The Niagara County Industrial Development Agency board of directors approved an application for assistance from The Summit Outlets LP and developer Zoran Cocov at its board meeting Wednesday.
Summit Outlets LP is proposing to invest approximately $17 million for construction, site work and new equipment to renovate the former Summit Park Mall at 6929 Williams Road. The renovations at the site are expected to create up to 175 construction jobs and 35 jobs over three years. Summit Outlets also submitted an Environmental Assessment Form with its application, which indicated the project would have no environmental impacts.
"This is a complex project and the board looked at a number of factors in approving the application, including the fact that the incentives approved are for infrastructure improvements only; the mall itself will stay on the tax rolls," said NCIDA Chairman Henry M. Sloma. "The exemption under the law to approve the incentives is for tourism destinations, which are likely to attract a significant number of visitors from outside the region, and the marketing plan provided by the developer reflects a focus on bringing people from outside the area, specifically from Canada."
If it is determined the project is not a tourism destination, the NCIDA has the ability to claw back and terminate the incentives to the developer.
The application for assistance to The Summit Outlets LP includes sales tax abatements and a five-year payment in lieu of taxes (PILOT). The total estimated state and regional benefit is $983,716 and the total project incentives are $700,000.
The Summit Mall opened in 1972 and became mostly vacant during the 1990s.
In other agency actions, the board approved its 2015 budget, a six-month extension for an inducement for Youngstown Cold Storage and a one-year sales tax extension for SAI Lodging.
In new business, the board accepted an application for Sterling Energy Group to transfer its mortgage exemption to Sterling Energy Group Inc. as part of a $25 million investment in the former Niagara Generation facility in Niagara Falls as well as the extension of an existing agreement with Niagara County Brownfield Development Corp. for financial management services.