The Genesee County Economic Development Center (GCEDC) board of directors has approved final resolutions for Graham Corporation’s $17.6 million expansion in the city of Batavia and GE Bergen Owner, LLC’s $43.6 million project in the town of Bergen at its board meeting on Thursday, August 1, 2024.
Graham Corporation proposes to build a 28,867 square-foot commercial production facility. The $17.6 million project will create 24 new full-time equivalent (FTE) positions while retaining 367 FTEs.
Graham Corporation requested sales tax exemptions estimated at $383,546 and a property tax abatement estimated at $298,427 based on an incremental increase in assessed value.
The proposed incentives are estimated to generate $19.5 million in wages/benefits and revenues for local governments generated by the developer over 10 years. The project would generate a $42 return on investment for every $1 of proposed incentives.
GE Bergen Owner, LLC proposes to build a 196,000 square-foot manufacturing facility at Apple Tree Acres. The $43.6 million project will be leased to an end user and will create 60 new FTEs and retain 140 FTEs.
GE Bergen Owner, LLC requested sales tax exemptions estimated at approximately $1.75 million, a property tax abatement of approximately $2.15 million via payment in lieu of taxes (PILOT), and a mortgage tax exemption of $366,000.
"The GCEDC is pleased to continue to support the growth of our home-grown companies," said GCEDC President and CEO Mark Masse. "These projects strengthen the diversity and vitality of our manufacturing industry and generate more rewarding careers for our community."
The proposed incentives are estimated to generate $41 million in wages/ benefits and revenues for local governments generated by the development over 10 years. The project would generate a $13 return on investment for every $1 of proposed incentives.
The project is pending, subject to receiving incentives from Empire State Development Corporation.
The GCEDC Board also advanced initial resolutions for two community solar farm projects in LeRoy.
FFP NY LeRoy Project1, LLC and FFP NY LeRoy Project2, LLC represent a total $20 million investment and will generate up to 7 megawatts of power through the installation of ground-mounted solar panels.
FFP NY LeRoy Project1, LLC’s proposed $13.5 million project would generate $4,000/megawatts (AC) + a 2% annual escalator of revenues with the Town of LeRoy, Genesee County and LeRoy School District. The project also includes a host agreement with the Town of LeRoy and is estimated to generate a $566,261 increase in property-tax type revenues to the host municipalities.
FFP NY LeRoy Project2, LLC’s proposed $6.5 million project also would generate $4,000 per megawatt (AC) + a 2% annual escalator of revenues with the Town of LeRoy, Genesee County and LeRoy School District. The project also includes a host agreement with the Town of LeRoy and is estimated to generate a $229,119 increase in property-tax type revenues to host municipalities.
A public hearing for the proposed project agreements will be scheduled in the town of LeRoy.
Mark Masse, CEO of the Genesee County Economic Development Center
The Genesee County Economic Development Center plans to build a 500,000-gallon water storage tank at WNY STAMP to help with the fire suppression needs of current and potential park tenants.
The immediate need to provide sufficient water pressure for the Edwards Vaccum plant is now under construction.
Mark Masse, CEO of GCEDC, said a 12-inch water main supplies STAMP now, but the water pressure isn't sufficient to meet Edwards's fire suppression needs.
Edwards will need 120,000 gallons of water at the ready from the tank to support its fire impression system. The excess capacity will provide service to any future tenants.
The water will be non-potable and rarely changed. A heating element will keep it from freezing in the winter.
A 30-acre parcel is available to the north of the new Edwards facility. If a potential buyer were interested, Edwards would have first right of refusal.
"There is a potential for a project there that could utilize that tank as well," Masse told the Genesee County Planning Board on Thursday.
STAMP Waterworks Corporation, which will own the tang, currently has an operations and maintenance agreement with the town of Batavia for the tank and the rest of the water system at the STAMP site.
The tank's design and engineering have yet to be completed, so Massee couldn't provide an estimated cost when asked by The Batavian. He said bids should go out by the end of the year. Funding is from a grant, Fast New York, already received by GCEDC to fund the overall infrastructure for STAMP.
Earlier this week, the Genesee County Economic Development Center issued a press release on the promotion of Batavia resident Mark Masse from senior vice president of operations to president and chief executive officer.
