Update:

A planned public hearing at Tuesday night's City Planning & Development Committee meeting was postponed until next month to give Ellicott Station offiicals more time to deal with State Environmental Quality Review and other issues, said Duane Preston, chair of the planning board.

"We did a sketch plan review and overall it seems to be a great project," Preston said.

He said questions from the board focused on the height of the five-story apartment building -- "it will result in a bit of an up-and-down skyline," Preston said -- as well as the amount of parking and the size of a glass front facade.

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No one from the public spoke at a public hearing on Tuesday afternoon at City Hall where $1.5 million in mortgage, sales and property tax abatements for the Ellicott Station project were presented.

The hearing was officiated by Chris Suozzi, Genesee County Economic Development Center vice president of business development. The completion of the public hearing now sets the stage for the GCEDC Board of Directors to approve the tax incentives as outlined in a press release below.

Samuel Savarino, president of Savarino Companies and developer of Ellicott Station, attended the public hearing, along with Julie Pacatte, Pier Cipollone and Mary Valle of the Batavia Development Corporation.

Savarino noted that he would be at the meeting of the Batavia Planning & Development Committee tonight, along with the project's architect and site engineer.

The Buffalo businessman said he has encountered numerous "challenges" with the project, but the biggest one -- getting proper financial aid -- already has been overcome.

"We have surmounted the major hurdle, closing the $5 million gap with help from Empire State Development and new market tax credits to make this happen," he said. "Overarching development costs make it difficult to make the economics work (without state assistance)."

Savarino also pointed out that the site of the former Santy's Tire Sales and Soccio & Della Penna Construction companies also presents flood hazards, is part of the Brownfield Opportunity Area (which warrants remedial work) and sits on top of what is being called a "grand canal" or tunnel that runs from the corner of Ellicott and Jackson streets right through the Ellicott Station property.

A portion of the canal, which is being utilized by the city, is located directly under where one of Savarino's apartment/retail buildings would be constructed.

On a positive note, he said he has encoutered similar problems in his many years as a developer and is optimistic that engineers will be able to work around this water-filled obstacle.

Savarino added that he has lined up investors and lenders, and hopes to start demolition and construction by this fall, with an eye on being "open for business" in the fall of 2018.

The mixed-use development will consist of a retail brewery/restaurant operated by Resurgence Brewing along with 16,800 square feet of office space and a five-story apartment building.

Savarino said rent for a one-bedroom, top floor corner unit will be around $1,200 per month while a two-bedroom unit with two full bathrooms will go for around $1,600 per month. Each apartment will feature a washer and dryer and a balcony, and the 51-unit building will include a fitness center and ground floor parking.

Pacatte said the BDC is looking at Ellicott Station as its "beacon of hope" for the city's bid to receive a $10 million Downtown Revitalization Initiative award (see story below).

"We're using Ellicott Station as the anchor for our DRI proposal, focusing on the quality of life piece -- especially on the south side of the city," she said.

Valle, owner of Valle Jewelers on Jackson Street, said that major improvements on Ellicott Street "will raise the bar for all of us" in regards to building upkeep and maintenance.

Press release:

The Genesee County Economic Development Center will hold a public hearing at 4 this afternoon to consider financial incentives for the Savarino Companies for the redevelopment of Ellicott Station in downtown Batavia. The public hearing will take place at City Hall.

The approximate 64,000-square-foot development will be a mix use of residential, office and retail spaces; a brewery; small beverage warehouse and hops processing facility; entertainment and event area; outside seating; and integration of the new Ellicott Trail pedestrian pathway.

The $17.6 million project is estimated to create up to 60 good paying full-time jobs.

The proposed incentives include $897,293 in sales tax savings, $128,232 mortgage tax savings and $537,398 in property tax savings. 

The project is being done through the “Batavia Pathway to Prosperity” (BP2) program which was created through an inter-municipal agreement between the City of Batavia, Genesee County, the Batavia City School District, the Batavia Development Corporation and the GCEDC.

