The IDA Board of Directors and Staff in January 2017, one month after the completion of the 2016 fiscal year.

ALBANY – When compared to all other Industrial Development Agencies (IDAs) across New York State, the Chautauqua County IDA gave away significantly more tax breaks and also spent significantly more money in administrative expenses for each net job the county gained in 2016.

That’s according to data released Friday by State Comptroller Thomas DiNapoli.

• READ THE FULL 2016 IDA REPORT

The report, which focuses on financial and employment statistics for IDAs across the state (county, town, city, and village IDAs), showed there was a total of 208,700 net jobs gained in New York through various IDA projects across the state, with Long Island achieving nearly 25 percent of the statewide total.  IDAs in upstate regions accounted for 43 percent of the total net jobs gained. In Western New York, IDAs helped the region gain 19,700 net jobs, or 9.4 percent of the statewide total.

However, Chautauqua County’s IDA projects in 2016 resulted in just 319 net jobs gained in the county. That accounts for just 1.6 percent of the total net jobs gain for the entire WNY region.

In addition to jobs gained, the report also offered information on net tax exemptions provided by all of the state’s IDAs. During 2016, $715 million in net tax exemptions were given out. Meanwhile, total expenses for all IDAs in New York was $125 million.

When compared to other 57 county IDAs across the state, the Chautauqua County IDA ranked 40th out 57 in the category of net jobs gained, yet ranked 5th out 57 when it came to expenses.

The report showed that Chautauqua County IDA expenses were $4.6 million in 2016. The Net Tax Exemptions given out in the county were $7.9 million, ranking it 16th out of 57 county IDAs in the state. The total project count was 41, ranking 18th.

Put another way, the Chautauqua County IDA spent $14,400 and provided $24,700 in tax breaks for each net job gained in 2016.

For comparison, all IDAs in New York State spent $600 and provided $3,425 in tax breaks for each net job gained during the same time period. In Western New York, all IDAs spent $700 and provided $2,990 in tax breaks for each net job gained.

Bottom line, the county spent significantly more and gave away significantly more tax breaks for each job gained, compared to the state average.

The Chautauqua County IDA executive director in 2016 was Kevin Sandvidge, who remained at the helm through last year. It saw a change in leadership earlier this year with the appointment of Mark Geise as Executive Director.

“IDA projects continue to produce new jobs across the state, but the pace has slowed in several upstate areas,” said DiNapoli. “Across New York there are nearly 4,500 IDA projects valued at $96 billion currently underway. In today’s economy, it is important communities benefit when offering tax breaks. Our report can help determine if the incentives supporting local economic development efforts are worth it.”

The Chautauqua County IDA board and staff during the Jan. 23, 2018 IDA board meeting. The county IDA, along with the county Department of Planning and Economic Development, has been without a director since Kevin Sanvidge’s retirement in December 2017. IDA CFO Richard Dixon has served as acting director since that time. 

MAYVILLE – Chautauqua County Executive George Borrello will be announcing the new economic development strategy for Chautauqua County today at 1 p.m. in Room 331 on the third floor of the Gerace Office Building in Mayville.

This announcement will include the appointment of new leadership for the Chautauqua County Department of Planning and Economic Development (CCDPED) and the County of Chautauqua Industrial Development Agency (CCIDA).

The county has been without an economic development director since Dec. 15 when former director Kevin Sanvidge retired from his post. Acting IDA Chief Financial Officer Richard Dixon was appointed as interim director and CEO for the county IDA since Dec. 21.

A barn in Mayville will be converted into the Big Inlet Microbrewery, thanks in part to two loans totaling $240,000 from the County IDA.

JAMESTOWN – The Chautauqua County Industrial Development Agency met on Thursday morning in Jamestown and acted on a number of resolutions, including the sale of a piece of property in one of the county’s industrial parks, as well as a loan for a new start up brewery in Mayville.

IDA officials approved the sale of the property at 2071 Stoneman Circle to ZTS Development for $1.2 million.  The property currently houses the Classic Brass operation, which is leasing space from the county. IDA executive director Kevin Sanvidge says that even with the sale to ZTS, the terms of the long-term lease agreement with Classic Brass will continue, meaning the operation won’t see any impact with the property transfer. Sanvidge also said the IDA will likely consider a PILOT agreement with ZTS later this year.

Also on Thursday the IDA board approved two loans totaling $240,000 for a start-up microbrewery operation in Mayville.

The Big Inlet Brewing operation is a $600,000 project that would be based out of a 3400 sq-ft barn at 6169 Elm Flats Road.

