's current retail rate of $3.14 per thousand gallons.

An agri-business park plant producing 15,000 gallons per day would save nearly $12,000 annually paying the city's rate.

Regardless of the rate paid by agri-park tenants, the effluent is all flowing to the same treatment plant, and the quality and efficiency of that plant is the main reason city rates are so low, Molino said.

"That plant is a resource that I don’t think people understand," Molino said. "It’s a special plant. It’s 350 acres. It’s one of the largest lagoon plants east of the Mississippi. It doesn’t use chemical treatment. It’s natural treatment, so there’s no chemical cost. Only four people run it, seven days a week. You find me a sewer plant that has low labor costs like that, low treatment costs -- that's why our sewer rates are some of the lowest in Western New York."

A group of people who either hold the purse strings or are in a position to influence business owners who might be willing to relocate to Genesee County received a tour Thursday of the shovel-ready business parks in Genesee County.

The group included representatives of commercial lending institutions in Rochester and Buffalo, real estate agents and staff from the Small Business Forum and the USDA Rural Development office.

Also on the bus were representatives from Sen. Kristen Gillibrand's office and the office of Sen. Mike Ranzenhofer.

After lunch and a briefing at Batavia Downs, the group stopped first at the planned site of Alpina Products in the Genesee Valley Agri-Business Park. From there they headed out to Bergen, then to the Med-Tech Park, then Town of Batavia's Gateway project, then Pembroke and Buffalo East, followed by the location of the proposed STAMP project in Alabama.

The management of Blue Heron Construction, out of Jordan, is a little baffled about why they didn't get the contract for the sewer project at the Genesee Valley Agri-Business Park.

Genesee County Economic Development Center awarded the contract to Sergi Construction out of East Aurora even though Blue Heron's bid was $200,000 lower than Sergi's.

"It just seemed quite strange to award the contract to the second bidder," said C.W. Gregory, chief of operations for Blue Heron.

Blue Heron bid $2,024,101.50. Sergi bid $2,227,810.

Mark Masse, VP of operations for GCEDC, listed three main reasons the agency went with Sergi over Blue Heron.

First, according to Masse, Blue Heron officials admitted that they didn't have time to fully review the specs for the job. Clark Patterson Lee, the architect of the project, raised a concern that Blue Heron's bid didn't fully account for all the possible variables in the project.

Second, Clark Patterson's staff expressed concern that Blue Heron underestimated the amount of epoxy that would be needed to complete the project. The difference could mean from $20,000 to $60,000 in additional cost, while, according to Masse, Sergi overestimated the amount of epoxy needed by $60,000.

Third, Blue Heron, Masse said, has more projects in the pipeline than Sergi.

"Blue Heron has a sizable backlog of work," Masse said. "We were concerned that they would not be able to meet the aggressive time line that we needed them to meet in order to complete the project on time."

The first project in the agri-business park, Alpina products, is scheduled to break ground before the end of summer and GCEDC is contractually obligated to deliver a sewer system up to spec and on time.

Matt Rodenhizer, V.P. of Blue Heron, said he doesn't think GCEDC can legally bypass the low bidder based on the amount of work the low bidder has under contract. He also said that even if more epoxy was need, the Blue Heron bid would still be more than $70,000 lower than Sergi's.

The company is considering legal action and is also waiting on a letter of explanation from Clark Patterson that Rodenhizer said he isn't sure they will get, even though they've requested one.

Gregory said when it came to specifications for epoxy, the bid document and the spec document weren't necessarily aligned and even Clark Patterson's reps seemed confused on the point when Blue Heron interviewed for the job.

Gregory and Rodenhizer disputed Masse's claim that Blue Heron hadn't thoroughly reviewed the documents.

They also said the company has more than enough manpower to complete the project on time.

"They don't know how big of a company we are," Gregory said. "We could have put two or three crews on the project to get it done on time."

Currently, Blue Heron has four contracts totaling more than $5 million on other projects through Clark Patterson that are closing out or well under way, said Rodenhizer.

"We've never had a problem with Clark Patterson before," Gregory said. "We've worked well with them and it was a shock after the fact not to get the contract."

O-AT-KA Milk Products Cooperative, Inc., is receiving $204,000 in tax abatements through the Genesee County Economic Development Center (GDEDC) for an expansion at its facility at 700 Ellicott St., Batavia.

O-AT-KA intends to build a two-story dairy processing facility for producing dairy-based beverages and "ultra-filtered" milk ingredients. The project summary reads, "The additional dairy batch blend capacity allows more dairy-based products to be manufactured at O-AT-KA for shipment both nationally as well as exports."

Both projects would use milk produced exclusively in New York. O-AT-KA is receiving sales-tax exemption on construction material of $204,000. The estimated 10-year return on investment into the local economy is $21.2 million.

