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Genesee County Economic Development Center

GCEDC approves data center project that promises local jurisdictions $128M in revenue for next 25 years

By Howard B. Owens
gcedc stream data center
Thursday's GCEDC board meeting
Photo by Howard Owens.

As more than a dozen sign-holding activists opposed to the idea looked on, the board of the Genesee County Economic Development Center voted unanimously to approve an incentive agreement with Stream U.S. Data Centers, LLC for the company to build a massive $6.3 billion facility on 60 acres at WNY STAMP.

After the vote, one woman said repeatedly, "Shame on you. Shame on you for your vote." 

Outside the conference room, as GCEDC CEO Mark Masse walked back to his office, she yelled, "Shame on you Mark Masse."

Pete Zeliff, chairman of the GCEDC board of directors, said he thinks such reactions are over-the-top and the people protesting the project are not well informed.

"They haven't chosen to read all the reports," Zeliff told The Batavian after the meeting.

He's gotten a lot of emails about the project and he read the report on the objections raised at a Feb. 3 public hearing, he said.

For example, addressing concerns about the amount of water being used by a data center project, he said, "20,000 gallons a day of water is for toilets, for waste, it's not cooling or anything like that."

The advantage of Stream, also known as project Double Reed, is that it will only use a handful of backup generators that will only be used as necessary, far fewer than the other proposed projects, so the emissions will be minimal, he said. 

He said he supported the project because of the revenue it will bring to the three affected taxing jurisdictions -- the town of Alabama, Oakfield-Alabama School District, and Genesee County.

The three jurisdictions will split $7 million in the first year alone. 

U.S. Data Center's winning bid promises to pay at least 105% of the taxable value of the property. Of the course of the 25-year PILOT agreement, it will pay $128 million in fees (after the PILOT, the property will be taxed at its assessed value).

Those fees will be important to Genesee County, County Manager Matt Landers said to The Batavian after the meeting. The county has been wrestling with how to pay for a water project.

"We are dedicating 100% of that revenue towards phase three of the water project, and that's a project that has a potential price tag of $150 million," Landers said. "Whenever we have an opportunity to capture some dedicated revenue for a project like that, we will take advantage of it. So that is definitely something that is positive coming out of this."

Landers and Zeliff also both like the job creation aspect. While the jobs per acre of the project might be fewer than another project might generate, these jobs will pay on an average $89,000 each.

"Any job that we create is great," Landers said. "I know, as a community, as a county, we have to work on getting more housing so we can take advantage of all these jobs that are coming here. Looking around our business parks, it's pretty impressive to see how many jobs they have been able to create over the years. The challenge now is to make sure we have some housing for those jobs. I believe over 100 jobs are being created. That is good to see. I look forward to hopefully the next projects having even more jobs."

The local economy needs those 122 jobs, especially at that pay scale, Zeliff said.

"That's way above normal in Genesee County, Zeliff said. "There were people at the meeting talking about how they want their children to be able to walk through the refuge but this project is not going to affect the refuge. This is a project where their children can get a job when they're old enough to get a job."

Zeliff said the board and staff have done its due diligence on this project and he believes all of the environmental concerns of the opponents have been addressed.

"I really don't see a negative with the project," Zeliff said. "It's not as many jobs per acre, but they're good, well-paying jobs for the county of Genesee."

At Wednesday's WNY STAMP Committee meeting, Masse made the case for Stream Data Centers.

The water district project was part of his pitch.

"This project will help the county cover the shortfall of the water project," Masse said. "It will help maintain rates for all Genesee County residents for water. It will help the health and welfare of all county residents through the water project."

He also said the project is in line with DEC regulations. The noise levels are within the standards set by the environmental review process in 2012. The project is allowed under the 2012 site plan. There is no discharge of heated water. It won't affect the reliability of the power grid nor lead to an increase in rates. It has low air emissions. And, no wetlands will be impacted by the project.

Masse said it also uses far less water than the other two proposed projects.

It was also the only project with an agreement with a Fortune 500 company to lease 100 percent of the data center once it's operational.

"Rampart had promised the highest PILOT payment for three projects, but community members made it clear that money should not be the only factor taken into consideration for this process," Masse said to the committee. "Our job was to determine which project was the best for the community and STAMP, and based on the information provided to us by the three projects, Project Double Reed will have the smallest environmental impact and will best address concerns expressed by the Nation with respect to visual and noise impacts and with respect to local benefits."

The case for Double Reed is also made in the resolution approving the project.

The resolution states:

The agency has determined that the two other competing proposals are not the most advantageous to the State, and that it would be in the public interest to reject the proposals submitted by Potentia Holdings, LLC (hereinafter referred to as "Project Hydroscale") and Project Rampart, LLC (hereinafter referred to as "Project Rampart"), respectively,''' because, among other things, those proposals" prospective profitability is speculative and implementing either proposal is anticipated to yield adverse environmental impacts discussed herein.

