Image from RaefoodsInc.com
MAYVILLE – Chautauqua County economic development officials are scrambling to find a new tenant for a food processing plant in Westfield after the most recent occupant had to close its doors due to a lack of business.
Rae Foods, Inc., which specializes in making the Nowinski brand pierogis, has closed its 15,000 sq. ft. operation at 75 Bourne St. in Westfield, just a year-and-a-half after the Chautauqua County Industrial Development Agency signed off on a series of incentives to bring the business to the village. The company was operated by Beverly Braley and Rachelle McFeely.
In the summer of 2013, the IDA Board of Directors voted to give Rae Foods a significant incentive deal, which included a 10-year Payment in Lieu of Tax schedule, a $640,000 in AL Tech Revolving Loan at 4 percent interest, machinery and equipment, abatement of sales tax during the construction period, and also abatement of mortgage recording tax. Additional economic incentives were also approved by Empire State Development. In exchange, the company had said it would hire up to 50 people within a five year period.
However, the Rae Foods never had more than 15 employees since moving into the new space. Recent news reports have said the company was forced to close its doors because it could not build a strong enough customer base to survive.
Village officials will work with the IDA in trying to find another business to move in. In the meantime, the owner of Rae Foods will still be required to pay back the remainder of the loan it owes to the county.
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