BP2 was conceived to pool resources in order to invest in distressed areas in the City of Batavia. The BP2 program will be implemented though PILOT increment financing (PIF), referred to as the “BP2 fund,” which is the first of its kind in New York State where all local taxing jurisdictions are participating. 

Supported by the redirection of 50% of new project PILOT payments, the BP2 fund will play a critical role in generating development within the Batavia Brownfield Opportunity Area (BOA), a 366-acre area within the City of Batavia containing five strategic redevelopment sites.

Press release:

Genesee Community College's Board of Trustees Monday evening approved its first-ever application for participation in the Start-Up New York program, which permits eligible companies to operate tax-free on or near SUNY campuses for 10 years. Trustees approved Tencar Inc. for participation, a medical equipment manufacturing firm founded in 2011 by Georgann M. Carrubba, of Basom, a 2003 graduate of GCC's Nursing program.

Tencar will operate in the Genesee County Economic Development Center's Med Tech Park, located on the south side of Hawley Drive, across from the Batavia Campus. Genesee Community College designated the Med Tech Park as part of the Start-Up NY zone two years ago.

The Start-Up NY application will now be forwarded to the New York State Empire Development Corporation and State University of New York for review and final approval. Reid J. Smalley, executive director of Workforce Development, said that approval may come within the next 60 days, permitting Carrubba to begin operating in the Med Tech Park.

Carrubba, who serves as CEO of the company, developed and patented an innovative ostomy device that prevents awkward leakage and odor among patients with colostomies and related conditions. The product is expected to go to market later this year. Product components will be 100-percent made in the United States, and Carrubba has concluded an agreement with the 3M Company to use its products in the manufacturing of TenCar devices.

The Start-Up NY program is open to new or expanding businesses that align their operations or products with academic disciplines taught at SUNY campuses and some private college and university campuses. Genesee Community College students in the Nursing, Fashion Design and Business programs will have the opportunity to learn product design, customer service, business operations, and entrepreneurship principles from TenCar. The company hopes to make internships available to GCC students and hire GCC graduates in the future.

Prior to the Board's decision, the College's Start-Up NY Committee scrutinized the company's plans and operations, and determined that the company's presence in the GCC Start-Up NY Zone would benefit the College and its students.

President James M. Sunser said that he and the staff were proud of Carrubba, and believed that TenCar, a graduate-founded company, is an especially appropriate choice for Start-Up NY participation. Several trustees praised Carrubba and said they believe her company's innovative product will make a significant difference in the lives of ostomy patients.

Press release:

The marketing efforts of the Genesee County Economic Development Center (GCEDC) were recognized during the New York State Economic Development Council’s (NYSEDC) annual meeting in Cooperstown on May 24^th and 25^th.

The GCEDC received Certificates in Excellence in the categories of Multimedia Advertising and Printed & Electronic Newsletter and Honorable Mention in the Brochure and Annual Report categories.

The Multimedia Advertising Award is shared between the City of Batavia, the Batavia Development Corporation and the GCEDC. That award recognized the “Bet on Batavia” video produced in 2016 for the Downtown Revitalization Initiative competition

“We were very proud of the collaboration to produce the ‘Bet on Batavia’ video,” said Jason Molino, Batavia city manager. “We will once again utilize the video, and other social media platforms and strategies as we pursue funding from New York State’s Downtown Revitalization Initiative."

“Collaboration is an extremely important component of economic development especially in presenting a unified vision for a community and region,” said Pierluigi Cipollone, president of the Batavia Development Corporation. “In this instance, the video told a powerful story about the uniqueness and pride we have in our city.”

The NYSEDC annually recognizes the economic development marketing efforts of its member organizations.

“These awards demonstrate creativity, impact, and visual appeal by our members who are effectively marketing their communities for economic development purposes,” said Brian McMahon, executive director of the New York State Economic Development Council.