GCEDC staff also found the owners of Project Double Reed easier to work with, that the planners demonstrated the greatest "good faith" effort throughout the application process. Project Hydroscale kept changing its proposal, according to the resolution, even after the deadline for changes.

The troubling aspect of Project Rampart's team, the proposal states, is threats of litigation and "other bad behavior trying to manipulate the review of the application."

The resolution states, "Project Rampart’s actions throughout the application review process have indicated that Project Rampart would be unable to have a productive relationship with the Agency and other STAMP stakeholders."

The resolution also states, "Project Double Reed is pledging the highest capital investment at $6.3 billion, with Project Hydroscale at $5.4 billion, and Project Rampart at $3.3 billion."

Project Double Reed pledged an $18 million purchase price for the 60 acres it will acquire.

While the PILOT agreement for Stream U.S. Data Centers is unusual in that the company will pay more in fees than it would in property taxes without a PILOT, the company is receiving an abatement on sales taxes for construction and equipment not to exceed $462,560,000 based on the first $5,782,000,000 invested. 

That sales tax incentive is about 7% of the first year in fees it will pay to local taxing jurisdictions.

It will also receive a $9 million break on the mortgage recording tax, which wouldn't be charged without the purchase of the property.

Previously: 

gcedc stream data center pete zeliff
Pete Zeliff
Photo by Howard Owens.

GCEDC board expected to approve data center Thursday afternoon; activist group opposes it

By Press Release

Statement from Pete Zeliff, WNY STAMP Committee Chairman at GCEDC:

“The Genesee County Economic Development Center (GCEDC) STAMP Committee unanimously approved a motion at our March 5, 2025 meeting recommending the GCEDC Board approve both a SEQR resolution and final resolution from STREAM US Data Centers, LLC to build a new data center at STAMP.

“The decision to make this recommendation was after a thorough review of public comments from the public hearings held in the town of Alabama on February 3, 2025 as well as extensive analysis by the STAMP Committee, GCEDC staff and members from the STAMP technical team which is comprised of legal, engineering and environmental professionals. 

“In making this recommendation to the GCEDC board, the STAMP Committee followed a deliberative process as we always do. We reviewed the three data center projects’ final and best offer, after which an initial resolution was adopted to schedule a public hearing for comments specific to each project. After the public hearing, we reviewed the public comments and responses to each relevant comment, which were elaborated upon in the staff and technical team reports.

“In assessing each project, we considered several factors, including the number of good-paying jobs that would be created, the footprint of the project, including electric and water needs and impacts on the local community. 

“We also assessed which project would have the least impact on the STAMP’s capacity to bring advanced manufacturing and semiconductor supply chain companies that we are targeting for STAMP and the subsequent jobs and capital investment.

“The STAMP Committee concluded that the project proposed by STREAM US Data Centers, LLC had the fewest impacts, particularly from an environmental standpoint, and provided the best overall fit at the STAMP site.

Statement from a group calling itself Allies of Tonawanda Seneca Nation:

GCEDC Board of Directors Votes Today on Approvals for Project Double Reed and Accompanying SEQR Resolution Despite Strong Regional Opposition  

Residents of Western New York are expressing concern over the Genesee Economic Development Center (GCEDC) Board of Directors' plan to vote on resolutions approving the data center codenamed Project Double Reed and an accompanying State Environmental Quality Review (SEQR) resolution at their 4pm meeting this afternoon. The GCEDC STAMP Committee voted yesterday to approve the staff’s recommendation in favor of Project Double Reed and also instructed the staff to prepare the accompanying SEQR resolution. Announcement of the votes and publication of the accompanying documents did not appear on GCEDC’s website until mid-afternoon yesterday.

Today’s votes are taking place despite strong and ongoing public opposition to GCEDC’s efforts to site a data center at STAMP. Despite GCEDC’s efforts to minimize public participation in a rushed approval process, GCEDC received 618 comments during a poorly publicized 10-day public comment period. At the February 3 public hearings, scheduled during a Monday afternoon, dozens of speakers voiced concerns about environmental harms, quality of life issues, impacts to the Tonawanda Seneca Nation, misallocation of taxpayer dollars and misuse of low cost hydropower, as well the agency’s repeated refusal to answer basic questions about the project applicants. Since the official comment period ended, GCEDC has received more than 702 comments in opposition, including 323 opposing the approval of Project Double Reed since Monday, March 3. 

GCEDC has also refused repeated requests from the Tonawanda Seneca Nation Council of Chiefs for a new set of hearings, even though the February 3 hearings were held during the Nation’s Midwinter Ceremonies. The Nation has raised extensive concerns about the SEQR environmental review process, for which GCEDC is acting as lead agency. GCEDC has dismissed those concerns in a SEQR resolution, which finds that Project Double Reed will not have a significant adverse impact upon public health that was not analyzed in the original 2012 STAMP Environmental Impact Statement. The Nation has consistently criticized this document as profoundly inadequate and out of date. 