Masse, 51, (in file photo at right) is a lifelong Genesee County resident, growing up in Stafford, graduating from Le Roy Central School and spending some of his spare time at Adam Miller Toys & Bicycle on Center Street in Batavia – a business started by his grandfather and later owned by his mother, Joyce, and uncle, Gary Miller.
An avid golfer and bowler, Masse joined the Polish Falcons leagues in both sports in 1995 and has been participating ever since. The start of his 30th year in the bowling league will be delayed a bit, however, due to a scheduled hip replacement in October.
He has a daughter, Grace, and 6-month-old granddaughter, Kennedy, and a son, Jack.
Masse is a certified public account who worked for Freed, Maxick & Battaglia for 15 years before being hired by the GCEDC.
On Thursday afternoon, Masse sat down with The Batavian to talk about his expanded role with the agency, which will be official on Aug. 1. He succeeds Steve Hyde, who guided the organization as president and CEO for the past 21 years.
Q. You’re succeeding Steve Hyde in the lead role with the agency. Is that something that you had been discussing with Steve after he announced his retirement last month?
A. I think it was just a natural progression, to be honest. When I started here, the position was created to help Steve with the number of projects that we had ongoing and STAMP (Western New York Science, Technology and Advanced Manufacturing Park in the Town of Alabama) was just getting off the ground at the time. Over the years, it’s something that I’ve enjoyed doing and I learned a lot from Steve. When it came time for him to retire, I was here with the right kind of experience and knowledge to be able to hopefully step in and continue on what he had started.
Q. Your title was senior vice president of operations. Have there been any other changes now in (employees’) titles. Has anyone moved into the VP/Operations position?
A. No other changes at this point in time but that’s not to say there couldn’t be some in the future. But for now, no.
Q. Steve Hyde has left a big imprint on this corporation with everything that he has done over the years, not just with the STAMP site but throughout the county. You have big shoes to fill. What are your thoughts about trying to fill those shoes and do you have specific things that you’re looking to do?
A. Obviously, we want to continue the momentum we've had in the past … such as our corporate business parks that are almost full. We’ll be starting to look at some other future parks. But we do face some significant challenges, especially the water capacities in the county and it’s no secret. That’s a large issue that the county is diligently working on, but it could be a few years before we get those capacities. I think the electric grid is seeing significant challenges as well --with the shutdown of fossil fuels -- and alternative energy generation projects coming on. We’re running into a lot of issues with capacities on the utility lines. We want to develop a few more corporate business parks but until some of those capacity issues get addressed, it's going to be difficult. But fortunately, we have STAMP that we can continue to work on and can continue to attract tenants to and build out.
Q. Now that you brought up STAMP, you’ve had some legal issues there with trying to push wastewater to Oak Orchard Creek (in Orleans County). Where does that stand now and do you feel that you will be resolving that issue?
A. So, one of the lawsuits was resolved, the one with Orleans County on the article 78, that was ruled in our favor. The eminent domain one was heard on April 16. And we're waiting to hear back on that. I think there are opportunities to come back together and discuss things and try and work things out. Ultimately, we are also looking at other options; we have to look at other alternatives that might be available to us. I'm confident one way or another, we'll figure out a solution. One of the things that we've always done is we've been able to figure out a way to get things done. And I think that's emphatic of what Genesee County is, right? We're resilient. We're determined, and to some extent, we're all a little stubborn.
Q. How is the agency’s relationship with Orleans County? Has it been hampered or hurt because of this Oak Orchard Creek issue? Do other alternatives include working with the Town of Oakfield?
A. We are looking at a short-term solution, potentially for sanitary sewer to go the Oakfield treatment plant. I don't want to say that, you know, Orleans County relations are hurt. I mean, people, neighbors fight all the time, siblings fight all the time. And I think that after some time, after we've had a chance to kind of settle down, I think there's an opportunity to get back together and see if we can work it out.
Q. One of the criticisms you hear on social media, from the so-called experts, is that the GCEDC just hands out money. Those who cover the GCEDC know that there’s a formula involved (for determining tax abatements), but how to you fight and overcome that perception?
