Byrne Dairy expansion deal hinges on tax incentives
NORWICH – Whether or not tax incentives are granted could make or break Byrne Dairy’s plans to construct a new facility in the City of Norwich, according to a company official.
Monday, Christian Brunelle, who serves as vice president of store development for the Weedsport-based corporation, told the Chenango County Industrial Development Agency that the project hinges on receipt of property tax abatement in the form of a Payment in Lieu of Taxes (PILOT) agreement.
Brunelle was before the board seeking both the PILOT agreement, and a sales tax exemption for building materials and supplies related to the construction of the facility, as well as fixed equipment.
“[The contract] is contingent on the PILOT,” Brunelle said, referring to the real estate contract Byrne’s parent company, Sonbyrne Sales Inc., has entered into with Bruce Beadle Realty. The company plans to acquire four parcels totaling 1.3 acres at the northwest corner of the East Main Street and Silver Street intersection in order to construct a new 7,000 square foot facility.
According to Brunelle, the building’s footprint will include a 4,000 square foot convenience store and fueling facility, which will make it the only gas station within the city limits. The remaining 3,000 square feet of space would be operated as a laundromat.
The new convienence store would replace the current Byrne Dairy facility adjacent to the firehouse on East Main Street.
Brunelle reported the new facility’s $1.9 million price tag was a conservative estimate.
“It’s a substantial investment,” he said. “I imagine the project will be over $2 million when it’s all said and done.”
“It is the mayor’s position that this project is needed,” said Todd Dryer, the City of Norwich’s Planning and Community Development Specialist, who was on hand for the meeting. According to the city official, Mayor Joseph Maiurano supports the granting of a PILOT agreement to ensure the Byrne Dairy expansion moves forward.
Byrne has already received a $30,000 grant from the city for the project, which is expected to both create jobs and generate additional sales tax revenue. According to projections Brunelle provided to the CCIDA, the project is expected to create as many as 30 construction jobs in the short term, and more than double Byrne’s existing workforce in Norwich with the addition of eight full-time-equivalent positions. In addition, the project is expected to generate an estimated $660,000 more in sales tax revenue than the current Byrne location, half of which would stay locally.
Byrne has already started to clean up the vacant parcels, which involves environmental remediation.
“(The property) probably would have sat there for a long time because of the risk of the site,” Brunelle said, referring to the condition of the property.
The deal is still awaiting approval by the city and Byrne Dairy officials are set to meet with the Zoning Board of Appeals following the Planning Commission meeting at 6:30 p.m. June 28 at One Court Plaza, in pursuit of a sign variance due to requirements specific to the proposed site.
According to Brunelle, the deal hinges on the city’s stamp of approval as well as that of Chenango County and, as East Main Street is also considered State Route 990L, the New York State Department of Transportation. The fourth factor on which it depends is the PILOT agreement, which would provide the company with an estimated $242,400 savings in property taxes over the ten year term of the agreement.
There remains debate, however, regarding whether or not the CCIDA has the authority to grant such a property tax abatement for a retail establishment. According to James Downey, who serves as the board’s legal counsel, there are prohibitions against such an action under New York State’s General Municipal Law. He has referred the matter to an outside legal authority to see if the case in point meets one of the exemptions outlined in the statute.
In addition to the legality of the matter, two CCIDA board members registered concerns as well.
While Board Member Thomas Knapp said it was “a great project” which would be of benefit to the city, he said he was “uncomfortable” with the idea of granting Byrne tax incentives.
“My concerns are the negative effect it is going to have on competitors,” he explained, specifically citing Arrow Laundry and P&C.
Board Member William Ballard echoed Knapp’s concerns before casting the sole dissenting vote when the motion was made to set a public hearing date, contingent on the advice of legal counsel.
The public hearing has been set for 7 p.m. on Wednesday, July 21 at the Common Council Chambers, Norwich City Court, Virginia Lane. The hearing will address both the proposed PILOT agreement, and the sales tax exemption being requested. The projected benefit of the exemption is estimated at $84,240, but would only apply on materials and equipment related to the construction which is purchased in Chenango County or elsewhere in New York State.
The CCIDA will ultimately decide the matter at a meeting scheduled for 8 a.m. the following day in the Commerce Chenango offices, 19 Eaton Ave.