Among the three data centers currently under consideration for the WNY Science and Technology Advanced Manufacturing Park (STAMP) mega industrial site, Double Reed has requested the largest amount in tax breaks - $472 million in combined sales and mortgage tax exemptions. Double Reed is projected to produce 122 jobs, for a per job subsidy of $3.9 million. According to the GCEDC staff report, these subsidies would potentially be directed to a Fortune 50 company worth $100,000,000,000.

Backed by STREAM U.S. Data Centers, Double Reed will use 250 megawatts of electricity per year - significantly more than either competitor. This electricity would be drawn primarily from low-cost Niagara River hydropower, which the New York Power Authority (NYPA) allocates to STAMP even though the site lies outside the designated radius for this subsidy. In addition, Double Reed would have the potential to burn over 20,000 gallons of diesel fuel per day. 

According to their report, GCEDC staff chose Double Reed despite its high energy usage and requested tax breaks because the other two applications lack credibility and would have faced significant challenges and delays in obtaining permits. However, the staff also acknowledges that Double Reed lacks a firm commitment from a tenant, meaning it is not known what company would locate there, when, or what its operations might entail. 

Despite 15 years of effort and more than $410 million in taxpayer subsidies, GCEDC has struggled to attract viable tenants or construct basic infrastructure at the rural site proposed to become a “mega industrial park.” The agency pivoted to data centers to fill a gap in financing for the onsite electrical substation following the withdrawal of funding from Plug Power, which paused construction on its green hydrogen manufacturing facility in 2023. Each of the three data center applicants pledged contributions toward completion of the substation; Double Reed would pay $50 million. Its requested $3.9 million per job approaches the $4.3 million per job allocated to Plug Power. Edwards Vacuum is the only tenant under construction at STAMP.

GCEDC has not filed a new permit application for the proposed “Big Water” pipeline that would bring 6 million gallons of water daily to the site from the Niagara River, raising questions about the source of Double Reed’s proposed 10,000 gallons of water per day. The NYS Department of Environmental Conservation Region 8 Office rejected GCEDC’s previous application as incomplete in August 2024. GCEDC recently filed a Basis of Design Report for a reroute of the Wastewater Treatment Pipeline that would pump raw sewage from STAMP uphill and under multiple waterways to the Oakfield Wastewater Treatment Facility; treated wastewater would be discharged into a tributary of Oak Orchard Creek. Construction of the original pipeline was halted in September 2023 following fracouts of 500-700 gallons of hydraulic drilling fluid into the Iroquois National Wildlife Refuge. 

‘Data center’ is a generic term that can refer to operations ranging from cryptocurrency mining to Artificial Intelligence processing. Data centers create minimal jobs, use massive amounts of water and energy, and face opposition from other WNY communities concerned about their noxious public health and environmental impacts. The proposed data center would be sited on a parcel of land characterized by wetlands and located immediately adjacent to the Reservation Territory of the Tonawanda Seneca Nation, whose Council of Chiefs opposes STAMP.  

“We are confident that STREAM US Data Centers, LLC will provide all the taxing jurisdictions with significant financial benefits making it a transformative project for our region while further enhancing economic development opportunities at STAMP.”

GCEDC staff recommending board approve STREAM data center; environmental group opposed

By Press Release

Press release:

Statement from Mark Masse, CEO of the Genesee County Economic Development Center:

“The Genesee County Economic Development Center staff and the STAMP technical team, which is comprised of legal, engineering and environmental professionals are recommending that the GCEDC Board of Directors advance a proposal from STREAM US Data Centers, LLC to build a new data center at STAMP. 

“The first step in this process is for the GCEDC STAMP Committee to review all the supporting materials that accompany the recommendation to the Board, and if they agree with the conclusion, approve moving the recommendation to the full Board at the March 6, 2025 Board meeting. This matter will be discussed at the STAMP Committee meeting on Wednesday, March 5, 2025.

“The staff and technical team assessed several factors in our recommendation to the Board, including thorough review of the responses to relevant comments raised at the February 3, 2025 public hearing. We also took into consideration the number of good-paying jobs that would be created, the footprint of the project, including electric and water needs and impacts on the local community. 

“Another factor that was considered in our recommendation was which project would have the least impact to the STAMP footprint as GCEDC staff continues to focus on bringing advanced manufacturing and semiconductor supply chain companies to STAMP.

“Staff ultimately concluded, in close consultation with the technical team, that STREAM US Data Centers, LLC project had the fewest impacts, particularly from an environmental standpoint, and provided the best overall fit at the STAMP site.

“GCEDC staff and the technical will be prepared to discuss our recommendation to the GCEDC board at the March 5th STAMP Committee meeting.”

