Genesee Valley Agri-Business Park

A South American-based dairy processing company will get $767,096 in tax incentives to help the company establish a new yogurt factory in Batavia, the Genesee County Economic Development Center announced.

The incentive package for Alpina Products includes a property tax abatement, a sales tax exemption and a reduction of mortgage taxes.

GCEDC announced in April that Alpina agreed to become the first tenant for the Genesee Valley Agri-Business Park off Route 5 in Batavia.

The plant, when completed, is expected to add 50 jobs to the local economy and if successful, Alpina officials said they would expect to expand their operations in Batavia.

More than half of the tax incentive package comes in the form of a PILOT (payment in lieu of taxes) arrangement that will reduce the amount of anticipated property taxes paid by Alpina by more than $458,000 over 10 years.

Alpina will pay property taxes on the current assessed value of its 10-acre facility, but because building the plant will increase the land's value, Alpina will get a break on that increased assessment for 10 years. During the first five years, Alpina will pay no taxes on the difference between the current assessed value and the new assessed value. Starting in year six through year 10, Alpina will pay 50 percent of the increase in additional taxes, and pay 100 percent from that point forward.

The sales tax exemption of $260,000 will be on construction materials and office equipment, but not manufacturing equipment.

The mortgage tax exemption is $48,750.

The anticipated economic benefit to Genesee County is expected to exceed $30 million over 10 years.

Alpina will invest $15 million to purchase the 10-acre parcel and construct the plant.

In other GCEDC news, Wellsville Carpet Town at 3990 Call Parkway, Batavia, will receive a $14,375 mortgage tax exemption to help the company refinance its current $1.5 million real estate loan. GCEDC says the abatement will help retain 45 jobs in the county.

There are four to five more companies that are in either early stage or mid-stage study of the Gensee Valley Agri-Business Park, and Columbia-based Alpina Products decision to set up shop in Batavia is going to help the cause, said Steve Hyde, CEO of the Genesee County Economic Development Center.

"Any time you get your frist tenant in one of these shovel ready sites, it really helps create momentum, much like the rising tide lifts all sail boats," said Hyde. "So, this is something we're most excited about."

The financial details are not available for public release yet because Alpina is still completing paperwork and then the application for tax abatements and grants most be approved the by GCEDC board.  The package is expected to be presented at the board's May meeting.

The deal is contingent on approval of a set of incentives as well as some 900-feet of new roadway being completed to the 10-acre lot Alpina intends to buy.

The purchase price is $50,000 per acre, Hyde said.

"That's the sweet spot," said Hyde. "You spend that much between buying the land and putting in the infrastructure. It really is a cost recovery model."

In a meeting with the Ways and Means Committee on Wednesday, Hyde mentioned that a mid-level Department of Transportation staff member was holding up a grant for a rail line into the agri-business park, and Hyde said he is hopeful this announcement will help unfreeze those funds.

Some of the businesses might want to locate in the park need rail and won't consider the park "shovel ready" without a rail line in place.

Even though Alpina won't need rail in its early years in the park, Hyde is hopeful Aplina's signing will shift the conversation about the grant.

"Hopefully, it will enable a different conversation," Hyde said. "I'm hopeful it will show this site is real."

Hyde said the GCEDC had four meetings with either staff of Alpina or the company's site selection consultant and the final meeting occurred with the company's entire board of directors, who all flew from Columbia to Batavia to visit the area and hear why this was the right site for them.

The full court press included a meeting attended not just by GCEDC staff, but staff from Buffalo-Niagara Enterprise, Greater Rochester Enterprise, Cornell, RIT and Town of Batavia. Lt. Gov. Bob Duffy was on a speaker phone for key parts of the presentation and really tried to sell the executives on what a great area Western New York is, Hyde said.

GCEDC officials then gave the executives a tour of the county, showing off its amenities and areas of growth and revitalization, and then showed off some of the amenities of the region.  The tour concluded with a dinner at the Wine and Culinary Institute in Canandaigua.

Chefs there made a cheese cake in front of the dignitaries using an Alpina product for the topping.

But in the end, Hyde said, it's all really about the jobs.

"We're delighted that this came through because more than anything, it's going to create 50 jobs for 50 families," Hyde said. "And you know what, in this time, in this economy, every job our business community creates helps."

