EMS Council Chair Larry Barter addresses Chautauqua County Legislature (April 26, 2023)

A local law that gives volunteer firefighters and volunteer ambulance workers a break on property taxes has been approved by the Chautauqua County Legislature.

The local law provides a 10% exemption on real property taxes for volunteers who have been in the service for at least two years. For volunteers who are active and have 20 years of service, it provides a lifetime 10% exemption. A second local law approved allows the spouses of volunteers killed in the line of duty to retain that tax exemption as long as they don’t remarry.

Legislator Terry Niebel, one of the sponsors of the bill, spoke in support of the local law, “Without their services, we could easily be spending millions of dollars. Like most counties in New York State, Chautauqua County is experiencing a serious shortage of volunteers. With the two local laws on the agenda this evening, we’re offering the best benefit package allowed by the state.”
Niebel also urged other taxing districts in the county to consider offering the exemption.

The legislature also approved using $50,000 in American Rescue Plan funds toward a market study for the Jamestown Airport. The Chautauqua County Industrial Development Agency had approved $25,000 in funding toward the $75,000 project in January.

County Executive PJ Wendel said the study is a necessary part of the Essential Air Service (EAS) application to the U.S. Department of Transportation. He said EAS provides subsidies to airlines to reduce the ticket prices, thus making it more affordable for flyers, “Once this (study) comes back, we are ready if we need to pivot and focus from a commercial airport to a general aviation airport. Shannon (Barnhart) has the tools and the skills. We’ve already got some plans and things we’ve talked about in chatter on what we can do as far as increasing smaller what they call T-hangers, increasing the operability of the airport.”

Wendel said with the Legislature’s approval the county will now do a request for proposals (RFP) to contract with someone for the study.

Former Truck-Lite facility in Falconer

The former Truck-lite facility in Falconer is being sold to The Krog Group.

The Chautauqua County Industrial Development Agency Board approved a $900,000 Al Tech Loan, mortgage tax abatement, and sales tax abatement. The total project cost is $3,655,000.

IDA Business Development Manager Carol Rasmussen said Peter Krog plans to purchase and lease out the 160,000 square foot facility for office and manufacturing space. He will be doing some renovation work as well.

The IDA board also approved an updated payment-in-lieu-of-taxes (PILOT) agreement for the Welch’s Building project in Westfield.

Chief Financial Officer Rich Dixon said 2 Portage LLC previously had been approved for a 15-year PILOT by the IDA, “The developer was talking with his investors and with people who were making him the loan. They were hoping they could get more certainty as to what the tax payments would be after year 15. They originally came to us and talked about maybe a 30-year, 25-year (PILOT). We ended up with a compromise that I think is very fair.”

Dixon said the agreement is for a 20-year PILOT that has the same terms for years 0 through 15 as the current PILOT and then years 16 through 20 are at 100% tax at a fixed rate.

The Welch’s Building project previously received a $475,000 AL Tech Loan Fund as well as $1.5 million in Restore New York funds for the $18 million project.

Dixon said there is no change to the project other than the change to the PILOT.

The IDA Board also approved an Al Tech loan of $100,000 for BP Endeavors LLC to purchase Wildwood Acres Campground on Brown Road in Bemus Point. The total project cost is $668,000.

Rasmussen said the current owner, who has ran the campground for 21 years, is selling the property due to illness. The new owners plan to open up 20 to 30 new sites on the ground for rent.

Cummins Inc.

Cummins officials, speaking at the Chautauqua County Industrial Development Agency board meeting, said the plant is nearly 50 years old and in need of infrastructure and equipment upgrades.

Cummins External Communications Manager Lauren Daniel said in a statement, “Cummins is investing across our footprint to support our Destination Zero strategy and next generation engine portfolio. Our Jamestown Engine Plant is a critical piece of our long-term strategy, and we are evaluating it for additional investment opportunities.”

The CCIDA board approved a $3 million sales tax exemption to Cummins for the project.

According to a Jamestown Post-Journal article, officials project employment will increase by 90 people over three years of the project.

Chautauqua County Executive PJ Wendel delivers State of the County address (March 22, 2023)

Chautauqua County Executive PJ Wendel said the county is “on the precipice of greatness” in his  State of the County address.

Wendel said the 2022 contribution to the general fund balance was $19.4 million, “This contribution is created in part by holding our teams to fiscally responsible budgets, an increase in the tax foreclosure auction, an overdue settlement of the tribal compact, as well as continued success in our sales tax revenue. With the work of our fiscal team and my guidance, we’ve been able to provide a tax rate reduction for the last two years, totaling 71-cents per thousand while maintaining the ability to provide contributions to the fund balance.”

Wendel said the fund balance contributions over the last three years have met and exceeded recommended levels under the five-year financial management plan.

He said there were record investments in the county in 2022, “The Chautauqua County Industrial Development Agency reported 50 approved projects with a combined total of $501 million of committed investments. The committed investments will create nearly 300 new jobs, retain an additional 774 existing jobs, and create construction projects and construction jobs throughout our county.”

