NORWICH – The Chenango County Industrial Development Agency voted this morning to deny tax concessions to a local convenience store wanting to relocate and expand in the city.
“I really can’t be in favor (of granting the request),” IDA Board Member William Ballard, who voted “nay” on the proposal to grant Byrne Dairy’s parent company, Sonbyrne Sales Inc., a Payment in Lieu of Taxes agreement as well as sales tax exemptions for construction materials associated with the $1.9 million project. The expansion would include construction of a new 7,000 square foot facility on the corner of Silver and East Main streets, 4,000 square feet of which would be a convenience store and self-service gas station, and the remaining 3,000 a coin-operated laundromat.
The decision came this morning following Wednesday night’s hour-long public hearing, held in the chambers of the city’s Common Council where approximately two dozen city residents and officials gathered to voice their opinions on the proposed project.
“I think it (would) set a precedent,” Ballard said, explaining his opposition was based on the retail nature of the project, which he said he felt fell outside the scope of the IDA’s authority. His sentiments were echoed by fellow board members Thomas Knapp and Randy Mohr, who also voted against granting the tax concessions.
Knapp also registered his concerns regarding the net impact on jobs over time, in relation to other established businesses in proximity to the proposed location with which the Byrne Dairy store would be in direct competition.
“Personally, I think it would be an unfair advantage,” he said.
Despite their decision not to grant the PILOT agreement and sales tax exemptions, each of the five members of the CCIDA board said they were in favor of the project itself moving forward.
“It’s the best thing that can happen to the city,” said CCIDA Board Member Jack Cook, who also voted no.
CCIDA Board President Hugh Kearney cast the sole vote in favor of granting the tax concessions.
CCIDA Executive Director Maureen Carpenter suggested another option for Byrne Dairy, pointing out tax concessions which the City of Norwich itself could extend to help the company move forward with the expansion.
Sonbyrne Sales Vice President of Store Development Christian Brunelle had previously stated the proposed expansion hinged upon the PILOT agreement and had no comment following the CCIDA’s decision this morning.
Under the PILOT agreement, Sonbyrne would have saved approximately $242,400 in property taxes over a 10 year-term. In addition, the company had requested sales tax exemptions for construction materials associated with the projected $1.9 million project.
While the majority of those in attendance at the public hearing last night were strongly in favor of the expansion, several city residents expressed concern about the new store’s location directly across from Arrow Laundry and the P&C grocery store.
“I definitely feel threatened by this,” said Arrow Laundry owner Billie Hendrickson. “I will do whatever I have to do to stay in business, including cutting my hours, but it’s not easy being in this town and staying in business here.”
Hendrickson added if the new laundromat were to put her out of business, city residents would be forced to drive long distances for dry cleaning services.
Mayor Joe Maiurano said he believed the opposite to be true, and stated the increase in traffic the gas station would generate would only help downtown businesses, including Arrow Laundry.
“I’m quite sure Billie’s business will grow because of this business coming in,” said Maiurano. “If I for a minute didn’t think that would happen, I’d be on the other end and I would oppose this.”
The mayor, in addition to Ward 3 Alderman John Deierlein, stated the city would be willing to help Arrow Laundry in any way it can.
“I hope Billie will come to the city and see what we can do for her. Hopefully we can do something,” said Deierlein, who added he thought the competition would be good, and that “we all benefit from competition.”
While the PILOT agreement would have provided the expanded Byrne Dairy with lower property tax payments in the first few years, the city’s Planning and Community Development Specialist Todd Dryer reported the local convenience store would have paid $12,000 and $26,000 in the third and sixth year of the agreement respectively, and the full assessment of $46,000 by the tenth and final year.
Over and above that, he added, are the sales tax proceeds which would accompany a downtown gas station, projected to be “in the neighborhood of $660,000 a year.”
The city would receive approximately $123,750 of that, much of which would be “new money to the city,” according to Dreyer.
Another added benefit, said Dreyer, are the five full-time and five part-time jobs an expanded Byrne Dairy would require.
“Those are real jobs. Folks are looking for work and these are opportunities for them,” he added.
City resident and local attorney Frank Revoir, who represents the sellers in the potential transaction, said while he was “not advocating for my clients,” he had become “very well acquainted with the properties involved.”
“Unlike any other community in the county, we are landlocked, and we have to seek properties within that can be developed into something more and generate more revenue,” said Revoir. “Most of our local government funding has fallen onto the taxpayer because businesses have left. All [Byrne Dairy] is asking is the IDA provide this PILOT program.”
“The decision was made, so now we’ll have to go to plan B,” said Maiurano. “It’s disappointing, but we’ll continue to try and make progress.”