Action in response to request from taxing jurisdictions
Agency also approves two projects that will create 22 new jobs with estimated annual combined economic impact of approximately $2.4 million
Agency receives highest level of assurance from auditors
At the request of various taxing jurisdictions, including the Town of Somerset, the Barker School District and Niagara County, the Niagara County Industrial Development Agency board of directors today voted to accept an application for assistance from the bondholders of AES Somerset for a modification of a payment in lieu of taxes for the power plant.
"The agency was recently approached by the taxing jurisdictions requesting that we vote to accept an application from the new owners of the power plant to modify the existing PILOT," said NCIDA Chairman Henry M. Sloma. "Our board is simply facilitating this request on behalf of the taxing jurisdictions and we anticipate that each of them will forward the agency resolutions formally making this request."
In other matters, the NCIDA approved applications for assistance received at the March meeting for Modern Tec Manufacturing and SOPS LLC (Sun Orchard Fruit Company). Both companies plan expansions of their operations, because of growth and demand for their products. The projects, combined, will create 22 new jobs, while retaining 70 current ones, and will have an economic impact of approximately $2.4 million.
The board of directors also accepted and approved the annual independent auditors' report for fiscal year ending Dec. 31, 2011 as presented by Lumsden & McCormick LLP, certified public accountants. Clean audit opinions were delivered on all entities, which is the highest level of assurance that can be issued by an independent auditor.
Lumsden & McCormick also reported that all entities are financially secure with strong net asset positions inclusive of the NCIDA and its component units, the Niagara County Development Corporation, and the Niagara Area Development Corporation; as well as the Niagara Economic Development Fund (a business trust), and the Niagara Industrial Incubator Associates (a limited partnership).
"We are very proud of our annual audit results and it is all because the Niagara County Industrial Development Agency continues to strongly adhere to strict management and budgetary policies," Sloma said. "It also is the result of having great projects coming before our agency for assistance, and the projects we approved today are certainly part of this continuing trend."
Modern Tec Manufacturing is located on Lockport Road in the Town of Cambria. Christopher Matyas started the business in December of 2009. The company manufactures custom-made, high-precision machine components, including parts for the medical industry, military armoring systems, gas compression parts and multi-axis machining of impellers.
The cost of the Modern Tec project is approximately $1 million and will create 10 new jobs, while retaining 16 current positions. Modern Tec was approved for a 15-year industrial P.I.L.O.T., sales tax abatements and mortgage recording tax abatement. The estimated cost benefit analysis calculates that the project will have an annual economic impact of approximately $1.75 million.
Sun Orchard Fruit Company is a fourth-generation, family-owned company and operates a fresh-apple-packing facility at its location on Transit Road in the Town of Newfane. The company packs and ships approximately 500,000 cartons of apples annually to supermarket retailers including Wegmans.
Sun Orchard Fruit Company is building a 24,000-square-foot addition to its current operations in order to house a new production line. The expansion is needed because of projected increases in apple supply and demand. The expanded facility will enable Sun Orchard to pack the increased supply more effectively and efficiently and provide a higher quality product to meet demand.
The projected cost of Sun Orchard Fruit Company's expansion project is $3.48 million and will create 12 new jobs, while retaining 54 current positions. The company was approved for a 15-year industrial P.I.L.O.T., sales tax abatements and mortgage recording tax abatement. The estimated cost benefit analysis calculates that the project will have an annual economic impact of approximately $635,800.