The Finger Lakes Economic Development Center’s (FLEDC, the Yates County industrial/economic development agency) Board of Directors approved a resolution to schedule a public hearing to consider a Payment in Lieu of Taxes (PILOT) agreement for KanPak’s possible expansion of their Penn Yan manufacturing plant located in the Horizon Business Park.
FLEDC CEO Steve Griffin says KanPak is considering adding a 196,000 sq. ft. warehouse and investing in a wastewater treatment facility to support a growth in volume.
“The total projected capital investment is $20,739,610 with an anticipation of 12 full time equivalent jobs created over the next three years, and retaining 206 other positions,” says Griffin. “The expansion has not been approved by the corporate HQ as they continue discussion with Empire State Development while analyzing other company locations as a possible option for the expansion as well. We are proceeding forward on our end to be ready in the event KanPak does approve the expansion in Penn Yan.”
If approved, Griffin calculates the projected total economic benefit to the community, taking into account construction and facility build-out costs, PILOT payments made, and total wages paid for new hires, would total $32,886,198. The total projected tax savings to KanPak in return for their investment is projected to be $3,937,040 over a 15-year ramped property tax increase period; $3,173,411 in property tax savings, $763,629 in sales tax exemptions, and yet to be determined mortgage tax exemption. The public hearing will be held at 9 a.m. April 3 in the Penn Yan Village Hall.
The FLEDC Board of Directors also approved a resolution to schedule a PILOT public hearing for the planned construction of an approximately 12,500 sq. ft. conference and banquet facility onto the Hampton Inn in Penn Yan. The center will have capacity for 300 people for banquets and 585 people for conference events.
The total projected capital investment is $4.4 million with an anticipation of 21 full-time equivalent jobs created over three years.
“Taking into account PILOT payments, wages paid, and total construction and build-out costs, the total economic benefit to the community is projected to be $10,877,234,” says Griffin. “This does not take into account the additional spending attendees of the event space will make in the community when here.”
During the 10-year ramped property tax increase period, the total projected tax savings to the Hampton Inn in return for their investment, is projected to be $593,362; $469,362 in property tax savings, $104,000 in sales tax exemptions, and $20,000 in mortgage tax relief. The public hearing will be held at 9 a.m. April 3 in the Penn Yan Village Hall.
In other business
• The board approved Teresa Hoban’s request for a $20,000 loan to help finalize renovations to Hoban’s Spirits at the historic Struble’s Arcade building at 148 Main St. in Penn Yan. The first phase of the project will also build-out a space for a yoga studio in a currently vacant portion of the first floor, and construct a shared, accessible bathroom for current and future tenants. Total construction costs for the initial project is estimated at $64,000. Hoban plans on creating three full-time equivalent jobs at Hoban’s Spirits over three years. The $20,000 loan is a 5-year term with a fixed interest of 4.4 percent.
• New board member Sirene Garcia was appointed to replace outgoing member Mary Zelazny whose term expired Dec. 31. In 2009, Garcia began her current position as a key member of Finger Lakes Community Health’s Administrative team. Today, with her Master’s degree in business management, she continues her work with the Migrant Voucher Program as well as with her role as the director for a telehealth network that reaches across NYS.
• New officers: With the imminent retirement of James Wilson, board member Rita Gow was elected Treasurer. Dr. Kim Williams was elected Secretary to replace Zelazny, with Garcia as Assistant Secretary. Gene Pierce and Jerry Hiller were re-elected as Chair and Vice-Chair.