CCIDA Meeting Notes
CCIDA Meeting Notes
IDA receives audit report of a busy 2021; reviews applications for several projects
The Cattaraugus County Industrial Development Agency (CCIDA) Board of Directors, meeting in a virtual Zoom session March 22nd, reviewed new project applications and received updates on other economic development activity in the county.
A 6.2-acre portion of the former site of the Socony-Vacuum Oil Refinery in Olean is targeted by "351 Franklin Street" for a brownfields remediation and later redevelopment for warehousing and expansion of a local light manufacturing operation. Employment projections and local payments-in-lieu-of-taxes aren't yet available but developers say the goal is employee retention and expansion of current industrial and commercial concerns.
The sale/leaseback project sponsor is headed by Mike Lesakowski and manager R. Donald Benson at 1 Bluebird Sq., and seeks sales tax, mortgage tax, and real property tax incentives, to be determined. The estimated $6.4 million project cost will cover two phases, with a $3.2 million remediation beginning in May and the $3.2 million construction phase expected to be completed in June of 2023. The completed project could see tax credits by 2024.
Penn Turf, owned by Lebanon Seaboard Corp. and located currently at 7869 Route 98 in Arcade, Wyoming Co., has lost its 30-year lease. Plans are to purchase a 56,000 square foot warehouse and manufacturing property on 4.5 acres at 30 Pennsylvania Ave. and 69 S. Main St. in Franklinville, a location that will allow retention of 7 employees and add another 7 workers within two years of completion, for an annual payroll of $570,000.
CCIDA Director Corey Wiktor said the vacant property was recently home to Dave's Christmas Store, now engaged in Internet sales, and is currently owned by Frank Bork. If the move goes forward, Penn Turf estimates a $4,025,000 investment, which will include a $1.8 million property purchase and the remainder for improvements to the property. These include addition of a loading dock and updating another for a drive-in entrance; update electrical to 1600 AMP service; and build a 40' by 40' penthouse 55' tall.
According to the application, Penn Turf produces the Green View Brand, Seeding Success, for retail, and PennMulch Seed Accelerator to professional accounts and retail markets, about 90 percent of them outside New York.
Recycled newspaper, text books and mail are combined with an absorbent polymer and fertilizer to make a "thicker healthier new lawn or turf." A rail line through the property may help expand sources of scrap paper which is occasionally scarce.
Wiktor then spoke about two active projects. Timberhut Cabin, located in the former O'Laughlin Auto dealership spot on Route 219 in Great Valley, now employs 5 and has begun constructing tiny solar-powered huts without bathrooms to be sold for placement on private lands, campgrounds, Airbnb, and the vacation market.
He also advised excavations will begin April 4th at the Great Lakes Cheese (GLC) project on Route 16 in Farmersville and Franklinville, to be followed by a ceremonial groundbreaking on April 28th, to be attended by dignitaries and about 200 others who have received invitations. The dates have changed and may be tentative.
"There will be no construction until the [state Department of Environmental Conservation] permits are secured, then they can move dirt," Wiktor said.
He said the agency assisted GLC with a job fair held Feb. 24th at Jamestown Community College in Olean. GLC hired 14, but three more job fairs will be scheduled and other entities in the county will be asked to identify applicants to be invited.
A $4,000 administrative fee came from private sector applicant "Enchanted Mountains Veterinary Care" to be located in Olean's Westgate Plaza. About 15 active projects are in various phases of preparation for board action over the coming year, he reported.
IDA Board members exchanged ideas about absenteeism, the loss of worker productivity and the shortage of employees to staff local businesses ready to expand or faced with turning down new contracts.
Wiktor thanked CCIDA Board members Joseph Higgins and Ginger Schroder for their leadership in connecting with an immigration assistance group helping 612 refugees, along with some of the 500,000 expected Ukranian refugees expected in the US. He said he is working with state officials and others to attend an April 5th launch meeting in Buffalo that will inform area leaders about housing, transportation and religion issues facing the refugees and how they are assisted.
Several Board members commented in support of rebuilding the workforce and Wiktor said the county will be prepared early to create a program locally to get into position. "The competitive stick will be new people," Wiktor said.
In a brief presentation, CCIDA attorney Robert Murray of Harris Beach PLLC reported on his revamp of policies which the agency is charged with reviewing and updating on a regular basis. He presented 8 amended and 7 new policies governing the agency, some needed to conform to current templates outlined by the state Authority Budget Office.
The new policies are Sexual Harassment, Defense and Indemnification, Freedom of Information Law, Board Member Compensation/Reimbursement and Attendance, Finance and Audit Committee Charter, Governance Committee Charter and Continuity of Operations.
During discussion, Board members asked that all the policies reflect a reversal of wording from "County of Cattaraugus Industrial Development Agency" to “Cattaraugus County Industrial Development Agency”. The policies were approved and Murray pointed out the agency's sister nonprofit organization, Cattaraugus County Capital Resource Corporation, must also meet and adopt the policies. CRC staff and board are the same as CCIDA.
Wiktor assured the Board that the new policies will be posted on a new agency website that is now live but still under construction.
Finally, Board members approved minutes of the CCIDA Audit Committee meeting of March 18th, and accepted Jonson, MacKowiak & Associates' 2021 CCIDA/CRC Audit.
Wiktor said the agency has seen $20 million in investments in the past two years. He described the year of 2021 as a "MBA class in economic development," beginning with a small business deal in January, then Siemens' move from Olean that affected 430 workers, along with a change in the firm's legal representation in April. A June "whirlwind" began with Great Lakes Cheese pursuing a move from Cuba to Franklinville, and the remainder of the year saw 6-8 project closings, he added.
Denise D. Veloski presented the audit report which places the agency "in a good cash position at the end of the year" with a $59,000 increase in cash, increased investments and a minor depreciation in fixed assets, along with $637,500 projected payments from GLC over the next three years. She said the organization's 2021 unrestricted fund balance was $1,147,000, over the $1,096,000 unrestricted fund balance in 2020.
The Board has been airing its meetings via ZOOM, with most staff and Board members assembled in the meeting room at 9 E. Washington St. While many local agencies have resumed in-person meetings, it is not clear if virtual meetings will continue with the upcoming April 24th regular meeting.