Agro Farma seeks further tax abatement incentives for South Ed. projects
COLUMBUS – The maker of Chobani Greek-style yogurt is requesting additional concessions from the Chenango County Industrial Development Agency to continue its expansion at the company’s South Edmeston site.
Agro Farma has already asked for, and received, a sales tax exemption for building materials, supplies and fixed equipment related to the construction of a new 150,000-square-foot refrigerated warehouse.
“They are ... coming back asking for additional benefits,” CCIDA Executive Director Maureen Carpenter explained to members of the agency’s board at a meeting yesterday.
According to Carpenter, the yogurt maker is seeking property tax abatement in the form of a Payment in Lieu of Taxes (PILOT) agreement for the $22 million warehouse project.
Carpenter placed the projected benefit of the PILOT agreement at $843,975, based on a $5 million assessment. She was quick to point out that the amount the company would pay according to the anticipated PILOT schedule it would represent only a minimal decrease – approximately $400 – in tax revenue for the town, county and school district in the first year, based on what was paid by the owners of the property which Agro Farma acquired to build the warehouse.
“Within the second year, they are going to see additional revenue,” she said. Each year, that amount would grow as the percentage of the exemption received decreased.
Granting the PILOT, she explained, will “open up capital” for Agro Farma to undertake a second project aimed at expanding production at their existing plant. The company has requested a mortgage recording tax exemption and sales tax exemption for a second project
The scope of work for the Phase II project includes: the renovation of roughly 70,000 square feet of space; the purchase and installation of new processing and packaging equipment; construction of a new receiving bay; and the upgrade/expansion of the site’s waste water treatment facility, which will include the purchase and installation of a membrane bio-reactor (MBR). The work is expected to be complete by the spring of 2012.
The project represents an additional $64 million investment in the facility, Carpenter reported. Coupled with the warehouse project, Agro Farma has projected it will lead to the creation of 100 full-time jobs over the next five years. The company currently employs 250 people, including temporary staff.
“They continue to grow every day,” she said.
The projected benefit of the sales tax exemption is estimated at $1,282,400, but would only apply on materials and equipment related purchased in Chenango County or elsewhere in New York State. The benefit of the final incentive, the mortgage recording tax exemption, would be $195,000.
“We’re excited to continue to grow Agro Farma and our production capacity. Throughout this expansion, we value, more than ever, our employees and community as our most valuable asset,” stated Keven Bucklin, Agro Farma’s vice president of operations.
A public hearing has been set for 6 p.m. on Tuesday, Nov. 9 at the Columbus Town Hall, 4340 State Hwy 80. The hearing will address the proposed PILOT agreement, as well as the sales tax and mortgage recording tax exemptions being requested.
The CCIDA will ultimately decide the matter at a meeting scheduled for 8 a.m. on Wednesday, Nov. 17 in the Commerce Chenango offices, 19 Eaton Ave.
Agro Farma has already asked for, and received, a sales tax exemption for building materials, supplies and fixed equipment related to the construction of a new 150,000-square-foot refrigerated warehouse.
“They are ... coming back asking for additional benefits,” CCIDA Executive Director Maureen Carpenter explained to members of the agency’s board at a meeting yesterday.
According to Carpenter, the yogurt maker is seeking property tax abatement in the form of a Payment in Lieu of Taxes (PILOT) agreement for the $22 million warehouse project.
Carpenter placed the projected benefit of the PILOT agreement at $843,975, based on a $5 million assessment. She was quick to point out that the amount the company would pay according to the anticipated PILOT schedule it would represent only a minimal decrease – approximately $400 – in tax revenue for the town, county and school district in the first year, based on what was paid by the owners of the property which Agro Farma acquired to build the warehouse.
“Within the second year, they are going to see additional revenue,” she said. Each year, that amount would grow as the percentage of the exemption received decreased.
Granting the PILOT, she explained, will “open up capital” for Agro Farma to undertake a second project aimed at expanding production at their existing plant. The company has requested a mortgage recording tax exemption and sales tax exemption for a second project
The scope of work for the Phase II project includes: the renovation of roughly 70,000 square feet of space; the purchase and installation of new processing and packaging equipment; construction of a new receiving bay; and the upgrade/expansion of the site’s waste water treatment facility, which will include the purchase and installation of a membrane bio-reactor (MBR). The work is expected to be complete by the spring of 2012.
The project represents an additional $64 million investment in the facility, Carpenter reported. Coupled with the warehouse project, Agro Farma has projected it will lead to the creation of 100 full-time jobs over the next five years. The company currently employs 250 people, including temporary staff.
“They continue to grow every day,” she said.
The projected benefit of the sales tax exemption is estimated at $1,282,400, but would only apply on materials and equipment related purchased in Chenango County or elsewhere in New York State. The benefit of the final incentive, the mortgage recording tax exemption, would be $195,000.
“We’re excited to continue to grow Agro Farma and our production capacity. Throughout this expansion, we value, more than ever, our employees and community as our most valuable asset,” stated Keven Bucklin, Agro Farma’s vice president of operations.
A public hearing has been set for 6 p.m. on Tuesday, Nov. 9 at the Columbus Town Hall, 4340 State Hwy 80. The hearing will address the proposed PILOT agreement, as well as the sales tax and mortgage recording tax exemptions being requested.
The CCIDA will ultimately decide the matter at a meeting scheduled for 8 a.m. on Wednesday, Nov. 17 in the Commerce Chenango offices, 19 Eaton Ave.
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