WNY STAMP

Press release:

Citing concerns that China is catching up to the United States in microelectronics production capacity, U.S. Senator Charles E. Schumer today (June 28) unveiled the American Foundries Act, a bipartisan initiative that seeks to reestablish U.S. leadership and revitalize innovation in the global microelectronics sector.

Schumer explained that the bipartisan legislation would make critical investments in domestic commercial and defense-related microelectronics manufacturing and research and development, and address economic and national security concerns by decreasing U.S. dependence on foreign-made semiconductor chips.

“The economic and national security risks posed by relying too heavily on foreign semiconductor suppliers cannot be ignored, and Upstate New York, which has a robust semiconductor sector, is the perfect place to grow this industry by leaps and bounds,” Senator Schumer said. “America must continue to invest in our domestic semiconductor industry, including companies like GlobalFoundries, ON Semiconductor, IBM and Cree right here in New York, in order to keep good-paying, high-tech American manufacturing jobs here at home.

"We need to ensure our domestic microelectronics industry can safely and securely supply our military, intelligence agencies, and other government needs. This is essential to our national security and to U.S. leadership in this critical industry."

The senator noted that even though the United States revolutionized the microelectronic industry and invented much of the key technology used to this day, competitors in Asia, especially China, have made huge investments into their microelectronics industries in recent years to challenge U.S. leadership. In fact, Schumer pointed out, 78 percent of cutting-edge wafer fabrication capacity is now based in Asia, with last year being the first year that North America fell behind China.

Schumer has long-championed increased efforts to expand the domestic microelectronics industry, supporting companies like GlobalFoundries, which houses their most advanced "Fab 8" manufacturing facility in Malta, New York, IBM, and others.

With New York home to multiple major companies and research institutions in the semiconductor industry, the state is positioned to securely supply the U.S. government with critical technologies and maintain U.S. leadership in this technology, offering a tremendous opportunity for New York’s semiconductor companies to expand operations, create more jobs in Upstate New York, and help the United States reduce its reliance on foreign semiconductor manufacturing.

Specifically, supporters of the American Frontiers Act include GlobalFoundries, IBM, ON Semiconductor, Cree Inc., the Genesee County Economic Development Center, Hudson Valley Economic Development Corporation, Mohawk Valley EDGE, Cornell University, Binghamton University, and SUNY Polytechnic Institute.

"We applaud the powerful American Foundries Act of 2020 co-sponsored by Senator Schumer and the impressive, bipartisan list of Senate leaders,” said Tom Caulfield, CEO of GlobalFoundries. “Senator Schumer has supported semiconductor manufacturing and GlobalFoundries for many years and this legislation seeks the quickest route to boosting chip production in the U.S. We appreciate this timely and significant contribution as Congress and the Administration work through the best approach for federal investment to restore domestic leadership in semiconductor manufacturing.”

"The U.S. semiconductor industry drives economic growth through technological breakthroughs and plays a critical role in the nation’s security,” said John E. Kelly III, Executive Vice President, IBM. “IBM strongly supports the American Foundries Act of 2020 because this important legislation would sustain American leadership in semiconductor technology and establish a national strategy to move it forward. We thank Senators Schumer and Cotton for their leadership on this bill and urge the Senate to pass it quickly."

“The American Foundries Act is a bold step to respond to the aggressive incentives available to overseas competitors and reverse the decline of semiconductor manufacturing in the United States,” said Keith Jackson, president and CEO of ON Semiconductor. “ON Semiconductor urges the Congress to quickly advance legislation to promote American semiconductor research and manufacturing.”

“Cree continues to invest aggressively in silicon carbide manufacturing and research in order to support the growing, global demand for our technologies, and we believe advanced semiconductor manufacturing is essential to leading the acceleration of critical next-generation technologies," said Gregg Lowe, president and CEO of Cree Inc. "Like many other semiconductor companies in the U.S., we believe this legislation would provide necessary investments that move our industry and economy forward and we commend its introduction."

"Senator Schumer has long recognized that our 1250-acre STAMP site in Genesee County presents a tremendous opportunity to create thousands of high quality semiconductor jobs for the Western New York and Finger Lakes regions," said Steve Hyde, president and CEO of the Genesee County Economic Development Center (GCEDC).

"Our challenge has always been the considerable cost to get the site developed and shovel ready in the global competition to land projects of this scale. This legislation though is a game changer in so many ways as it will support cutting-edge domestic semiconductor development and increases in semiconductor manufacturing capacity at a crucial time in our nation's history."

“Senator Schumer’s American Foundries Act is the type of innovative, bipartisan legislation that we need to build on our regional strengths and grow the Hudson Valley economy post-pandemic," said Mike Oates, president and CEO of Hudson Valley Economic Development Corporation. "With industry leaders like IBM, GlobalFoundaries, and soon ON Semiconductor right here in the Hudson Valley, it is no secret that investing in the microelectronics manufacturing and research and development space will enhance our ability to manufacture semiconductor chips, create jobs, and reimage our economy.

"HVEDC is proud to support Senator Schumer in his push to bolster our footprint in the growing semiconductor sector and we will continue working with him to keep the Hudson Valley on the map as a global industry leader.”

“Construction of new microelectronics and semiconductor fabrication facilities have the ability to change the economic landscape of a region and the proposed American Foundries Act proposed by Senator Schumer is a strategic investment to secure the United States’ position as a global  leader in microelectronics and semiconductor R&D,” said Steven J. DiMeo, president, Mohawk Valley EDGE.

“As our economy shifts away from the long-standing model of industrialism coupled with the uncertainty of a global pandemic, we now more than ever need the federal government to continue its support of game-changing industries like semiconductors and microelectronics. The construction of Cree’s state-of-the-art 200 mm enabled SiC semiconductor facility at the Marcy Nanocenter in Upstate NY, is a pivotal example of what can be done when all stakeholders are working together to advance our high-tech ecosystem and regional economy and maintain the United States’ global competitiveness.”

Emmanuel P. Gianellis, vice provost for Research and Vice President for Technology Transfer, Intellectual Property and Research Policy at Cornell University, said, “Senator Schumer has long recognized that the best way to keep America at the forefront of the technology revolution is to invest in research and development here at home.

"Not only does the American Foundries Act of 2020 direct critical resources into expanding the domestic production of microelectronics, it also points the way to the future with substantial funding for research and innovation. Cornell University is pleased to support this legislation and commends Senator Schumer for his leadership.”

"Whether we are talking about technology that enables advancement in AI for autonomous vehicles, smart energy for a greener environment or flexible wearable devices for human health and industrial monitoring, the United States government must remain on the frontlines, supporting industrial and academic innovations in advanced electronics manufacturing," said Harvey Stenger, president of Binghamton University.

"We once again acknowledge all that Sen. Schumer has done and continues to do to emphasize the importance of research and development efforts in private labs as well as at research institutions like Binghamton University. We thank the senator for this latest effort to apply resources to enhance the bridge from early R&D to at-scale manufacturing that will lead to breakthroughs in next-generation semi-conductor research and keep the United States competitive and a leader in the global economy."

“Leadership in the microelectronics industry is critical for America’s continued economic and strategic competitiveness on the global stage," said SUNY Polytechnic Institute Interim President Grace Wang, Ph.D. "The American Foundries Act of 2020 will provide a more strategic national approach in advancing  microelectronics capabilities, R&D, and workforce development and ensure our nation remains at the forefront of impactful innovation.

"This bill takes a bold approach to facilitate chip fab modernization efforts and investment in key areas such as fabrication, assembly, test, and advanced packaging to strengthen our nation’s technological independence and agility for years to come.”

Schumer said he will aim to include the legislation as an amendment in this year’s National Defense Authorization Act (NDAA).

Senator Schumer introduced the American Foundries Act of 2020 in the Senate, along with Senators Cotton (R-Arkansas), Reed (D-Rhode Island), Hawley (R-Missouri), Gillibrand (D-New York), Risch (R-Idaho), Jones (D-Alabama), Collins (R-Maine), King (I-Maine), and Rubio (R-Florida), and details of the bill can be found below:

Support for Commercial Microelectronics Projects: Authorizes the Department of Commerce to award $15 billion in grants to states to assist in the construction, expansion, or modernization of microelectronics fabrication, assembly, test, advanced packaging, or advanced research and development facilities.

Support for Secure Microelectronics Projects: Authorizes the Department of Defense to award $5 billion in grants for the creation, expansion, or modernization of one or more commercially competitive and sustainable microelectronics manufacturing or advanced research and development facilities capable of producing measurably secure and specialized microelectronic for defense and intelligence purposes. This funding may go to primarily commercial facilities capable of producing secure microelectronics.

