Local Manufacturers receive more than $2 million in assistance from the ECIDA to secure jobs and expand operations
FOR IMMEDIATE RELEASE
Media Contact: Sharon Linstedt
Travers Collins & Company(716) 464-4723
June 14, 2010 — Buffalo, NY — The Erie County Industrial Development Agency today approved a mix of tax abatements totaling $2,057,500 to support $49.7 million in investments by Steuben Foods Inc. and New Era Cap Co.
Steuben was approved for a $1,818,500 incentive package which includes a $1.3 million property tax abatement, plus $422,000 in sales tax savings and waiver of $96,500 in mortgage recording tax.
Steuben Foods, one of the country's largest producers of aseptic drinks and other food products, is poised for what will be a $52 million expansion of its Elma plant. The ECIDA and Steuben have had a long relationship, dating back to 1983, when the company leased an agency-owned site at 1150 Maple Road, in Elma.
Over the years, Steuben has invested more than $200 million into what was a vacant building shell to create a state-of-the-art food processing center than now employs a workforce of nearly 500. In June 2009, Steuben made the transition from tenant to owner, when it took title to the property.
In its next round of investment, Steuben will install new production lines to accommodate a greater array of packaging shapes and sizes, as well as future incorporation of plastic containers. The expansion, which will add 70,000 square feet of space to its 300,000-square-foot plant, is expected to create 150 new Steuben jobs.
"This is especially satisfying to see because of how far that property has come of the years. Steuben could have set up shop anywhere, but they picked Erie County and have grown a significant business," said ECIDA Chairman Philip Ackerman.
The ECIDA board also approved a $239,000 tax abatement package for New Era Cap Co. to assist in a $3.1 million expansion of its Derby production facility. New Era, which is consolidating out-of-state cap production to the Erie County site, will reconfigure and upgrade the existing plant for increased output. The project is expected to boost the workforce at the Derby plant from 290 to 315.
The abatement package includes savings on $48,000 in property tax, $160,000 in sales tax, and up to $31,000 in mortgage recording tax savings.
New Era, the world leader in sport caps and headwear, are the exclusive source of caps for Major League Baseball, and also has licensing agreements with the National Basketball Association and the National Hockey League.
The agency also approved a $27,500 microloan for a new clothing store in the City of Buffalo. Alexandra Eagan will open Anatomy, a women's clothing boutique, at the corner of Allen Street and Elmwood Avenue, this fall.