Wendel also cited the restructuring of the Department of Mental Hygiene with the Department of Social Services, that included the separating of the Department of Health out as a separate department. He also recognized the Sheriff Department‘s new Unsolved Cases Teams that has resulted in new leads on homicides and missing persons cases.

Securing state and federal funds for the phase two expansion of the West Side South and Center Chautauqua Lake Sewer District, was another highlight for Wendel, “I remain committed to improving our water and sewer infrastructure around Chautauqua Lake. And this phase two will divert an estimated 62 million gallons of wastewater a year to the proper wastewater treatment facilities.”

Wendel said he’s continuing to advocate for healthcare in the north county, including contacting Governor Kathy Hochul‘s office to push for funding to be released for the Brooks Memorial Hospital project.

He also said the county and Chautauqua County Industrial Development Agency are working on creating a 150 acre shovel ready industrial site in the western part of the county.

Wendel cited record inflation, unfunded state mandates like Medical Assistance Treatment at the County Jail, as well as the possible clawback of over $4 million in Enhanced Federal Medicaid Assistance Percentages in the proposed state budget as challenges facing Chautauqua County.

Chautauqua County Executive PJ Wendel’s State of the County slideshow – March 20, 2023

Labyrinth Press Company owner Jeff James presents on expansion plans to Jamestown City Council (March 20, 2023)

Businesses seeking approval of American Rescue Plan funding gave further details on their proposed projects to Jamestown City Council members.

The three businesses, Labyrinth Press Company, Panache Salon, and Summit Wealth Management; had applied for Business Expansion and Building Acquisition (BEBA) Grant program funds.

The Jamestown Local Development Corporation board approved their requests at its February meeting but as the three requests were over the $100,000 threshold, they required City Council approval as well.

Council tabled the resolutions at its voting session in February, with council members saying they wanted more information about what the businesses planned to do.

Labyrinth Press Company has requested $114,855.

Owner Jeff James said he purchased the adjacent building, 4 East Fourth Street, in December 2021 to help expand the restaurant’s kitchen and add more seating, “Without this funding right here, I don’t see what the next step, path forward is to get the spaces to the level of a functioning kitchen down there, which is my goal. My number one goal is getting that space on the basement level to basically add 600 square feet to the kitchen space.”

James said he also has secured $100,000 in working capital from the Chautauqua County Industrial Development Agency for the project as well. He said Labyrinth currently has 22 employees, with four to five more being hired after the new kitchen is constructed.

Panache Salon owner Kristie Schwab also plans to use $167,105 in funding, if approved, to renovate an adjacent business space she purchased on West Third Street to add additional services to the business, “So that’s where the idea came to add flotation. We had a plan for four tanks. We’ve reduced that to three. I’d like to put in a salt cave, similar to what you find out in Ellicottville, also a sauna and cryotherapy.”

Schwab also said that if she doesn’t receive the ARP funding that the project will not be able to move forward.

Summit Wealth Management, which purchased 1285 North Main Street, has requested $108,705 for renovations to the building including a new roof, handicapped accessible entrance, and additional parking spaces.

Partner Doug Schutte said the business’ main goal is to serve more people, which means hiring more staff, “It would be more of a higher end hire, somebody who’s licensed and capable of processing securities related business. There’s a good chance we’re going to have to go outside of the area to find that, hope not, but we’ll do what we need to fill that position. And we can see, as Kristie pointed out, without funds like this, everything, the whole schedule of doing this, slows down.”

Council member at Large and JLDC Board Member Jeff Russell encouraged council members to try to visit the businesses in person before the voting session on March 27th to see the proposed projects in person. The funding requests will be on the March 27th voting agenda.

Grant Manager Tim O’Dell presents on business grant fund to the Jamestown Local Development Corporation board. (January 18, 2023)

The vast majority of board members who serve on the Jamestown Local Development Corporation (JLDC) have not received any training that’s required under state law.

That’s according to information provided by the State Authorities Budget Office, which is responsible for making public authorities more accountable to state law.

According to data from ABO, eight of the nine current JLDC board members – including mayor Eddie Sundquist – have yet to participate in the required state training that focuses on a board member’s legal, fiduciary, financial and ethical responsibilities. Under state law, all board members of local authorities like LDCs and IDAs must receive the training within a year of joining a board.

Sundquist said his office has been working with the State Compliance Office on the issue, “Where they’re well aware of the situation and they talked to us about what things need to happen. Number one, they gave us some additional dates for fiduciary training, which we found out is actually required for public authorities. And, unfortunately, with COVID, a lot of that went to the wayside for quite a period of time, but we want to make sure we’re compliant and doing the things that we need to do.”

JLDC serves as the lending arm of city government and, in 2022, the Jamestown City Council authorized it to oversee and appropriate neary $9 million in federal American Rescue Plan Act money aimed at economic development. As a result, the JLDC was given more appropriating power than at any other time in its 42-year history.

