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July 21, 2021 - 6:48pm

Ways & Means passes measures rescinding revenue distribution payments, accepting HCA with Plug Power

Genesee County Manager Matt Landers has yet to hear from government officials in the towns of Darien and Pembroke and Village of Corfu on whether they will be opting in to an updated countywide water supply agreement. But he is sticking to his timeline to enact a new sales tax distribution plan to all municipalities.

Landers, at this afternoon’s Genesee County Legislature Ways & Means Committee meeting at the Old County Courthouse, presented a resolution that immediately (when passed by the full legislature) rescinds the county’s annual voluntary distribution payments. It also directs the county treasurer to discontinue all future such payments until further notice.

The measure passed and will be forwarded to the legislature’s next meeting, which is set for July 28.

Landers said the county made the first six monthly distribution payments this year but is changing course going forward – offering municipalities (with a deadline of Aug. 13), the following options:

  • With universal buy-in to revised water supply agreements, accept $10 million annually over the next 38 years, with the amounts per town or village determined by the total assessed property valuation;
  • Without universal buy-in, accept $7 million in annual sales tax distributions and another $3 million in periodic revenue distribution over the next 38 years, minus equalization of water surcharge revenue to those municipalities not opting in.

Currently, Darien, Pembroke and Corfu have not signed the water agreements, although their town and village boards have scheduled meetings over the next couple weeks.

“The towns and villages are aware of this resolution (to rescind the agreement that was passed in 2020),” Landers told the committee.

On Monday, a draft of the new sales tax agreement – without any specific dollar amounts filled in -- was sent to the New York State Comptroller’s Office for review.

Landers has set Sept. 14 as the date to send the amended and signed agreement to the Comptroller for formal approval.

SHOOTING FOR A $1 MILLION GRANT

In other action, the Ways & Means Committee voted in favor of a resolution to hold a public hearing for 5:30 p.m. Aug. 25 at the Old County Courthouse to provide information regarding the application of funding from the Community Development Block Grant COVID-19 Response program in the amount of $1 million.

Landers explained that the money is targeted for assistance to small businesses in the county, those with 25 or fewer employees.

He said the Genesee Gateway Local Development Corp. will help facilitate the money, if received, to go toward programs such as job creation, equipment/furnishings for parklet-type outdoor dining locations, personal protective equipment, and air handling measures, telecommuting employment and related initiatives.

“We have 12 months to spend the money from the date of applying,” he said, adding that the GGLDC, Downtown Batavia Improvement District, Genesee County Chamber of Commerce and other outlets will be promoting this heavily. “This is money beyond the $11 million that we received from the American Rescue Plan Act, and we still have that.”

Landers said the majority of the funds will be in the form of grants, with some to be allocated as loans.

“It’s a win-win for everyone,” he added.

HCA WITH PLUG POWER IN THE WORKS

The committee also approved a resolution authorizing the county to enter into a Host Community Agreement with Gateway Hydrogen LLC, also known as Plug Power Inc., of Latham, which is planning to build a green hydrogen production facility at the Western New York Science & Technology Advanced Manufacturing Park in the Town of Alabama.

Landers reported that the county – as long as the proposed project goes through – would receive $366,000 annually for 20 years plus another $147,000 annually from a Payment in Lieu of Taxes agreement.

“This brings revenue to the county to be used for general operations without having negative tax cap implications as well as giving us the option of how to use it,” he said, adding that it is projected to start on Jan. 1, 2023.

Host Community Agreements or Host Benefit Agreements are legal contracts that benefit both the community and the developer of a project -- stipulating the benefits a developer agrees to fund or furnish, in exchange for community support of a project.

Benefits can include commitments to hire directly from a community, contributions to economic trust funds, local workforce training guarantees and more.

In this case, Landers said some of the funds could go toward a Niagara County connection that would increase the water supply to the northern region of the county, including around the STAMP site.

“This may be able to support the possible connection to Niagara County,” he said. “It’s basically gap water between Phase 2 and Phase 3 of the Countywide Water Program.”

He also said he believes the Town of Alabama will be entering into a HCA with Plug Power.

The PILOT agreement will serve to lower the tax cap, which helps reduce the property tax rate, he said.

Previously: Genesee County leaders present plans to distribute $10 million in sales tax/other revenue to towns and villages

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