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Speakers in Alabama express hope and fear over proposed 1,200 acre technology park

By Howard B. Owens

For Holly Nelson, the proposed 1,200-acre technology business park in the Town of Alabama is both something to dread and something that seems like a good opportunity.

She's not alone in her conflicted feelings. Nearly a dozen people spoke at a public hearing Thursday night in the town's fire hall and expressed both a wish that Alabama remain a small, rural community, and that it embrace jobs and growth.

"I moved back here so I could be in the country," Nelson said during a short statement where she fought back tears. "If we had known what would happen, that this would be proposed, when we started building our home, we never would have built it. My whole family is here and loves Alabama. I don't want to lose that, but I do want my kids to be able to stay here and have a place to work. I'm so torn."

After speaking another minute or so, she said, "I'm scared," and seemingly unable to hold back the tears any longer, she walked away from the mic.

The purpose of Thursday's meeting was to give interested members of the public -- especially Alabama residents -- a chance to raise any issues with a proposed compensation package from the Genesee County Economic Development Center and the necessary changes in zoning for the site.

In all, the total estimated benefit to the town is $8.5 million, including $5.2 million for a new public water system. The town will also receive a commission on the sale of the land in park -- to be known as the Science, Technology, Advanced Manufacturing Park (STAMP) -- as manufacturers are signed to build facilities on the property.

The first speaker was an organized labor representative who encouraged Alabama residents to support STAMP because both in the construction and in the new factories, it could bring good-paying jobs to the region.

He was followed by Alabama resident Doug Crosen who encouraged the town board to not be swayed by outside voices.

"There's going to be huge pressure from the outside both for and against it, but the decision better be about our town," Crosen said.

Among Crosen's concerns is whether the money for public water will cover hook-ups for residents, and whether residents will have the option to say on well water.

Anita Goras said she had split feelings about the project.

"This is going to be in my back yard and that's where my cows are right now," Goras said. "I am open. I know I'm not going to live forever and I would like to see my grandchildren be able to come back here and work."

Kevin Sheehan, deputy mayor for Albion, told the board that if Alabama didn't want STAMP, Orleans County will take it. He encouraged the board to approve the project for the sake of all of Western New York.

Bruce Pritchett -- who grew up in Alabama, still lives on Maple Road, and teaches in Albion -- said he understands the desire to keep Alabama a small farming community, but young people, he said, need jobs, they need a reason to say in Genesee County.

"There are not a lot of jobs available," Pritchett said. "We send our jobs overseas. There's nothing here for people. This is a great opportunity. As a community, I hope we take advantage of this opportunity we have and make the best of it."

Tom Walsh, a Corfu resident, said he understands the resistance from some, but encouraged Alabama to move forward with the project.

"I know it scares a lot of people," Walsh said. "If it came to Corfu, I'd probably be a little scared for me at first, but I would know at least there would be some work for people."

Vance Wyder Jr., said he's a 40-year-old disabled military veteran who really only knows farming. He isn't sure he and other farming community members can really be trained for the kind of jobs STAMP will bring. He's worried about losing farming jobs, which are harder and harder to come by in Alabama, and then the new jobs not being filled by local residents. He said nobody has really assured him that local residents can and will be trained for the jobs.

"My message to the board is be cautious, be wary, make sure you are doing the right thing for our town and not for the almighty dollar, because in the end, the almighty dollar might kick us in the ass," he said.

Another speaker, a gentleman who has worked in IT for 20 years and is a resident of Alabama, said the board should be mindful of the potential for spinoff businesses from high-tech manufacturers.

He encouraged the board to ensure any businesses coming in reinvest in the local business community, such as by creating an incubator for start-up tech firms.

"We don't need some monolithic company with 1,800 jobs that never talks to the town after it's in place," he said.

Max Merten seemed the most strongly opposed to STAMP. He said he moved to Alabama 20 years ago to live in a rural community and he doesn't want it to change. He said he raised his kids to work, not push paper.

He's worried, he said, that the project is being pushed through the process too quickly.

"We don't need more jobs in a cornfield," Merten said.

Angela Kost concluded the round of speakers with the same ambiguity that set the tone for the meeting.

"I don't want to see it in my back yard, obviously," Kost said. "I don't think anybody in Alabama wants that, but it is a good opportunity."

The town board will meet within two weeks to take formal action on the proposals.

Mark Masse, senior VP at GCEDC, honored by Buffalo Business First

By Billie Owens

Mark Masse, senior vice pesident of operations of the Genesee County Economic Development Center, was recently selected by Buffalo Business First as a "40 Under 40" honoree for 2012.

An independent panel of professionals identified Masse as one of Western New York's outstanding young leaders. Masse's professional success with the GCEDC and his community involvement made him a logical choice for this top award.

Masse is a graduate of Le Roy High School and Nazareth College of Rochester with a degree in accounting, and is a certified public accountant in New York State. He had been with Freed, Maxick & Battaglia for 15 years before joining the GCEDC.

He specialized in small business issues that deal with corporations, subchapter S corporations, partnerships and individuals.

At the GCEDC, Mark's key roles and responsibilities cover program management of all its real estate development and infrastructure projects, overseeing office operations, and engaging in sales and community development.

Read his full biography here:

http://www.gcedc.com/index.php/gcedc/gcedc-staff/?utm_source=GCEDC+September+2012+Newsletter&utm_campaign=September+Newsletter&utm_medium=email

Darien Lake gets tax break to help refinance existing loans

By Howard B. Owens

The Genesee County Economic Development Center is helping the owners of Darien Lake Theme Park refinance $57.5 million in loans by authorizing a mortgage tax exemption of $719,062.