The IDA board approved an Al Tech Loan for $165,000 and a$75,000 CRLF loan.  The operators of Big Inlet Brewing, Randy and Brent Henderson, have also received a $300,000 loan from a local bank.

Once open the operation will include a tasting room in the facility, and later, sales of kegs of craft beer. It would have minimum staffing to start, although IDA officials say their business plan does account for growth in employment. They are hoping to open the business on a part-time basis this coming winter.

The IDA board also unanimously approved a resolution to refinancing of RM12A Holdings, LLC, with Keybank National Association. Specific details of what the refinancing entails were not provided during discussion.

The Chautauqua County Industrial Development Agency board of directors hear details of the 2016 audit from CPA Dave DeTanna (Buffamonte, Whipple, and Buttafaro), during the board’s March 2017 meeting.

JAMESTOWN – The Chautauqua Industrial Development Agency board of directors Tuesday signed off on cancelling nearly $900,000 in money owed through loans for a failed business in Falconer.

More than $1,000,000 in loans was given to Jamestown MVP Plastics in 2011 and 2012 to help with the purchase of a facility and new equipment. Jamestown MVP was a start-up company that had plans to produce environmentally-safe plastics at the former Sysco Foods location at 2060 Allen St. Ext.

However, the market never developed for the products and the company was forced to close its doors late last year. As a result, Jamestown MVP Plastics was unable to pay off the remainder of the money it owed on two IDA Al Tech loans, totaling $850 thousand dollars (one initial 20-year loan for $500,000 was approved in 2011, and a second loan for $500,000 was approved in 2012), along with another Chautauqua Revolving Loan Fund loan totaling $47,142 (of an original $75,000 loan approved in 2012).

The cancelled loans represents about 8 percent of the total amount of money the IDA is able to loan out.

IDA Director Kevin Sanvidge said the cancellation of the loans was disappointing, and members of the IDA board agreed. However, Sandvidge also noted that the IDA Board probably wouldn’t have done anything differently to prevent the loans from being given to the project, largely because the loans were also reviewed and approved by an independent loan committee, prior to the IDA board signing off on them.

“It is an independent loan committee made up of two [IDA] board directors and five independent local bankers, so they look at all the information – business plan and financials of an investor – and make a decision, as they would with any loan that would come in front of their bank. The difference is we don’t have Dodd-Frank telling us what to do and what not to do,” Sanvidge told WRFA, alluding to the federal law that places strict regulations on banks when it comes to giving loans to individuals and businesses.

Sanvidge added that there was some risk involved with giving the loan to Jamestown MVP and the IDA did give some leeway, but that was countered by the amount of private investment money the company was putting toward the project.

“The leeway here would have been the lack of strong costumer base, but also the fact that he invested $10 million into this – between the purchasing and upgrading the building and buying new equipment,” Sanvidge said. “It’s a fabulous building and now there’s a new owner in the building looking to move forward with a well-established manufacturing company.”

When Jamestown MVP received the loans from the IDA, it had said it planned to hire 125 people and would be the largest customer for the Jamestown Board of Public Utilities.

IDA BOARD RECEIVES CLEAN AUDIT FOR 2016

In other news, the IDA also received its independent audit for 2016 from Dave DaTanna of Buffamante, Whipple, and Buttafaro.

The audit showed the IDA had a total of $19 million in total assets and $13.27 million in net assets, which were down about $75,000 from the previous year. However, it also showed the IDA had a significantly higher amount of administrative revenue than the previous year, mostly through an increase of $800,000 in application fees collected by the IDA.

“One of the [application fees] was from the Celoron Hotel project, which is a $31-33 million project,” Sanvidge said. “I’d like to say we’re going to do one of those a year, along with manufacturing projects. But that’s our job, to go out and try and land these projects and [the Celoron Hotel] is the grand slam in the World Series for us. But we do keep swinging and swinging for the fence, and it pays off.”

The audit presented by DaTanna was unmodified with no exceptions, meaning it was clean. It also had no  major recommendations for the IDA board, in terms of how it manages or controls its finances.  The 2016 audit will be posted on the IDA website in the coming days.

The Post-Journal is reporting that Empire Specialty Cheese Co. (5151 Fairbanks Road, Ashville) has run out of money after investing millions of dollars into their facility, which is located in Blockville and had previously been the location of the AFA Foods operation.

The New Jersey-based Empire Specialty Cheese bought the plant in 2013 and only moved in and began operation at the plant at the end of 2015. It was previously located in Cattaraugus County.  As part of the move, the company received a $600,000 grant from the New York State Office of Community Renewal, a $300,000 loan fund and a $300,000 deferred loan from the IDA. At the time of the loan company officials had said the plant would eventually have 200 employees. Currently there’s an estimated 90 workers at the plant.

