By RICK MILLER
Olean Star
The Cattaraugus County Industrial Development Agency approved tax breaks earlier this week that will allow an Allegany well servicing company to expand its operations in a $9 million project.
I&S Inc. of N.Y., owned by Dan Sessler, and currently located at 4174 Route 417 in the town of Allegany, has purchased the former Allegany Drive-In, where it plans new offices, commercial space and a storage yard.
The company, founded in 1988, services oil and gas and solution mining wells in multiple states, and currently has about 60 employees. Its application for tax inducements promises the creation of 80 new full-time jobs within three years of the project’s completion. A $3.2 million annual payroll is forecast after completion of the project. The salary range for the new jobs is between $45,000 and $60,000 a year plus fringe benefits.
I&S Inc., sought and received IDA approval for $600,000 in state and local sales tax exemptions, a $100,000 mortgage recording fee exemption and nearly $240,000 in property tax savings through a 10-year payment in lieu of taxes (PILOT) agreement. Total value of the financial assistance is $939,531.
A 5,000 square-foot office costing $1.8 million, a 14,400 square-foot commercial shop costing $4 million and a 9,600 square-foot cold storage building costing $1.5 million are planned for the Allegany site. The purchase price for the 29.5-acre site was $700,000.
I&S, a Sessler Company, said the project will help it meet increased demand for its services including well workovers, plugging and abandonment, tool recovery and comprehensive well servicing with its extensive fleet of specialized vehicles and equipment.
The company has received the support of the Town of Allegany for the project.
The Allegany Drive-In, which opened in 1949 with room for 850 cars, closed in 1995.
The IDA board also received two new applications for tax breaks from two Ellicottville businesses on Tuesday.
Steelbound 716 Refillable Spirits Program, a subsidiary of Steelbound Brewery & Distillery, plans to launch an innovative program to supply restaurants, retailers, bars, banquet centers and hospitality accounts.
Steelbound owner William Bursee plans to sell spirits in ceramic-coated one-liter bottles. The bottles, in stackable, returnable crates, would be delivered by electric vehicles on local route systems. The first market will be Western New York — Steelbound 716. Plans call for extending the program throughout much of New York state.
Years one and two would focus on Western New York. Year three would include entry into the Rochester or Syracuse markets. Year four would move into the Capital region and the fifth year would include the New York City boroughs.
Steelbound Brewery and Distillery already produces several spirits — vodka, gin, bourbon and rum.
Empty bottles would be collected, sanitized, refilled and resealed and placed back in circulation. It cuts down on the need to landfill or recycle the glass bottles and eliminates cardboard currently used to ship bottles.
Bursee is asking for sales, mortgage tax and property tax abatement for the $1.2 million program. Sales tax abatement of about $80,000, $9,375 in mortgage tax abatement and PILOT savings of $167,000 are being sought in the application.
The program would provide six full-time positions with a $375,000 annual payroll. The building in the Ellicottville Steelbound complex along Route 219 will cost $400,000 with another $800,000 for materials.
The IDA will set a public hearing on the project in August.
The other Ellicottville company, NorthPark Innovations, hosted Tuesday’s IDA meeting.
North Park Innovations plans to acquire the former Timberhut property on Route 219 in Great Valley for $400,000 and invest another $100,000 in the building to expand its manufacturing operations.
North Park Innovations, owned by Lori Northrup, builds iConnect training units for heating, ventilation, air conditioning and refrigeration instruction and education. In connection with HVACRedu.net, it also provides online training classes.
The iConnect training units are designed and built to customers’ exact needs and specifications.
Another North Park Innovations division, Marcraft, has for over 30 years provided electronics, computer IT and mobile electronics training programs. Its training units are sold in all 50 states, Canadian provinces and 30 other countries. The company designs lab hardware and software materials used in career and technical education schools.
North Park Innovations currently has 51 employees — up from 36 in June 2024 — and plans to add 10 employees within two years of completion of the expansion project. The company expects a $2.3 million payroll at the site at project completion. Average annual full-time production salary is $45,000.
The IDA plans to hold a public hearing on the proposed project in the Town of Great Valley early next month.
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