According to a GCEDC release, the bank refinancing the loans is -- for an unexplained reason -- requiring a new mortgage on the property, which is triggering a mortgage tax.

The theme park is owned by Georgia-based Herschend Family Entertainment, which has invested approximately $15 million in upgrades to the facility.

There are 400 full-time equivalent jobs at Darien Lake with an annual payroll of $11 million and the park generates $2.5 million in revenue for local governments and school districts through property and sales taxes.

Genesee County named one of top areas in nation for food processing growth

By Howard B. Owens

Press release:

For the third year in a row Genesee County has been recognized in the top five of the rankings in the Metro Food Processing Industry Growth category by "Business Facilities" a national site selection publication.

The agriculture industry in Genesee County employs more than 1,500 workers, a number that will dramatically increase with the opening of Alpina Foods, LLC, and PepsiCo/Muller yogurt manufacturing facilities.

“The construction of two major new food processing facilities by Alpina and the joint venture between PepsiCo and Theo Müller demonstrates a significant return on our investment in our Agri-Business Park which we believe is driving our high national ranking,” said Steve Hyde, president and CEO of Genesee County Economic Development Center (GCEDC). “We are honored to be once again recognized by 'Business Facilities' as it keeps us on the radar screen for site selectors throughout the United States and the world.”

The Genesee Valley Agri-Business Park encompasses 202 shovel-ready, pre-permitted acres strategically located between Western New York and the Finger Lakes Region. On site there is access to low-cost process water via a local aquifer that produces more than six million gallons per day and a pretreatment facility as well as rail access.

Through the support of National Grid and National Fuel, the site has an enhanced utility infrastructure. The agri-park was originally a public-private partnership between GCEDC and Farm Credit East.

“The Agri-Business Park in Genesee County is perfectly tailored to fill a niche in our region created by our productive agricultural sector,” said Mary Pat Hancock, chair, Genesee County Legislature. “It makes perfect sense to have those who process food to have their facilities as near as possible to where the food is produced.

"It makes for a better, safer, and tastier product and is also more efficient.  Our resources lend themselves to food processing and our location is ideal for quick market access. We look forward to continued success and expansion.”

Alpina Foods LLC, one of the most recognized dairy companies in the world and a leading dairy producing company in Colombia and South America, has decided to open its first specialty yogurt manufacturing plant in the United States at the Genesee Valley Agri-Business Park.

PepsiCo, in a joint venture with German dairy company Theo Müller, also broke ground earlier this year on a $206 million yogurt manufacturing facility at the park. Other food processing facilities in Genesee County include O-AT-KA Milk, Yancey’s Fancy and Allan’s Canning. 

“The significant dairy supply, abundance of fresh water, and talented workforce are just some of the assets that attract food manufacturers such as PepsiCo, Theo Müller and Alpina foods to Western New York,” said Mark S. Peterson, president and CEO of Greater Rochester Enterprise. “It’s no wonder that more than 100 food manufacturers have operations here.”

“Genesee County’s strategic location and agricultural assets make it a prime location destination for the food processing industry,” said Thomas A. Kucharski, president and CEO of Buffalo Niagara Enterprise.

“The vision Genesee County officials have shown in developing shovel-ready sites like the Genesee Valley Agri-Business Park has distinguished them among peer communities and allowed us to succeed in attracting global investment and job creation like Alpina, Mueller and more."

County officials get high praise from executives, governor for bringing new yogurt plant to Batavia

By Howard B. Owens

PepsiCo and Theo Muller officials along with Gov. Andrew Cuomo praised the efforts of local leaders to convince the two international companies to locate their new yogurt plant in Batavia.

The executives, elected officials along with a host of local dignitaries gathered at the new Muller Quaker Dairy plant in the Genesee Valley Agri-Business Park today for a dedication ceremony for the new plant.

Indra Nooyi, CEO of Pepsi, said once it was time to make a decision about the location for the plant, Batavia was an easy choice.

"I must say the Genesee County people and the governor’s office were just amazing in the way they worked with us," Nooyi said. "There was no competition. We love being here. The Genesee County people have to be given a lot of credit, the way they brought the forces of the county together to get everything expedited in such a short time. I think it is a real textbook example of how to attract investment into any community."

Stefan Muller, the CEO of the newly formed Muller Quaker Dairy company, said the day that executives traveled to the Genesee Agri-Business Park, the amount of support Genesee County lined up for the visit was impressive. There were representatives from local government and utility companies making promises on delivery of what Pepsi and Muller would need to build the project.

"I have seen 60 sites that were just locations on a map and I have seen six sites personally, but what we saw here was just outstanding," Muller said. "We were promised to get all of the permissions within weeks and we couldn’t believe it."

Gov. Andrew Cuomo also praised Genesee County officials and said the effort to bring the Muller Quaker plant to Batavia is an example of how New York is open for business.

“We want business in New York," Cuomo said. "Business is the engine that drives the train, providing the jobs, providing the opportunity, providing the career ladder, providing the revenues to local governments. It’s all about making the private sector run and making the private sector run well and government partnering with that private sector. “

Yogurt, Cuomo said, is quickly becoming a big part of New York's economy -- production is up 60 percent in the past few years and there are now 49 yogurt plants in the state. He said the state is committed to ensuring the yogurt industry succeeds.

"We believe in the yogurt story and we’ve invested in the yogurt story," Cuomo said. "It is a big, big business in the State of New York."

He announced an Aug. 15 summit of leaders in the yogurt industry and dairy leaders to help facilitate, he said, the two groups working together to grow the yogurt industry.

"We want this business to do well," Cuomo said. "We want this business to thrive and we want this business to thrive in the State of New York."

Pepsi is committed to growing in the nutritional food categories, and dairy in particular, Nooyi said.

