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.

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.

The Chautauqua County Industrial Development Agency says Rae Foods, Inc. recently closed on the purchase of a new 15,000 square foot facility at 75 Bourne St. in Westfield for the “Nowinski Pierogi” manufacturing operation. Officials say in all, the project is expected to result in a $2.5 million investment in our economy.  The facility should be fully operational by early October, once significant renovations are completed. 

Through actions taken by the IDA Board of Directors the company will receive a 10-year Payment in Lieu of Tax schedule, $640,000 in AL Tech Revolving Loan Fund financing for working capital, 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.

Federal and State elected officials were also involved in the project, providing support and resources to the new company. Once opened, Rae Foods is expected to hire up to 50 people within five years to work at the facility.

DUNKIRK METAL PRODUCTS

A series of recent actions taken by the County IDA Board of Directors is paving the way for Dunkirk Metal Products of WNY, LLC (DMP) to consolidate operations and grow their business in Chautauqua County.

The IDA Board approved the sale of its 40,000 square foot facility located at 3575 Chadwick Drive in the Town of Sheridan. The board also approved a Payment in Lieu of Tax (PILOT) agreement that will result in real property taxes being collected with a gradually increasing payment schedule over a period of 12 years. Temporary sales tax abatement related to improvements and mortgage recording tax abatement will also be provided to the company, if needed.  In a related action, the Board also approved the eventual acquisition of the company’s 795 Deer Street, Dunkirk location.

County development director Bill Daly said that Dunkirk Metal Products has been a valued manufacturer and employer in Chautauqua County for over 60 years. He added that the new facility will provide the space the company needs to expand and grow their workforce for years to come

As part of the sale agreement, the CCIDA agreed to assume the lease and will eventually take the option to purchase DMP’s 795 Deer Street, Dunkirk location.  According to Daly, this facility will be marketed for sale by both the CCIDA and the City of Dunkirk.

As a result of the move, 20 jobs will be retained and 4 new jobs are projected.