Statement from a group calling itself Allies of Tonawanda Seneca Nation:

Local residents are highlighting the Genesee Economic Development Center (GCEDC) staff’s recommendation to approve the data center codenamed Project Double Reed. The GCEDC STAMP Committee will vote on this recommendation, as well as the staff’s recommendation to prepare a State Environmental Quality Review (SEQR) resolution for Double Reed, at a meeting on March 5. The full Board meets on March 6

Among the three data centers currently under consideration for the WNY Science and Technology Advanced Manufacturing Park (STAMP) mega industrial site, Double Reed has requested the largest amount in tax breaks - $472 million in combined sales and mortgage tax exemptions. Double Reed is projected to produce 122 jobs, for a per job subsidy of $3.9 million.

Backed by STREAM U.S. Data Centers, Double Reed will use 250 megawatts of electricity per year - significantly more than either competitor. This electricity would be drawn primarily from low-cost Niagara River hydropower, which the New York Power Authority (NYPA) allocates to STAMP even though the site lies outside the designated radius for this subsidy. In addition, Double Reed would have the potential to burn over 20,000 gallons of diesel fuel per day.. 

According to their report, GCEDC staff chose Double Reed despite its high energy usage and requested tax breaks because the other two applications lack credibility and would have faced significant challenges and delays in obtaining permits. However, the staff also acknowledges that Double Reed lacks a firm commitment from a tenant, meaning it is not known what company would locate there, when, or what its operations might entail. 

GCEDC staff are advocating that the full Board approve Double Reed despite strong and ongoing opposition from residents as well as previously stated internal questions regarding the ‘fit’ of a data center at STAMP. At public hearings held on February 3, dozens of speakers voiced concerns about environmental harms, quality of life issues, impacts to the Tonawanda Seneca Nation, misallocation of taxpayer dollars and misuse of low cost hydropower, as well the agency’s repeated refusal to answer basic questions about the project applicants. GCEDC also received 618 written comments. 

Since the hearings, CEO Mark Masse has received at least 379 emails demanding that applicants conduct additional research regarding noise, traffic, hydrology, economic impacts to the Oak Orchard watershed, and EMS services. GCEDC has also refused repeated requests from the Tonawanda Seneca Nation Council of Chiefs for a new set of hearings, even though the February 3 hearings were held during the Nation’s Midwinter Ceremonies. The Nation has raised extensive concerns about the SEQR environmental review process, for which GCEDC is acting as lead agency. GCEDC appears poised to dismiss those concerns

Despite 15 years of effort and more than $410 million in taxpayer subsidies, GCEDC has struggled to attract viable tenants or construct basic infrastructure at the rural site proposed to become a “mega industrial park.” The agency pivoted to data centers to fill a gap in financing for the onsite electrical substation following the withdrawal of funding from Plug Power, which paused construction on its green hydrogen manufacturing facility in 2023. Each of the three data center applicants pledged contributions toward completion of the substation; Double Reed would pay $50 million. Its requested $3.9 million per job approaches the $4.3 million per job allocated to Plug Power. Edwards Vacuum is the only tenant under construction at STAMP.

GCEDC has not filed a new permit application for the proposed “Big Water” pipeline that would bring 6 million gallons of water daily to the site from the Niagara River, raising questions about the source of Double Reed’s proposed 10,000 gallons of water per day. The NYS Department of Environmental Conservation Region 8 Office rejected GCEDC’s previous application as incomplete in August 2024. GCEDC recently filed a Basis of Design Report for a reroute of the Wastewater Treatment Pipeline that would pump raw sewage from STAMP uphill and under multiple waterways to the Oakfield Wastewater Treatment Facility; treated wastewater would be discharged into a tributary of Oak Orchard Creek. Construction of the original pipeline was halted in September 2023 following fracouts of 500-700 gallons of hydraulic drilling fluid into the Iroquois National Wildlife Refuge. 

‘Data center’ is a generic term that can refer to operations ranging from cryptocurrency mining to Artificial Intelligence processing. Data centers create minimal jobs, use massive amounts of water and energy, and face opposition from other WNY communities concerned about their noxious public health and environmental impacts. The proposed data center would be sited on a parcel of land characterized by wetlands and located immediately adjacent to the Reservation Territory of the Tonawanda Seneca Nation, whose Council of Chiefs opposes STAMP.

GCEDC STAMP Committee Meeting
March 5, 2025 at 8am 

GCEDC Board of Directors Meeting 
March 6, 2025 at 4pm 

Location: 99 MedTech Drive, Innovation Zone. Batavia, NY 14020
Meetings are open to the public. 

Q&A: GCEDC CEO discusses environmental issues raised at data centers public hearing

By Howard B. Owens
stamp-data-center-speakers
GCEDC CEO Mark Masse during data center public hearing.
File photo by Howard Owens.

Last week, The Batavian met with Mark Masse, CEO of the Genesee County Economic Development Council to ask him to respond to some of the issues raised at a public hearing on potential incentives for construction of a data center in WNY STAMP.

The public hearing was held on Feb. 3 in the town of Alabama.