"Dairy products are a $500 billion industry that is expected to grow rapidly in the high single digits," Nooyi said. "We believe that here in the United States the growth potential for dairy is virtually unlimited."

The yogurt market, she said, is "largely untapped." The per-capita consumption of yogurt in the U.S. is half what it is in many other countries."

Muller said the new product is sweeter than what Theo Muller makes in Germany to meet U.S. consumer expectations and Nooyi praised the new yogurt.

"The Muller Quaker Dairy line is going to bring a whole new taste experience to America that’s not like anything that’s available in the country today," Nooyi said. "Try it and you’ll see that it’s more rich than any other yogurt you've tasted.

"It’s creamier. It’s more delicious. It doesn’t have any chalky aftertaste. It's really something you’ll enjoy eating day in and day out, maybe even three or four times a day."

Muller said the online feedback on the new product has been fun to read.

"I read on the Internet, on a blog, one consumer was writing, she tried the product two weeks ago and she is writing it is insanely delicious," Muller said. "This was really, I think, the right comment."

Both chief executives praised their new business partner as the perfect fit for how each company would like to grow.

"I have to say it was good and smart that we took the time because we found the right partner with PepsiCo and the yogurt market is booming," Muller said. "It’s still a very small market compared to other countries and we have products which are very unique and are really outstanding for the American market."

Nooyi said Pepsi has the distribution system to get the new product onto store shelves throughout the United States.

She also said the two companies share a core value in being committed to their local communities.

"One of the reasons this is a great partnership is both companies are committed to growing our businesses and both are committed to growing our local communities," Nooyi said. "When this plant is complete next year, it will be one of the largest yogurt plants in the United States. It’s going to source largely from New York State dairy farmers and other quality suppliers around this great region. The best part is it will create 186 local jobs next year."

Schumer announces $1 million public works investment for ag park

By Howard B. Owens

Press release:

Today, Senator Charles E. Schumer announced a critical funding commitment for the Genesee Gateway Local Development Corporation (GGLDC) through the Economic Development Administration (EDA), to complete essential infrastructure improvements at the Genesee Valley Agri-Business Park (GVAB) in Batavia.

In March of 2012, Schumer urged the EDA to support the ag park’s water system after the GGLDC applied for a $1 million investment from the EDA Public Works Program, which will go toward infrastructure improvements needed to support Muller-Quaker partners' -- Theo Muller Group and PepsiCo -- new $206 million yogurt manufacturing facility in the ag park.

Today, the EDA notified the GGLDC that the agency was granting it a $1 million preliminary award pending receipt of final supporting documents.

“This federal investment will mean more jobs and economic activity in Upstate New York, and more demand for our dairy farmers’ product. It is great news for the Genesee County’s Agri-Business Park that further solidifies Upstate New York’s place at the top of the rapidly expanding Greek yogurt production industry,” Schumer said.

“I urged the Economic Development Administration to support this project so that Genesee can pave the way for a major new water system at the Agri-Business Park in Batavia, helping to sprout hundreds of new jobs and Pepsi’s new Greek yogurt plant.

"The Agri-Business Park is going to be a huge driver of jobs and economic growth, and it’s clear that EDA agrees we need to make this investment to create jobs and new markets for our farms and dairies. The EDA made a smart choice and will get real bang for their buck with this investment.”

In March of 2012, Schumer wrote and personally called EDA Acting Assistant Secretary Matthew Erskine to issue his support and noted that this investment would allow the ag park to construct an aquifer-direct water system, which is required for food processing and yogurt-product manufacturing.

The federal award will also help the project leverage millions in private-sector investments and will create approximately 186 jobs at the plant, all while providing a critical boost as Genesee County and Upstate New York work to keep pace with the lucrative and fast-growing yogurt production industry.

The GGLDC will use the $1 million, plus a local match, to construct an aquifer-direct water system required by food processors as municipal water is not optimal for the manufacturing process of yogurt products.

In addition to PepsiCo’s Muller-Quaker plant, the aquifer system will be utilized by other tenants at the park, such as yogurt product producer Alpina Foods. Alpina is in the process of constructing a 40,000-square-foot yogurt processing facility in the ag park and anticipates beginning production late this summer with the hiring of 50 new employees.

Schumer highlighted the fact that multiple economic development projects would be set to utilize this aquifer system once constructed, and noted that the project fits squarely in line with the administration’s focus on developing regional clusters of growth in specialized high-tech manufacturing.

This funding will help Genesee County close an over $1 million funding gap needed to upgrade the park’s road and sewer infrastructure to accommodate forthcoming new tenants like Muller-Quaker, Alpina, and Genesee Valley Mushroom.

In May, Schumer led the effort to secure $105,000 from the USDA to upgrade an essential pump station necessary to increase the park’s wastewater system’s capacity to support the park’s new tenants. To overcome the last of this funding gap, Schumer is also spearheading an effort to secure a $200,000 grant from USDA to construct the required secondary access road into the park. The USDA expects to announce winners of that grant within the next few weeks.

Earlier this year, Schumer urged Muller-Quaker partner PepsiCo, to source as much of the milk for their product as they can from New York’s dairy farmers. The new plant, to be built in Batavia, will create 186 jobs primarily around the manufacturing of various Greek yogurt products. Schumer noted that the plant will be the largest manufacturing operation to locate in Genesee County in the past 50 years.

Dairy processing has significantly increased, thanks to the opening of several new yogurt plants in the state, and the new Muller-Quaker plant represents the latest opportunity to increase demand for New York dairy products, a welcome boost for New York’s long-suffering dairy farmers.

The EDA Public Works Program provides funding for distressed communities to revitalize and upgrade physical infrastructure to attract new industry, encourage business expansion, and diversify local economies.