GCEDC has landed its first business for the Genesee Valley Agri-Business Park in Batavia. It is a Bogata, Colombia-based dairy product company that will use the plant to expand its yogurt business into the United States.

According to South American news reports, Alpina Productos Alimenticios will invest $15 million in the project and will initially hire 50 people at the plant.

Established by two Swiss entrepreneurs in 1945, Alpina runs nine industrial facilities across Colombia, Venezuela and Ecuador, and has commercial presence in more than 12 countries. 

The product line, which generates about $740 million in annual revenue, includes beverages, milk, baby food, desserts, cheeses, cream and butter, and fitness food products.

"The Alpina brand is a symbol of pride not only to Colombians but to the entire Andean region," Alpina President and CEO Julian Jaramillo (pictured) told La Republica. "We hope to build a new frontier for growth in the U.S. market, based on the properties of innovation, quality, nutrition and sustainability associated with our products and our presence in places where we already operate."

But it's not a 100-percent done deal, according to Genesee County Economic Development Center CEO Steve Hyde.  

The company intends to purchase a 10-acre parcel with a phase I construction plan for a 28,000-square-foot yogurt manufacturing facility.

The company picked one of the newest parcels in the park, so there is still a little bit of work to be done to get it completely shovel ready, including extending one of the roadways.

The purchase is contingent on that work being completed on schedule, and if it is, Hyde said, construction on the plant should begin in August.

The 10-acre parcel will give the company room for expansion.

"They've got a real footprint for future growth," Hyde said.

According to the La Republica article, Alpina has achieved growth rates in Venezuela and Ecuador of 15 and 20 percent and his hoping for the same level of success in the U.S.

Jaramillo believes per capita consumption of yogurt in the U.S. is low, which he sees as an opportunity to capture new consumers.

Hyde said the company, which he described as really family oriented, has done a lot of market research and has determined the northeastern part of the U.S. has a fast-growing Hispanic population, so they were looking at five sites in New York and three in Pennsylvania.

Batavia having a nearly shovel ready park combined with the region's high number of quality dairy farms were attractive to Alpina.

"It kind of proves the thesis that you've got to have that shovel ready site that clusters industries or companies won't even come," Hyde said. "They won't take the risk. They've got to be able to build and go."

The project is part of a $50 million plan by Alpina to expand its business.

“We’ve been waiting for exactly the right moment to make a major push into the U.S. market, and today we found the right location to achieve our strategic goals,” said Alpina Foods, LLC, Managing Director Carlos Ramirez Zavarce.  

Below is a video the company produced for YouTube that has received more than 500,000 views.

Genesee County will soon be home to the first shovel-ready agri-business industrial park in New York, according to Chad Zambito, spokesman for the Genesee County Economic Development Center.

GCEDC breaks ground on the project Tuesday and expects the first tenant to start building a $15 million food-processing facility in the spring.

"These are expensive ventures and private developers aren't willing to do it because of the cost that’s needed up front and the long-term return, so it’s something we have to do and we need everybody’s participation to make it happen," Zambito told WBTA.

The groundbreaking is scheduled for 10 a.m. at the Kennedy Building of the Genesee County Fair Grounds.

The 200-acre park is located between state routes 5 and 63 in Batavia and sits in close proximity to O-AT-KA Milk Products. 

At full build-out, the park is expected to provide 1,200 jobs in Genesee County and generate $2 billion in revenue over 25 years.

The first tenant, a Canadian-based food processor, will hire 100 people to work at its facility.

When the infrastructure installation is complete, the site will contain nearly 200 acres  serviced by industrial-class electric, gas and rail. The park is dedicated to agri-business applications including food and bio-fuels processing and is owned by a unique public/private partnership.

It also has access to 6 million gallons of aquifer water daily, ideal for food production applications, and sits in an Empire Zone.
 
The GCEDC, along with its real estate affiliate the Genesee Gateway Local Development Corporation and an affiliate of Farm Credit of WNY share ownership of the park.

It was largely made possible by a state grant recently approved by Empire State Development and a matching grant from Genesee County. The GCEDC, Town of Batavia, National Grid and National Fuel are also providing funding. 