According to the Post-Journal, Chautauqua County Industrial Development Agency CEO Kevin Sanvidge said the company would likely have to file Chapter 7 bankruptcy, unless a deal can be made to change ownership.

On Monday morning the IDA announced that there will be a grand opening – under new management – of the cheese plant. The new management company has not yet been announced.

Senator Catharine Young; Nick Scott Sr., President and Owner, Scott Enterprises; Chautauqua County Executive Vince Horrigan; Kevin Sanvidge, Chief Executive Officer, Chautauqua County IDA; and Pierre Bellicini, Director of Communications and Marketing, LECOM Health announce $150,000 in New York State support to promote the upcoming LECOM Health Challenge. (Image courtesy of Sen. Young’s office)

CLYMER, NY – Both local and state officials are saying that the return of professional golf to Chautauqua County via the LECOM Health Challenge will be an economic boon for the region.

The LECOM Health Challenge, a PGA/Web.com Tour event, will be hosted at Peek’n Peak Resort’s Upper Course from July 4-10, 2016. The tournament includes a Pro-Am on Wednesday, July 6, followed by four official rounds of tournament competition on July 7-10. It is expected to draw 156 professional golfers and 20,000 to 30,000 spectators.

On Tuesday New York Senator Cathy Young (R,C,I – Olean) joined Chautauqua County Executive Vince Horrigan, Chautauqua County IDA Chief Executive Officer Kevin Sanvidge, and Nick Scott, Sr., President and Owner of Scott Enterprises, which owns Peek’n Peak Resort, to announce $150,000 in New York State support to promote the upcoming tournament.

“The LECOM Health Challenge is a magnificent economic driver and it is exciting to have the tournament back at Peek’n Peak’s beautiful facility. Golfers across our region know how great the courses are in Chautauqua County, and now we have the chance to market our region to a worldwide audience,” Senator Young said.

“I was pleased to be able to secure this funding, because the tournament will highlight Chautauqua County’s assets, including our world class wineries and craft breweries, incredible dining, pristine lakes and waterways, and, of course, our recreational activities. Tourism is the state’s fourth largest employer and it is important that we build on that success. The boost local businesses will see during the tournament, and as a result of the worldwide audience, will help create even more good paying jobs,” said Senator Young.

According to Senator Young’s office, in 2014 tourism in the Chautauqua-Allegheny region was a $548 million industry, sustaining 5,600 jobs in Chautauqua County. The county represents 48 percent of the region’s tourism sales with $263 million in traveler spending. Direct and indirect income from area residents involved in the tourism industry totaled over $238,000.

Proceeds from the tournament will benefit the LECOM Student Scholarship Fund, as well as several other local charities including the United Way of Chautauqua County, Mikey’s Way Foundation, the Jamestown Community College Scholarship Funds and the First Tee of Western New York. In 2013-14, LECOM scholarships totaled more than $3.7 million for students.

Tickets to see the tournament are still available by visiting: www.LECOMHealthChallenge.com.

County Executive Vince Horrigan and IDA director Kevin Sanvidge will be joined by Senator Catharine Young and others to offer details on the upcoming LECOM Health Challenge pro golf tournament at Peek’n Peak.

The LECOM Health Challenge, a PGA/Web.com Tour event, tees off on Monday, July 4 and runs through Sunday, July 10.

The tournament marks the return of professional golf to Chautauqua County, and includes a Pro-Am on Wednesday, July 6, followed by four official rounds of tournament competition on July 7-10.

According to officials, the LECOM Health Challenge will bring national and international exposure to Chautauqua County and the surrounding region, via a four-day telecast on the Golf Channel.  It is projected to have a direct economic impact of $5 to 6 million on the area.

The Chautauqua County IDA Board of Directors during its October 2015 meeting.

JAMESTOWN – The effort to develop the largest wind farm in Chautauqua County is one step closer to becoming a reality.

On Wednesday the Chautauqua County Industrial Development Agency approved a $316,800 Payment in Lieu of Taxes (PILOT) agreement for EDP Renewables North America to build a $150 million wind farm in Arkwright consisting of 36 Wind Turbines.

The turbines will be located primarily on private property, and the property owners will continue to pay full value tax payments. The PILOT only covers the taxes for the new turbines and would be paid each year for 30 years, split between the county, township and three school districts. IDA executive director Kevin Sandvidge says, however, that a tax abatement will be gradually phased out with the EDP Renewables eventually paying taxes on the turbines.