The Economic Adjustment Assistance Program helps address the needs of communities experiencing adverse economic changes that may occur suddenly or over time caused by international trade, long-term economic deterioration, loss of major community employer, or loss of manufacturing jobs. Funding can be used for infrastructure improvements like sewers.

GCEDC approves tax exemptions for companies in Le Roy and Attica

By Howard B. Owens

Projects approved by Genesee County Economic Development Center:

Triple F Services (Falcone Family Funeral): Sales tax exemption on materials, $27,200; mortgage tax exemption, $6,250; property tax exemption, $0. Falcone is planning on investing $602,000 to build a 4,500-square-foot funeral home in the Town of Le Roy. The company is planning to apply for property tax assistance through the Town of Le Roy. Projected new jobs: three.

Upstate Dodge Chrysler and Jeep, Inc.: Sales tax exemption, $24,800; mortgage tax exemption, $0; property tax exemption, $0. Upstate is planning on making a $655,000 investment to renovate an existing building at 125 Prospect St., Attica (Genesee County) and relocate its existing dealership from 15 West Ave., Attica (Wyoming County). Projected new jobs: 17.

GCEDC announces incentives for four area business expansions

By Howard B. Owens

Genesee County Economic Development Center has approved the following projects for development incentives:

Batavia Animal Hospital (Perry Vet), 3699 W. Main St. Road, Batavia, is constructing a new 6,300-square-foot facility behind its current building. The project will receive a sales tax exemption of $76,960, a mortgage tax exemption of $16,250 and a property tax exemption of $80,994. Perry Vet is investigating $1.733 million in the project. The project will create five new jobs and retain 11 jobs.

Merrill Lynch, 24 Masse Place, Batavia, is moving into new office space. Merrill Lynch is receiving a $13,360 sales tax exemption. The company's total investment is $867,000. The project will create 16 new jobs.

Genesee & Mohawk Railroad - GVT, 100 Evans St., Batavia, is adding a 2,800-square-foot headquarters building next to a 31,000-square-foot transload warehouse constructed in 2008 for $2 million. The headquarters project will receive $13,600 in sales tax exemption, $3,750 mortgage tax exemption and $42,762 property tax exemption.The company is investing $360,000. The project will create two new jobs and retain 19.

Le Roy Motors, 7000 W. Main Road, Le Roy, is expanding its current facility by 2,400 square feet and renovating its interior. Le Roy Motors will receive $33,600 sales tax exemption, $9,375 mortgage tax exemption and a $29,631 property tax exemption. The company is investing $785,000. The project will create three new jobs and retain 35 jobs.

Senate Majority leader visits Batavia to help announce $2 million for STAMP

By Howard B. Owens

Dignitaries from throughout the county were at the Upstate Med-Tech Center today for the official announcement of $2 million in funding for the STAMP project in Alabama.

The project, if successful, is expected to produce thousands of jobs and the round of funding will help pay for grading and infrastructure improvements for a portion of 1,300 acres targeted for development.

"The investment we’re making today will make STAMP a shovel-ready, high-tech industrial megasite," said Senate Majority Leader Dean Skelos (top photo), who traveled to Batavia today for the announcement. "Long Island, the Hudson Valley and Capitol Region communities are already attracting high-tech companies and high-paying jobs."

STAMP is intended to attract high-tech/clean-tech and nano-enabled manufacturing and Genesee Economic Development Center CEO Steve Hyde (top inset photo) projects an eventual 10,000 jobs at the site, with support and supply chain jobs from Buffalo to Rochester adding another 20,000 positions.

STAMP is most often compared to Luther Forest in Saratoga. According to GCEDC, Luther Forest, in the past five years, has seen $1.5 billion in private investment, and more than 2,000 jobs created.

"Once we bring that site to what we call ‘shovel-ready light’ we will be ready to market the project to some of the largest semi-conductor manufacturers in the world," Hyde said.

Sen. Mike Ranzenhofer (second inset photo) thanked Skelos for helping secure the funding for STAMP and said the project has the potential to transform the region.

"This is really critical funding that will keep the project going and keep it on track," Ranzenhofer said. "We’re a step closer today than we were previously to making sure we develop scientific and technological manufacturing jobs in the future here in Genesee County. I’d rather see them developed right here between Rochester and Buffalo than in another state or another country."

Following the announcement, Skelos and Ranzenhofer met with local and regional media and discussed a variety of issues.

On Cuomo's plan to decriminalize possession of personal use marijuana, both Skelos and Ranzenhofer are adamantly opposed to the measure.

"When you talk to lot of drug counselors, they tell you marijuana leads to a lot of other kinds of addictions with heavier drugs," Skelos said. 

He added, "I don’t believe in legalizing drugs that the federal government has said are destructive to lives."

Ranzenofer said he's following the lead of GCASA in opposing decriminalizing possession.

"They felt strongly that this type of thing is a gateway drug for the very kind of people they’re trying to treat in our communities," Ranzenhofer said. "The experts in our community don’t believe that it is proper legislation and I’ll certainly defer to the experts in our community."

Even though polls show most New Yorkers support losing marijuana laws, Skelos said "the voters in my district on Long Island are not knocking down the door saying legalize marijuana."

On the ethics complaint against Sen. Ranzenhofer: Skelos said he has not received a copy of the complaint filed by Michelle McCulloch, even though it was sent to his office by registered mail. Ranzenhofer said he also has not yet seen it. 

Skelos called the firing of McCulloch, a mother of four children, a "personnel change." He said, "We all make personnel changes in our lives. I’ve done it. We’ve all done it."