More than two dozen people spoke, raising a range of objections to the construction of a data center on the site.

On Thursday, the GCEDC board may consider whether one of three potential projects -- from STREAM U.S. Data Centers, LLC, Project Rampart, LLC, or Potentia Holdings, LLC -- should be welcomed into the technology park.

Q. We asked Masse to respond to the appearance that the data center projects don't seem to generate as many jobs per square foot as a project like Edwards Vaccum.
Masse: "I think if you look at the average salary, I think these jobs are in the triple digits, $100,000 average, $80,000 to $100,000. With the way technology is going in AI, I think that those are high-value, high-technology jobs. Now, are those the number of jobs that we would like to see? And again, all of these applicants are very conservative on their numbers, because they're concerned about clawback and not meeting numbers. So our anticipation is they would come in higher than what they pledged, but what they pledged is a number that they feel is easily achievable for them. And data centers were proposed way back in 2012 as one of the original uses at the site, along with all of the other advanced manufacturing when we did the technology districts.

Q. Data centers have been controversial in other communities. People mentioned North Tonawanda. Have you looked at those data centers and how they've been received in those communities, and whether that's a concern for you?
Masse: "I think it really depends upon a lot of variety of factors. So our board has been very clear that they don't want any crypto or any bitcoin, absolutely none. And if you look at a lot of the louder, noisier ones, they tend to be the crypto Bitcoin operations. So we would actually put into the documents that if we come to find out you're doing Bitcoin or crypto, we would terminate benefits and claw back. And that clawback would obviously include a very significant sales tax exemption, so we feel pretty good about the penalties that would be in place, but our board's been adamant that we don't want crypto in that technology has also come a long way. And I don't think the building in Tonawanda was originally built as a data center. It was an adaptive reuse. So the facility that they're going to be building (in STAMP) is going to be brand new. It'll have all of the lessons learned from previous projects, such as noise mitigation and things like that. So we anticipate it to fit within the parameters of what was analyzed for the EIS, and we would anticipate them to propose and follow through on any potential mitigation that we would suggest for noise or that the town board planning board may suggest for noise. If we decide to go through our board would decide on either one or none. I think there's no desire to do more than one data center at STAMP."

Q. What about excessive greenhouse gas emissions?
Masse: "Again, we've done our analysis on the air emission side of that. We're following all of the permitting requirements by the DEC. The GCEDC does not meet the definition of a state agency under the CLCPA guidelines, but we do an analysis for that under the CLCPA, and the DEC would also do an analysis of that if a company were to move forward with air permitting. So we feel that it's within the parameters that would have been previously analyzed under the EIS, and that any of those air emissions would be permitted through the DEC process."

Q. One speaker spoke about hydrology in the region, in the wetlands and surrounding areas. What are the concerns there that you are looking at? What is your response?
Masse: "Again, the sanitary sewer would be force main discharged into the village of Oakfield wastewater treatment facility where it would be treated and discharged. Any on-site stormwater would be captured on-site. The DEC requirements for that are that the water can't flow off of the site at any greater rate after development than it did before development, so any cause concerns for flooding or things like that wouldn't happen. And they do enforce bioswales, green infrastructure, and things like that to ensure that the water quality on site is maintained. If there is runoff from parking lots or things like that, that it's contained on-site and treated on site before any of that would be potentially discharged."

Q. A letter read at the hearing stated that the project contradicts New York State's international commitments to environmental sustainability, social responsibility, and long-term stewardship of the wetlands. Any response?
Masse: "So again, everybody seems to be talking about the wetlands on site, as if they are like a wildlife refuge. This is agricultural land that has been farmed for a number of years. Our EIS originally proposed only impacting, I think, nine acres of wetlands, and then when we revised it. We're down to six, and they are classified as wetlands. But if you go out there, a lot of them are just drainage ditches through fields, a depressed area in a field. That's not year-round; they dry out, so I don't understand. And same thing when they talk about like pristine habitat. It's been farm fields. It's been farmed. It hasn't been good habitat. They rotate crops. Many of the crops there are not what the birds would use to do their hunting. So again, it's been farm fields for over 200 years. We do comply with all regulations that are out there. We've had a jurisdictional determination done between Army Corps as far as what wetlands they take jurisdiction over. We're complying with all of those. That was last updated in 2023, I think, and they're good for five years. I know the state regs are changing where they're going to drop their jurisdiction to anything greater than seven acres, but that doesn't affect what we're doing on-site. So, again, I understand their concerns, but I just don't think they understand the land that's out there and what it really is."

Q. People mentioned the Big Woods (on the reservation). Does that the neighbor the site, or is it just close by?
"If you look on the map there, you see the power line kind of rerouted. The yellow area is 310 acres; if you go directly to the west at the edge of that line, that is the Big Wood. So that power line reroute, there'll be no development to the west of that. That's a 115 kV line, and we rerouted it that way to help provide a visual buffer so you can't go past that, so to speak. And as part of our agreement, the settlement agreement with the nation, we did provide for the green area, basically, aside from that 80 acres on the south, the majority of that green area there is a buffer area and wetlands that are basically not going to be touched, so that's just going to be grown forever wild."

