Finger Lakes Economic Development gives incentives

The Finger Lakes Economic Development Center (FLEDC) has approved financial incentives for Penn Yan Hospitality, which plans to expand the Best Western Inn and Krog Corporation, owner of 240 North Ave., Penn Yan, where a new call center will employ up to 450 people,

At last week's FLEDC meeting, the board of directors approved a proposed payment in lieu of taxes (PILOT) agreement for Penn Yan Hospitality which will be subject to a public hearing yet to be scheduled.

FLEDC CEO Steve Griffin says the plans call for the Best Western to be expanded by 12 rooms, growing to the south along Brown Street. The $870,000 project is projected to begin in 2010, most likely in the autumn, says Griffin, who adds the project will create a need for six new workers.

The Best Western was also certified as part of the Yates County Empire Zone, so the property is now eligible for a refund of 75 percent of property taxes.

Griffin explains the new agreement amends a previous PILOT agreement so the company will pay a flat 75 percent of its property tax payemants and then receive a 75 percent refund from the FLEDC. That means the tax collecting entities (Yates County, Penn Yan Village, Town of Milo and Penn Yan School) will receive more tax revenue if the Empire Zone certification is approved by New York State. Griffin says under the existing 20-year PILOT, Penn Yan Hospitality will make tax payments of $6064 in 2011, based on current assessed property values. Under the proposed plan, that amount will go up to $34,820. Penn Yan Hospitality will receive a refund of over $26,000.

The Krog Corpoation had previously received approval for an incentive package to make repairs to the former Iron Age building which the corporation purchased last year. The FLEDC board agreed to increase total tax incentives to more than $100,000 because of the additional utilization of the building. Griffin says a portion of the building will be used by Silgan Plastics in addition to the call center and the potential for some Yates ARC programs to be relocated to the building.
Griffin said Krog Corporation is now putting over $2.3 million in new money into the building. This incentive package is also subject to a public hearing, yet to be scheduled.

In a related development, the FLEDC board approved a sales tax exemption for Data Listing Services which will be making local purchases of around $975,000 which would be subject to state and local sales tax. This move will save the company, which is investing $4.4 million in opening a call center in Penn Yan, $78,000, according to Griffin.

The FLEDC is also paying for the materials to put in a new parking lot at the building and the Yates County Highway Department will construct the new lot, says Griffin.

The board also gave final approval to a financial incentive package for New Beginnings, a residential development outside Dundee. The package reduces the property tax liability for owner Paul Brown in the first two years of the project.

Also last week, the newly created Yates County Capital Resource Corporation (CRC) approved a financial package valued at $15 million for Keuka College. The package includes refinancing previous debt and financing around $7 million in new projects at the campus. Griffin says the projects at the college include renovations and improvements to existing buildings.

A public hearing about the Keuka College package will be held at 4 p.m. on March 4 in the FLEDC Conference Center at the Keuka Business Park.

The CRC, which is led by the same officers and directors as the FLEDC, was formed by the Yates County Legislature last year after a state law allowing Industrial Development Agencies to work with not-for-profit organizations was allowed to lapse.

Griffin says the CRC will be able to work with organizations like the college, Soldiers & Sailors Memorial Hospital and other area not-for-profits.