Asked about his statement to a Buffalo TV station that McCulloch "knows why she was fired," even though he's said he wouldn't discuss a personnel matter, Ranzenhofer wouldn't comment further, except to say, "It wasn't for political activity."

He also said he's never directed anybody to gather signatures or petitions for Chris Collins, who is running in the NY-27 GOP primary against David Bellavia.

"People have volunteered for the past 50 years," Ranzenhofer said. "I've never directed anybody to do that."

On mandate relief for counties, particularly Medicaid: Skelos said the state simply can't afford to pick up its share of Medicaid costs.

He said NYS has already provided relief to counties, first by capping annual increases at 3 percent, then by agreeing to phase out the local mandate increase.

Counties promised each time not to ask for more help with Medicaid, Skelos said.

"They should be reminded that just a couple of years ago they said, ‘we’re fine,’ we’ll never need to come back again," Skelos said.

Skelos said reporters should ask federal elected officials why some states get 80-percent reimbursement for Medicaid while New York gets only 50 percent.

The Batavian happened to already have an interview scheduled with Rep. Kathy Hochul for this afternoon and we asked Hochul that question.

Hochul said that as a former town board member and former county clerk, she certainly understands the need for mandate relief, but the reason New York doesn't get more help from the federal government is the state has instituted a number of services and programs within Medicaid that are not required. Those additional programs drive up the costs for both the state and counties.

On another unfunded mandate issue, Skelos did agree that if proposed creation of a youth court division in NY's counties goes through, the state should pay for the additional cost. Officials estimate the new court will cost more than $1 million in Genesee County.

On efforts to increase the state's minimum wage, Skelos said he remains opposed to the idea.

"My concern is that if we raise the minimum wage with the fragile economy we have, there would actually be a loss of jobs," Skelos said. "Fifty percent of the people earning minimum wage are young people, age 16 to 24, and the last time we raised the minimum wage, 22 percent of them lost their jobs."

Professor Mike Jackson, RIT, presented officials with framed, commemorative computer chips.

Senator Majority Leader in town to announce funding for STAMP

By Howard B. Owens

Senate Majority Leader Dean Skelos will be in Batavia today, at the offices of Genesee County Economic Development Center, to announce approval of $2 million in funding to advance the development of the STAMP project in Alabama.

The project is a planned 1,300-acre high-tech manufacturing park and the funding will help pay for design and infrastructure work.

Joining Skelos at the press conference will be Sen. Mike Ranzenhofer, Assemblyman Steve Hawley and GCEDC CEO Steve Hyde.

Skelos is also expected to attend a campaign fundraiser tonight for Ranzenhofer in Erie County.

Steve Hyde named NYS Economic Developer of the Year

By Howard B. Owens

Press release:

Steve Hyde, president and CEO of the Genesee County Economic Development Center received the Economic Developer of the Year award by the New York State Economic Development Council (NYSEDC) at the organization’s annual meeting on May 24th in Cooperstown. Hyde also was named vice-chair of the NYSEDC’s board of directors.

“Steve has shown strong, creative leadership in leading the ongoing transformation of Genesee County into one of the state’s most promising regions for growth,” said Brian McMahon, executive director of NYSEDC.  “Steve’s colleagues in New York’s development community especially admire his balanced approach to development. He has built a broad portfolio of success that includes high-tech development, agri-business related growth and life sciences based opportunity, and development of housing and livability-related initiatives.”

In presenting the award to Hyde the NYSEDC cited that since 2003 more than 300 economic development projects have come to Genesee County generating more than $610 million worth of capital investment and the creation of approximately 3,149 jobs.

“While I am humbled by this award and recognition, it would not have been possible without the strong collaboration between the public and private sectors in Genesee County and the dedication and hard work of my staff,” Hyde said. “I want to especially recognize the leadership of our board and our board Chairman John Andrews and Genesee County Legislature Chairwoman Mary Pat Hancock as well as all of the elected officials who represent Genesee County.”

The GCEDC also was the recipient of certificates of excellence for the organization’s electronic newsletter and Web site, and received an honorable mention for its marketing and promotional materials.

Photo: The Batavian file photo.

Rapid permitting helped land Project Wave for Batavia

By Howard B. Owens

The picture came a bit clearer today at the annual Genesee County Economic Development Center luncheon on how the agency landed a $206 million joint-venture Greek yogurt plant for Batavia.

Mark Koenig, director of engineering and technology at the PepsiCo Global Nutrition Group, said while there were a few reasons Pepsi and the Theo Muller Group picked the Genesee Valley Agri-Business Park for Project Wave, a key was getting site-grading permits within 15 days.

Koenig, who heads up similar projects for Pepsi all over the world, lost a bet with Chris Suozzi, VP of Business Development for GCEDC.

"I bet him my house, my wife and my salary that he couldn't get us permitted in 15 days," Koenig said. "I've never seen a greenfield site get permitted in 15 days. I said, 'there's no way.'"

He added, "This team delivered."

The 15-day permitting process allowed Wave Holding LLC to fast-track its development plans, which Suozzi agreed after the meeting was absolutely critical in bringing the project to Batavia.

Without the 15-day permitting, Pepsi and Muller would have been looking at a 30-month process to get its new Greek yogurt products to market. The current timeline is 18 months, all because Town of Batavia officials were able to move the permitting process along quickly.

Earlier this week, GCEDC CEO Steve Hyde told county legislators that Souzzi was instrumental in getting Batavia from the B-list for the project to the final four possible sites.

Koenig also said of critical importance to Pepsi and Muller was the world-class dairy industry in Western New York.

"This is an ag area that is the best in class and that's why we're here," Koenig said. "You have a good milk supply and your milk is the best in its class."