“Economic development is extremely competitive with regions, states and countries competing against each other, so it is imperative that our marketing materials stand out among those making investment decisions in Batavia and Genesee County,” said Steve Hyde, president and CEO, GCEDC.

“Our marketing team under Rachel Tabelski and the marketing professionals at our economic development partners do a tremendous job in distinguishing our region through the materials they collaborate on to produce.”

NYSEDC has been the state’s principle organization representing economic development professionals, businesses, and colleges and universities for more than 40 years.

Press release:

The Genesee County Economic Development Center (GCEDC) accepted an application for assistance from the Savarino Companies for the redevelopment of Ellicott Station in Downtown Batavia at the agency’s June 1 board meeting.

The approximate 64,000-square-foot development will be a mix use of residential, office and retail spaces; a brewery; small beverage warehouse and hops processing facility; entertainment and event area; outside seating; and integration of the new Ellicott Trail pedestrian pathway.

The $17.6 million project is estimated to create up to 60 good-paying full-time jobs. For every dollar of public sector investment there is an anticipated private sector investment of approximately $25.

The project is being done through the “Batavia Pathway to Prosperity” (BP2) program which was created through an inter-municipal agreement between the City of Batavia, Genesee County, the Batavia City School District, the Batavia Development Corporation and the GCEDC. 

BP2 was conceived to pool resources in order to invest in distressed areas in the City of Batavia. The BP2 program will be implemented though PILOT increment financing (PIF), referred to as the “BP2 fund,” which is the first of its kind in New York State where all local taxing jurisdictions are participating.

Supported by the redirection of 50% of new project PILOT payments, the BP2 fund will play a critical role in generating development within the Batavia Brownfield Opportunity Area (BOA), a 366-acre area within the City of Batavia containing five strategic redevelopment sites.  

”The collaboration among various government jurisdictions is simply smart economic development,” said Paul Battaglia, GCEDC Board chairman. “The BP2 program is an opportunity to attract development and jobs to the urban core of Genesee County and just as important, create vibrant neighborhoods in economically disadvantaged areas of the city.”

There should be no lack of motivation for Dairy Farmers of America to start production back up at the former Muller Quaker Dairy plant in Batavia it acquired in January 2016 for $60 million.

That was a big outlay on a plant that is considered state-of-the-art, is USDA certified, close to milk supplies, in the midst of a transportation hub, and cost PepsiCo and Theo Muller Group more than $200 million to construct.

There is also more milk being produced than there are places to process it in the Northeast and that has led to some milk dumping so it doesn't get added to the market supply.

Finally, there is the whopping $655,155 tax bill DFA paid in 2017 over and above what their obligation could have been with a new PILOT (Payment In Lieu of Taxes) agreement, which is wholly contingent on Kansas City, Kansas-based DFA putting the plant to productive use.

Genesee County Economic Development Center CEO Steve Hyde notified officials with City Schools, Genesee County and the Town of Batavia in January that those jurisdictions could expect suspension of the PILOT agreement Muller Quaker received to build the plant because there was no clear indication what DFA planned to do to live up the basic premise of the PILOT, which is that there would be people working at the plant.

"They will pay full taxes until it's back in productive use and people are back to work," Hyde told The Batavian. "DFA has been good with us and good to work with, but we want to see the plant back in productive use, and they want their members to be able to ship milk to that plant."

The Batavian obtained copies of the letters sent to local officials through a FOIL (Freedom of Infomation Act letter) request. The letters show that City Schools received an extra $427,397, the county received $180,476, and the Town received $47,282.

Hyde said the payment requirement was consistent with the original terms of the PILOT and would not have come as a surprise to DFA.

As for DFA's plans, spokeswoman Kim O'Brien said the plans are taking shape. It's a lot of work to bring a number of big players together to get a plant like this back into production, but she said DFA would announce its plans within weeks.

It's unclear if DFA will operate the plant itself, partner with other companies, lease it or sell it, and O'Brien said she couldn't comment beyond acknowledging that DFA would make an announcement soon.