R&D Funding: Authorizes $5 billion in R&D spending to secure U.S. leadership in microelectronics. Requires agencies that receive this funding to develop policies to require domestic production, to the extent possible, for any intellectual property resulting from microelectronics research and development as a result of these funds.

The new R&D funding would be broken up as follows:

• $2 billion for DARPA’s Electronics Resurgence Initiative
• $1.5 billion for the National Science Foundation
• $1.25 billion for the Department of Energy
• $250 million for the National Institute of Standards and Technology

National Microelectronics Research Plan: Establishes a subcommittee of the President’s Council on Science and Technology to produce a report each year to guide and coordinate funding for breakthroughs in next-generation microelectronics research and technology, strengthen the domestic microelectronics workforce, and encourage collaboration between government, industry, and academia.

Safeguards: Prohibits firms owned, controlled or otherwise influence by the Chinese government from accessing funds provided by the legislation.

The Genesee County Planning Board on Thursday night recommended approval of a zoning text amendment to allow mixed-use buildings in the Town of Pembroke Interchange District, but not before a discussion on the practice of placing housing units in industrial parks.

Tom Schubmehl, a member of the planning board and Pembroke resident, said he had some reservations about the Town Board’s application to modify zoning in the Interchange District -- a wide area around Thruway Exit 48A, extending to Route 5 along Route 77.

“Is there any other district in the county industrial districts that allows residential use? Schubmehl asked, directing his question to County Planning Director Felipe Oltramari.

Oltramari said that the Interchange District was different from a traditional industrial district.

“It can have commercial and it can have industrial … it has the Flying J (Travel Center). It has other things like that and includes an industrial park from the EDC,” Oltramari said, adding that he couldn’t think of other similar areas in the county that permit mixed-use facilities.

Schubmehl said he couldn’t either and said “it is a concern of mine that we start letting residential fill in this space. It's going to be no different than the rest of Pembroke.”

“I know it has no bearing on the impact of inter-community that we're discussing here tonight as a County Planning Board, but as a resident of Pembroke, I think it's bad idea,” he stated.

$3 Million Commercial/Resident Project Proposed

The Genesee County Economic Development Center is touting a $3 million commercial/residential project at its Buffalo East Technology Park, which is situated in the Interchange District.

J & R Fancher Property Holdings LLC has proposed building a 32,254-square-foot, three-story facility on two acres in the park, and is waiting for a public hearing and GCEDC board vote on its application to receive more than $600,000 in property, sales and mortgage tax incentives.

According to the GCEDC, the project consists of 17 market-rate, one- and two-bedroom apartments on the second and third floors, with space for four commercial tenants, as well as indoor parking and a fitness center on the ground floor.

Chris Suozzi, GCEDC vice president of business development, was on the planning board’s Zoom videoconference meeting last night, and pointed out that his agency worked with the Town of Pembroke on attracting the venture.

“They were all in favor for it,” Suozzi said. “Certainly, there's a housing shortage need in Genesee County. If anybody hasn't seen the housing study that LaBella (Associates) put out, (it’s) on the Genesee County website. And there's a big shortage of housing.”

GCEDC: 'Live, Work, Play' Model

Suozzi said the GCEDC is promoting a “live, work, play model” and that housing – particularly at industrial parks -- is an essential component in that thinking.

“And I know the location … in Pembroke is a great location because it's across from the school and already has a Tim Hortons that wasn't part of the EDC project, but it has that ability to be right next door to it and also has 7.9 acres in total that is being proposed, of which 2 (acres) are buildable and the other 5.9 are wetlands,” Suozzi offered. “They're all protected. It's a green space.”

He went on to say the project will generate tax revenue for the Town of Pembroke and reiterated that the town board is endorsing it.

Schubmehl then asked Suozzi if the GCEDC was going to consider residential at the WNY Science & Technology Advanced Manufacturing Park (STAMP) in the Town of Alabama.

“Well, you know, if the town said yes, I would certainly look at it, but it's not really up to Chris Suozzi and it’s not up to the EDC -- it's up to the municipality,” he said, again referencing a housing shortage.

“We look at economic development as a whole, and we bring in these companies … and the workers are living in Rochester and Buffalo, (so) we’re not optimizing the economic benefit of Genesee County,” he said. “And that's what that housing studies are showing; (that) there's a big need and we're missing the boat in terms of that revenue staying right in our county.

“So, to me, this is a new world right now and housing’s a big part of it, and the 'live, work, play' model is starting to change what's going on Downtown Buffalo right now … It's because all these old factories are being recondition and rehabbed and the millennials are jumping all over them and they're seeing growth in their workforce.”

Director Promotes Mixed Use for STAMP Site

Oltramari said he could foresee mixed-use buildings at the STAMP site, especially in a technology district closest to the hamlet of Alabama.

“I could see mixed-use buildings in that because the whole point of that is sort of having like an actual link between the hamlet and the business park,” he said. “You could have commercial businesses on the bottom floor, sort of like a main street kind of scenario. And I think that's been the vision for, you know, that kind of part of the park for a while now. So, I think even the town would be in favor of that at STAMP.”

Schubmehl asked whether or not the “live, work” model was actually in the proposal in front of the board, which prompted Oltramari to say he didn’t see it as a major issue.

“I think the era of separating uses, just for the sake of it commercial from residential or, you know, the whole reasoning behind that is to keep incompatible uses apart,” he said. “I don’t see that as a reason anymore, especially in the business parks.”

Planning Board Chair Laraine Caton then asked for a vote and all members, including Schubmehl, voted in favor of the request.

“No, I'm not opposed to it for the purposes as a planning board, we’re worried about inter-community problems here,” Schubmehl said. “And that's not an inter-community problem.”

In other action, planners:

-- Recommended approval with modifications of a special use permit for Jesse and Jolene Coots of Le Roy to operate an ATV, automotive event, hill climb, mud bog and time trial course on 10 acres of a 110-acre vacant parcel of land that they own on Perry Road in Pavilion.

The applicants said they plan to hold events two or three times this year (with the schedule dependent upon the COVID-19 pandemic).

The board’s modifications focus on the applicant obtaining written documentation from NYS Department of Conservation that the project will not be encroaching on wetlands as well as a permit from the Army Corps of Engineers for the potential Federal Wetlands. It also asks that the Coots submit an application for 9-1-1 Address Verification to the Genesee County Sheriff's Office to ensure that an address is assigned that meets Enhanced 9-1-1 standards.

-- Recommended approval with modifications of a special use permit request from Waifin Properties LLC of Clarence Center to operate a contractor’s yard in a Commercial District at 850 Main Road, Pembroke.

The proposed yard would encompass a 100-foot by 100-foot area on a 7.6-acre lot.

The board said the applicant is required to surround equipment and materials storage area with a fence of at least 8 feet high that has a gate, which shall be closed and locked except during working hours.

Press release:

The Genesee County Economic Development Center (GCEDC) recently participated in Semicon Europa, the largest European semiconductor industry event connecting leaders across the advanced manufacturing world and related supply chains. 

Director of Marketing and Communications Jim Krencik represented the GCEDC and the Western New York Science & Technology Advanced Manufacturing Park (WNY STAMP) at the event, which was held in Munich, Germany Nov. 12^th through Nov. 15^th.

More than 8,000 industry professionals participated in the conference. Krencik participated in the event as part of the New York Love Nanotech pavilion, which included representatives from Empire State Development’s Strategic Business Division, SUNY POLY/NY CREATES, AIM Photonics, site developers, and New York-based supply chain companies, with the support of National Grid.

While connecting with representatives of semiconductor industry companies from North America, Europe, and Asia, Krencik was able to tout many of WNY STAMP’s assets, such as low-cost hydropower, site infrastructure development, and the availability of top-end talent in the region.

“New York State has proven to be an ideal location for the industries represented at Semicon Europa,” Krencik said. “The assets available at Western New York Science & Technology Advanced Manufacturing Park provide a ready source for the growth of the semiconductor industry and advanced manufacturing in our region.”

Located in Alabama, Genesee County, WNY STAMP is a 1,250-acre campus connecting New York’s second- and third-largest metropolitan areas, and developed to best serve the needs of advanced manufacturing projects. Ongoing site development will enable WNY STAMP to achieve full capabilities of 485-megawatts electric capacity and 11-million gallons per day of water capacity.

The Genesee County Planning Board tonight voted in favor of a special use permit for a family-owned propane business that is branching out to the Town of Le Roy.