It also helps that from Batavia, Wave Holding can easily reach a third of the potential market in the U.S. for its new Greek yogurt.

Pepsi partnered with Germany-based Muller, Koenig said, because Muller has proprietary recipes and world-class technology for producing yogurt.

The incentive package put together by NYS and GCEDC was also important, Koenig said, but Pepsi was also impressed by the warm welcome the company has received from the community.

"The community support has been fantastic," Koenig said. "All signs say this is going to be a success with the community for years to come and in future growth."

Top: Koenig; bottom, Hanno Lehmann, a senior project manager from the Muller Group.

Executives with Pepsi and Muller to speak at GCEDC annual luncheon

By Howard B. Owens

Executives from PepsiCo and the Muller Group will be keynote speakers March 23 at the Genesee County Economic Development Center's annual meeting at the college.

The two companies are behind Project Wave, the $206 million yogurt plant being built at Genesee Valley Agri-Business Park.

Mark Koenig, director of engineering and technology at the PepsiCo Global Nutrition Group -- who was in town when grading started in November although Pepsi's involvement was still officially a secret -- will be joined for a keynote presentation by Hanno Lehmann, a senior project manager from the Mueller Group.

Wave Holding, LLC -- the official name of the joint venture -- is expected to employ nearly 200 people in the near term and perhaps as many as 600 people if the new line of Greek yogurt is as successful as Pepsi and Muller project.

The new joint venture is receiving more than $11 million in tax abatements to build the plant in Batavia, which was initially not even a top-tier choice in the site selection process.

Also speaking at the event will be Rep. Kathy Hochul, State Sen. Michael Ranzenhofer, Assemblyman Steve Hawley and County Legislature Chairwoman Mary Pat Hancock.

GCEDC CEO Steve Hyde will make a presentation on some of the agency's 2011 highlights.

The luncheon is from noon until 1:30 p.m., March 23, at Genesee Community College. Tickets are $15 or $20 at the door. For reservation and tickets in advance, call 343-4866.

Legislators get report on recent successes of GCEDC

By Howard B. Owens

In a very short time, Genesee County has become a big player in the global agricultural community, Jim Vincent told the Ways and Means Committee on Wednesday. He's vice chairman of the Genesee County Economic Development Center Board of Directors.

Vincent commented little during the half-hour meeting in which CEO Steve Hyde provided a quarterly review for members of the county legislature. But he did note that with Alpina building here, followed by Pepsi/Theo Muller and now Bonduelle buying food processing plants in Oakfield and Bergen from Allen's Foods, Genesee County's place in the ag community has been transformed.

Hyde pointed out that the Bonduelle purchase probably saved more than 250 jobs in Genesee County.

Allen's may have been on the verge of closing the plants if they hadn't been sold, Hyde indicated.

While GCEDC wasn't directly involved in the purchase, officials have been speaking with Bonduelle executives and something may be in the works to help the company grow locally.

The four plants purchased by Bonduelle are the first production facilities owned by the France-based company in the United States.

Members of the committee and other legislators at the meeting made few comments and asked few questions.

Hyde was able to point to other successes for GCEDC and its business development partners, such as Java Equipment planning a location in Batavia and Premier Credit opening a phone room on Mill Street.

Hyde said Premier initially planned on 50 jobs -- which pay $12 an hour plus incentives -- but may soon add another 50 positions.

VP of Business Development Chris Suozzi deserves a lot of credit for bringing both Premier and Pepsi to town, Hyde said.

According to Hyde, when GCEDC first learned of Pepsi's plans, the Genesee County Agri-Business Park was only on the B-list.

But Souzi started working his contacts and managed to convince Pepsi officials to make a site visit.

"After the site visit, we went from the B-list to the A-list, from one of 16, to one of the final four, and then being very fortunate to land this project," Hyde said.

Hyde also gave credit to Sen. Michael Ranzenhofer for giving a "yeoman's effort" on behalf the STAMP project in Alabama. GCEDC needs to secure $18 million in grants and Ranzenhofer has been instrumental in arranging key meetings with Senate leaders and lining up support for legislation that might make it possible.

Vincent told legislators that for every dollar the county government invests in the GCEDC, a total of $18.60 is returned to the local economy.

Hyde said that when he started with GCEDC in 2002, the agency and its affiliates did $600,000 in revenue. This last year, it generated $4.4 million in revenue. It turned a profit of $1.3 million.

"Those profits, of course, go right back into helping us create shovel-ready projects," Hyde said. "We try to build our community, build our tax base, create jobs and create success for our community."

Firms will get more than $11 million in tax relief to build giant yogurt factory in Batavia

By Howard B. Owens

PepsiCo and the Theo Muller Group -- partnering on Project Wave in Batavia -- will receive more than $11 million in tax relief for the planned yogurt plant in the Genesee Valley Agri-Business Park.

The incentive package was approved by the Genesee County Economic Development Center Board on Monday.

The PILOT on the project -- relief from taxes on the increased value of the assessment -- is 100 percent for the first six years and 50 percent in years seven through 10.

The total PILOT abatement is estimated at $5.6 million over 10 years.

The companies will also receive $5.4 million in sales tax abatement on materials and supplies for construction of the facility.

The project will add 186 new jobs to the local economy, and early planning for the plant projected as many as 600 jobs by 2033.

Wave Holding, LLC (the company formed by Pepsi and Muller for the project) will spend $206 million on construction of a 363,000-square-foot facility.

Construction on the project began in November.

The agreement calls for the first 186 jobs to be filled within three years of Wave Holding receiving a certificate of occupancy.

GCEDC competed with shovel-ready sites in Avon and Pennsylvania.

According to a GCEDC press release, for every $1 invested by Waving Holding the local economy will benefit by $14.47.

