By RICK MILLER
Olean Star
(This story has been updated to reflect the company’s ownership history).
ALLEGANY — An Allegany well servicing company plans to expand its operations to the old Allegany Drive-In along Route 417.
I&S Inc. of N.Y., owned by Dan Sessler, is seeking a 10-year payment in lieu of taxes (PILOT) agreement with the Cattaraugus County Industrial Development Agency (IDA).
Sessler plans to build a new 5,000- square-foot office, a 14,400 square-foot commercial shop and 9,600 square-foot cold storage warehouse at the former drive-in site, which he is in the process of purchasing. Pipe for the company’s oil and gas and solution mining services will be stored at the Allegany site.
I&S Inc of N.Y., currently has its offices at 4174 Route 417 in Allegany, less than a mile away from the new site.
The construction costs are estimated at $7.3 million. Coupled with the $700,000 purchase price and legal, architect and engineering costs of $1 million, the project total represents a $9 million investment.
The project is seeking $600,000 in sales tax exemptions plus $100,000 in mortgage tax recording fee exemption. In addition, there is an unspecified PILOT over 10 years. The property currently pays $1,600 in property taxes annually.
Sessler said the company, which was founded in 1988, currently employs sixty people and has grown significantly over the past five years. (The earlier version of this story incorrectly indicated Sessler had founded the company). I&S is expanding into Pennsylvania, Ohio and West Virginia, acquiring existing well servicing companies and hiring new employees. He plans an additional 80 employees over the next two years.
The company specializes not in drilling oil and gas wells, but in reworking existing wells, plugging wells, addressing orphan wells andplugging methane leaks. It also provide services for solution mining for swalt companies.
Sessler told the IDA board he has a crew clearing the drive-in site to prepare for construction.
An IDA hearing on the request by I&S Inc. of N.Y. will be held July 14, at 9:30 a.m. at the Allegany Town Hall, 53 W. Main St.
(rmillerphoto1@gmail.com)
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