Q. There was a statement that a data center will consume 200 megawatts of electricity annually, training the regional system, and the center would use 800,000 gallons of fresh water daily. Are those numbers accurate? Are those legitimate concerns?
Masse: "As far as the power goes, it's not going to strain the system. Anybody in New York State who tries to draw down more than 10 megawatts off of any power line anywhere is required to undertake a study with a New York independent system operator, where they will take your request and they will do an analysis of the entire grid and bring in all the operators, so National Grid. RG&E NYSEG, NextEra, and they'll run a model to say, if you were to draw X amount of megawatts off, how does that affect everything in the system? And if it requires some improvements in what they call remote ends or other substations before you draw down the power. Those improvements have to be made. So we did two different studies, each one for 300 megawatts, and it took us about four to five years to get through that study. So the NYISO has given us, I think, there was $6 million of potential improvements at a station up in Rochester, and that was it for us to get the 600 megawatts. So, according to the NYISO and the study they've run, there is no degradation or problem on the overall grid to draw down 600 megawatts. Those studies are all being done in conjunction with a lot of solar projects because they're trying to put power on the lines while we're trying to draw it off. So, all of those are being taken into consideration across the state in various studies at various times. So as far as the power not being available, it's there. The NYISO has confirmed it for us. And as far as causing issues on the grid, it will not. 

"As for us, the 800,000 gallons per day of water, that was what one applicant put in with their first application. After reviewing and discussing with them, they came back with a revised, I think, 30,000 gallons per day. So, all three of them are probably between 20,000 and 30,000 gallons per day of water, which is not a significant use. A lot of them are going with closed-loop cooling systems. The ambient air temperature here obviously is very helpful for them to be able to use air for cooling."

Q. Evelyn Wackett brought up threatened species, the short-eared owl, northern Harrier Hawk, monarch butterfly and bog turtles, any threats to these species?
Masse: "We did receive what's called a part 182 incidental take permit. We did propose a net conservation benefit. So, we created 58 acres of grassland habitat on the site that'll be maintained in perpetuity. Part of that will be a 33 acre site that'll be turned over to the DEC to be merged into the John White game farm, as far as the others, they were not identified in any of the studies we've done. I do know that as part of the construction of the substation, there is a berm there, and I've talked to our environmental company about using that berm as a pollinator field, specifically to help monarch butterflies and other pollinators. It'll also help us maintain that berm and also give it more coverage on that as well."

Q. One of the more dramatic moments, Kristen Moser, with her recording from in the Big Woods of birds and then a truck going by. What do you say to that?
Masse: "Number one, it's hard because I don't know her data points, right? I don't know where you were when you did the recording or what time of day. It's hard to say any of that. I mean, if you go to (Route) 77, there's heavy truck traffic on 77 all day long, coming up and down that road. So there's not much I could really comment on that without knowing more details about where those recordings were taken and what the time was and the distances involved."

Q. I think she's equating the truck traffic that's there for construction with -- and we've kind of discussed already -- the sound issue of the plants.
Masse: "My question would be, I don't know where she was when she recorded the truck traffic. That's the point. If she was in the Big Woods, I doubt it because all truck traffic right now comes in off STAMP Drive and then goes right down the hammerhead to the Edwards site. You know, the town has received some complaints from some truck traffic coming down the north end of Crosby. I think those were mainly concrete trucks or gravel trucks coming from Orleans County down Salt Works Road. So the town made sure that they've got to come around and come in off a 77."

Q. More than one speaker questioned whether public funds should e used to incentivize uncertain benefits, without first conducting an independent economic analysis of costs and benefits. Response?
Masse: "First of all, this is a common misconception. Public funds are not being invested in this. Companies do not receive cash. They receive abatements of taxes that they would normally pay. In this particular case, two of the three data centers would be paying about 105% to 110% of the property tax rate under a pilot. They would get a PILOT, but they would be paying more than market rate for what the property taxes are. The significant abatement is the sales tax exemption. Now, what people probably also don't realize is that in 2012, the New York State Department of Taxation and Finance issued an opinion that servers are tax-exempt from sales tax. If I think something along the lines of, if a company is using the internet, broadband is part of it. So basically, that was done to, I think, attract the Yahoo facility up to Lockport. Now, if data centers start becoming extremely interested in New York State, there is a chance that the Department of Taxation and Finance could revise that opinion and say that servers are tax-exempt altogether, in which case it's a moot point. So my guess is that these companies would ask for the abatement, and then they would probably apply to the Department of Taxation and Finance for an opinion, and if the opinion comes back and says they're tax-exempt, then really all we've given up is a mortgage tax exemption to get somebody to pay 110 or 105% property taxes on the site."

