CCIDA Will Back Financial Incentives for Allegany Crossings LLC
CCIDA Will Back Financial Incentives for Allegany Crossings LLC
CCIDA will back financial incentives for Allegany Crossings LLC in its adaptive re-use of the long-vacant KMart Plaza in the Town of Allegany.
The Cattaraugus County Industrial Development Agency Board, meeting Tuesday, Dec. 7th in Ellicottville, agreed to an inducement resolution for the estimated $12 million project that will be spent to convert the former Kmart shopping center to self-storage units and retail businesses. The project is touted as a potential "gateway" to the community because of its location at Exit 24 along I-86.
According to CCIDA Director Corey Wiktor, Developer Cornell Capital Holdings, headed by Olean native Dana Cornell and his New Jersey partners, intends to renovate the 60,000 square foot structure to accommodate climate-controlled self-storage, and to create another 40,000 square feet for tenants.
Tuesday's vote means the project will provide partial abatements in sales and use taxes and mortgage recording taxes under the 10-year payment-in-lieu-of-taxes (PILOT) arrangement for the added value of the improvements. It is expected that new real property revenue of about $355,028 will be returned to taxing authorities as PILOT payments. As an "adaptive re-use" project, property and school taxes will remain at the current level for the life of the PILOT, for tax abatements of about $1,616,052 based on the projected $12 million investment. The CCIDA backing will provide a sales tax exemption of $480,000 on expenditures estimated at $6 million, along with a mortgage recording tax abatement of $90,000, based on a projected $9 million mortgage. Developers promise to create about 40 local construction jobs, as well as two full-time permanent positions within two years of completion.
The 23-acre property has been vacant for decades, but a former developer had spent $800,000 to replace the building's roof and the Cornell group has now begun preliminary cleanup and demolition at the site.
"If you drive by you'll notice quite a change," Wiktor told Board members, adding that an Allegany contractor, Kinley Corporation, is on the job. "You can't get more local than that."
The Allegany Town Planning Board, as lead agent, has declared the project will have no adverse environmental impacts.
Wiktor told Board members potential tenants have approached him about possibilities for further development associated with the conversion.
The Board then reviewed the status of two area solar projects, approving a lease arrangement and assistance for Pivot Solar NY 3 LLC's proposed 2.3 MW community solar array at 11165 Worden Rd. in Delevan. Gordon Woodcock, of Project Development in Community Solar, appeared on behalf of Pivot and said Pioneer Central School and the Yorkshire Town Board have submitted letters of support.
The solar installation will be constructed on about 14 acres of a 141-acre agricultural property and will cost around $4,677,500, creating one full-time job, along with three part-time independent-contractor jobs. In a 25-year payment-in-lieu-of-taxes (PILOT) agreement, the company will receive a partial real property tax abatement totaling $3.3 million and will make $481,262 in PILOT payments over 25 years, based on a $6,000-per-megawatt payment formula that will factor in annual increases of 3%.
The town's Planning Board will act as lead agency in the project and has determined there is no need for an environmental impact statement because there are no major environmental impacts expected. Pivot will be required to perform decommissioning and restoration of the project site at the end of the 25-year agreement.
Also authorized was a one-year delay in the start of the December 2019 PILOT agreement terms for developer of the West Valley Solar LLC Project. The action comes on the the Board's vote in October to amend the PILOT when West Valley Solar claimed construction delays.
The clock will be started again for 5 MW solar arrays on 54 acres straddling Buttermilk Rd. at the 3,300-acre former Western New York Nuclear Service Center, this time to enable a merger involving West Valley Solar. The project's parent company, BQ Energy LLC, will combine the West Valley with seven other projects as part of a merger. The merged company will be called DG West Valley Solar, LLC.
According to CCIDA attorney Robert G. Murray of Harris Beach PLLC, the agency's acceptance of the merger required an "omnibus" resolution and allows BQ Energy to collateralize all its solar projects under development, as a "massive restructuring" takes shape to include projects in Allegany, Cortland, and Jefferson Counties. Board members briefly discussed the solar industry's potential for selling or merging smaller solar developments as energy credits run out and the possibility for future applications followed by mergers.
BQ Energy has focused on brownfield development for its projects. Once the 10 MW West Valley Solar array is built, the sponsor intends to dedicate 2 MW of energy for the community use and 8 MW for larger consumers.
Wiktor updated the Board on the progress of the Great Lakes Cheese Co. project in Franklinville, which was expected to soon close on a 180-acre land acquisition and PILOT Agreement. He noted that the Agency is being reimbursed for all expenses. He also reported that the developer will follow recommendations from the New York State Historic Preservation Office (SHPO) to not disturb the burial site of a long-ago resident. He said the developer decided to place a 50-foot buffer around the spot and on Dec. 6th had received verification of the burial site in an archaeological study. Also, a public review is underway for a State Pollution Discharge Elimination System permit, to allow release to Ischua Creek of more than 700,000 gallons of water from milk processing. He said approval is expected in January and there are "lesser concerns" for air quality, referring to a tall filtration stack to divert emissions away from a nearby trailer park and school.
During upbeat discussion regarding the health of the agency's Financial Reports, Wiktor predicted several more solar projects will come forward for approval and three to five new applications will enter the process in January.
He said the agency has been "kept busy" with $120 million in investments for 19 projects in 2020, and in 2021 there have been 12 projects valued at $534 million.