The board unanimously approved the permit for Wendt’s Propane & Oil to install an above-ground propane distribution center at OATKA Hills 1 Commerce Park on North and Lake Roads in Le Roy, agreeing that the project should pose no significant county-wide or inter-community impact.

It was recommended, however, that Town of Le Roy officials alert the fire district of the plan and that the applicant submit documentation pertaining to 9-1-1 address verification requirements and to meet Enhanced 9-1-1 standards.

Company President Paul Wendt and his son, Trevor, sales manager, attended the meeting along with David Ciurzynski, of Ciurzynski Consulting LLC, in Attica.

“Our office is in Sanborn but we have been delivering more and more this way,” said Paul Wendt, noting that the Le Roy facility will be their first venture away from Niagara County. “We found a nice piece of property in Genesee County and we thought that it would be good to expand.”

Wendt said three employees initially will work at the Le Roy site, which (mirroring its home base) will provide propane and oil service for commercial, residential and agricultural customers.

According to documents filed with the planning board, the plan is to develop around six acres of the parcel for the above-ground storage tanks and 9,600-square-foot warehouse and truck garage building. The rest of the 11.9-acre tract will remain undeveloped, with an eye on creating walking paths and green space.

Ciurzynski said they hope to have the tanks installed in November and have the building up by next spring. First, they have to get the Town of Le Roy's approval of the special use permit and then apply for the necessary building permits.

The Wendts’ project is set up in two phases – the first to get the site ready for the installation of a pair of 30,000-gallon storage tanks, with four additional locations for future expansion, and the second to put up the warehouse and truck garage.

In other action, planners recommended:

-- Approval of a special sign permit for a third sign at Metro Mattress at 4187 Veterans Memorial Drive in the Town of Batavia. While the maximum number of signs normally is two, the board felt the extra sign would not cause any problems.

Documentation submitted by Craig Tesler of Premier Sign Systems showed three freestanding lighted signs would be affixed to the building – at dimensions of approximately 4 x 10 feet, 3 ½ by 24 feet, and 3 ½ by 7 ½ feet.

-- Approval of an ice cream stand to be operated by Amanda Smith, of Darien, on property owned by John Mroz at 9114 Alleghany Road (Route 77) in the Town of Pembroke.

-- Approval of a site plan review for relocation of a doctor’s office to a building owned by Nancy Crocker at 7133 W. Main Road (Route 5) in the Town of Le Roy. The 4,460-square-foot structure sits on 3.1 acres and meets medical code requirements, the owner said.

-- Approval of the final subdivision to transfer a roadway at the WNY Science &Technology Advanced Manufacturing Park from routes 77 and 63 to Crosby Road (STAMP Drive) in the Town of Alabama from the Genesee County Economic Development Center to the Genesee County Highway Department.

Press release:

The Board of Directors of the Genesee County Economic Development Center (GCEDC) adopted their 2020 budget at a board meeting today, projecting expenditures of $29.7 million.

The budget includes $25.5 million in grants for the development of infrastructure at the Western New York Science and Technology Advanced Manufacturing Park (WNY STAMP).

Of that total, $20.2 million is dedicated to the advancement of Phase I infrastructure at the campus (remaining funds from the original $33 million state allocation); and $5.3 million is dedicated to the advancement of Phase II infrastructure (initial funds from the $8 million Empire State Development grant).

The 1,250-acre WNY STAMP campus in the Town of Alabama is the largest high-tech greenfield site in New York, and connects low-cost hydropower, large-scale infrastructure, and the Buffalo-Rochester Metro Corridor’s workforce talent.

“The GCEDC is building WNY STAMP to be a market-ready site, and a catalyst for the success of the people of Genesee County and companies that will create a stronger future for our region,” said Paul Battaglia, chairman of the GCEDC.

As a public benefit corporation, the GCEDC generates fees from economic development projects and other sources to run the agency’s operations, programs and services.

The GCEDC anticipates $375,000 in revenues from project origination fees and $3,800 in revenues from revolving loan fund interest; $300,000 in annuities from projects approved in previous years.

Revenues also include $300,000 that will be received from the Genesee Gateway Local Development Corporation (GGLDC), and $50,000 anticipated from the Genesee County Funding Corporation, to support the agency’s overall Economic Development Program.

“There is a large body of work that occurs at this agency each year, and I am pleased that we continue to find resourceful ways to serve the businesses and citizens of Genesee County,” said Lezlie Farrell, CFO of the GCEDC.

“Operating expenditures have been controlled and reduced wherever possible.”

The GCEDC budget anticipates a $233,000 allocation by Genesee County to support economic development and a growing return on investments to the county.

In 2018, the last full year of data available, GCEDC projects (current and expired) produced more than $4.4 million in combined PILOT -- Payment In Lieu Of Taxes -- payments and property taxes to local taxing jurisdictions.

“Genesee County is a vital partner in our efforts to bring new business and growth to our region," Battaglia said. "We rely on the Genesee County Legislature to support our budget and operations so we can continue to enable business and community success.

"In 2018, Genesee County benefited from $19 returned on every one dollar allocated to GCEDC operations.”

Submitted photo and press release:

Officials from the Genesee County Economic Development Center (GCEDC) once again made the annual trip to the New York Loves Nanotech Summit at Semicon West at the Moscone Center in San Francisco July 8-11.

GCEDC Vice President of Business and Workforce Development Chris Suozzi participated in a panel discussion with other economic development professionals about how infrastructure investments are advancing New York’s impact on the development and commercialization of emerging and existing technologies.

Suozzi highlighted investments at the Western New York Science and Technology Advanced Manufacturing Park (WNYSTAMP), the 1,250-acre high-tech greenfield developed in Alabama.

“Semicon West is a great event for us to not only talk about all the great economic development initiatives occurring in Genesee County, but across New York State,” Suozzi said. “New York is continuing to make investments in semiconductor infrastructure and the Buffalo-Rochester Metro Corridor stands out as an area that is providing the best workforce and STEM education in the country.”

New York State is at the forefront of advancing AI, quantum computing, power electronics, and neuromorphic computing capabilities through their advancements in process, equipment, materials and device technology-related research. 

Suozzi and GCEDC Director of Marketing and Communications Jim Krencik also led discussions with representatives of semiconductor and advanced manufacturing businesses seeking to invest in Genesee County and the talent-rich Buffalo-Rochester Metro Corridor.

Suozzi and Krencik were joined at Semicon West by New York Loves Nanotech, a statewide group led by economic development organizations, academic institutions, and technology companies. NYLN promotes WNY STAMP and the state’s assets to high-tech companies.

“Through our presence at this annual event and the relationships with have established with officials from advanced manufacturing companies, Genesee County’s assets will be well received as these officials are discussing ideal locations for their operations,” Krencik said.

For the 22nd year, NY Loves Nanotech had a large delegation of more than 60 officials attending the industry conference. NY Loves Nanotech, Empire State Development (ESD) and National Grid hosted a pavilion at the industry leading conference, which they co-exhibited with several other companies and organizations.

So far, New York has attracted more than $20 billion in nano-optics, photonics, and semiconductor investments. New York State’s world-class workforce and research and development capacities are huge asset, as are the infrastructure capacities at WNY STAMP.

Since 2004, the Genesee Economic Development Center has assisted companies in adding 12.6 million square feet in commercial space in Genesee County, GCEDC CEO Steve Hyde told the Ways and Means Committee during an annual department review Wednesday.

That's a 37-percent increase in commercial space in the county, Hyde said.

There are 30 companies operating in the seven industrial parks developed by GCEDC.

The big park with the biggest vacant area, of course, is the 1,200-acre Science and Technology Advanced Manufacturing Park or STAMP project in Alabama.

The project lost a chance to land direct-wafer solar pioneer 1366 Technologies a year ago and has yet to land a new company for the park but Hyde said there is one big project pending that may yet sign and another in early-stage discussions.

The state has already invested about $10.9 in STAMP for initial infrastructure development. Those funds were approved in the 2014 state budget but released until 1366 signed on as the site's first tenant. The infrastructure work was started before 1366 withdrew from the project because of its inability to reach terms with the Department of Energy on a loan guarantee. Last week, 1366 announced the anticipated opening of its production facility in Malaysia.

At Wednesday's meeting, Hyde announced that the Empire State Development has just authorized another $8 million for major infrastructure -- sewer and water -- for STAMP. The upgrades in infrastructure plans are necessary, Hyde said, because the companies exploring the site now are going to need more infrastructure capacity. 

The state is also providing another $2 million grant for the Corfu/Pembroke sewer project.

During Wednesday's meeting, Hyde expressed some concern about the future of the economy, with some economists warning that tariffs and the trade war with China is taking its toll on growth both here and aboard.