Q. They're paying 110% of the property tax rate?
Masse: "We do a fixed dollar pilot, so we calculate based on the square footage and choose a rate per square foot. We actually had the companies make us their offers. So they independently submitted their final investment offers, and it was calculated on a per square foot basis, times the square footage. And then there was, and I think some of them had an escalation rate every year, whether it was two, two and a half percent, something like that. So it would start at a fixed dollar, and then it would go up after that. So when we do a fixed dollar pilot, they pay the dollar value in the pilot. It's not 10% or 100% of whatever the current value is, which is what some of them are when they do the abatement."

Q. Okay, so, I guess I'm kind of confused. If they're paying more, they're paying what their taxes would be without the pilots ... 
Masse: "They're paying more than what the taxes would be."

Q. Without a PILOT. Why would they do that?
Masse: "That's how much they want to come to the site, and that's why power is such a scarce resource for companies like this."

Q. I know it's been the practice for GCEDC to be the lead agency, but given the the wide range of environmental concerns here, is it best for GCEDC to be lead agency on this, or should somebody else be lead agency?
Masse: "We did the original EIS, and usually whoever was the lead agency for the EIS should remain as lead agent for that. We did all the original studies. We've done the appropriate ones. And again, we're required as lead agency to send out a notice every time we want to re-establish ourselves. It goes out to all interested, involved agencies, which includes the Army Corps of Engineers and the DEC. We receive comments from the Army Corps and DEC on any of the SEQR analyses we do; they get copies of it. So, there is appropriate other parties that have a significant investment and interest in the site, who are actively involved in the review and commenting on the overall environmental review."

Q. How does the general public have confidence that all the environmental concerns have been addressed through the SEQR process?
Masse: "We have at least 7,000 pages of studies, reports, documentation, comments from DEC, and responses to DEC. And again, at the end of the day, any company that wants to build there has to get a permit from the DEC. So if there were something inappropriate or something that wasn't there, then the DEC probably wouldn't issue a permit. We would hope we would hear if they had concerns before that. And again, they've expressed their comments on some of our SEQR things."

 

 

 

 

Ellicott Station to find new life with apparent sponsor in PathStone

By Joanne Beck
ellicott station

After what’s approaching a two-year lag in the Ellicott Station apartment project in downtown Batavia, there is apparently an interested sponsor in the process of working with the state Office of Homes and Community Renewal and Ellicott Station LLC, property owner Sam Savarino says.

Savarino confirmed Friday that the LLC “has been actively working with another entity to sponsor the project.” Two sources who asked not to be identified, including one close to the project, have disclosed that the sponsor is PathStone Development Corporation.

When asked for comment about this apparent development, Batavia Development Corp. Executive Director Tammy Hathaway said “Personally, PathStone has been my first choice from the initial notice that the current owner could no longer continue the project’s development.”

“Knowing the property will continue to be restricted to affordable housing guidelines, PathStone is the operative organization as they come well-equipped with decades of experience in housing development and management,” Hathaway said Saturday.

City Manager Rachael Tabelski could not confirm that PathStone is taking on the Ellicott Street complex left uncompleted in summer 2023, but she said she would “welcome a professional housing organization like PathStone’s to take over the project, finish building and rent to quality tenants,” she said.

“Supposedly it was discussed at a county housing meeting, I was not in attendance, but had some city staff there,” Tabelski said. “I haven’t been contacted by PathStone’s CEO or HCR lately.”  

The Batavian also called and emailed PathStone President Jason Sackett for comment, with no reply by publication. 

Ellicott Station was on its way to completion with four floors up, tenants selected by lottery, and grant funds, PILOTS, tax credits and exemptions in place by the state, Genesee County Economic Development Center and HCR. 

Later in 2023 Savarino Companies closed for business due to a financial battle with the state Dormitory Authority and stopped work at Ellicott Station, and GCEDC performed a clawback of exemptions and tax credits, claiming that the company didn’t abide by its contract obligations. 

Savarino still maintains that GCEDC’s action is what disabled the project and prevented it from continuing. 

Final resolutions for 2 city projects to be considered by GCEDC Thursday

By Press Release

Press Release:

Two projects in the City of Batavia submitted to the Genesee County Economic Development Center (GCEDC) are projected to generate over $7 million in local benefits.

 The GCEDC board of directors will consider final resolutions for Graham Corporation’s expansion project and 202 Oak St, LLC’s hotel renovation at its February 6, 2025 meeting.

Graham Corporation is proposing to construct a new radiographic testing building at its manufacturing facility. The $3.3 million investment will add to an existing manufacturing building.

Graham Corporation is requesting a sales tax exemption estimated at $120,000 and a property tax abatement estimated at $20,934 based on the incremental increase in assessed value generated by the expansion. The project is estimated to generate $1.2 million in local fiscal impacts, including payroll and tax revenues, for an estimated $16 local benefit for every $1 of requested incentives.