A. One thing that we always try to do is meet with our stakeholders as much as we can and we try and explain the process. I present to the Leadership Genesee class every year about who we are, what we do, and my three top slides that are we don't give out money. So, it's an abatement and I don't think people truly understand how that works. They feel like we're subsidizing a company. But if you look at the way tax rates are and the municipal services that corporations draw versus municipal services that residents draw, corporations are generally around 70 cents or so let's say out of $1 for services while residences are like $1.20. So, even if a corporation comes in -- number one, the fire district fees are never abated, those are always paid 100 percent. So those corporations are helping to offset those costs of services that municipalities offer that the residents use. It's not too often that those corporations draw down those services. The PILOT (payment in lieu of taxes) revenue that's being generated is usually significantly more than what the vacant land or the previous land was generating for those municipalities as well. Not to mention that you're creating jobs locally that those people are going to spend their money here; you've got a company that's going to buy from local companies or bring in other revenue from outside the community.
Q. Do you have a one-year, five-year, and 10-year strategic plans? What are some of the strategies going forward?
A. That’s a process that the board (of directors) is going to undertake and we (staff) will undertake with them. Shortly, we'll examine what's out there and see what land is available, where it would make sense to potentially look at another corporate business park and what other sectors we want to try and get involved in. I think one of the areas we've seen where there's a bit of a shortfall is in workforce training and workforce development. I think there's an untapped market for us to be able to assist our local ag farmers in trying to find some skill sets and trainings for some of their employees. A lot of what their employees do are the skilled trade work on a regular basis that we've seen a significant decline in over the years, and we're trying to get kids excited about and get back into.
Q. The GCEDC has been pretty active in the Pembroke area. Are there other areas in the county that are untapped, so to speak?
A. A lot of that is going to be driven by the location and the size and the capacities and the infrastructure that's there. Unfortunately, the majority of large scale water, large scale sewer and electric is generally around where the Thruway exits are. However, there is a significant need for single-family housing market rate apartments in our communities. And we've reached out to a few of the outlying communities about what opportunities might be there, if they've got areas identified for housing because that seems to be what they are interested in -- is trying to attract people. In the most recent census, I think Genesee County's lost like 1,500 people over the last couple of years. So, we aren't growing and we need to figure out a way to do that. And one of the keys is to have housing here for people.
(The GCEDC’s corporate park sites include Apple Tree Acres in Bergen; Buffalo East Tech Park in Pembroke; Gateway I & II, Genesee Valley Agribusiness Park and Upstate Medtech Park in the Town of Batavia; and Le Roy Food & Tech Park).
Q. Are you connected with the apartment complex that is going on next to you (on College Road)?
A. Yes, that’s a market rate apartment complex that a gentleman will be renting those units out. It’s called Medtech Landing. We did sell the land, obviously, that was part of our Medtech Park. We did incentivize that with a PILOT and sales tax and mortgage tax abatement on there as well. And then part of those funds are going to be used to fund our Batavia Home Fund, which will help with some programs within the City of Batavia for housing. We just recently had our first draw on that for a gentleman who replaced the roof on his house and got a grant from the Batavia Home Fund to cover 50 percent or 60 percent of the cost of replacing his roof.
Q. Speaking of the City of Batavia, there's a something sitting there called Ellicott Station, which has not been completed and could be considered as an embarrassment to the city. What is GCEDC’s role in getting tenants in there?
A. The GCEDC board terminated all of its benefits that were awarded to that -- the PILOT, the sales tax and mortgage tax.I think our board's position is that unless it's going to be market rate., we don’t have a desire to participate in that project. Now, where it stands, I don't know. That's up to (Buffalo developer) Sam Savarino.People have said there's been work on going out there. I don't really know what's going on. We haven't been contacted by anybody who's been interested in trying to acquire it and using our any of our incentives that we have.
Q. What do you feel your strengths are – things that you have already brought to the company – and what are some of the things you need to work on?
A. I definitely think I have an extensive background from accounting with a wide variety of businesses and learning how to interpret financial statements and how to work with a company and how to work with people. I do think that my people skills are good. You know, I think that people know that I care and know that I work hard. And I truly believe in what I'm doing here. And everybody here believes in what we're doing here and trying to move our county forward and make it a better place. Working with Steve, he's brought me along. So, I have a lot of those key relationships with stakeholders as well. We do need to work on things like public perception. I think there’s some messaging we can get out there. Not everybody's going to believe it. But I think there's opportunities out there to try … and engage people and provide that information.