GCEDC is forecasting IDA-backed projects in 2019 will create only 90 new jobs. That's a conservative number because companies have become more conservative in their job creation estimates for incentive-backed expansions because of clawback provisions initiated in state law a couple of years ago.

A clawback is a requirement for a company to return some incentive money if they fail to meet job creation guarantees.

"Companies are unwilling to be as aggressive in forecasted jobs so they tend to under-promise and over deliver," Hyde said.

A clawback is at the local IDA's discretion and Hyde said the GCEDC's board is hesitant to initiate a clawback if there is a reason outside of a company's control for not reaching job projection numbers, such as a slowing economy.

"We don't like to kick a company when it's down," Hyde said. 

He said the board has canceled incentives when companies have failed to perform but only when there is a sound reason to believe the company has failed at its obligations absent of external business cycle factors.

"That's not anything we're afraid to do," Hyde said.

Much of what Hyde presented will be part of GCEDC's annual meeting at 11:30 a.m., tomorrow, at Batavia Downs.

The advanced manufacturing plant that could have been in Genesee County with a little more political support will open soon in Cyberjaya, Malaysia.

Bedford, Mass.-based 1366 Technologies has been building a plant with the support of one of the companies that have invested in the startup, Hanwha Q CELLS, and announced this week the plant will open soon.

Until this week, 1366 had been unwilling to release the location of its new factory.

It will be the world's first direct wafer factory. The direct wafer process was invented at MIT and patented by 1366. It makes solar wafers much like glass is made, with silicon being poured on a flat surface. The company has claimed the process is more energy efficient and produces less waste.

In 2015, Gov. Andrew Cuomo came to Batavia to announce 1366 as the first tech company to agree to open a plant in STAMP, the advanced manufacturing project in Alabama, that would bring 1,000 mostly high-paying jobs to Genesee County.

The plan was for 1366 to invest $700 million in the plant. GCEDC and Empire State Development and other state agencies would provide $53 million in tax abatements and grants, based on certain incentives being met over 10 years.

The Department of Energy, in 2009, also promised 1366 a $150 million loan guarantee based on 1366 meeting two criteria: selecting a site for their factory and raising $100 million in private investment.

That deal fell apart on claims by Department of Energy officials that 1366 failed to select a site for its factory and had failed to raise the $100 million.  

The company had raised $80 million in private equity but the DOE would not renegotiate the terms of the loan.

Rep. Chris Collins, based on a conversation with a member of his staff, was not hugely supportive of his staff and it's not clear he did much to help the process along. After 1366 announced plans to pull out of the STAMP deal, Collins questioned the company's credibility. He said at the time that 1366's announcement was evidence that the company was never serious about building a plant in Genesee County.

Based on the expectation that 1366 was coming to STAMP, with the help of Sen. Michael Ranzenhofer, the state released $33 million for development of shovel-ready infrastructure at the Alabama location. 

Since 1366 pulled out of the deal nearly a year ago, GCEDC Steve Hyde has said on multiple occasions that GCEDC is talking with several prospective tenants for STAMP but so far no new deals have been announced. 

As of May 1366 and the DOE were locked in a dispute over ownership of patents because of the assistance the DOE had given to 1366 early in the process of developing its technology. The Batavian is not aware of any change in the status of that dispute.

UPDATE 4:16 p.m.: In this story, and previously, we reported that 1366 withdrew from plans to build in STAMP in March. Shortly after this story published we received documents, in response to a Freedom of Information Act request, from the Department of Energy, that revealed that STAMP informed DOE of its request to withdraw its loan application on Jan. 31, 2018.  There was no other new information in the set of documents.

For all of The Batavian's previous coverage of 1366, click here.

Top photo: Frank van Mierlo, CEO, 1366 Technologies, and Gov. Andrew Cuomo at the October 2015 announcement at GCC of 1366's plans to build a plant at STAMP.

Photo released by 1366 of its nearly completed plant in Cyberjaya, Malaysia.

A statement from Assemblyman Steve Hawley (R,C,I-Batavia) on the decision of Amazon to axe their HQ in New York City:

“Talk about making ‘Open for Business’ a punchline – the governor and New York City politicians have failed to close the deal with Amazon but there is hope for Mr. Bezos: Western New York is truly open for business and we would gladly accept Amazon’s Headquarters to be located at our STAMP site.

“I have already been in contact with the Orleans County IDA and Economic Development Center in Genesee County to make this a reality and I’m confident our 57 local colleges and universities educating more than 300,000 students could easily accommodate their labor needs.”

ALABAMA – A new solar-powered sign, which has just been erected on Route 63/77, is indication the Genesee County Economic Development Center is moving ahead with plans to develop the Science and Technology Advanced Manufacturing Park in the Town of Alabama.

The STAMP sign stands near the new road, which was built last year from Route 63/77 to Crosby Road to divert traffic around Alabama Center.

Also, a new row of power poles is being installed by National Grid by the STAMP grounds, so existing poles can be moved to allow for widening of Route 63/77 and to create a turning lane, said Mark Masse, vice president of operations at GCEDC.

Masse said the county continues to actively search for a tenant for the site and has companies with various levels of interest in locating here.

He also said they have been working on the final piece of archeological work and are moving forward with infrastructure work.

Photos by Virginia Kropf.

Press release:

The Western New York Science Technology Advanced Manufacturing Park (WNY STAMP) today announced the launch of its Facebook (facebook.com/wnystamp) and Twitter (twitter.com/wnystamp) accounts. The social media initiative is being supported by a grant through National Grid.

WNY STAMP is the development of New York State’s second shovel-ready mega site (1,250 acres) designed for nanotech-oriented manufacturing (semiconductor, flat panel display, solar/PV), advanced manufacturing, and large scale bio-manufacturing projects. The site is located in the New York Power Authority’s low cost hydropower zone and is serviced by redundant, highly reliable power.

Located just five miles north of the New York State Thruway (I-90) exit 48A, the site is easily accessible to the region’s 2.3 million residents.

WNY STAMP’s Facebook and Twitter pages will be used to promote the latest updates regarding the site, photos and video content of community leaders discussing the site and surrounding area, what resources the site has to offer to prospective businesses, and more.

“We’re excited to launch our social media and share the story of what will be a major job creator for residents of Western New York,” said Steve Hyde, president and CEO of the Genesee County Economic Development Center. “The sky is the limit for what WNY STAMP can offer to our region and these communication channels will allow us to further connect with prospective businesses and members of our community.

“National Grid has invested over $1 million in the WNY STAMP site to support the attraction of high-technology businesses to our area,” said Ken Kujawa, regional executive for National Grid. “The buzz surrounding the WNY STAMP continues to grow, and telling the story through social media channels furthers the awareness of the incredible potential this site gives to our area.”

The Genesee County Economic Development Center manages WNY STAMP.  For more information on WNY STAMP, head to WNYSTAMP.com

About the Genesee County Economic Development Corporation (GCEDC): The GCEDC is the primary economic development agency in Genesee County, NY.

The GCEDC’s mission is to assist local economic development efforts by serving in a conduit financing capacity enabling the issuance of taxable and non-taxable debt to benefit the growth, expansion, ongoing operations and continued viability of for profit business enterprise in Genesee County thereby helping to maintain a sustainable long-term economy.

The Batavia/Genesee County region has been recognized for 15 consecutive years by Site Selection magazine as a top 10 micropolitan in the United States and is rated number three by Business Facilities Magazine as a top metro area for food processing and manufacturing growth.

While it still may be a long shot for 1366 Technologies to build its solar wafer manufacturing plant in Genesee County any time soon, there is apparently an ongoing conflict between the company and the Department of Energy. Some industry observers seem to think it could hinder the company's plans to build its first factory in Southeast Asia.

E&E News reported earlier this month that unnamed DOE sources say the agency is pushing patent claims. (See, also, PV Magazine.)

DOE officials believe the United States has a possible claim on 1366 technology tied to grants DOE had given the company over the past eight years. In a review of the 1366 product exclusion petition under the solar tariff, DOE said "it came to light" that the company also had patents not reported as part of its DOE funding process.

DOE and 1366 would not provide documents describing in detail the conditions attached to DOE's grants.

"The department takes seriously its responsibility to protect its intellectual property rights and the parties' obligations under funding agreements," said department press secretary Shaylyn Hynes.

Laureen Sanderson, spokesperson for 1366, wouldn't comment on the dispute except to say, "We are working with the DOE to resolve any misunderstanding."