Phase 1 construction, being completed by Zoladz Construction Company Inc. of Alden, NY, will include water, sewer and roadway base installation. 

LeRoy police have identified the body discovered in Oatka Creek Wednesday afternoon as that of 41-year-old Glenn Kanaley, according to the Daily News. No cause of death has been determined, and the body has been taken to the Monroe County Medical Examiner's Office where an autopsy will be performed.

LeRoy Police Chief Christopher Hayward dispelled rumors on television that the death was a suicide. "Nothing indicated he was suicidal," writes reporter Scott DeSmit.

In other news, the New York State School for the Blind opened its "Sensory Park" playground Wednesday. The park is designed to"stimulate senses (and) help students with motor skills" and includes an herb garden, slides and a swingset, pedal cars, go-carts and a "spongy carpet, which gets thicker under any areas where students are apt to fall."

The Genesee Valley Agri-Business Park was approved for a $225,000 grant from the Batavia Town Board at its meeting last night.

Consolidation is under way as city police officers begin training on the new computer system they will share with the Genesee County Sheriff's Office. Once the consolidation is complete — should be in September — there will no longer be a dispatcher in police headquarters. Instead, "the city will have a clerk on duty during day-time hours."

Investigation into the fire that scorched Cristina's Restaurant Saturday continues, though "the probe has shifted ... to interviewing people," writes Paul Mrozek. Cristina's owner Charles Brumsted has declined to comment to the Daily News and has not returned messages left by The Batavian.

Pick up your copy of the Daily News at local newsstands — such as Main Street Coffee. Or, better yet, subscribe online at BataviaNews.com.

From the Daily News (Wednesday):

• Conehead the Vendor was on hand to distribute beer and snacks to the crowd of 1,298 who showed up for the Muckdogs' home opener last night that started with rain, ended with a loss, but was nonetheless chock full of good cheer. Nor was he the only one. Officials from the Rochester Red Wings were there to get things in gear for the new season. And John Mozeliak, general manager of the St. Louis Cardinals, even came out to speak before the game. Reporter Brian Hillabush has a pair of great articles on today's front page covering the home opener. Check them out.
• Batavia's Town Board will host a public hearing on July 16 to get comment on the town's proposed contribution of $225,000 for the Genesee Valley Agri-Business Park.
• An article on the front page covers Council's planned discussion on the relocation of the city's youth football program that was covered in detail by The Batavian earlier today.
• Today's opinion page features a column by Tom Rivers about Tim Russert, the Buffalo native and host of Meet the Press, who died suddenly last week. Rivers found that as much as Russert was in the national spotlight, he still had time for small-town, small-press America. It's a great column. Worth a read.

For the complete stories, the Daily News is available on local newsstands, or you can subscribe on BataviaNews.com.

From the Daily News (Tuesday):

• United Memorial Medical Center reported a $3.4 million profit for 2007, its fourth straight year in the black, according to President and CEO Mark Schoell. For more facts and figures check out the article by Paul Mrozek.
• Agricultural reporter Tom Rivers has an interesting piece on the front page about the not-to-friendly named 'armyworms' and their threat to local wheat harvests.
• I had some trouble working out the details of an article about the Genesee County Public Defender's Office that could lose "hundreds of thousands of dollars in state funds." Reporter Paul Mrozek writes that in order to receive the state funding, the county "must spend at least one dollar more for the two programs than it did in the previous budget year." It seems strange, but apparently the state is demanding that the office spend more money in order to receive more money. What's more strange is that the threshold is measured by a single dollar.
• The town of Batavia dedicated a new guardrail erected at a curve in Stegman Road near Route 5 last night. That curve was the site of an accident that injured one friend and killed another nine years ago. After much petitioning by one of the accident victims, Jamie Beedham of Oakfield, the town finally put up the guardrail two weeks ago. "My goal is if the guardrail can save one life, I will have been successful," she told reporter Kristen Kotz.
• Among the items on the Batavia Town Board agenda for its meeting Wednesday is a potential contribution of $225,000 by the town to aid the development of the Genesee Valley Agri-Business Park that is planned to go up near the fairgrounds. You can download the complete meeting agenda by clicking here.

For the complete stories, the Daily News is available on local newsstands, or you can subscribe on BataviaNews.com.