Correction: In the print edition of The Chronicle-Express, we incorrectly reported that David Bunnell, the new owner of Rainbow Cove, is also the owner of Starkey's Lookout Winery/Brewery. Bunnell is no longer an owner of Starkey’s Lookout. We apologize for the error.
At the September meeting of the Finger Lakes Economic development Center (Yates County’s sole industrial and economic development agency) CEO Steve Griffin reported that former Starkey’s Lookout owner, Dave Bunnell, has an agreement in place to purchase and upgrade the Rainbow Cove Resort on Seneca Lake near Himrod. Bunnell plans to make Rainbow Cove a competitor in the wedding and events market.
Griffin says the total project investment is projected to be $2.85 million, with nine full time equivalent positions created over the next three years, and over $5 million in salaries paid out over 10 years.
The FLEDC board approved a $200,000 loan to Bunnell for a 15-year term, with interest only payments through April 2018, when he expects the property to start generating revenue. The first 10 years will be at 3.4 percent interest. FLEDC will then re-adjust to 80 percent of the prime rate at that time for the remaining 5 years, with a balloon payment at the end of the term.
Mr. Bunnell also applied for FLEDC’s straight lease back (SLB) incentive. Total incentives through the SLB are projected to be $164,920 ($95,432 in property tax savings over 10 years; $50,088 in sales tax exemptions; $19,400 in mortgage recording tax exemption). Because the proposed tax incentives are greater than $100,000, there will be a public hearing on the SLB.
Griffin emphasizes that, based on total project estimates there is a 48 to 1 ratio of long-term public economic benefit compared to the incentives given for the project.
Other agenda items:
• Brock’s Bowling Alley: Kurt Brockman and Kiley Harmon have an agreement in place to purchase Doug Kent’s Lakeside Lanes, the bowling alley on Brown Street in Penn Yan. In addition to upgrading the bowling alley facilities, they will add a full-service pizzeria and additional recreational activities, such as additional arcade games. Kurt has 13 years of experience in pizzerias including 4 years as an owner.
The total project investment is projected to be $505,000 and will create four full time equivalent positions over the next 3 years. The board approved a loan for $40,000 at 3.4 percent interest over a 5-year term. The first three months will be interest only with a balloon payment due at the end of the term.
• Finger Lakes Museum: The board agreed to extend interest only payments on the Museum’s current loan for an additional 6 months while they continue to work with Empire State Development on drawing down previously approved grant funding. Once the FLM receives the grant funding, they will repay the loan in full.