In 2009, when the DOE was part of the Obama Administration, the department made a $150 million loan guarantee to 1366. That was apparently contingent on the company securing a U.S. site for manufacturing and raising $100 million in private financing. The company selected a site in Alabama's Science and Technology Advanced Manufacturing Park -- AKA the STAMP project -- (though a DOE spokesperson later denied 1366 had made such a selection) but fell about $10 million short as of the fall of 2017 in its private investment goal.

To what degree that was the real sticking point in negotiations is hard to say based on available information, but at the beginning of the year 1366 announced it was withdrawing its application for the loan guarantee and planning a factory in Southeast Asia.

The ongoing conflict with the DOE came to light when 1366 applied for an exemption for its component in a planned tariff on solar panels manufactured in China.

A DOE spokesperson contacted by The Batavian last week did not respond to a request for comment.

If 1366 were to shift focus again and seek to return to STAMP the company would, of course, be welcome, said Steve Hyde, CEO of Genesee County Economic Development Center. He said GCEDC has not been contacted by the company, however. If it did come to that, just because of the passage of time, there would need to be new negotiations.

"But I’m sure that things could be put in place that are very similar," Hyde said.

It's unclear, and 1366 isn't saying, how far along the company is with its Southeast Asia plant.

After an apparent inability to reach an agreement with 1366 Technologies that would have paved a path for the company build its solar wafer plant in the STAMP project in Alabama, an attorney for the Department of Energy is threatening legal action against the startup for planning its factory in Southeast Asia.

John T. Lucus, acting general counsel for the DOE, submitted a letter to trade representatives last week in opposition to a request by 1366 for an exemption from a proposed tariff on solar panels manufactured overseas.

Citing a claim by 1366 in its application for the exemption that it is building a factory in Southeast Asia, Lucus wrote, "1366, however, made U.S. manufacturing commitments to DOE as part of millions of dollars in funding agreements with 1366. Constructing and operating the Southeast Asia facility is likely contrary to 1366's U.S. manufacturing commitments to DOE. DOE takes this matter very seriously and is currently looking into 1366's compliance with its DOE funding agreements."

A spokeswoman for 1366 declined to comment.

"We are not providing comment on the letter at this time as we’re working to consult with the DOE to gain additional clarity," said Laureen Sanderson.

The letter from Lucas makes it sound like the DOE either released funding or followed through on commitments to help fund the $700 million plant 1366 had hoped to build in Genesee County.

In fact, 1366 withdrew its application for funding late last year and announced its plans to build a plant overseas instead of in the U.S. after the DOE failed to finalize a 2011 agreement for a $150 million loan guarantee.

After 1366 selected Genesee County for its facility, the company sought to renegotiate part of the agreement. The negotiations were put on hold following Donald Trump's election and did not resume until well after Secretary Rick Perry was confirmed. According to sources, the DOE was unwilling to make any changes to the agreement, specifically as it related to a requirement that 1366 raise $100 million in private investment. At that point, the company had raised $80 million.

The other part of the agreement used by the DOE to justify withholding the loan guarantee was that the company had not selected a location in the United States for its manufacturing facility even though 1366 had signed documents with both the Genesee County Economic Development Center and Empire State Development naming STAMP as its future manufacturing home.

The 1366 manufacturing process is patented and touted as potentially disruptive to the energy industry because it eliminates waste, lowers costs, and boosts power efficiency. It was developed at MIT.

The factory in Alabama was expected to employ as many as 1,000 people at full capacity making just solar wafers, not solar panels, and the company said all of the initial customers would be overseas and not in the United States.

The letter from Sanderson to the U.S. Trade Representative regarding the Trump administration's proposed tariff on solar panels says the company is seeking an exclusion on the portion of any panels imported into the U.S. using direct-to-wafer technology. The wafer comprises 70 percent of a panel's expense, Sanderson said.

The exclusion application also states that 1366 still plans to build a factory in the United States at some point that will employ 700 to 1,000 people.

The company said the exemption would give the U.S. solar industry "breathing room" in order to compete in the global market.

In the request summary, 1366 states:

We weren't able to cover Friday's annual meeting for Genesee County Economic Development Center, but we did cover CEO Steve Hyde's department review for the Legislature, which would cover much of the same annual review as Friday's meeting.

GCEDC released this promotional video on Friday for the Western New York Science and Technology Advanced Manufacturing Park in Alabama.

The leader of the Genesee County Economic Development Center said he is attempting to persuade a company “five times the size of 1366 Technologies” to put its stake in the WNY Science, Technology and Advanced Manufacturing Park in the Town of Alabama.

“We’ve had five site visits” (with the company),” said Steve Hyde, GCEDC president and chief executive office, this afternoon at the Genesee County Legislature’s Ways & Means Committee meeting, later adding that the business is “five times the size of 1366 as far as investment and jobs go.”

“We will either be the bridesmaid or bride in this deal, and (if the latter) it would change the face of the community,” Hyde said, invoking a nondisclosure agreement. “While 1366 was a start-up, this company is very solid.”

Hyde and GCEDC Board Chairman Paul Battaglia said they were disappointed by the decision of 1366 Technologies, which manufactures solar wafers, to pull out of STAMP – a 1,250-acre, shovel-ready nanotechnologies site developed by the GCEDC.

“It took two years for the announcement that 1366 would be coming and another two years for them to pull the plug on that project,” Battaglia said after Hyde and CFO Lezlie Farrell gave the committee a quick overview of the GCEDC’s financial picture. “It takes a lot of work and effort with no guarantee that we will be successful.”

Hyde said that “fiscal pressures” in the form of decreased funding and a greater workload are “part of the challenges that are hard to overcome.” However, he said he is confident that a deal is in the near future.

“It’s just a matter of when, not if,” he said.

The GCEDC will be coordinating four projects at the STAMP site in the coming months in an effort to achieve what he called the “big house blueprint – big water, big sewer and big electric.”

GCEDC officials reported that the 2018 budget shows $26.9 million in revenue against $27.3 million in expenses, with $1.4 million budgeted for operations and $25.6 million for WNY Stamp.

Hyde said that the shortfall would be covered by annuity streams generated by HP Hood, which has moved into the former Muller Quaker yogurt plant on East Main Street Road.

He bemoaned the fact that financial backing from Genesee County has decreased by 31 percent since 2008 (currently at $193,513 annually) since the agency’s only two sources of funding are project revenues/origination fees and county support.

“The challenge is that we have is that we’ve been in an environment where the body of work has illuminated. The work activity, business development and sales, and workforce development – notably in food, beverage and agriculture – have more than doubled,” he said.

Hyde reported that in 2017, the GCEDC steered 16 projects that resulted in $240 million in pledged capital investment and 288 pledged job creation. Eight of those projects, generating $231 in capital investment, were in the food and beverage/agri-business sector.

For 2018, a key stated GCEDC goal is to secure additional investment to implement STAMP Phase II site and infrastructure development to help make the site globally competitive by better aligning infrastructure readiness timelines with market needs (market-ready/shovel-ready).

In an another development, the Ways & Means Committee engaged in a discussion with Lawley Insurance executives Reggie Dejean and Suzie Ott and County Information Technology Director Steve Zimmer about cyber liability insurance.

Cyber insurance has emerged as a result of increased activity by hackers or other criminals who gain access to a firm’s electronic network. Most notably, but not exclusively, it covers a business' liability for a data breach in which personal and/or confidential information, such as Social Security or credit card numbers, is exposed or stolen.

Zimmer said he didn’t think Genesee County has enough protection in this area.

“Cyber liability insurance would give us the financial resources to bring experts in,” he said, adding that he projected that if all data was lost at the Mental Health department, for example, it would cost up to $3.8 million to rectify the situation.

Currently, he said there are in excess of 700 users -- including volunteer fire department personnel -- on the county’s computer network, which presents the risk of someone opening an infected e-mail or attachment.

Dejean said cyber policies offered by Lawley have limits of $1 million, $2 million or $5 million, and cover data & network liability/third-party liability, web and print content liability, regulatory defense and penalties, cyber extortion (ransomware) and business interruption (loss of income). They also offer the ability to notify up to 250,000 people of a breach.

The committee made no commitment, but did get the figures -- annual premiums of: $21,663 for a $1 million policy; $27,078 for a $2 million policy; $36,061 for a $5 million policy with $100,000 deductible; and $32,818 for a $5 million policy with a $250,000 deductible.

When asked where the money would come from to pay the premium, County Manager Jay Gsell said initially it would come from the county’s self-insurance fund, “but going forward (if people are identified as causing problems) there could be some changes to financing the risk.”

Gsell, responding to a question about how to educate computer users, said he was in favor of formulating a policy, starting with the E-911 board to communicate the responsibilities associated with information technology.

