IDA approves tax breaks for new NYSEG line to Chobani
NORWICH – More electrical power is on its way to the northeast region of Chenango County.
The New York State Electric and Gas company got the go-ahead last week from Chenango County to erect a 10.7 mile long 46-kv transmission line from the Town of Sherburne to a new substation near the Greek-yogurt manufacturer, Chobani Inc. in the Town of Columbus.
The Chenango County Industrial Development Agency approved NYSEG’s $650,000 one time sales and use tax exemption for the project at a special meeting at Commerce Chenango in Norwich within days of holding public hearings on the proposal. A hearing in Columbus brought out opposition to the new line, with residents saying the tax exemption would not benefit their town and, instead, result in lower property values and negative environmental impacts.
NYSEG filed an application with the Chenango IDA in early January for sales and use tax benefits of approximately $650,000 on materials purchases of $3.9 million, and taxable contract purchases of $4.2 million. The utility’s total investment is $13.8 million, including new construction, renovation, equipment, installation, engineering fees and overhead.
The project will create 50 temporary construction jobs, with wages of approximately $1.1 million.
NYSEG and Chobani say the line is needed to enhance regional reliability and meet the increasing demand for electricity brought about by expansion at the yogurt manufacturer.
“Without this power line, this next phase in Chobani’s expansion really can’t live up to expectation,” said Commerce Chenango President Steve Craig.
Significant funding for the line will be paid by Chobani Inc. Chobani currently employs 823. An additional 106 full-time permanent positions are expected to be created at the plant over the next two years.
“Residents in Columbus will be forfeiting close to $3,500 for one year, but the project would generate more than 8 and 9 times that amount,” said Craig, who added, like all PILOT agreements, this one comes with the “quid pro quo” of new jobs.
According to handouts distributed at the public hearings, and based on historical payments to the Town of Columbus in 2010 and 2011, the cash distribution share to Columbus of the projected $121,875 paid to Chenango County generated by the project (if received) would have been $3,412.50. Ball park estimates of new real property tax revenue for Columbus in the first taxable year, 2013, is $41,000.
Columbus Supervisor Tom Grace, who previously suggested NYSEG should bury portions of the line, told members of the Chenango County Board of Supervisors earlier this week that he would be meeting with Chobani executives to discuss the town and, in particular, the increased traffic brought about by Chobani’s presence over the past four years.
The New York State Electric and Gas company got the go-ahead last week from Chenango County to erect a 10.7 mile long 46-kv transmission line from the Town of Sherburne to a new substation near the Greek-yogurt manufacturer, Chobani Inc. in the Town of Columbus.
The Chenango County Industrial Development Agency approved NYSEG’s $650,000 one time sales and use tax exemption for the project at a special meeting at Commerce Chenango in Norwich within days of holding public hearings on the proposal. A hearing in Columbus brought out opposition to the new line, with residents saying the tax exemption would not benefit their town and, instead, result in lower property values and negative environmental impacts.
NYSEG filed an application with the Chenango IDA in early January for sales and use tax benefits of approximately $650,000 on materials purchases of $3.9 million, and taxable contract purchases of $4.2 million. The utility’s total investment is $13.8 million, including new construction, renovation, equipment, installation, engineering fees and overhead.
The project will create 50 temporary construction jobs, with wages of approximately $1.1 million.
NYSEG and Chobani say the line is needed to enhance regional reliability and meet the increasing demand for electricity brought about by expansion at the yogurt manufacturer.
“Without this power line, this next phase in Chobani’s expansion really can’t live up to expectation,” said Commerce Chenango President Steve Craig.
Significant funding for the line will be paid by Chobani Inc. Chobani currently employs 823. An additional 106 full-time permanent positions are expected to be created at the plant over the next two years.
“Residents in Columbus will be forfeiting close to $3,500 for one year, but the project would generate more than 8 and 9 times that amount,” said Craig, who added, like all PILOT agreements, this one comes with the “quid pro quo” of new jobs.
According to handouts distributed at the public hearings, and based on historical payments to the Town of Columbus in 2010 and 2011, the cash distribution share to Columbus of the projected $121,875 paid to Chenango County generated by the project (if received) would have been $3,412.50. Ball park estimates of new real property tax revenue for Columbus in the first taxable year, 2013, is $41,000.
Columbus Supervisor Tom Grace, who previously suggested NYSEG should bury portions of the line, told members of the Chenango County Board of Supervisors earlier this week that he would be meeting with Chobani executives to discuss the town and, in particular, the increased traffic brought about by Chobani’s presence over the past four years.
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