Genesee County again named a top micropolitan area

By Howard B. Owens

Press release:

For the eighth consecutive year Site Selection Magazine has recognized Batavia/Genesee County as one of the top micropolitans in the United States, including the number-one ranking in the Northeast. The criteria for receiving the recognition includes capital investment and job creation. Through the Genesee County Economic Development Center (GCEDC), approximately $51.3 million in new capital investments were made in the county creating approximately 172 new jobs in 2011.

“Through the collaboration of the Genesee County Legislature, the City and Town of Batavia, and many others in our community, we had another successful year in our economic development efforts,” said Steve Hyde, president and CEO of the GCEDC. "With the recent announcement of Premiere Credit and Java Equipment projects, 2012 is off to a tremendous start.”

In 2011 the GCEDC was able to participate in 30 project “wins," including four major projects that have significant employment impacts for the region. Alpina Foods, one of the most recognized dairy companies in the world, and a leading dairy producing company in Colombia and South America, will open its first specialty yogurt manufacturing plant in the United States and will be the first occupant of the Genesee Valley Agri-Business Park. Alpina will create 50 jobs and invest more than $15 million in the construction and occupation of its new manufacturing plant.

The expansion at Graham Corporation will create 26 new jobs while a green technology firm, Vegetal I.D., which creates green roofs, will be adding 20 jobs over the next three years. In the Gateway I park, a new Holiday Inn Express is under construction that will create 19 jobs. The new hotel will be attached to an existing banquet hall.

“Congratulations are in order and Genesee County should be very proud of the achievements of our GCEDC,” said Mary Pat Hancock, chairwoman of the Genesee County Legislature. “The recent groundbreaking by Alpina in our newly opened agricultural park, and the recent activity at the park promises a substantial investment in the economic health of our area.

"There were additional achievements, new cooperative workforce-training programs, businesses expanding, jobs retained; do not think that all this would have happened without the inspired and dedicated work of the GCEDC and their team. Their success is our success."

The City of Batavia, in partnership with Mancuso Business Development Group, was able to complete the Masse Gateway Redevelopment Project which included the demolition of 40,000 square feet of vacant industrial space in the Batavia Industrial Center, and the renovation of approximately 120,000 square feet for commercial, residential and light industrial use. In December 2011, the first new business in the Masse Gateway Redevelopment project was secured and in January 2012 the second business was secured. Both expect to be open by Spring/Summer 2012.

“We appreciate the recognition and will continue to build upon our rich entrepreneurial history and facilitate collaborative partnerships that support and enhance opportunities for all community residents,” said Batavia City Manager Jason Molino.

Upstate New York’s City of Batavia, the hub of the Batavia Micropolitan region, continues to reinvent itself in the wake of the national Site Selection recognition. An empowered Batavia Development Corporation -- the city’s strategic alliance and economic development agency -- invested in personnel, small business development and infrastructure initiatives to support the continued growth and success of the area in 2011.

“New staff was hired, more small business loans were distributed and a newly defined action plan for adaptive re-use was adopted,” said Ray Chaya, president of the Batavia Development Corporation (BDC). “The BDC has seen confidence return to the community."

The city's Business Improvement District completed six façade improvement projects totaling more than $17,000 in reinvestment in downtown properties, with another six projects that are expected to be completed by the end of this month. The BID is also pleased to announce that it paid off early the $250,000 bond for the Ellicott Street streetscape project, which was done in conjunction with the City of Batavia.

“The Batavia Business Improvement District is extremely proud of having four new downtown businesses, which includes a Save-A-Lot Food Store. This means approximately another 35 individuals being employed within the district,” said Don Burkle, executive director of the BID.

“I can only express my deepest appreciation for the all of the partners, municipalities, and employees who continue to collaborate and are dedicated to the strategic vision of growth for our community,” said Greg Post, supervisor of the Town of Batavia. “This success is because of the partnerships that have been fostered over the last 10 years and the willingness of everyone to work together as a team to achieve a common goal for economic success."

“The chamber congratulates all of the economic development partners in Genesee County on receiving this award. It is always gratifying to be recognized for a job well done — particularly when the hard work is often done ‘behind the scenes’,” said Lynn Freeman, director of the Genesee County Chamber of Commerce.

“The investment being made in our community, as a result of our economic development groups and the chamber, is bringing more and better paying jobs to Genesee County that will in turn improve the quality of life for all of us."

GCEDC approves assistance for expansion projects for two local companies

By Howard B. Owens

The Genesee County Economic Development Center Board approved the following two projects for tax-abatement assistance:

University Eye/Lassiter Properties, 217 Summit St., Batavia. Planned 1,961-square-foot expansion, six new jobs, total capital investment of $755,000. Sales tax exemption on building materials and supplies of $26,000 and a PILOT tax exemption on the increased value of the property of $52,500 over 10 years.

R & D Electronics, 5272 Clinton St. Road, Stafford. Planned 10,800-square-foot expansion, six new jobs. The company will construct a warehouse facility and move its current electronics repair business into the new space. The company will use its existing space to expand its Ebay sales business selling refurbished and factory returned products. Total capital investment of $312,000. Sales tax exemption on building materials and supplies of $10,800, mortgage tax exemption of $2,500, PILOT tax exemption based on $76,700 of increased property value.

GCEDC releases follow up information on STAMP project

By Howard B. Owens

Press release:

Information addressing the comments of the Western New York Science Technology and Advanced Manufacturing Park (WNY STAMP) Final Generic Impact Statement (FGEIS) was discussed on January 26th at the Town of Alabama Fire Hall. Over 100 residents and interested constituents were on hand to receive an update on the progress of the WNY STAMP project.