“The education piece has to start sometime soon,” said Ways & Means Chair Marianne Clattenburg.

-- The committee also endorsed a resolution proposing a local law designating the opioid epidemic and its impact on Genesee County a "public nuisance" and to set a course to recover costs incurred by the county in providing related services.

The resolution, in part, states that "as a result of the opioid epidemic, costs related to healthcare, family and social services, criminal justice, addiction and rehabilitation, and many other areas have significantly increased. Many of these costs are paid by the County. The purpose and intent of this Local Law is to allow the County to recover these costs ... whenever practicable, from the responsible party."

A public hearing on the matter is scheduled for 5:30 p.m. March 28 at the Old County Courthouse.

There's more to 1366 Technologies slipping away from the STAMP project than just losing the first company to commit to the technology park in Alabama -- it's also a loss of the kind of innovative company that would be good for the region, said Genesee County Economic Development Center CEO Steve Hyde during a meeting today with local reporters.

"These guys really do have a very innovative product," Hyde said. "They're changing an industry that's a high-growth industry. Usually, when you have credible quality IP (intellectual property) married to an industry of high growth, the sky's the limit. That was something that I really loved because we would be really introducing that kind of innovation here in our community, which has always been part of what I've been trying to cultivate in our community."

As reported earlier, 1366, which makes silicon wafers for solar power, announced today that they would not build their first full-scale production facility in Genesee County after the company and the Department of Energy were unable to agree on terms for a loan guarantee.

Already with more than $80 million in the bank from private investors and tax abatements guaranteed by GCEDC and Empire State Development, 1366 was trying to finalize a $150 million loan guarantee to help get its plant, with 1,000 local jobs, up and running. The original DOE guarantee was granted in 2011 but 1366 still needed to raise $100 million in private equity both to unlock the funds and to finance the first phase of the plant construction. (The public support for the project totaled $56.3 million in tax abatements and state grants over 10 years. Since 1366 never finalized financing and closed on the transaction with GCEDC, the company received no taxpayer money.)

Laureen Sanderson, a spokesperson for 1366, said the DOE agreed last year to reopen discussions on the loan guarantee but when it came time to renegotiate the agreement, it was clear there would be no guarantee the funds would be available at the end of what she said would be an expensive and lengthy negotiation process.

Earlier today, Rep. Chris Collins issued a statement blaming the breakdown in the funding process on 1366, saying it was evidence that the company was never serious about building its plant in the United States.

"Despite being approved over six-and-a-half- years ago and my office facilitating multiple contacts between 1366 and the Department of Energy, the company failed to complete the necessary requirements of their contract and has had to terminate its federal loan offer," Collins said in a statement.

According to 1366, it was their decision to withdraw its application, not the DOE terminating the agreement.

A statement from the Department of Energy supports that position.

1366 Technologies has withdrawn from its Loan Guarantee Agreement that was signed with the Department of Energy (DOE) in September 2011. 1366 Technologies has shown the potential to introduce an innovative American manufacturing technology, which is why the Loan Programs Office issued the loan guarantee to support commercialization efforts, following up on previous DOE support for the company’s research and development.

According to sources in support of the congressman's statement, the DOE twice "renegotiated" its agreement with 1366. A source at DOE would only say that the DOE extended the date of its loan guarantee in response to discussions with 1366.

Sanderson chafed at the accusation by Collins that the company wasn't serious about building its first facility in New York.

She said the company completed environmental assessments, preliminary designs, permits, and worked diligently to line up economic support and financing for a local plant. That was a lot of time and expense to invest in the project, she said.

"The fact that our seriousness is being questioned is troubling," Sanderson said. "I don't know how many other ways to make it clear that our commitment was there."

In a story earlier today, The Batavian shared a report about a budget proposal from the Trump Administration that would slash funding for the very program 1366 would need for its loan guarantee.

Collins responded to that report with the following statement:

Anyone that will blame President Trump and his budget for 1366 pulling out of their contract with DOE is misinformed and completely unaware of how these types of arrangements actually work. To start, the funding for this project was approved six and a half years ago, so the President’s proposed FY19 budget would have no impact, not to mention that Congress, not the President, authorizes and funds these types of programs. After renegotiations that consumed DOE resources, 1366 was still unable meet the requirements agreed upon in their contract. To me, it seems like 1366 was spending the last six and a half years playing the field to see if they could get a better deal elsewhere.

Asked today if he was ever worried whether 1366 was seriously committed to STAMP, Hyde said there was never a hint that 1366 wasn't fully invested in opening its first plant in New York. He also knew, however, there was no guarantee until 1366 finalized its financing.

"I also realized and appreciated that there was still a startup company," Hyde said. "The challenge that a startup company has is the capitalization of their project. It is a major challenge that well-established companies with good balance sheets don't have to be concerned about. So, I'm a realist and I knew that that was always a risk and that's really what ended up happening here. The markets moved and the project changed."

The Batavian first spoke with Hyde about delays that could endanger the project in the fall of 2015, shortly after an expected groundbreaking at STAMP didn't take place.

Hyde said the delays had nothing to do with support from Empire State Development or the governor's office.

"The governor has been nothing but incredibly supportive," Hyde said. "I mean he I think he really believes that we can we can re-engineer the economy of upstate with high tech."

The big issue, from Hyde's perspective, is that the solar industry is growing and changing fast. That turbulence makes it hard for any startup to attract private investment.

It might seem there's a contradiction at play here.  In the fall of 2015, groundbreaking on STAMP was delayed. Now, construction is underway, but not much regarding financing for 1366 changed between now and then.

"I have to beg to differ because there were things going on on the market side of the deal," Hyde said. "There were changing timelines for the project, the 1366 project, and what that does is it makes you decide to walk or jog while you do certain things relative to infrastructure versus run to support the project because then you optimize your cost profile as you do it."

Those changing market conditions played a role both in the fact 1366 didn't meet the requirement of the original DOE agreement to raise $100 million in equity and its requests for extensions of the agreement.

In November, besides the $100 million in private equity, the only other requirement a DOE source said 1366 was failing to meet was its obligation to select a site in the United States for its production facility.

The truth, was, however, that 1366 already had selected a location: STAMP in Alabama, in Genesee County, in New York, in the United States.

Hyde said the DOE's claim didn't make much sense.

"There was a signed state incentive proposal that talks specifically about where they were locating," Hyde said. "Then there was a signed local financial assistance application. This wasn't just a handshake deal. Governor Cuomo won't come and do a big announcement event like that if there isn't some serious negotiations and a documented commitment. Those documents have the signature of the CEO of 1366."

Sen. Charles Schumer has been supportive of both STAMP and 1366. The Batavian reached out to his office today to see if his staff might be able to offer insight into what went wrong with the project.

Spokesman Jason Kaplan issued the following statement:

It’s disappointing to learn that 1366 is withdrawing from pursuing this loan. Senator Schumer personally called DOE Secretary Rick Perry on Oct. 5, 2017 in support of 1366 and to request Secretary Perry meet with 1366 Technologies CEO to work with 1366 on a path forward. As a result of Senator Schumer’s intervention, Secretary Perry personally met with 1366 Technologies the following week on Oct. 11th. 1366 characterized the meeting as constructive and pivotal in finally allowing 1366 to open dialog with DOE and to map out a series of benchmarks the parties would work toward to move forward. We were hopeful they would move forward.

Jason Conwall, on behalf of Empire State Development, issued the following statement:

New York's commitment to 1366 Technologies was contingent upon their securing additional financing and since they have withdrawn from their DOE loan agreement, we won’t be able to move forward with the project at this time.

Today, Hyde said the loss of 1366 -- at least temporarily -- is not a setback for the project. In fact, just the fact that 1366 came along has helped move STAMP into a position to help it better appeal to site selectors for large high-tech companies looking for manufacturing locations.

"They did catalyze our ability to start the infrastructure development efforts at the site, which now makes the site far more competitive and attractive for another project to the scale of that one," Hyde said. "Now there's roadways in there. There's water lines and fire hydrants OK. New York State is committed to this. Howard Zemsky said we're going to keep going."

The withdrawal of 1366 also opens up a very attractive 100-acre parcel in the park.

"It's also protected by beautiful woods and wetlands," Hyde said. "You have a road in, it's blocked by woods, so when you pull in and then it's like, 'whoa.' It's a hundred acres that is just flat. That is something that many high tech companies find very attractive. There is a little bit of privacy, an environment where you can build a creative-class campus with walking trails, picnic areas, nature, respectful of the world conditions that we have. You got access to hydropower, sustainability. All of those things play very well into what high tech companies look for today."