There are reportedly other major players in the dairy industry interested in the plant and Shelly Stein, a co-owner of Stein Farms in Le Roy, a DFA member, said it's common knowledge that DFA has had the plant on the market, but she also doesn't know what DFA's plans are. She said she's just eager to see it processing milk again to help alleviate the oversupply problem for dairy farmers.

"In the dairy business, there are a lot of partnerships and relationships that go into running plants like this, and that's the model DFA uses," Stein said. "I believe that is still the thought process and as a member of the cooperative, I look forward to that plant being up and running, but at this point, all of the stars have to line up. The size of that plant means it's not going to be an overnight fix."

Sarah Noble Moag, of Noblehurst Farms in Linwood, and also a DFA member, said they are eager to see the plant reopen, but they also understand why it's taking so long to get something going.

"After having seen Muller Quaker come in with its business plan and fail, we want to see something for our local economy and our local jobs that is more stable, and if that takes a little more time to plan, then so be it," Noble Moag said. "We all know in this business how long those negotiations can take, especially for an asset that size."

According to documents obtained by The Batavian as part of a FOIL request, there was active communication between GCEDC and DFA, but in July, the communication, at least the written communication, abruptly stopped. We are told that's an accurate reflection of the state of things from that point forward, that there isn't any communication not part of the response to the FOIL request.

In February of 2016, DFA officials were diligent about making sure its logo was added to the business part sign along Route 5. In March, Chris Suozzi, VP of business development, started trying to find out from DFA officials what their plans were so he could put together a new incentive package that recognized the expense of the retooling of the plant.

Jackie Klippenstein, with DFA, asked for clarification on possible incentives on April 28, telling Suozzi, "it appears discussions at the end of the hall are intensifying."

In response, Suozzi wanted to know how much DFA was planning to invest in the plant. 

The number he got back was $250,000 for equipment and $100,000, rough estimate, for labor.

On April 29, 2016, he emailed Jackie Klippenstein to try and clarify DFA's plans.

"Based on other food processing facilities in our county, that number appears low, unless you're making yogurt," Suozzi wrote. "Can you share what products will be produced? Maybe I can understand better. Will you be using existing equipment from Muller Quaker Dairy? Do you already own equipment that you're bringing in? If so we will need to understand the capital expense."

He also asked, "is the 150 jobs to start or is a ramp-up schedule over the course of time (i.e. 2-year ramp up)?"

Suozzi apparently didn't get a response and followed up on May 3 and suggested a phone call.

Klippenstein responded May 10 and said, "We aren't quite ready -- but I expect information in the next 2-3 weeks. Stop and go, stop and go ... sorry but feeling optimistic."

Suozzi again followed up on June 1, 2016, and Klippenstein responded, "Thanks for checking in. I've been told July is the golden month when things will start to come together -- decisions made."

On July 6, 2016, Suozzi again requested a project update and the documents obtained by The Batavian, which we are told are complete, contains no response from Klippenstein or anybody else from DFA.

As part of the documents obtained by The Batavian, there is a state form DFA was required to fill out which lists employees and wages paid for 2016. The NYS-45-ATT shows DFA had seven employees at the plant with a total payroll of $408,006. The names of the employees are redacted, but the top gross pay was $72,195, with one other employee earning more than $70,000, two making more than $50,000, one making $41,883, and three earning at least $35,000. Their job duties are not listed as part of the form.

Hyde, like other officials we've talked to around the county, remains optimistic that the plant, so big, so well situated and well suited to dairy processing, will eventually be put to productive use. It's just a matter of time.

"It's not perfect what happened, but we have a couple hundred million dollar processing plant that is essentially new and largely funded on the backs of PepsiCo and Theo Muller," Hyde said. "We'll eventually have a production facility in there. It's a great asset to have in our community."

Stein, who is also a county legislator, agreed.

"It’s an asset that continues that get a lot of traction," Stein said. "I’m glad it’s in DFA’s hands. It’s the largest dairy cooperative in the nation. As a member, when a deal is worked out, whomever or whatever it’s going to be, it's going to be good for all milk producers in the area one way or another because it’s still milk."