A public hearing on the proposed initial project agreement was held on Jan. 30 in the City of Batavia.

202 Oak St, LLC is proposing to renovate the former Super 8 hotel’s 54 units. The $2.5 million investment would create 11.5 new full-time equivalent positions.

202 Oak St, LLC is requesting a sales tax exemption estimated at $104,163, a property tax abatement estimated at $257,823 based on the incremental increase in assessed value generated by the project, and a mortgage tax exemption estimated at $19,000. The project is estimated to generate $5.8 million in local fiscal impacts, including payroll and tax revenues, for an estimated $20 local benefit for every $1 of requested incentives.

In addition, the project is estimated to generate over $40,000 annually in bed tax revenue for the county once the renovated hotel is ramped up.

A public hearing on the proposed initial project agreement was held on Jan. 30 in the City of Batavia.

The GCEDC board meeting will be on Thursday, February 6 at 4 p.m. at the MedTech Center’s Innovation Zone, 99 MedTech Drive, Batavia.

Meeting materials and links to a live stream/on-demand recording of the meeting are available at www.gcedc.com.

GCEDC moves Bergen and Le Roy projects forward, hearing to be set

By Press Release

Press Release:

Expansion projects in Bergen and LeRoy advanced Wednesday by the Genesee County Economic Development Center Board of Directors have an estimated $4 million positive fiscal impact for Genesee County.

The GCEDC board of directors advanced an initial resolution for Appletree Acres, LLC in the town of Bergen and approved a final resolution for 9 Lent Avenue, LLC (Rochester Davis Fetch Corp.) in the village of LeRoy at its December 18 meeting. 

Appletree Acres, LLC is proposing to add a 15,000 square-foot expansion to an existing 50,000 square-foot warehouse in the Apple Tree Acres corporate park. The $1.015 million investment would create four full-time equivalent positions with an estimated annual salary range between $45,000 and $65,000 plus benefits.

Appletree Acres, LLC is requesting a sales tax exemption estimated at $48,160 and a property tax abatement estimated at $142,785 based on the incremental increase in assessed value generated by the expansion. The project is estimated to generate $2.99 million in local fiscal impacts, including payroll and tax revenues, for an estimated $19 local benefit for every $1 of requested incentives.

A public hearing for the proposed project agreements will be scheduled in the town of Bergen. 

9 Lent Avenue, LLC is proposing to construct an 8,000 square-foot light manufacturing and storage facility in the village of LeRoy. The $265,000 project will be in addition to a current $3.8 million project renovating a separate facility on the property.  The expansion will create two additional full-time equivalent positions with an estimated annual salary range between $62,000 and $72,000 plus benefits. 

9 Lent Avenue, LLC has requested a sales tax exemption estimated at $13,200 and a property tax abatement estimated at $86,016 based on the incremental increase in assessed value generated by the expansion. The project is estimated to generate $1.49 million in local fiscal impacts, including payroll and tax revenues, for an estimated $17 local benefit for every $1 of requested incentives.

GCEDC moves Graham expansion, solar projects forward

By Press Release

 Press Release:

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.

GCEDC planning 500K gallon water tank to meet fire suppression needs at STAMP

By Howard B. Owens
mark-masse-ceo-gcedc
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.

Masse touts experience, strong relationships as he begins tenure as GCEDC president/CEO

By Mike Pettinella
Mark Masse

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. 

Masse to fill CEO role at GCEDC

By Joanne Beck

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.

Steve Hyde's retirement plans? Step out of the limelight, help with a new grandchild

By Howard B. Owens
steve hyde
Steve Hyde.
Photo by Steve Ognibene.

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 2011, the agency was criticized for $344,000 in bonuses paid to GCEDC employees from 2005 to 2009. The bonus plan was eventually eliminated. 

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.

WNY STAMP has also faced some opposition from environmental groups, and the Department of Environmental Conservation is being sued by the Tonawanda Senecas over its permitting of aspects of the project.  The GCEDC has already defeated a lawsuit filed by Orleans County, but the DEC did recently require modifications to the sewer pipeline that was going to carry some waste from STAMP, so the agency has reached agreements with the town of Alabama and the town of Oakfield for an alternative sewer line.

Hyde's retirement announcement, however, coincided with good news for the IDA.  Edwards Vacuum, planning a $319 million factory at STAMP, broke ground on Friday.

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."

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Developer says 80-unit complex across from GCC to be market-rate apartments

By Howard B. Owens
david mazur medtech landing gcedc
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."

Countryside Apartments MedTech GCC
Complex design drawing previously submitted by David Mazur.
Countryside Apartments MedTech GCC
Complex design drawing previously submitted by David Mazur.
Countryside Apartments MedTech GCC
File photo of the proposed apartment complex site.
Photo by Howard Owens.

County officials optimistic about Ellicott Station while prospective tenants mull legal action

By Joanne Beck
ellicott station ground breaking may 2022
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.

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