AFTON – A Tioga County company that’s receiving $161,000 in tax breaks over the next decade to purchase a saw mill in the Town of Afton has also been awarded a grant from the state, according to a recent announcement by Empire State Development.
Wagner Lumber, of Owego, was given a $100,000 grant earlier this month from Empire State Development for purchasing the Pomeroy Mill in Nineveh, near the Broome County line.
In November, Wagner received a payment-in-lieu-of-taxes (PILOT) agreement from the Chenango County Industrial Development Agency to take over the mill, saving the company $37,000 in 2008-09. The tax exemption, which decreases annually over ten years, will save the company a total of $161,000.
Wagner is purchasing Pomeroy for $1.525 million.
While Wagner pledges to retain 27 jobs, create 10 more and invest a total of $6 million in buildings and equipment, a group of Afton residents voiced opposition to the tax break at two IDA public hearings held in September and November.
Afton residents would see a .31 per 1,000 increase overall in school, town and county taxes combined in 2008-09 because of Wagner’s 10-year tax free agreement.
Upon hearing of the grant from Empire State Development, town resident Mike Bernhard, who strongly opposed awarding Wagner the PILOT, again questioned the need to relieve what he says are already prosperous companies of tax responsibilities, only to also throw tax dollars at them.
“Instead of giving our tax dollars to companies that already have a lot of money,” asked Bernhard, a member of the Chenango County Green Party, “why don’t we invest those tax dollars into infrastructure we all enjoy?”
Specifically, the Afton resident wonders how Gov. Eliot Spitzer can call for a cap on school taxes, “blaming teacher’s unions” and districts for their spending, when his administration, and George Pataki’s before him, gives away what Bernhard says are nothing more than corporate hand-outs.
“These companies are getting taxpayer money with no obligations,” said Bernhard. “It would be good for the 2,000 people of Afton if they applied that money to the Afton School District.”
Proponents of the Wagner deal say if the Owego-based company didn’t take over the Pomeroy Mill in 2006 and purchase it now, the site would have closed due to heavy flood damage that it couldn’t afford to repair – meaning 27 jobs, and 27 taxpayers, would have been out of work, current employees say.
At the two meetings, company owner Les Wagner claimed his purchase of the Pomeroy mill depended on receiving the IDA tax break.
According to figures given to the IDA and Empire State Development, Wagner already employs 201 at his two other mill sites in Owego and Cayuta.
Once purchased, Wagner says he’ll add 10 jobs at the Nineveh site with average salaries of $30,000 annually over the next three years.
One of the biggest concerns opponents of the deal have: There are no penalties if Wagner does not try to meet any of its job growth and investment projections.
However, Empire State Development Chairman Dan Gundersen said Wagner’s choice to take-over the Pomeroy Mill is a “strong statement” about upstate’s business climate.
“Wagner Lumber’s decision to grow in Upstate New York is a strong statement,” said Gundersen in a Jan. 7 press release. “With this project, the lumber manufacturer has made a commitment to grow their business in the Southern Tier while retaining the current workforce of 27 positions and pledging 10 new jobs. It only reinforces our view Upstate New York is a great place to conduct business.”
In a prepared statement for Empire State Development, Chenango County IDA Executive Director Maureen Carpenter commended Wagner Lumber for its jobs record and commitment to grow in the area.
“The IDA strongly supports this project, Les Wagner has a strong business record and we are confident that he will grow the business and give back to the local community by creating jobs and making substantial investment into the property for years to come,” said Carpenter.