Q. Getting back to STAMP, there was a big presentation by Senator Schumer a couple years ago about Plug Power coming there. Right now, the company’s stock has bottomed out and they just received a $1.66 billion conditional loan from the Department of Energy. Is Plug Power going to make it?
A. They’ve told us they have full intentions of finishing their project at the STAMP site. They have put it on pause temporarily. Beyond that, I think any other questions would be for them directly. I don't ever like to speak for a private company and what they've got going on. They've received incentives no different than most other companies. And we do have triggers in there similar to like with Savarino that if things were to go bad, that there are opportunities for us to not only cancel those, but potentially claw them back. But there's been nothing done to date that would lead us to go down that path.
Q. Is there a company operational now at STAMP?
A. No, Edwards Vacuum has just broken ground and they're under construction. They’re in the semiconductor supply chain. They make dry vacuum pumps, which means there's no oil lubrication in the pumps at all. So they're used in the semiconductor industry in the sub floor to help regulate gases and clean the air within clean rooms. Basically, they're the premier pump manufacturer for most semiconductor manufacturers. These particular pumps were only made overseas. So, by building in the U.S., they're significant cutting their greenhouse gas emissions by locating closer to their potential customers and their current customers and to be able to truck those pumps to them. They intend to complete construction by June or July of next year. (Edwards Vacuum is owned by Atlas Copco, a worldwide company).
Q. Did you get a raise? It’s public knowledge. What is your salary?
A. (After a hearty laugh), It will be in the contract and I would prefer not to (disclose it now) but if you ask for it later, we’ll have to provide it.
(According to the GCEDC, Masse’s compensation in 2023 was $129,369, while Hyde earned $263,161. Masse said his new salary is less than what Hyde was making).
I’m very, very fortunate not only for the salary but the opportunity and the confidence that the board and our local communities have put in me and the people I work with put in me to be able to continue this going forward.
The Genesee County Economic Development Center (GCEDC) Board of Directors has selected Mark Masse, the GCEDC’s Senior Vice President of Operations, as the organization’s next President and CEO, the agency announced on its social media site Wednesday.
The just-announced appointment was unanimously approved at the GCEDC’s May 2 board meeting. Masse will succeed Steve Hyde, who announced in April that he is retiring on August 1 after over 21 years and over 500 projects during his tenure as President and CEO.
“Mark’s leadership alongside Steve has produced a period of unprecedented investment and growth, and he was the clear choice to lead the GCEDC into the future,” said GCEDC Board Chair Pete Zeliff. “We are impressed with Mark’s capability to both guide a seamless transition as we accomplish the projects currently under development and to pursue a vision for the future growth of Genesee County.”
Since joining the GCEDC in 2010, Masse has provided leadership and direct project management, working with the organization’s civil engineering firm and finance staff, leading the way in the development, infrastructure deployment, financing, and management of the organization’s portfolio of real estate assets.
He has been responsible for the permitting, engineering, and infrastructure deployment at the STAMP mega-site in the Town of Alabama, including projects that are investing $1 billion between the renewables manufacturing and semiconductor industries and a 600-megawatt 345kV-to-115kV substation.
“Mark is more than ready to take the reins of leadership at the GCEDC,” said Hyde. “As he has demonstrated with developments large and small, Mark has the talent, experience, and readiness to lead our organization during a critical time. Private and public investment is at an all-time high as the GCEDC, Genesee County, and New York State build a semiconductor and advanced manufacturing economy.”
Masse graduated from Nazareth University of Rochester with an accounting degree. He is a certified public accountant licensed in New York State and had 15 years of experience at Freed, Maxick & Battaglia prior to his tenure at the GCEDC. He is a 2002 graduate of the Leadership Genesee program and a 2012 Buffalo Business First Forty Under Forty award winner.
Masse has also served on the Economic Development Committee and the Public Market Committee for the Downtown Business Improvement District in Batavia, as well as serving as a Board Member for the Batavia Development Corporation.
“I want to thank the board for this opportunity, and I look forward to continuing the historic economic development advancements made by Genesee County under Steve with the support of the members of the GCEDC team,” said Masse.
At only 61, Steve Hyde isn't planning a second career after his final days with the Genesee County Economic Development Center; he's planning to try out an actual retirement -- for awhile, at least.