– Staff Writer Brian Golden contributed to this story.
Monday, Christian Brunelle, who serves as vice president of store development for the Weedsport-based corporation, told the Chenango County Industrial Development Agency that the project hinges on receipt of property tax abatement in the form of a Payment in Lieu of Taxes (PILOT) agreement.
Brunelle was before the board seeking both the PILOT agreement, and a sales tax exemption for building materials and supplies related to the construction of the facility, as well as fixed equipment.
“[The contract] is contingent on the PILOT,” Brunelle said, referring to the real estate contract Byrne’s parent company, Sonbyrne Sales Inc., has entered into with Bruce Beadle Realty. The company plans to acquire four parcels totaling 1.3 acres at the northwest corner of the East Main Street and Silver Street intersection in order to construct a new 7,000 square foot facility.
According to Brunelle, the building’s footprint will include a 4,000 square foot convenience store and fueling facility, which will make it the only gas station within the city limits. The remaining 3,000 square feet of space would be operated as a laundromat.
The new convienence store would replace the current Byrne Dairy facility adjacent to the firehouse on East Main Street.
Brunelle reported the new facility’s $1.9 million price tag was a conservative estimate.
“It’s a substantial investment,” he said. “I imagine the project will be over $2 million when it’s all said and done.”
“It is the mayor’s position that this project is needed,” said Todd Dryer, the City of Norwich’s Planning and Community Development Specialist, who was on hand for the meeting. According to the city official, Mayor Joseph Maiurano supports the granting of a PILOT agreement to ensure the Byrne Dairy expansion moves forward.
Byrne has already received a $30,000 grant from the city for the project, which is expected to both create jobs and generate additional sales tax revenue. According to projections Brunelle provided to the CCIDA, the project is expected to create as many as 30 construction jobs in the short term, and more than double Byrne’s existing workforce in Norwich with the addition of eight full-time-equivalent positions. In addition, the project is expected to generate an estimated $660,000 more in sales tax revenue than the current Byrne location, half of which would stay locally.
Byrne has already started to clean up the vacant parcels, which involves environmental remediation.
“(The property) probably would have sat there for a long time because of the risk of the site,” Brunelle said, referring to the condition of the property.
The deal is still awaiting approval by the city and Byrne Dairy officials are set to meet with the Zoning Board of Appeals following the Planning Commission meeting at 6:30 p.m. June 28 at One Court Plaza, in pursuit of a sign variance due to requirements specific to the proposed site.
According to Brunelle, the deal hinges on the city’s stamp of approval as well as that of Chenango County and, as East Main Street is also considered State Route 990L, the New York State Department of Transportation. The fourth factor on which it depends is the PILOT agreement, which would provide the company with an estimated $242,400 savings in property taxes over the ten year term of the agreement.
There remains debate, however, regarding whether or not the CCIDA has the authority to grant such a property tax abatement for a retail establishment. According to James Downey, who serves as the board’s legal counsel, there are prohibitions against such an action under New York State’s General Municipal Law. He has referred the matter to an outside legal authority to see if the case in point meets one of the exemptions outlined in the statute.
In addition to the legality of the matter, two CCIDA board members registered concerns as well.
While Board Member Thomas Knapp said it was “a great project” which would be of benefit to the city, he said he was “uncomfortable” with the idea of granting Byrne tax incentives.
“My concerns are the negative effect it is going to have on competitors,” he explained, specifically citing Arrow Laundry and P&C.
Board Member William Ballard echoed Knapp’s concerns before casting the sole dissenting vote when the motion was made to set a public hearing date, contingent on the advice of legal counsel.
The public hearing has been set for 7 p.m. on Wednesday, July 21 at the Common Council Chambers, Norwich City Court, Virginia Lane. The hearing will address both the proposed PILOT agreement, and the sales tax exemption being requested. The projected benefit of the exemption is estimated at $84,240, but would only apply on materials and equipment related to the construction which is purchased in Chenango County or elsewhere in New York State.
The CCIDA will ultimately decide the matter at a meeting scheduled for 8 a.m. the following day in the Commerce Chenango offices, 19 Eaton Ave.
– Staff Writer Brian Golden contributed to this story.
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