Besides Mayor Sundquist, other board members who reportedly have not completed training include the three board members who applied for federal grant money administered by JLDC.

As WRFA reported last week, JLDC board members Pete Scheira and Luke Fodor each applied for and received American Rescue Plan grant money for businesses or organizations they have a material interest in. Additionally, the wife of city councilman and JLDC board member Jeff Russell also applied for and received funding. In all three cases, the board members in question did not vote for their respective grant award, but both the JLDC bylaws and state laws have conflict of interest rules that appear to prohibit JLDC from awarding funding to entities that board members own a material interest in.

Only council president Tony Dolce is listed as recieving training, but that was in 2012 – over 10 years ago.

By comparison, five of the seven members of the Chautauqua County Industrial Development Agency have received state training, with two of those being in recent Pandemic years and two who have yet to receive training, having only joined the board within the past year.

In response to the likely violation of JLDC bylaws, Mayor Sundquist has said it was the city’s legal interpretation that the conflict of interest rules did not apply because JLDC was only acting as a pass-through agency for the federal money and did not receive it directly.

He said the U.S. Treasury Department is who oversees the ARP funds, “They’ve actually gotten rid of their staff that focuses on compliance in the Treasury Department, so it’s been a challenge for us to try to figure out what’s the proper way to do things when it comes to this federal funding. So, we’re working through that process, we’re going to be talking to the JLDC board about what we have found out through this process of working with the state and working with some of our federal partners because we really want to have that public discussion of what happened and where do we go from here.”

The mayor has also said the city is continuing to look into the conflict of interest situation and will work to rectify it should either state or federal officials verify it was not allowed.

Editors Note: A previous version of this article indicated Jeffrey Russell applied for a grant. That was incorrect and it was his spouse who filed the application for her business.

CCIDA CEO and Deputy County Executive of Economic Development Mark Geise said the agency has decided to “pump the brakes” on reviewing new applications, “The primary reason being we’ve got a number of them that are stacked up right now that have not closed. And we want to see some closings on those. I think there’s 21 all together and we’ve closed on four. 21 that we approved and closed on four. So, it’s sort of like let’s get more of those closed.”

Geise said that in a presentation he made before the County Legislature Planning & Economic Development committee, he informed that the 21 projects will create 350 megawatts and consume 2% of the county’s farmland, with the majority of that land being less than optimal soil.

He added that the IDA will still review solar applications but only if “a community pushes hard” for that.

Welch Administration Building, Westfield, New York

Redevelopment of the former Welch’s Building in Westfield is moving forward.

The Chautauqua County Industrial Development Agency said that 2 Portage LLC is now the owner of the historic structure and will begin the rehabilitation and adaptive reuse of the 51,000 square foot building.

2 Portage LLC received a $475,000 AL Tech Revolving Loan Fund through the IDA for the $18 million project.

Upon completion, the building will include 46 mixed-income residential units. In addition, there will be 3,700 square feet of commercial space located in original commercial space at the corner of Portage Road and Main Street. The commercial space will be targeted at a mix of tenants, including a food and beverage/retail operator in the street-level space, and other professional service office spaces on the ground floor.

The redevelopment of this building will provide needed housing in the Village, and street level retail, both of which will support the walkability and vitality of the Village.

Construction is expected to begin mid-2023 after final Historic Landmark status is approved by the National Parks Service. The property will be renovated and managed by Savarino Companies.

The project will create an estimated 70 construction jobs and three post-construction full-time equivalent jobs.

In addition to loan financing for building acquisition, the CCIDA Board of Directors also previously approved a Tax Lease/PILOT incentive agreement, which includes real property, sales, and mortgage recording tax abatements. The project also received $1.5 million in Restore New York funds from the state toward the historic rehabilitation and adaptive use of the building.

Former Silver Creek School (Google Maps)

The developer set to renovate the former Silver Creek School into senior housing has walked away from the project.

The Chautauqua County Industrial Development Agency sent out a release saying that Region Nine Housing Corporation made the announcement at a recent meeting with town, county, state and IDA officials.

Region Nine Director of Development Mark Comroe said the company is ceasing its involvement in pursuing all low-income housing tax credit development, “Unfortunately, despite our commitment as a non-profit to take no development fees or money from the project, the dramatically increased renovation costs have made the building and maintenance of this project untenable. Available grants, tax credits, and tax credit rental limits combined could not meet the costs associated with converting this historic school building into affordable homes for seniors.”

The Village of Silver Creek Senior School Apartments project involved the substantial rehabilitation, conversion, and an addition to a vacant, nearly 100-year old abandoned former school into a facility with 47 units of affordable rental homes for seniors ages 62 and older.

The project had been awarded $1 million in Restore New York funds in December 2022.

State and local officials are hopeful that another developer will be able to step in to move forward with the project.

Chautauqua County Industrial Development Agency (CCIDA) CEO and Deputy County Executive of Economic Development Mark Geise presents the 2022 CCIDA Annual Report.