Graham Corp., of 20 Florence Ave., Batavia, is receiving a tax abatement of $125,906, through the GCEDC for the addition of a 10,000-square-foot sandblasting and painting building. Graham is receiving an $89,088 property-tax exemption (PILOT) and a sales-tax exemption on building materials of $36,818. The estimated 10-year economic impact is $89.8 million

Marktec Products, Inc., has been approved by the GCEDC for $57,109 in tax abatements for relocation to the Genesee Valley Agri-Business Park. Marktec, owned by Bill Cox, will build a 5,002-square-foot building on two acres of land in the park. The company will receive a property-tax exemption (a 60 percent PILOT) of $32,739, a sales-tax exemption on building material of $18,800 and a mortgage-tax exemption of $5,570. The project is expected to retain four jobs and create two new jobs. The estimated return on investment over 10 years for the local economy is $2.45 million.

Press release from the Genesee County Economic Development Center:

For the second year in a row Genesee County has been recognized in the top five of the rankings for Metro Food Processing Industry Growth by the National Site Selection publication, Business Facilities Magazine (July/August Edition). Genesee County has New York State's highest percentage of classified farmland, three of the top 100 vegetable farms nationwide and is first in agriculture sales statewide. More than two-thirds of Genesee County's acreage is used for agriculture and employs more than 1,500 workers.

Agri-Business is the number one industry in Genesee County and naturally where the crop is grown and the cows are plenty, food processing plants spring up. Genesee County is home to O-AT-KA Milk, Yancey’s Fancy, Allan’s Canning, and the new home of Alpina Foods, LLC. 

“The completion of the Genesee Valley Agri-Business Park and the announcement of Colombia-based Alpina Foods, LLC’s decision to build its first U.S. manufacturing plant at the park underscores the strength of our region’s food and beverage manufacturing sector,” stated Steve Hyde, president and CEO of Genesee County Economic Development Center (GCEDC). “We have strategically invested in building an infrastructure to attract food and dairy processing companies."

Alpina, one of the most recognized dairy companies in the world and a leading dairy producing company in Colombia and South America, has decided to open its first specialty yogurt manufacturing plant in the United States by mid-August and will be the first occupant of the Genesee Valley Agri-Business Park. 

The GCEDC has developed the largest agri-business park in the nation.  The Genesee Valley Agri-Business Park, a public-private partnership between GCEDC and Farm Credit East, encompasses 202 shovel-ready, pre-permitted acres in the center of Western New York.

The park was designed with food-processing companies in mind, and on site there is access to low cost process water via a local aquifer – that produces more than 6+ million gallons per day and a pretreatment facility (Ecolab). A robust utility infrastructure throughout includes rail access. In 2010 municipal water lines were brought into the park as well as gas and electric and the main roadway was constructed. Recently the GCEDC was awarded a $3.9 million New York State grant to bring rail and a cross dock into the park. 

Supporting the agri-business industry of Genesee County are world-class Universities including Cornell and Rochester Institute of Technology (RIT). Cornell University is the leader in food science research and transfers research-based information and technology for the food systems of New York State. Within the department of Food Science, six organizations specifically provide direct support to the dairy industry.

RIT’s Packaging Science Department works closely with a variety of companies in Genesee County and across the U.S. to create sustainable environmentally friendly packaging. The university also explores cooperative global opportunities for students to work in manufacturing facilities.

The university resources, skilled workforce and available facilities, combined with the area’s steep agri-business and manufacturing heritage give rise to unbridled growth in Genesee County’s food processing capabilities.

In business, it often comes down to location, and Bill Cox thinks he's found the perfect location to move his business -- to the new Genesee Valley Agri-Business Park.

"I have the opportunity, if all the stars align, to do a significant amount of business (in the new park)," Cox said following a Town of Batavia Planning Board meeting Tuesday evening.

The board approved a site plan for Cox to build a 5,002 sq. ft. facility on two acres of land just inside the new park.

There had been some question as to whether Cox's business, Marktec, was sufficiently agriculture related to be allowed in the park, but Cox said almost all of his customers are food processing companies.

Marktec makes the machines that encode information -- the little laser-printed use-by dates -- on food and beverage packaging.  

The Batavia city councilman currently has an office on Ellicott Street across from the Chapin plant and Oatka Milk headquarters. Moving into the town, Cox said, is going to help him convert new tenants of the agri-park into customers.

Being right in the park will give Marktec greater visibility with the food processing companies anticipated to move in. (So far, only Alpina Products has committed to building in the agri-park.)  That should translate into more sales of his high-speed label machines. It will also give food processing companies a convenient local vendor for supplies and service of existing equipment.

Chris Suozzi, VP of business development for Genesee County Economic Development Center, said Marktec fits well with the proscribed types of businesses being allowed into the ag park. The parcel Marktec will build on is also not prime real estate. While it's near Route 5, it's not right at the entrance and the location is not well suited for construction of a manufacturing facility.

Cox said he is founder, sole owner, president and chief sales person for Marktec, which has been in business for 28 years.

The company currently has four full-time and one part-time employees. With the move, Cox said he anticipates hiring another salesperson and a second full-time tech within the next three years.

