By RICK MILLER
Olean Star
ELLICOTTVILLE — Ten days after approving nearly $38 million in tax breaks for Alle-Catt Wind Energy turbines and equipment, the Cattaraugus County Industrial Development Agency rescinded the inducements at the request of two school districts.
The tax breaks were rescinded after a more than hour-long executive session at which visitors were required to wait outside in their cars.
The Alle-Catt application for a payment in lieu of taxes (PILOT) agreement was approved by the IDA at a special meeting on Feb. 7.
Alle-Catt will consist of 76 turbines capable of generating 340 megawatts of electricity and collection lines costing an estimated $618 million. The other half of the turbines will be in Rushford and Centerville in Allegany County and Arcade in Wyoming County.
Under the PILOT, Cattaraugus County receives $8.24 million over 20 years, the Franklinville, Pioneer and Cuba-Rushford school districts will get $7.72 million and Farmersville and Freedom will get $3.58 million from the PILOT and $22.4 million from host community agreements.
The host community agreements are based on payments of $5,950 per megawatt. Farmersville will get $7.6 million in host community agreement payments over the 20 years, while Freedom will get $14.7 million and Yorkshire will get about $95,000.
The Franklinville and Cuba-Rushford school districts expressed concern to the IDA after the Feb. 7 vote that they had not been notified of the date.
IDA attorney Robert Murray of Haris Beach Murtha, said the IDA notice to the taxing jurisdictions did not contain a date because no date for the special meeting had been set at that time.
“We are reaching out to the schools to discuss their concerns,” Murray told the Olean Star.
Corey Wiktor, IDA executive director, said he and Murray would meet soon with representatives of the taxing jurisdictions to discuss the PILOT.
The PILOT payments are based on $5,000 per megawatt generating power. The 38 600-foot towers in Cattaraugus County, topped with 4-megawatt turbines, would generate $310,069 for the county in the first year, $130,596 for the towns and $368,111 for the school districts. Over 20 years, the PILOT payments would total $41.49 million. The PILOT increases 2% each year.
County Legislator Ginger Schroder of Farmersville, who sites on the IDA board, pointed out at the Feb. 7 meeting that if the IDA denied the PILOT and Alle-Catt was forced to utilize the state’s uniform tax assessment model the county, school districts and the towns would receive a total of $55.17 — $13.23 million more than under the PILOT.
IDA chairman Thomas Buffamante indicated after Tuesday’s vote that he expected the board would vote on the same PILOT after the meetings with taxing jurisdictions.
Tuesday’s vote was unanimous to rescind the tax breaks until IDA officials can meet with all tracking jurisdictions. The Feb. 7 vote on tax breaks was 5-2, with Schroder and Joseph Snyder voting no.
With about half of the wind farm in Cattaraugus County, the IDA’s 1% administrative fee could be up to $3 million.
The IDA board also voted to approve tax breaks for two projects worth more than $11.2 million and received applications for four new projects worth almost $8 million.
Olean Union Sales Corp., a more than 100-year-old Olean building supply business on South Union Street, was approved for a sales tax and mortgage tax exemption plus a 10-year PILOT for a 60-foot by 100-foot expansion valued at $750,000.
Sales tax exemption was set at $60,000, mortgage tax exemption $8,750 and the PILOT will save the firm $16,892 over 10 years. The project is expected to create one job for a total of 15 jobs by the second year.
The second PILOT application approved was for Creeley Construction’s Hidden Gem Family Resorts, a landscape hotel on 17.5 cares overlooking Ellicottville along Route 242 in the town of Mansfield.
The $10.5 million project will include construction of 30 1,000 square-foot short-term rental units and an amenity building.
Sales tax exemption of $680,000 and $93,750 in mortgage recording tax exemption was approved along with a 15-year PILOT savings of more than $1.3 million.
Among the nearly $8 million in new projects seeking tax breaks from the IDA, Mazza Mechanical Services of North Seventh Street, Olean, is buying and renovating the former Pierce Steel plant in a $1.2 million project to renovate and equip the 6,000 square foot building.
Mazza plans to relocate its pipe fabrication division to Olean from Erie County. Five full-time jobs would be created, adding to the 125 currently employed. The annual payroll will increase to $10.5 million.
The company is seeking $96,000 in sales tax exemption and a 15-year manufacturing PILOT.
Another project seeking tax breaks was Kinley Construction, which wants to being a 12,000 square-foot shop adjacent to its new headquarters off West Five Mile Road in Allegany, the former Carter Events Center. The project is valued at $2.5 million.
The firm is seeking up to $200,000 in sales tax exemption, and an undetermined mortgage recording tax exemption and a 10-year new construction/commercial PILOT. Five new full-time and three part-time employees are forecast.
Rusty Rooster Farm & Vintage LLC, is seeking tax breaks for renovations for a business at 476 Highland Terrace, Portville, for a $200,000. A $16,000 sales tax exemption and PILOT. The project would create one full-time and one part-time jobs with an annual payroll of $90,000. The building will be used for manufacturing wood products and a multi-purpose venue for events including weddings and birthdays.
The IDA board also accepted an application for a PILOT and associated inducements from TL Schwab Transport and Schwab Aggregates for construction of a $4 million shop[ and office for gravel, aggregates, trucking operations at 10064 Pigeon Hill Road, Delevan.
Sales tax exemption of up to $320,000, an undetermined mortgage recording fee exemption and a 10-year new construction/commercial PILOT. The project will help add 10-15 jobs to the company’s current 80 full-time jobs, boosting annual payroll to about $6.7 million.
The IDA will set public hearings on the proposed project and the tax breaks being sought over the next several weeks.
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All Rights Reserved. Star News LLC. Eric M. Firkel
