Approved: IDA grants additional tax breaks for Agro Farma
COLUMBUS – Agro Farma’s request for additional tax concessions based on the company’s expansion has been approved by the Chenango County Industrial Development Agency. The decision was rendered Wednesday at the agency’s November meeting, held at 8 a.m. in the Commerce Chenango offices.
“This is great news from the IDA. We appreciate their support as well as that of all of our great neighbors in the Town of Columbus and look forward to working together to grow and further strengthen the local economy,” the company’s chief operating officer, Keven Bucklin, said yesterday in response to the news.
In October, the Town of Columbus-based maker of Chobani Greek-style yogurt requested property tax abatement in the form of a Payment in Lieu of Taxes (PILOT) agreement for the 150,000 square foot refrigerated warehouse they are in the process of constructing. The company also requested a mortgage recording tax exemption and sales and use tax exemptions for a second project aimed at expanding production at their existing plant.
The tax concessions were on top of a sales tax exemption for building materials, supplies and fixed equipment related to the construction of the $22 million warehouse already granted by the CCIDA.
According to the agency’s executive director, Maureen Carpenter, the projected benefit of the PILOT agreement is $1,249,086 over the 10-year agreement. These numbers are based on a $7.4 million assessment of the warehouse provided by the Town of Columbus assessor.
“It’s a significant tax revenue boost ... even with the PILOT agreement,” reported James Downey. The attorney, who serves as legal counsel for the CCIDA, explained that even in year one, when the company receives a 95 percent exemption, each taxing authority - county, school and town - would receive more than they were on the property before it was acquired by Agro Farma.
In addition to the PILOT agreement, the yogurt maker asked for - and based on the CCIDA’s decision yesterday - will receive both the mortgage recording and sales/use tax exemptions as well for a total projected benefit of $2,670,086.
“This decision to provide incentives to Agro Farma, Inc. solidifies our position to retain this company and to reap the economic benefits,” said Carpenter, who estimated the overall economic impact of the yogurt maker’s expansion project at over $130 million. “Chenango County will see a significant return on their investment.”
According to Carpenter, the expansion will mean 100 new local jobs, on top of the close to 300 already employed by the company.
“It’s all positive,” said Board Chairman Hugh Kearney.
CCIDA Board Member Thomas Knapp lauded Agro Farma as the “poster child” for rural industrial development projects.
“The Industrial Development Agency’s purpose is to provide assistance to companies expanding, retaining jobs and increasing the available employment opportunities in Chenango County,” Carpenter stated. “The IDA did their job today.
While elected officials from the Town of Columbus spoke out against the additional tax breaks at a public hearing held on Nov. 9, none were present at the IDA meeting yesterday.
“This is great news from the IDA. We appreciate their support as well as that of all of our great neighbors in the Town of Columbus and look forward to working together to grow and further strengthen the local economy,” the company’s chief operating officer, Keven Bucklin, said yesterday in response to the news.
In October, the Town of Columbus-based maker of Chobani Greek-style yogurt requested property tax abatement in the form of a Payment in Lieu of Taxes (PILOT) agreement for the 150,000 square foot refrigerated warehouse they are in the process of constructing. The company also requested a mortgage recording tax exemption and sales and use tax exemptions for a second project aimed at expanding production at their existing plant.
The tax concessions were on top of a sales tax exemption for building materials, supplies and fixed equipment related to the construction of the $22 million warehouse already granted by the CCIDA.
According to the agency’s executive director, Maureen Carpenter, the projected benefit of the PILOT agreement is $1,249,086 over the 10-year agreement. These numbers are based on a $7.4 million assessment of the warehouse provided by the Town of Columbus assessor.
“It’s a significant tax revenue boost ... even with the PILOT agreement,” reported James Downey. The attorney, who serves as legal counsel for the CCIDA, explained that even in year one, when the company receives a 95 percent exemption, each taxing authority - county, school and town - would receive more than they were on the property before it was acquired by Agro Farma.
In addition to the PILOT agreement, the yogurt maker asked for - and based on the CCIDA’s decision yesterday - will receive both the mortgage recording and sales/use tax exemptions as well for a total projected benefit of $2,670,086.
“This decision to provide incentives to Agro Farma, Inc. solidifies our position to retain this company and to reap the economic benefits,” said Carpenter, who estimated the overall economic impact of the yogurt maker’s expansion project at over $130 million. “Chenango County will see a significant return on their investment.”
According to Carpenter, the expansion will mean 100 new local jobs, on top of the close to 300 already employed by the company.
“It’s all positive,” said Board Chairman Hugh Kearney.
CCIDA Board Member Thomas Knapp lauded Agro Farma as the “poster child” for rural industrial development projects.
“The Industrial Development Agency’s purpose is to provide assistance to companies expanding, retaining jobs and increasing the available employment opportunities in Chenango County,” Carpenter stated. “The IDA did their job today.
While elected officials from the Town of Columbus spoke out against the additional tax breaks at a public hearing held on Nov. 9, none were present at the IDA meeting yesterday.
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