“The PILOT will go to the five jurisdictions,” Sanvidge said. “An annual payment of $81,000 will go to the county and a payment of $57,000 will go to the town. The remaining money will be split between the three school districts of Forestville, Pine Valley and Fredonia.”

EDP Renewables project manager Jeffrey Nemeth said in addition to the PILOT, the company will also make an annual land use payment of $500,000 to the various property owners who are involved. And the company is also investing in upgrading several roads in the town, so that workers can have better access to the locations where the turbines will be put up.

A wind farm in Wyoming County, NY gives an idea of the size and scope of the turbines that may soon be put in place in the Town of Arkwright by EDP Renewables North America. (Photo from the Buffalo News)

Each turbine will stand approx. 492 ft. high from the ground to the tip of the blade. Each turbine will have three blades and will generate, on average, about 2.2 MW of energy. An underground utility line will also be installed, connecting the turbines to the NRG power line in the town of Pomfret.

Nemeth said the turbines will be located south of Route 83 and go as far north as Straight Road. Center Road will split the project in half with turbines on the east and west side of the road.

The project will create 200-250 short-term construction jobs. A bidding process will take place to determine who the contractor will be for the project. Once the turbines are up and running, Nemeth said there would be 6 to 8 permanent full time jobs that pay between $40,000 and $80,000 per year.

The project still needs to go through the state SEQR process and a public hearing before moving forward. If all goes according to schedule, the turbines will go up in mid 2017 and are expected to start generating power by late 2017.

NEW BUSINESS COMING INTO FORMER NOWINSKI PIEROGI LOCATION

Meanwhile, the IDA also took action that could lead to a new business operating out of a recently closed down Nowinski Pierogi factory in Westfield.

The IDA approved a resolution to lease equipment in the 15,000-square-foot facility at Bourne St., which was previously occupied by Rae Foods, Inc. – which owned and operated the Nowkinski operation.

Sanvidge said a yet-to-be-named investor is interested in leasing the equipment, which the IDA took ownership of after Rae Foods went into bankruptcy and was unable to pay back its debt on a $640,000 Al Tech loan.

He said the prospective business must first purchase the foreclosed property from the bank before it can move in. Once the purchase is made, more details about the business will be announced.

Rae Foods Inc. closed down at the start of this year – about a year after it began operation.

Chautauqua County Executive Vince Horrigan.

DUNKIRK – Chautauqua County executive Vince Horrigan says a major deal is close to taking place for a recently vacated food processing plant in the north county.

Horrigan tells WRFA that operations at the former Dunkirk ConAgra facility may soon resume with a new business moving into town.

While the name of the business can not be released, Horrigan did say that if a deal is finalized, it would bring in nearly 300 jobs to the Dunkirk plant, which is located at 26 E. Talcott St. in Dunkirk.

“The IDA just approved a resolution to prepare that property for sale to this potential investor and myself and IDA director Kevin Sanvidge made a hard case with state officials for a very robust incentive package for that developer and the state is going to step forward and help us with that,” Horrigan said.

Conagara Foods moved out its operation out of the north county in 2014, and by the fall, the county purchased the property for $2 million using a low interest bond from the Chautauqua County IDA. The county is now hoping to sell the property to the prospective buyer within the next couple of months.

Incoming Economic Development Director Kevin Sanvidge (left) and County Executive Vince Horigan.

MAYVILLE – Chautauqua County Executive Vince Horrigan has announced his choice for the new head of economic development.

On Wednesday afternoon, Horrigan announced the appointment of Kevin M. Sanvidge as the new Administrative Director/CEO of the Chautauqua County Industrial Development Agency (CCIDA) and Director of the Chautauqua County Department of Planning and Economic Development.

Sanvidge begins his new position on Tuesday. He is replacing current director Bill Daly, who will be retiring on May 31.

Sanvidge is currently a member of the Board of Directors of Lake Shore Savings Bank, where he also serves as the chairman of its Compensation Committee and as a member of its Corporate Governance Committee. He is also a member of the Board of Directors of ECR International Corporation and he’s is a past Chairman of the Board of Directors of the Chautauqua County Chamber of Commerce.

He previously was involved with both Cliffstar Corporation and Al Tech Specialty Steel Corporation.

The selection of the new director was made through the help of a search committee established by Horrigan. Members of the committee included: County Legislator George Borrello, former IDA administrative director, past acting county executive and president of Dawson Metal Dave Dawson and Mike Metzger and Dennis Rak, members of the CCIDA Board of Directors.