Culinary Institute moving forward

by Joshua Maloni
Lewiston Porter Sentinel, February 24, 2007

Niagara County Community College is moving forward with plans to establish a not-for-profit culinary arts institute, based on a recommendation by Foit-Albert, the consulting firm hired to complete a three-phase feasibility study.

The NCCC Board of Trustees met Wednesday to hear from Mark Cramer, of Hiscock and Barclay, who is working with Foit-Albert. The attorney addressed the four financing structures associated with creating a CAI. He also explicitly spelled out the culinary institute’s purpose: to educate students, not to entertain the public in a traditional restaurant setup.

Calling it a “living laboratory,” Cramer said, “We’d like to have a facility that will give students a feeling (of what they’re getting into).”

It is expected the NCCC board will select a site for the CAI by June. The three locations in contention include the Frontier House in Lewiston, and two downtown Niagara Falls areas: the Conference Center and a vacant lot at the corner of Third and Niagara streets.

The location chosen will directly affect the financing selected.

Four Ways to Pay

•Option one is a traditional capital project fund-raising method at NCCC, wherein the school’s construction costs would be covered equally by county and state funds. Financing would be conducted through the issuance of low-interest bonds. Under this plan, the CAI would not incur sales or property taxes, and operating cost could be offset by the state to the tune of 40 percent.

Niagara County would own the title to the land and buildings, while the equipment would be in the NCCC board’s name.

In addition to said board, option one would need the approval of the county Legislature; the state of New York; the State University of New York, or SUNY, school system; and Gov. Eliot Spitzer.

•Option two would require the creation of a not-for-profit body, a “6320 Corporation,” which would take possession of the property title and issue tax-exempt bonds to finance capital costs. Here too, there would be no sales or property tax charged to the CAI, but there would be no state or county financing, either.

Upon creation/completion of the culinary school, the facility would then be leased to NCCC. At the conclusion of the lease term, all titles would transfer back to NCCC.

The college would also be eligible for reimbursement from the state, up to 50 percent toward the rent.

•The third option involves the Niagara County Industrial Development Agency, which would issue tax-exempt revenue bonds to finance the CAI’s purchase, physical creation and stocking.

The property owner would have to sign a long-term lease with NCCC or its not-for-profit affiliate. Here, Niagara County could contribute funds to the culinary school to pay for operational expenses.

•The final option involves the creation of the CAI by a private developer. This for-profit owner would have to use conventional commercial financing, and sign a long-term lease with NCCC.

The school would be subject to property taxes and rent. The state could provide some funding to offset cost – up to 50 percent – but that is decided on a yearly basis.

For more information, visit http://wnypapers.com/news/2007/02/s3_culinary.htm.