"My kind of core values in retirement, I think are, I want to spend more time with my family, do a little traveling," Hyde said in an exclusive interview with The Batavian on Monday. "I'll try to be around to help out, but it's time to step away from the limelight and the leadership role a little bit."
Hyde has led the EDC for 21 years, overseeing the construction of eight shovel-ready industrial parks, including WNY STAMP, the Genesee Valley Agribusiness Park, Apple Tree Acres, Buffalo East Tech Park, and Gateway I & II corporate parks, among them. During that time, GCEDC has assisted with more than 500 projects, from building expansions to whole new factories, worth a combined $2 billion-plus of investments leading to the creation of thousands of new jobs and increased tax revenue for municipalities and school districts.
"I just think it's a good time for me (to retire)," Hyde said. "I mean, I hit critical milestones for our retirement plan. Things are in good shape at EDC. There's lots of progress and more to do. But, you know, my hope was to get things up and running and on plane, and with Edwards breaking ground and the Ag Park almost full, the great work going on with O-AT-KA and Upstate and HP Hood. The other parks are filling up. The next generation is ready to move, and it just seemed like a good time to do it."
Hyde graduated from Batavia High School. He earned a bachelor of science in marketing, finance, and agricultural economics from Cornell University and an MBA in finance in sales and marketing from RIT.
After earning his MBA, Hyde became manager of strategic finance/mergers and acquisitions for Xerox, followed by taking a shot in the start-up world with a software company before landing a VP of business and technology development at ResMed in Rochester.
Jim Vincent was chairman of the GCEDC board in 2002 when the agency began its search for a new president and CEO. There were several qualified candidates, Vincent said in a recorded message shared at the GCEDC annual meeting on Friday.
"Steve Hyde was our selection," Vincent said. "He is a gifted individual with experience from the big corporate world of Xerox. We were not sure if he was a good fit for a small town and small county economic development. We were won over by his commitment to home and family and his desire to raise his family here in Genesee County."
That was the start of a four-minute video in which community leaders praised Hyde's efforts to help Genesee County improve its business climate.
"There was no project or client that was too big or imposing," said Charlie Cook, chairman of the board for Liberty Pumps in Bergen. "He was determined that Genesee County be recognized statewide, even nationwide, as a great place to locate.
"Steve's approach to economic development was comprehensive and creative," Cook added. "Beyond the projects themselves, he was focused on the supporting peripherals, such as park development, infrastructure, workforce supply, workforce development, and even housing."
Hyde was quick to point out during his interview with The Batavian that "it takes a village" to succeed in economic development and that not only has he been blessed with a great team while leading the industrial development agency, the agency has also had great partners at the state and regional level.
"It wasn't just me," Hyde said. "I was just a part of the partnership that was really focused. I think about the number of organizations that really locked arms together to advance our shovel-ready sites, workforce development, and downtown revitalization strategies. I've been just really pleased to see that."
Hyde believes those efforts have been successful for Genesee County.
"The industrial parks have really helped really bring manufacturing back," Hyde said. "That's really been our focus for the past 20 years. I think we've had some good progress there, and they'll continue growing. I think we're seeing things grow, though not everything's perfect. Our downtown areas are seeing tons of redevelopment, making it a better place to live, work and play, but not everything's perfect in economic development, as you know."
In 2022, the most recent data available, Hyde was paid a salary of $249,752.
While leading the GCEDC, Hyde also served on the board of education for Batavia City Schools from 2007 to 2011. He is a past chairman of the New York State Economic Development Council and a member of the board of directors of the Finger Lakes Regional Economic Development Council. Those are all voluntary positions.
Hyde's 21 years at the helm of the agency haven't been without choppy waters and controversy.
In 2013, The Batavian scrutinized tax abatements awarded to COR Development to help the owner of Batavia Towne Center on Veterans Memorial Drive attract Dick's Sporting Goods and Kohl's Department Store to the former Lowe's Home Improvement location, raising the level of corporate competition for local retailers.
