SHERBURNE – Sherburne Metal Products may soon get a new lease on life thanks to a Peruvian copper manufacturer.
According to Commerce Chenango Economic Development Specialist Jennifer Tavares, Tecnofil S.A. is interested in purchasing the Sherburne business, which has been shuttered since its owner, David Harvey, died in 2009. The South American corporation, which is headquarted in Lima, Peru, has requested tax concessions, including sales and use tax exemptions and a Payment in Lieu of Taxes (PILOT) agreement, from the Chenango County Industrial Development Agency.
The deal hinges on these concessions, Tavares said.
“They need to see if they are granted the benefits before they close on the acquisition,” she explained, to the CCIDA board earlier this month.
According to documents provided to the CCIDA, Tecnofil plans to invest $2.5 million to acquire the now defunct company’s assets and the roughly 15.87 acres on which it sits; install new equipment; and make needed repairs and upgrades to the facility. The investment will lead to the creation of 24 new full-time jobs in the first two years, with as many as 70 more projected to be created by the end of 10 years. The annual payroll for the initial 24 positions is projected at $1,010,000.
The company also anticipates four construction jobs will be created or retained as a result of the project.
Under the requested PILOT agreement, the company would receive a projected benefit of $293,897 over the 10-year term of the agreement, based on a combined assessment of $1,155,000 for the three parcels it intends to acquire.
For the first five years of the agreement, Tecnofil would pay an amount equivalent to 50 percent of the taxes they would otherwise owe to the village and town of Sherburne, Chenango County and the Sherburne-Earlville Central School District. That exemption would decrease by 10 percent each year, with payments increasing proportionally to each taxing authority. The company would become fully taxable in year 11.
This represents a deviation from the CCIDA’s Uniform Tax Exempt Policy, which typically grants a 95 percent exemption in the first year, which is stepped down gradually over the 10-year term of the PILOT agreement.
The company has also requested sales and use tax exemptions on construction materials and equipment rental used during the construction. The projected benefit of these exemptions is estimated at $14,000, and would only apply to materials and equipment rental purchased in Chenango County or elsewhere in New York State.
Village of Sherburne Mayor Bill Acee said he is in favor of granting Tecnofil’s request.
“The negotiated IDA exemption is very favorable to Sherburne,” he said. “It will serve Sherburne well, especially considering the alternative.”
When Sherburne Metal Products closed last year following Harvey’s unexpected death, it left approximately 25 people out of work, he explained. Since that time, the building has sat vacant. He is anxious to see it productive again.
“I believe that Tecnofil will grow and fulfill the long-term plan that Sherburne Metal had for continued expansion and growth,” he said.
The Peruvian company intends to manufacture copper and copper alloy products at the facility.
Acee credited Tavares and former CCIDA Executive Director Maureen Carpenter in their work on the project.
“The IDA has been very helpful in helping us pursue Tecnofil,” he said.
A public hearing has been set for 6 p.m. on Tuesday, June 21 at the Sherburne Village Hall, 15 W. State Street in Sherburne. The hearing will address the proposed PILOT agreement, as well as the sales and use tax exemptions being requested.
The CCIDA will ultimately decide the matter at a meeting scheduled for 8 a.m. on Wednesday, June 22 in the Commerce Chenango offices, 19 Eaton Ave.