The following projects have been approved for tax abatements for job-creation and retention projects, according to the Genesee County Economic Development Center:

• An $18,000 sales tax exemption has been approved by the GCEDC board for Ken Barrett Chevrolet, 229 W. Main St., Batavia, for expansion of its collision shop. The shop will expand from 7,833 square feet to 15,536 square feet and will cost $635,000. Three new jobs will be created and 10 jobs retained.
• Graham Manufacturing, 20 Florence Ave., is planning an expansion of its finishing (sandblasting and painting) operation. GCEDC has granted a sales tax exemption of $36,818 and a PILOT tax abatement of $89,088. The project will create an estimated 30 new jobs and help retain 278 existing jobs. The $1.8 million expansion will add 10,000 square feet of manufacturing space to the facility.
• Angelica Textile Services, Inc., 1-3 Apollo Drive, will receive a $15,125 mortgage tax exemption to help refinance its current $1.2 million mortgage. The project will help retain 78 jobs in Batavia.
• J&L Feed is planning on converting current greenhouses at 47 West Main St., Corfu, into a project called "The Market," which will create a floral shop, fresh meat and deli market and a general store. An approximately 3,400-square-foot building will be constructed and existing greenhouses will be demolished. J&L will receive a $22,000 property tax exemption, $4,800 sales tax exemption and a $1,250 mortgage tax exemption. An estimated three jobs will be created.

Press release:

The Genesee County Economic Development Center (GCEDC) is pleased to announce the addition of Michael J. Bakos as grant program coordinator for the center's Advanced Manufacturing and Nano-Tech Certificate Training Program. Bakos has more than 30 years of managerial experience in the biomedical industry and holds an A.A.S. degree in Electronic Technology from Erie Community College (ECC) as well as a B.S. degree in Management from the Rochester Institute of Technology (RIT). He is a resident of Genesee County, serves on the Town of Pembroke Planning Board, and is president of the Akron-Newstead Rotary Club.

In his role as grant project coordinator, Mr. Bakos will manage, coordinate, implement, support and evaluate a noncredit certificate training program that will prepare participants for entry level positions in advanced-manufacturing and high-tech industries such as microelectronics and photovoltaics. The program was developed to satisfy the demands of this growth sector in Genesee County and the surrounding Western New York and Western Finger Lakes regions.

Program participants will receive an introduction to the skill sets necessary to succeed in a high-tech and advanced-manufacturing environment. The program is a joint-venture partnership between the GCEDC, Genesee Community College (GCC), the Rochester Institute of Technology (RIT) and Genesee County, with training taking place at the Genesee Community College and Rochester Institute of Technology campuses.

"Mike’s background, training and experiences with a large high-tech, life-science company will be an asset to our program," says John Jakubowski, GCEDC workforce development consultant.

"This is an exciting opportunity for myself and for the residents of our community that are planning to enter or re-enter the local workforce," says Mr. Bakos. "The program covers a diversity of topics including teambuilding, LEAN Manufacturing concepts, computer applications, work readiness activities, and technical subjects such as microelectronics, surface mount technology, and polymer processing."

The program is offered "free" to qualifying applicants. Applications for the program are now being accepted and are available through The Genesee County Career Center, 587 E. Main St., Suite 100, East Town Plaza, Batavia, NY 14020.

Press Release:

Washington, D.C. – U.S. Senator Kirsten Gillibrand is urging U.S. Commerce Secretary Gary Locke to approve the application submitted by the Genesee County Economic Development Corporation (GCEDC) and the Genesee Gateway Local Development Corporation (GCLDC) for a Foreign Trade Zone (FTZ), a measure that could help attract more businesses to the region, help local businesses find new markets, and create more local jobs. 

In her letter to Secretary Locke, Senator Gillibrand wrote, “This designation would allow for important incentives that could help reduce the cost of doing business for participating companies, increase their competitiveness, and help them access new opportunities to expand their markets. The foreign trade zone designation will also minimize the need for businesses to shift their operations to foreign countries to be nearer to new markets, keeping more jobs within the United States.”

“A foreign trade zone designation for Genesee County will allow existing companies to compete in the global marketplace and attract new companies to Western New York,” stated Steve Hyde, President and CEO of the GCEDC. “Many existing companies will save money on parts they import allowing them to hire more local employees.”

Specifically, an FTZ designation allows for substantial cost savings for businesses on import duties, merchandise processing fees, faster delivery, and higher security. Thousands of businesses use FTZs to handle both foreign and domestic products each year, with more than $30 billion in merchandise exported from FTZs to foreign markets.

The GCEDC is an organization devoted to fostering increased economic activity in local communities throughout the Genesee County region. The GCEDC’s efforts include actively marketing the county to businesses and facilitating capital investment that contributes to the creation of jobs in the region. In fact, GCEDC has sponsored 160 projects, leveraging nearly $45 million in private investment into local businesses, and helping to create or save nearly 6,000 local jobs in the last six years alone.