In 2015, the sudden closure of the Muller Quaker yogurt plant in the Genesee Valley Agribusiness Park looked at first glance like a crushing blow to the cause of economic development. Pepsi Co. and the Muller Group from Germany invested more than $200 million in the plant only to shutter operations less than three years after its opening. The companies had been promised more than $11 million in tax abatements to build the plant, and people who misunderstood how tax abatements work thought the company was walking away with a windfall. However, both companies lost any pending tax breaks (a big portion of that $11 million), and Pepsi, a publicly traded company, reported a $60 million loss on the project. It's unknown how much Muller lost as a result of the business failure.
In 2015, Dairy Farmers of America acquired the plant for $60 million, and after paying a full-load property tax bill of more than $600,000 in 2016 on the property, sold the plant in 2017 to H.P. Hood for $54,216,000. Since then, the plant has undergone multiple expansions, employing hundreds of people beyond initial projections and turning it into one of GCEDC's biggest success stories.
Another yogurt plant, built by Alpina in the Ag Park, has undergone a similar transformation, from a failed business venture by the South America-based dairy company to a success for Upstate Niagara.
WNY STAMP has also seen its share of starts and stops. The most notorious was the highly-touted plans to build innovative solar panels on property in the tech park in the town of Alabama. After 1366, Technologies was unable to secure backing from the Department of Energy (largely, it seems, because then Sen. Chris Collins failed to endorse the project). The company decided to build its plant in Malaysia. It's unclear if that plant was ever built. It later merged with a solar company and became CubicPV, which, earlier this year, scrapped plans to build a new manufacturing plant in the United States.
No new development plans were announced for STAMP until 2021, when another green energy company, Plug Power, which converts water into hydrogen fuel, announced plans to build a $264 million plant there. At this point, a good deal of the plant's development has been completed, but the company doesn't expect the plant to start producing fuel until 2025. Plug Power is itself a controversial company, with the stock currently trading at $2.60. Investors have become increasingly weary of a company that has never made a profit in more than 20 years of its existence. Plug Power is awaiting word on a $1.5 billion low-interest loan from the Department of Energy that will help it complete its hydrogen fuel plants. Once fully operational, those plants are expected to lift company revenue sufficiently to close the profitability gap. Meanwhile, the company is facing a shareholder lawsuit.
Hyde always takes all of these ups and downs in stride, saying, as he does often, that "economic development is a marathon, not a sprint." The business world is full of challenges, and few things go as expected.
When a business deal falls apart, Hyde understands. Those things are going to happen.
What has been harder to deal with -- and it's largely a more recent phenomenon -- is the amount of reporting from some media outlets, especially in Buffalo, that either employ reporters who don't understand business and economics, leave out critical information, or get information wrong.
"I think the biggest challenge for the job, especially so in the last few years, is the amount of misinformation that gets out into the public because facts are made up or manipulated rather than properly stated," Hyde said. "You know, I thank you because you've been one of the media outlets that has always worked hard to bring the facts to the table, but other outlets across the region have really created a smokescreen of misinformation. So misinformation, I think, is one of the biggest challenges."
Some of these outlets' inaccurate reporting has helped fuel social media attacks on Hyde. Asked if this has led him to seek an early exit, he said it hasn't.
"I'm a human being," Hyde said. "I have feelings, just like we all do. I've done nothing while in this role but to try and do everything I can to create more and better jobs for our residents and kids, you know, but being shot at by certain media outlets that don't have the facts portrayed correctly, it certainly is impactful and not helpful. I can't say that that drove me out of the job. No, but it can be heavy at times."
Hyde informed the GCEDC board months ago that he planned to retire in July. A committee has been busy seeking candidates, and Hyde suggested that his replacement could be announced soon. Hiring his replacement is entirely up to the GCEDC board, though the input of the Genesee County Legislature and Empire State Development is possible.
"It's truly a local decision," Hyde said. "The County Legislature, of course, gets to provide some input, but they don't get deeply involved, either. They've been wonderful that way, great partners, through the years, but they empower the board to let it be a local decision based on the people who know how these agencies are run."
In retirement, he looks forward to relaxing with his wife JoAnn at their home at Conesus Lake, which will become their full-time residence.
Hyde has expertise in negotiating business development deals that might continue to be in demand, and he's also gone down the entrepreneurial start-up route once. Might he be lured back into one of these roles again? Hyde has no such plans, he said. He said that going the start-up route once was enough, and while he's available to offer advice to his former colleagues, he thinks they're more than capable and will do fine just by keeping on doing what they're doing.