There are at least four companies actively engaged in considering STAMP. There are have been two companies inquire about it that could take the entire park in one swoop.  There's a company that could bring in 3,500 jobs within three years.

In planning for 1366, STAMP is positioned well to attract what Hyde called, metaphorically, the small house. The house that needs a smaller foundation.  Those are not the companies currently most interested in STAMP.

"We now have the infrastructure to support a project of that (1366 Technologies) size and scale," Hyde said. "What we're seeing now, right now, today, with the four or so projects that are in our pipeline is projects that are much bigger than that. They need infrastructure much bigger than that. In other words, we need the funding to fund the blueprint for the big house. So the big water, the big sewer, the big electric, and that is the ongoing conversation that we're having with the state right now. This is not the time that we can pick up our toys and go home. This is time to double down and go harder because we're seeing deals that validated this site, and 1366 certainly validated it."

Hyde said ongoing negotiations with site selectors also validates the value of STAMP.

"We've got a project right now that has kicked the tires of this site and had five site visits," Hyde said. "They've had their engineering teams, their business teams, their marketing teams, their workforce teams in our place for like 14 days due diligence. Those companies wouldn't be spending that kind of time if this wasn't real.

Nothing is written in stone, though. STAMP is just one location among many these big companies can choose. Now that the infrastructure is in, it will be easier for GCEDC and ESD to move quickly but markets move fast -- as 1366 seems to prove -- so there's a lot that can go wrong on the road to new high-tech jobs. 

"If this happened in Silicon Valley, it might not even hit your radar screen to make the news because high-tech projects come and go and morph and change," Hyde said. "In our world, it is a little different.

"This is new for us, so we need to continue to remember that we've got to put our battle gear on every day and continue swinging at this stuff because we have higher ed and the educational system assets. We have great infrastructure. You need to spend some more money to put that stuff together like we're doing with STAMP. But, you know what? We have real potential."

Solar wafer manufacturer 1366 Technologies has decided to build it's first full-scale factory in a foreign country rather than in Genesee County.

The innovative Masschuchett's-based company made its decision based on delays and uncertainty around a loan guarantee from the U.S. Department of Energy.  

"We have always wanted to have and intended to have factories around the world that were close to our distribution centers," said Laureen Sanderson, spokesperson for 1366. "We have decided to build the first one aboard. That doesn't mean the second can't be here in the U.S. and as those pieces come into place, the GCEDC will be the first call we make."

In a statement, GCEDC CEO Steve Hyde said that while this is disappointing news, it's important to note that 1366 had not yet received any taxpayer dollars for is proposed facility and that work continues to prepare the STAMP site for eventual tenants.

“We remain extremely excited and committed to STAMP because there is a long pipeline of leads and great interest in the site by various advanced manufacturing businesses," Hyde said.

While 1366 had raised nearly $100 million in private equity, and has continued to raise investment funds, Sanderson said, and had committed to the STAMP site, after the change of administrations in January 2017, the Department of Energy never released funds for a loan guarantee promised during the prior administration. The DOE's position was that 1366 had not met its obligation to select a site and raise $100 million equity.

Because of the rapidly changing business climate in solar power, 1366 then wanted to renegotiate the loan agreement but no agreement was reached.

In its own budget proposal, the DOE slashed $330 million funding for the program, called Advanced Research Projects Agency-Energy, even though it is supported GOP-controlled Senate in its budget.

Nobody at 1366, however, is blaming the DOE for the decision to locate its first factory overseas. The company is simply withdrawing its request for a loan guarantee, Sanderson said.

"As we evaluated the loan guarantee, the additional time and expense beyond what we have already invested, for the negotiation process without any indication of the outcome of the loan guarantee after the negotiations were completed made it difficult to move forward," Sanderson said.

The Trump administration said it was protecting U.S. manufacturing jobs in the solar industry when it announced last month a tariff on solar panels. That tariff, however, has little impact on 1366 since it doesn't make panels, just the wafers that go into panels, and its primary market for wafers is outside the United States. If anything, it could have faced retaliatory tariffs from China on any wafers it shipped to that country.

Sanderson said the company will not yet to disclose the location of its proposed first factory.

The company is eager to get its advanced and innovated solar wafer manufacturing process into full production. The solar energy market is moving fast and 1366 wants to participate in that growth.

"It was difficult to make this decision and put the U.S. factory on the back burner but we were eager to get into production," Sanderson said. "The wafer is now the focus of the industry. It is the one thing that hasn't yet had the cost stripped from it."

For more than four decades, solar wafers have been made by grinding and polishing silicon wafers. The proprietary 1366 process involves pouring molten silicon into glass-like sheets, which allows for thinner, more efficient solar wafers, that are less expensive to make and produce no significant waste.

The MIT-incubated company selected 1366 for its first factory, in part, because it could be powered by renewable energy, the power generated by Niagara Falls.

Sanderson said now that its wafer is in production, the 1366 wafer is being validated in the market.

"In customer trials, on actual production lines, we have seen fantastic results with an average of 20.3 percent efficiency on production lines," Sanderson said.

Throughout a conversation with The Batavian this afternoon, Sanderson said repeatedly that 1366 still intended to build a factory in the United States and when that day comes, GCEDC will receive the first call. She praised the efforts of the GCEDC staff as well as Empire State Development and said this decision was in no way a result of anything GCEDC or ESD failed to do.

"We tried everything we could," Sanderson said. "Everyone tried and did everything they could to make a U.S. factory a reality."

She added, "There’s no doubt in our mind that STAMP is a world-class site. The talent in the region is exceptional and we know that everyone is working really hard to ensure that vision is realized in the community."

The company would have employed 1,000 local workers at full production.

Hyde said commitment to STAMP locally and throughout the state is as strong as ever.

“We also have a number of partners in the public and private sector who I know remain committed to STAMP," Hyde said. "This collaboration is critically important in our efforts, especially as we combine the resources of our economic development partners to market the significant attributes of the Buffalo and Rochester metropolitan areas as one region.

“So, for the GCEDC it is business as usual in our ongoing efforts to get STAMP shovel ready and continuing to market the site to these businesses.”

Rep. Chris Collins issued a statement blaming 1366 for the deicsion without mentioning the DOE's attempt to defund the energy innovation program:

“While they would have been an economic asset to the community, one cannot help but wonder if 1366 Technologies was ever serious about opening a plant at the STAMP site in Alabama. Despite being approved over six and a half years ago and my office facilitating multiple contacts between 1366 and the Department of Energy, the company failed to complete the necessary requirements of their contract and has had to terminate its federal loan offer.

“Despite this result, I remain eager to work with state and local partners to assist in the success of the STAMP project. Genesee County remains an attractive place to locate a high-tech manufacturing business and I am confident the leadership in this community will make this project a success.”

After reading the statement from Collins, Sanderson had this to say: "It's important to understand we were very committed to New York. There was a lot of time and resources around making that U.S. factory a reality. We understand the impact this has on the community. That is not lost on us. That doesn't mean New York can't be a future location and it remains in our plans."

We have requests for comment out to the Department of Energy and Sen. Charles Schumer's office. We will update this story as appropriate.

A spokesperson for the Department of Energy contacted The Batavian today to explain that the reason 1366 Technologies hasn't received its loan guarantee yet is that the company has yet to meet all the criteria of the original 2011 loan guarantee agreement.

On one hand, that appears to be true. The DOE says 1366 needs to secure $100 million in private investment. That hasn't happened yet. The second qualification, that 1366 has yet to select a site for its factory, is a matter of how the DOE interprets 1366's agreement with New York to build at the STAMP site in Alabama.

Asked about the seeming incongruity of 1366 announcing a site selection in 2015 and the DOE now claiming no site has been selected, the spokesperson said, "In a meeting with DOE officials last month, 1366 Technologies stated that it was considering three possible locations for their facility, of which one location is in New York."

Laureen Sanderson, speaking for 1366 Technologies, said 1366 is committed to building in Genesee County but the company also let the DOE know that if the loan guarantee wasn't approved, the company would have to initiate its contingency plans, which likely means building a plant in another country.

"Of course, we discussed contingency plans with DOE," Sanderson said. "That's par for the course when talking with a partner, but our focus remains on New York."

She added, "What’s important to recognize is that our commitment to New York remains. That's the site we selected in 2015. State and local officials have been wonderful. We’re doing everything we can to make that site a reality."

What both sides can agree on is that negotiations on the loan guarantee agreement are ongoing and active. Sanderson characterized the discussions as positive and productive.

"We have a shared goal with the Department of Energy to create U.S. manufacturing jobs," Sanderson said. "That's what we both want to do and that’s what we hope we can achieve together with the Department of Energy."

