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State buys 96 more acres for RiverBend projects
The state agency overseeing the planned solar-energy and high-tech hub at Riverbend has agreed to buy the remaining 96 acres of property from the city of Buffalo for $2.8 million, state officials announced Tuesday.
The new
purchase adds to the 88 acres of land that the state already bought from the
Buffalo Urban Development Corp. in May for $2.5 million. The city had acquired
the former brownfield property in 2008 for $4.6 million.
"We're
really hitting our stride in Buffalo and Western New York thanks to Governor
Cuomo's continued focus on attracting the right mix of investment and job
creation from private companies who see the benefit of doing business here,"
Howard Zemsky, co-chairman of the Western New York Regional Economic Development
Council, said in a statement. "Acquiring this additional acreage at RiverBend
will further strengthen our ability to maintain the momentum that Governor
Cuomo's policies have created."
Cuomo
announced plans to develop the former steel manufacturing property at Riverbend
into the proposed Buffalo High-Tech Manufacturing Innovation Hub, housing
technology, clean-energy and biotechnology companies as part of an economic
development initiative to create new jobs.
Under the
proposal, the state will invest $225 million to create infrastructure at the
site, including water, sewer and utility connections, roads and new facilities
that will be owned by the state through the SUNY Research Foundation. Initial
plans had called for a 275,000-square-foot facility to house two California
companies, Soraa and Silevo, as the first two tenants, while other facilities
would be constructed over time as new manufacturing tenants were brought in.
But with Silevo's acquisition by Solar City, those plans are now changing to feature
a much larger facility just for Silevo.
The state
will also purchase and own equipment that the companies will use, while local
colleges and universities will also have access to the facilities, equipment
and partnerships. No direct state funding will go to any companies.
"RiverBend
is at the forefront of a development boom that has literally transformed
Buffalo, and tech companies from across the country and around the world have
taken notice," Cuomo said. "Finalizing this purchase agreement will ensure that
RiverBend is prepared to capitalize on this interest and add to the high tech
movement that is taking hold in Western New York. Today, Buffalo truly is on
the move."
The purchase
agreement announced Tuesday also calls for a payment-in-lieu-of-taxes for
future project development on the newly purchased land if those developments
are otherwise exempt from property taxes, ensuring a steady revenue stream for
local municipalities regardless.
The purchase
agreement calls for the Fort Schuyler Management Corp., an arm of the State
University of New York that is managing property purchases for the College of
Nanoscale Science and Engineering, to acquire the land from the Buffalo Urban
Development Corp.
In addition,
under the agreement, the new projects must comply with state requirements that
at least 20 percent of business contractors be minority or women-owned
businesses, that minorities and women must comprise at least 25 percent and 5
percent, respectively, of construction workers. The state also committed to
work with local schools to create workforce and training programs to increase
opportunities for Buffalo residents, particularly women and minorities.
"Governor
Cuomo knows that the interest and excitement that has been ignited with the
clean energy high tech business community by his Buffalo Billion investments is
bona fide," Dr. Alain Kaloyeros, CEO of CNSE, said in the statement. "There is
a buzz throughout this dynamic industry about what's happening in Buffalo and
Western New York and adding more developable, shovel-ready acreage is a wise
and prudent strategy."