"At this juncture, I'm gonna take some time off and spend it with the family and friends, and probably for several months, if not longer, just to try to, you know, figure out what retirement looks like. Maybe something down the road, but I made a commitment to my wife JoAnn that we would do that. We've got to. We've got a second grandson coming in a couple of weeks, so I want to help out there. It'll be fun."
Developer David Mazur presents plans for MedTech Landing, an 80-unit apartment complex, to the GCEDC board of directors on Thursday. Photo by Howard Owens.
Grand Island-based developer David Mazur isn't just 100 percent sure his proposed 80-unit apartment complex across the street from Genesee Community College will consist only of market-rate apartments. He's "1,000 percent" sure.
He's not going to turn to state or federal agencies to help fund his project, as Sam Savarino did with Ellicott Station, he told The Batavian during an interview on Thursday after he presented his plans to the Genesee County Economic Development Center board of directors.
He told The Batavian the same thing he told the GCEDC board a few minutes earlier. In 18 years of building apartment complexes, he's only built and leased out market-rate units. That's his business model. That's what he knows how to do.
The proposed complex, now called MedTech Landing, on Assemblyman R. Stephen Hawley Drive, will cost $15 million to build. It will be 100,000 square feet with 80 apartments and 60 parking garages.
When completed, there will be 24 three-bedroom apartments, 42 two-bedroom, and 14 one-bedroom, with rents ranging from more than $1,300 a month to more than $2,000 a month.
Tenants will be required to have a job with a monthly income of 3.5 times the monthly rental price, which, Steve Hyde calculated, would mean at least $55,000 in annual salary for a one-bedroom apartment and more than $82,000 for three bedrooms.
Hyde said he wants people to hear that the complex is going to be market rate because, "you know, of the challenging situation we had downtown with an affordable complex that is now stuck. I wanted to demonstrate how different this is from that and that this really what this agency's focus is trying to bring up."
In an earlier press release about the project from GCECD, a point Hyde also emphasized on Thursday, a 2018 housing study for Genesee County indicated a strong need for market-rate houses and apartments in Genesee County. There needs to be more than 4,000 new units built in the county over the next 20 years, according to the study.
Mazur said, based on his 18 years of experience, about half of his tenants will be retirees, and about half will be professionals.
The retirees like the first-floor apartments, he said.
"Some people have never lived in anything brand new," Mazur said. "They don't want to deal with their house anymore. A husband or wife has passed. They want to have a sense of a little bit of community, but not too much of a community where they can have a couple of neighbors, it's okay. But they don't want to take care of the lawn, the ice, the snow, the plowing, all that stuff. For them, it's clean, it's fresh."
He recalled one tenant he had in one of his complexes who was excited to live in a place with brand-new plumbing and fixtures for the first time.
"She's 70-something years old, lived her whole life, you know, and now she has the opportunity to live in something that's brand new and fresh and modern," he said.
Not all professionals, for various personal reasons, are ready to commit to homeownership, and apartments are a better fit for their lifestyles.
Mazur said after a previous story by The Batavian about his plans, an attorney with one of the local government agencies contacted him.
"He said, 'Hey, when are you going to have these ready? I'd love it. I want to move in,'" Mazur said. "It's just one of those little things that I think, as soon as the word gets out, people start seeing and hearing about it, they want to get in."
Even though the complex will be across the street from a community college, Mazur doesn't anticipate any college student tenants. The typical college student can't afford market-rate rents, he said, and all tenants must meet the income requirements, and he doesn't allow tenants to have co-signers.
These will be nice apartments, Mazur said. Quality fixtures, hardware and fittings with granite countertops.
The nearly 10-acre lot Mazur plans to build on is adjacent to the MedTech Center, which contains GCEDC's main office. It's west of the building. Mazur has an approved sale agreement with Genesee Gateway Local Development Corporation, an adjunct to GCEDC, for $200,000.
MedTech Landing LLC is seeking a sales tax exemption estimated at $720,000, a property tax abatement of approximately $3,031,048, and a mortgage tax exemption of $120,000.
The board approved a resolution on Thursday to accept the application and direct the staff to schedule a public hearing. The date for the hearing has not yet been announced.