Press release:

The Genesee County Economic Development Center (GCEDC) Board of Directors approved incentives to Genesee Valley Transportation for the proposed expansion of the company’s cross dock facility. Meanwhile, the Genesee Gateway Local Development Corporation (GGLDC) Board of Directors approved revolving loan funds for capital projects at the Batavia Brewing Company and Liberti, Valvo & Associates LLC.

Genesee Valley Transportation will invest approximately $1 million to expand its dry dock facility from 25,000 square feet to 37,160 square feet in order to meet increased customer demand. The estimated amount of incentives is $142,138 and for every $1 of public benefit the company is investing $4 into the local and regional economy. The expansion project will help retain 10 jobs.

“GVT is a critical component of the region’s transportation infrastructure,” said GCEDC Board Chairman Paul Battaglia. “This infrastructure is another asset that our sales and marketing team can utilize to sell and promote the region for economic development opportunities.”

The GGLDC Board approved requests for two loans from its revolving loan program.

The Batavia Brewing Company requested a $150,000 loan from the Batavia Micropolitan Area Community Redevelopment Loan Fund (Redevelopment Loan Fund) to assist with its $3.6 million rehabilitation project at the historic Newbury building in Downtown Batavia. The company will convert the upper floors to apartments, create a brewing area in the basement, and build a taproom and restaurant as well as incubator space for FreshLAB on the first floor.

Liberti, Valvo & Associates LLC received approval for a $50,000 loan as part of a $275,000 business project. It is a manufacturers' sales representative agency that specializes in quality safety and utility products in markets in New York, New England, the Mid-Atlantic and Ontario, Canada.

“The revolving loan program continues to provide our small businesses opportunities to expand and grow,” said Thomas H. Felton, GGLDC chairman. “It is an important resource our agency can provide to our small business sector, which is the backbone of our regional economy.”

The GCEDC and GGLDC board meetings were conducted on May 4 in the Innovation Zone at 99 MedTech Drive in Batavia.

Press release:

International recording artist, environmentalist, and educator, Mr. Eco, will be visiting John Kennedy Primary School on Tuesday, May 9^th at 9:30 a.m. for a special performance. Mr. Eco combines hip hop music with lyrics that inspire children to be environmentally conscientious.

The event is being sponsored by the Building Technologies Division at Siemens and hosted in conjunction with the fourth-grade innovators STEAM (Science, Technology, Engineering, Arts and Mathematics) programing at John Kennedy School and the Genesee County Economic Development Center (GCEDC).

Mr. Eco’s songs emphasize the active role we all have in creating a sustainable culture, decreasing energy usage, increasing recycling, and working to keep communities free of litter. He has performed for more than 135,000 children across the United States, Canada, Turkey, South Africa, Colombia, St. Lucia, Taiwan and Hong Kong.

“Conveying how important it is to take care of our environment to children at a young age is critically important,” said Christopher Dailey, superintendent of Batavia City School District.

“We want to ensure that our students develop environmentally friendly habits early on and we are really looking forward to having Mr. Eco teach them this in such a fun way. We are also very proud of our fourth-grade innovators program and the STEAM course work they have completed this year, so this will be a natural extension of what these students have been learning.”

Siemens’ sponsorship of the concert is in keeping with its support of student achievement, STEAM and sustainability.

“We are excited to honor the students at John Kennedy and the leadership at Batavia City School District for their outstanding accomplishments this year,” said Joseph Peters, Northeast zone manager, Siemens’ Building Technologies Division.     

“An important component of economic development is mitigating the impact of construction projects and other infrastructure work on the surrounding environment,” said Chris Suozzi, vice president of Business Development at GCEDC.

“We need to prepare the future workforce of our county and region to understand this delicate balance so that we can continue growing the economy while protecting the environment.”

For more information about Mr. Eco please visit www.mreco.org.

