GCEDC assisting mold injection company's move from Monroe County to Genesee County
The Genesee County Economic Development Center Board has approved the following projects:
KNW Manufacturing, 35 Spring St., Bergen. The company is moving its mold injection business from Ogden to a 2,012-square-foot building in Bergen. The building is already under a PILOT tax abatement issued in 2007. GCEDC is re-assigning the PILOT to KNW Manufacturing. The PILOT will expire in 2018 as scheduled. No other tax abatements are offered for this project. The move will create 10 new jobs in Genesee County.
Yancey's Fancy, $150,000 from revolving loan fund. Project is an interim plant expansion and equipment upgrades to support ongoing business and growth during a period that Yancey's Fancy is awaiting sewer construction in Pembroke. A larger project is expected to begin construction in early 2013 and be completed within the following 12 months. There are no tax abatements with the interim project.
Callahan Motion Control, $100,000 from revolving loan fund. CMC is buying the assets of Callahan Weber Hydraulics, an existing sales and service center in Darien. A local bank is financing the majority of the project through a coordinated program with Empire State Development. The program will save the company from 2 to 3 percent in interest over the next four years. GCEDC is providing a gap loan from its revolving loan fund to help finance the $434,000 project. CMC will also receive a mortgage tax exemption of $5,425. The company provides sales, service and repair of hydraulic components and systems for use in industry, agriculture, construction, gas drilling, lumber and mining industries.
KNW gets 11 years of not paying taxes....no wonder all these counties are running out of money to support services...How is that creating jobs..To move them from one county to an other does not create a new job just relocates them...Those 10 employees won't be moving for where ever they live now...Just another GCEDC scam....
On what do you base the statement that they won't be paying taxes?
that they are receiving a PILOT....Which is not property tax...It is a fraction of what they should be paying...No company should go 11 years on this program....
For the record, if KNW moved today, 2012, the PILOT expires in 2018. That is 6 years.
"The building is already under a PILOT tax abatement issued in 2007. "
Unfortunately, buildings can't make PILOT payments; so what became of the original business that agreed to the original PILOT agreement?
According to the NYS Authorities Budget Office reports:
The original project was the business Lynx Machine Tool Corp. on June 1, 2007 with an estimated project amount of $320,000. The project owner is listed as MPM Management and the stated purpose of the business was to "establish CNC manufacturing facility, insulate building, add power, demolish and build to suit own specific needs as defense contractor."
They were to create an estimated 14 new jobs.
They received a $4,000 sales tax exemption, an $1,180 mortgage tax exemption and a 10 year PILOT agreement that required them to pay 0% of the $29,538 property taxes for years 1-2 (2008/2009).
According to govt contractor records, Linx did have govt defense contracts in 2008 and 2009 (the years for which they did not have to pay property taxes) totalling $35,538 and $24,175 respectively.
During years 3-4 of the PILOT (2010/2011/2012), they were required to pay 20% of the property taxes. Records of defense contracts for Linx show $0 for 2010 and $0 for 2011, with 2012 not listed.
Did they create 14 new jobs? When did they cease operations? Did they continue to honor the PILOT agreement? Was there a clawback agreement in place for failing to meet their obligations?
Linx Machine Tool Corp. owned by MPM Management, which lists the owner as Randy Mays, now does business as dogovtbiz.com selling informational cd's and consulting services on how to obtain government contracts.
It's nice to hear about GCEDC's job creation successes, but in order to get a more realistic picture of how well they are doing they need to be more transparent on the actual outcome of their projects.
In 2011, GCEDC offered the following:
Total Mortgage Recording Tax Exemption $94,907
Total State Sales Tax Exemptions $215,472
Total Local Sales Tax Exemptions $215,472
Total County Property Tax Exemptions $1,042,426
Total Local Property Tax Exemptions $369,288
Total School District Property Tax Exemptions $2,401,024
Total Tax Exemptions $4,338,589
Total County PILOTS $488,325
Total Local PILOTS $201,140
Total School District PILOTS $1,187,990
Total PILOTS $1,877,454
Total Net Exemptions $2,461,134
joanne,good job and thank you for taking time to research and post..
For those of you who don't know what PILOT is, it's Payment In Lieu Of Taxes, and it means the company will make lump sum payments for the next 6 years regardless of the increase in the property tax. They are locked in at that amount until their PILOT expires.
This is how municipalities entice business into their community.
Raymond PILOT also you means you pay only a small percent of what your actual taxes should be.....Just because you move 10 jobs 20 miles down the road shouldn't mean you don't have to pay the full amount on your property taxes..I think all would like to have PILOT program to lower our tax rates for a set number of years..All this does is short change the schools,the county and town of much needed funds to run...This building has been under a PILOT since 2007...Meaning that property has only paid a fractional amount of taxes owed....