Mazur expects to finalize financing for the $15 million project with a local bank today (Friday). Once that's in place, he indicated, there will be no need to turn to NYS Homes and Community Renewal, as Savarino did, to close the financing gap.
Pending that final financing letter, and some loose ends to tie up with the Town of Batavia on project approval, he will sign contracts with a bevy of subcontractors, which are already committed through letters of intent, he told the board.
The disruption to construction material prices caused by the COVID-19 pandemic is waning, he said, though finding trade workers is still a challenge.
Weather permitting, he expects the first shovel in the ground in March, with the first units available for tenants by December.
While he said there aren't really "phases" to the construction plan, he does intend to have units available for new tenants before all 80 units are completed.
Even though the complex is outside the City of Batavia and away from its primary commercial center, he expects local businesses to benefit from the new complex, he said.
He said people who want a little more spaciousness, more of a country feel, will be attracted to his units.
"I'm never going to compete against somebody that wants to be downtown and live in downtown," Mazur said. "(But) the benefit to the city, is absolutely, you're gonna have 80 units. Maybe it ends up being two people per unit, there's one bedroom or three bedrooms, but an average of two (per unit). It's 160 people. They still gotta shop. They gotta eat. They're gonna visit the local bars and the eateries downtown. So, yes, I think there's gonna be an economic value to the city itself."
Complex design drawing previously submitted by David Mazur.
Complex design drawing previously submitted by David Mazur.
File photo of the proposed apartment complex site. Photo by Howard Owens.
File photo of Ellicott Station groundbreaking with city, county and company officials in Batavia. Photo by Howard Owens
While a few prospective tenants of the stalled Ellicott Station strategize their next move, folks at Genesee County Economic Development Center apparently believe they are making headway.
A few of the tenants chosen for the Southside apartment complex are considering possible legal action against Savarino Companies for pulling out of the project that has left them dangling with hope that they might still have a new home come 2024. As one tenant said, it’s about “what Savarino did to all of us, ‘cause it’s not fair to us.”
Meanwhile, Steve Hyde, CEO of the county’s economic center, gave a brief yet vaguely optimistic statement this week that his agency has been working with Sam Savarino and the state Office of Housing and Community Renewal to get Ellicott Station back on track.
Hyde and his lead staff reviewed this past year’s activity during the county’s Ways and Means meeting. As noted in prior articles on The Batavian, City Manager Rachael Tabelski has said that developers have expressed interest in Ellicott Station, and Hyde provided further confirmation that talks are progressing.
“And, of course, our favorite project sits here, nearby. And you know, what I could say about Ellicott Station is I've been in the middle of discussions with the developer, general partner, the investors, and state housing. That's all in the sorting-out phase. But what I can say to you is it's likely we'll see a different general partner coming in at some point,” he said. “And I think what we'll end up with is a project that will be better than what we currently had or what was previously designed.
"I think there's some additional willingness by the housing HCR to work with us and be a little more flexible. It may not be perfect, but we'll end up with a better situation than we had," he said. "I can’t say any more than that right now. But at least it's in the sorting out phase, and there's quite a bit of interest.”
As for GCEDC’s remaining portfolio, there were 75 projects that “committed $937 million of capital investment” versus the prior 76 projects at a $162 million investment, demonstrating what Mark Masse said was “just a much larger scale.”
After celebrating her 10th year on the Legislature, along with Marianne Clattenburg as EDC liaison, it’s been amazing to watch “the incredible investment that helps our local taxpayers,” Chair Shelley Stein said.
“By having these opportunities for the creation of these businesses, the careers, it enhances our entire foundation of our economy here and careers. Our schools benefit from it. Our communities benefit from the investment,” she said. “So some days are hard, some days are, you know, celebratory days. But this work is important to us here in Genesee County. Thank you.”
Some of those hard days have been dealing with and enduring the lag of that Ellicott Station project, which stopped in mid-August when Savarino announced the closing of his company due to a financial snag with a project at Alfred State College and a loss of more than $3 million.
Since then, city and county, along with HCR officials, have said they are working on moving forward, potentially with a new developer and financial agreements and construction schedule.
Tenants that were chosen in May for the 55 apartments received word earlier this month that they might want to search out alternative housing options since there’s no guarantee about when Ellicott Station will be ready for occupancy.