Members of the County Legislature expressed support yesterday for two projects that will need some financial backing to move forward.

Mark Masse, VP of operations for Genesee County Economic Development Center, presented the projects to the Ways and Means Committee. There was no formal vote, just a sense of the committee that he should come back at a later date with formal resolutions for the Legislature to vote on.

The first proposal is loan/grant support for Ellicott Station, the proposed brewery, tap room and beer garden at the former Della Penna building on Ellicott Street in the City of Batavia.

GCEDC is proposing using the local development corporation's revolving loan program to provide $210,000 in assistance. Half of the funds would be a term loan, the other half would be a loan that would become a grant if specified project criteria are met.

The money originates from the federal Community Development Block Grant (CDBG) program.

The brewery and tap room -- a $700,000 project overall -- is the anchor tenant of the $15 million Ellicott Station renovation, and is anticipated to create 15 full-time equivalent jobs, with 75 percent of the jobs going to low- to moderate-income people.

In the past, similar programs have assisted Yancey's Fancy, O-AT-KA, and P.W. Minor.

While the Legislature must approve the loan/grant, the Genesee Gateway Local Development Corp. would administer the loan and monitor it for compliance.

The CDBG criteria require two public hearings, one before approval to consider whether other projects might be more worthy of the funds, and one during the project to take testimony on whether there are any violations of the program requirements.

The other project moving forward is an expansion of the sewer plant in Corfu. Right now it's processing 135,000 gallons of sewage per day, which is the plant's capacity.

The two travel plazas off the Thruway on Route 77 want to start using the facility and, more importantly, Yancey's Fancy, with production facilities on Main Road and a new one just down the street, wants to expand capacity. 

GCEDC has already approved a PILOT (payment in lieu of taxes) for the expansion, but the lack of capacity at the Corfu plant is holding up the project.

The expansion would consist of adding two processing units capable of handling 75,000 gallons per day (the twin units are needed so use can be rotated for cleaning and maintenance) at a cost of $2.7 million.

The county and school district would be asked to give up some tax revenue (for the county, about $272,000 over 11 years) to help fund the project. The Town of Pembroke currently has a zero-rate property tax, so its share of funding would only kick in if it passed a property tax over the next 11 years.

The travel plazas would pay about $1 million in hook-up fees, the GGLDC has already committed $100,000 to design and engineering plus another $40,000 a year over 11 years, and the balance of about $500,000 would be covered by grants.

The expansion would create 15 new jobs, Masse said.

Legislator Mike Davis, who works in the dairy industry, pointed out how important this project is. Yancey's Fancy's parent company is based in Pennsylvania and has already looked at expanding in that state. The plan here is to expand the original production facility on Main Road by 6,000 square feet and increase production of natural cheese.

The other Pembroke facility is used for processing cheese.

Dairy farmers are finding there is a local shortage of milk processing facilities, so the expansion will help local dairy farmers, Davis said. 

"I would say this is important to us all the way around," Davis said.

Press release:

The Genesee County Economic Development Center (GCEDC) today announced a new round of bids for site work at STAMP -- Science and Technology Advanced Manufacturing Park -- have been released. A legal notice announcing the bids was published April 11.

The work will include: asbestos abatement and demolition of a former two-story residence at 6758 Alleghany Road; a former two-story residence at 6725 Crosby Road; a former one-story residence at 840 Crosby Road; and, two barns and removal of debris from a structure that was a former residence.

The bids will be unsealed and read at 2 p.m. on Thursday, April 20, at the Genesee County Economic Development Center, located at 99 Medtech Drive in Batavia. Bids also can be accessed by contacting Debbie Button-Vanderwall (585-402-7511) from Clark Patterson Lee, which is the engineering firm overseeing the bidding process.

“While we will not be conducting a pre-bid meeting; those interested in submitting a bid can arrange for a site visit to see the structures,” said Mark Masse, senior vice president of operations at the GCEDC. “It also should be noted that for this specific work the Project Labor Agreement will not be applicable.”