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Hood returns with revised -- smaller -- expansion project for Batavia Agri-Business Park

By Joanne Beck
HP Hood expansion pic
File Photo by Howard Owens

After pulling a larger $120 million expansion project off the table in September 2024, HP Hood officials are pursuing another, albeit smaller, project at the Batavia Agri-Business Park, per a request made to Genesee County’s Economic Development Center board.

HP Hood LLC has proposed a $25 million facility expansion that includes the construction of a two-bay raw milk silo alcove and silo pads for four silos, a Clean-in-Place (CIP) room for four CIP systems, a remote truck testing lab, and an electrical room. The expansion will enable HP Hood to increase capacity and boost dairy product production, officials said.

The board will consider a related resolution during its meeting at 4 p.m. Thursday at the MedTech Center’s Innovation Zone, 99 MedTech Drive, Batavia. If approved, a future public hearing on the project will be scheduled in the town of Batavia.

Hood had altered course a year ago after being notified that permitting was not approved by the city of Batavia for a 32,500 square-foot addition due to a wastewater disagreement and capacity issue between the city and town of Batavia. 

The plan was said to create 48 new jobs and have a local economic impact of nearly $50 million in wages and tax revenue.

Although an agreement was in place by September, Lynne Bohan, Vice President of Communications & Government Affairs at Hood's group, confirmed that the project was no longer being moved forward at that time, labeling it a “tactical pause on the expansion projects in progress.”

She also said that the company would consider future projects for the 7,722-square-foot facility at the Agri-Business Park.

The current $20 million proposed expansion includes a sales tax exemption request estimated at $1,122,394 and a property tax abatement estimated at $84,097, based on the incremental increase in assessed value via a new traditional 10-year PILOT (payment in lieu of taxes). 

The project is estimated to generate $6.3 million in local fiscal impacts, including payroll and tax revenues, for an estimated $10 local benefit for every $1 of requested incentives.

During Thursday's meeting, the EDC board of directors will also consider a final resolution for Ivy Village Corp.’s proposed $3.5 million construction of 20 units of market-rate patio homes in the Village of LeRoy. The project would add 24,960 sq. ft as part of a planned three-phase, 60-unit development on 16 acres.
 
Ivy Village Corp. is requesting a sales tax exemption estimated at $168,000, a mortgage tax exemption estimated at $28,000, and a property tax abatement estimated at $669,440 based on the incremental increase in assessed value via a 20-year PILOT. The project is estimated to generate $2.7 million in local fiscal impacts, including payroll and tax revenues, for an estimated $4 local benefit for every $1 of requested incentives.
 
Meeting materials and links to a live stream/on-demand recording of the meeting are available at www.gcedc.com.

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