A general overview of the project, the environmental review process, and responses to common topics from the Draft Generic Impact Statement (DGEIS) were presented by the GCEDC. Residents were given an opportunity to ask questions and provide additional feedback on the project.

On February 9, 2012 the GCEDC board, lead agency of the environmental review process, will consider a written findings statement for the WNY STAMP project. If the findings statement is approved, the environmental review process for the WNY STAMP project will be complete. At that point, the GCEDC will seek approval for the project from the Town of Alabama. The following steps will follow:

  • Negotiation and adoption by the GCEDC, and the Town of Alabama on an incentive zoning agreement that will provide relief from some of the Town’s zoning laws in exchange for amenities provided by the GCEDC to the Town.

  • Once the incentive zoning agreement is in place the Town of Alabama Planning Board and the Town of Alabama will begin consideration of the GCEDC’s application to rezone the STAMP site to a Technology Park and to amend the Town of Alabama Comprehensive Plan to address the STAMP project.

  • In conjunction with the Town’s rezoning process, the County Planning Board will hold a public meeting, review, and make recommendations to the Alabama Town Board on the rezoning application.

To further assist the Town with its decision-making process, a public opinion survey of the project will be distributed to the residents of the Town of Alabama. The survey will be conducted by a third party legal, and market research company that specializes in public opinion polling. The results of the survey will be presented to the Town for their consideration at the conclusion of the survey.

After the planning agencies return comments to the Town of Alabama, the board will hold a public hearing on the rezoning application. This public hearing will give the residents of Alabama another opportunity to comment, on the record, regarding the proposed rezoning of the WNY STAMP site.

Simultaneously, with the Town’s approval process the GCEDC, in conjunction with state and federal representatives, will continue to pursue funding sources that will be used in the event the STAMP project is approved by the Town of Alabama.

State Senator Michael Ranzenhofer and National Grid have, and continue to be of assistance to the GCEDC to obtain funding for this important project. Senator Ranzenhofer’s recognition of the regional impact of this project and his commitment to it are reflected in his recent state budget request for funding of the STAMP project.

This comprehensive environmental review process, as outlined in the State Environmental Conservation Law, is the same process that was conducted for the Genesee Valley Agri-Business Park in the Town of Batavia.

If, after careful review and consideration the Town of Alabama approves the GCEDC application to rezone the STAMP property, the GCEDC can begin to work with engineers to develop infrastructure plans for the site and strategically engage in a sales and marketing process to attract the first tenant to the STAMP site.

Grant will help fund job training for food-processing work

By Howard B. Owens

The county is scheduled to receive a $7,200 grant to help fund training for potential food-processing workers, as part of the Finger Lakes Food Processing Cluster Initiative.

The grant will likely assist Genesee Community College in developing food-training classes, said Scott Gage, director of the Job Development Center, and comes at a good time, with companies like Alpina opening factories in Batavia, along with existing businesses such as Yancey's Fancy in Corfu.

"Workers need to learn manufacturing techniques, process control, and health and safety issues," Gage said. "We’re seeing this as a tool to help us with these new businesses moving into the town."

Steve Hyde, CEO of the Genesee County Economic Development Center, said there is an effort going forward from government agencies, schools and food-processing companies themselves to create a better trained work force for these types of businesses.

He said developing such tech-based job-training programs (and food processing is now a tech-based job) is hugely important for the region.

"We are better aligning education with industry needs," Hyde said. "If you really start being able to deliver (a better trained work force), boy, you are at a key strategic advantage (for attracting new businesses to the area)."

Ranzenhofer requests $18 millon funding over two years for STAMP project

By Howard B. Owens

Press release:

State Senator Michael H. Ranzenhofer has written to Governor Andrew M. Cuomo, requesting his continued support in the form of a $9 million investment in the STAMP project for each of the next two years to bring the project to Shovel-Ready-Lite status.

“Support is now needed in the form of a funding commitment to complete the process needed to bring this site to Shovel-Ready-Lite status. Over the next several years, this is anticipated to require funding of $20 million. The 2011-12 SFY Budget has already committed $2 million to this project,” Senator Ranzenhofer said.

“A commitment for an additional $9 million per year over the next two fiscal years to assure timely Shovel-Ready-Lite status will allow immediate marketing of the STAMP site to national and international tech companies to expedite the successful build out of this project.”

The STAMP project has the potential to create up to 10,000 high-paying jobs at full development, in addition to jobs created during construction and development of the site, and up to $2.5 billion in private investment. In the letter to Governor Cuomo, Senator Ranzenhofer also noted the possible economic benefits to residents beyond the Buffalo and Rochester regions.

“This project, with its offer of advanced manufacturing, is the only one of its kind in Western New York. In fact, we believe that it is the only remaining available Mega-site in New York State. It provides the legitimate promise of a significant private investment and thousands of desperately needed high-paying jobs for the residents of the Buffalo and Rochester areas as well as all the residents of the region including Erie, Monroe, Niagara, Genesee, Orleans, Livingston and Wyoming counties.”

Senator Ranzenhofer forwarded copies of the letter to Senate Majority Leader Dean Skelos, Speaker of the Assembly Sheldon Silver, Genesee County Legislature Chair Mary Pat Hancock, Empire State Development Corporation President and CEO Kenneth Adams and Genesee County Economic Development Center President and CEO Steve Hyde.

The Science and Technology Advanced Manufacturing Park (STAMP) is a 1,243 acre mega-site modeled after the Albany area’s Luther Forest development. Located in the Town of Alabama, the site is strategically ideal due to its access to three high-level electric transmission circuits, close proximity to the Empire pipeline – a 24-inch natural gas line– and only five miles distance from the New York State Thruway.

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