The spokeswoman confirmed there was a loan guarantee finalized in 2011 but said it was contingent on 1366 securing $100 million in equity financing and finalizing a location for its manufacturing plant.

Sanderson confirmed 1366 has so far raised only $89 million but emphasized again the company is committed to New York and creating U.S. manufacturing jobs.

The negotiations with the DOE are necessary, in part, because the solar industry has continued to evolve since 2011.

"A lot has changed in the solar industry but what hasn’t changed is the strength of the technology," Sanderson said.

The lag time between announcing the company's plans to build at the STAMP site and now, Sanderson said, has enabled the company to improve the energy efficiency of its solar wafers, working with partner Hanwha.

"The technology has only gotten better," Sanderson said. "Our technology not only improves the manufacturing process and reduces costs but every wafer we produce is a better product."

The proprietary technique development by 1366 at MIT's labs in the Boston area uses molten silicon to make a wafer, rather than the cutting and grinding process the solar industry has used for 40 years. This reduces waste and energy used to make wafers.

Right now, 1366 only has a demonstration production facility in Medford, but the company, working with Hanwha, has continued to improve efficiency by .08 percent annually, making 1366's wafers the most efficient in the industry, Sanderson said.

When the company can go into full production, it can continue to make efficiency gains as well as work with solar panel companies to find other uses for this new technology. The company will be able to make thinner wafers that are strong and more flexible. Current wafers are too brittle for thin, flexible uses.

"Because we are able to work at the melt level, we are able to introduce new features the industry has long wanted but can't achieve," Sanderson said. "There is only more innovation and discoveries to be had through the manufacturing process."

When 1366 announced its intention to build in Alabama, CEO Frank van Mierlo cited lower cost, clean hydropower from Niagara Falls as an attraction to the location. Sanderson added another reason 1366 wants to stay in the United States, if at all possible -- a superior silicon supply chain.

"Our technology is the first major change in the solar industry in more than 40 years," Sanderson said. "We solved a manufacturing challenge that the industry has wanted to solve for 40 years. There is a lot of technological strength in the U.S. supply chain and with that strength, the U.S. has a real chance to establish manufacturing leadership."

There continues to be one significant roadblock for 1366 Technologies to get around before breaking ground a new $700 million solar wafer manufacturing facility in Alabama -- getting the Department of Energy's final approval on a previously promised $150 million loan guarantee.

If that loan guarantee isn't finalized, 1366 Technologies, instead of creating 1,000 good-paying jobs in Genesee County, could turn to an overseas location for its manufacturing facility.

"We remain focused on the U.S. and U.S. job creation," said Laureen Sanderson, spokeswoman for 1366. "We continue to work closely with the State and GCEDC, who remain committed to the project, and we’re in active discussions with the Department of Energy. Those discussions have been positive, but we’ve yet to receive a final indication on the status of the loan."

The Boston Business Journal reported today that 1366 just secured another $9 million in funding from investors, bringing the total raised to $89 million. The article also raised the specter of 1366 locating its facility in another country.

The company identified a site in New York for that manufacturing facility, but is still working to officially secure the funding from the DOE. In the meantime, a company spokesperson said, 1366 is exploring the possibility of building its first factory abroad due to the commercial interest its technology has received internationally.

"We are exploring possibilities to build factories internationally, but that has always been part of our plan," Sanderson said, adding, "It is understood that building in the U.S. is only possible if the loan is accessible. If it’s not there, we need to pursue the other options available to us."

The factory would be about 130,000 square feet and located in the advanced manufacturing park under construction in Alabama known as STAMP. It's been a decade-long process by Steve Hyde and the GCEDC to bring STAMP to fruition and 1366 Technologies is the first, and so far, only significant tenant announced for the park.

The company selected STAMP in part because of its location to low-cost, clean energy, specifically, hydropower from Niagara Falls. 

The proprietary method 1366 Technologies uses to manufacture solar wafers was developed at MIT and leads to solar wafers that are more efficient, produced at lower costs and with less waste than the way solar wafers are manufactured currently. The company's immediate goal is to manufacture wafers domestically for export to large solar installations overseas, such as the one completed earlier this year in Japan. 

Hyde said GCEDC remains committed to bringing 1366 to Genesee County.

He issued this statement:

The Genesee County Economic Development Center (GCEDC), along with our U.S. Senate and Congressional delegates, continue to work with 1366 Technologies to help secure the US Department of Energy Loan Guarantee that will enable the company to build their first Direct Wafer manufacturing facility at the Western New York Science and Technology Advanced Manufacturing Park (WNY STAMP).

We believe that the Company has clarified their intentions that their strategy is a U.S. manufacturing first strategy and as such fully aligns with their previous commitments to establish their U.S. manufacturing hub at our 1,250-acre STAMP High Tech Mega-Campus here in Genesee County.

Rep. Chris Collins, through a statement issued by staff, said he is doing what he can to help secure the loan guarantee for 1366.

Congressman Collins has been actively working with partners at the Genesee County Economic Development Center to assist in opening a dialogue with 1366 Technologies and the U.S. Department of Energy. The Congressman is pleased that Secretary Rick Perry recently met with 1366 Technologies executives to discuss this project. These conversations are necessary to make sure that any significant taxpayer investment in the form of a government backed loan is made prudently.

We are hopeful that an understanding will be reached that protects taxpayers while creating economic opportunity in Genesee County. The Congressman will continue in his role in assisting this conversation and always remains committed to supporting efforts to create jobs in Genesee County.

The loan guarantee was promised to 1366 in 2011 but during the transition to the Trump Administration, there were delays related to the transition.

Sanderson said, "There was a transition with the change in administration and that was more challenging than we had expected. However, we’re now having the right discussions and those remain active."

The company is entering a highly competitive solar market that is booming (Solar Employs More People In U.S. Electricity Generation Than Oil, Coal And Gas Combined). Sanderson acknowledged the company, which currently has a small facility in Boston that employs 60 people, is keen to move forward with full production.

"We’re eager to bring the technology to mass production because we know what it can do for the industry and for consumers’ ability to access inexpensive solar power," Sanderson said. "But we’ve certainly taken advantage of the time in the run-up to scale to make additional technical gains. We’ve now surpassed the efficiency of the incumbent technology and have a cost advantage that no sawn wafer can beat. We’ll continue to make gains as the first step – but certainly not the last – in our scaling effort crystallizes."

UPDATE Friday, 10 a.m.: Statement from the office of Sen. Charles Schumer:

“Last month Senator Schumer spoke directly to U.S. Department of Energy Secretary Rick Perry and urged him to reach out to the 1366 Technologies CEO and meet with 1366. Almost immediately after the conversation, Secretary Perry reached out to the CEO and met that following week. Our office remains in very close contact with 1366 Technologies and the Department of Energy,” said Jason Kaplan, spokesman for Senator Schumer.

Press release:

U.S. Senate Minority Leader Charles E. Schumer today announced, after his push, that the Federal Energy Regulatory Commission (FERC) has approved the Empire Pipeline Inc.’s revised and extended PILOT agreement with Genesee County in order to keep an important water infrastructure project on track.

Schumer said that with the agreement now approved and renewed, funds can be cleared for new water infrastructure at Genesee County’s Science Technology and Advanced Manufacturing Park (STAMP), bringing good-paying jobs to the Western New York region and investing in New York State’s critical infrastructure.

“This is great news for Genesee County, with the PILOT agreement renewed and approved upgrades to water infrastructure at STAMP can begin and stay on schedule and put new jobs in the pipeline,” Senator Schumer said.

“I am pleased FERC heeded my calls to act quickly and approve this petition to ensure that the timely construction of new water infrastructure is not held up by bureaucratic red-tape.This newly approved agreement is a win-win for job creation and the hard-working people of Genesee County, allowing the Genesee County Economic Development Center to proceed with vital upgrades to the STAMP business park.”

Schumer explained that the original PILOT agreement between Genesee County Economic Development Center (GCEDC) and Empire Pipeline was approved by FERC and implemented in 2007 as part of Empire Pipeline’s investment to construct a new gas compression station in the Town of Oakfield in Genesee County. The agreement was up for renewal and Schumer called for FERC to review and approve the application, the agreement will hold through 2032.

This request does not include any new construction, but is solely an amendment and extension of the original PILOT agreement. Funding provided to Genesee County by Empire Pipeline under this PILOT agreement is required by Genesee County Economic Development Corporation (GCEDC) to finance Phase 2 construction of new water lines to serve STAMP and with FERCs final sign off construction will no longer be delayed.