Published: July 20, 2007 02:17 pm            

ECONOMIC DEVELOPMENT: IDA turns down First Niagara application

The Niagara County Industrial Development Agency’s board of directors on Thursday did something it rarely does: Deny an application for tax breaks.

Though four members of the board wanted to allow First Niagara Bank to not pay $200,000 in sales tax for equipment and materials to upgrade its data center, IDA Chairman Henry Sloma’s vote against it prevented the deal from happening.

The board is comprised of nine members, and four were not at Thursday’s meeting. A vote of the total board majority is needed to approve projects.

The issue doesn’t appear to be over, however.

After the vote failed, IDA member John Petrozzi asked agency attorney Mark Gabriele how to bring the project back for another vote.

The application can be resubmitted to the Project Review Committee and if it passes there, be brought again to the full board.

The project, which calls for a $2.17 million investment, passed the Project Review Committee last week, where Sloma also voted against it.

On Thursday, Sloma said he struggled with the application because the company was already awarded a break on their property taxes in 1997.

“The taxpayers of Niagara County have been very generous in helping First Niagara become a success,” Sloma said.

First Niagara First Vice President Ed Nickson told the board the project was already under way.

Voting for the application were Petrozzi and board members Gerry Zell, Joseph Frain and Frank Roma.

Also Thursday:

• The board gave final approval to an application from JS Holding of Wheatfield. The company was formed to acquire and expand a 22,000-square-foot manufacturing facility, which will be leased by Niagara Bridge and Rail.

The company is investing $1.8 million and stands to save $480,000 in property tax savings and exemptions from sales and mortgage recording taxes.

• Continuation of benefits for the new owners of the Summit Wellness Center on Williams Road was given final approval.

Windrose Niagara Falls Properties is buying the building and would like to take over the 10-year payment-in-lieu-of-taxes agreement, which has five years left.

• Tax benefits for a new Holiday Inn Express on Niagara Falls Boulevard were given final approval. M & S Hotels will receive a 10-year payment-in-lieu-of-taxes agreement and exemptions on sales and mortgage recording taxes. The $5.5 million project is expected to create 13 full-time equivalent positions.

• The board approved Barden & Robeson’s request that they be exempted from their projected employment levels until the first quarter of 2009.

The company, which received a payment-in-lieu-of-taxes agreement in 2004 for its Middleport facility, was hit with a fire in November 2006.

• The board agreed to extend for one year previously granted sales tax exemptions to two companies, Fedko of Western New York, a pet supply company headquartered in Ransomville and Saksco Gourmet Baskets, an Ontario company with a Sanborn facility.

The companies won’t receive a benefit greater than the one originally agreed to by the board, just a longer time to use it, Gabriele said.

Contact reporter Jill Terreri at 282-2311, ext. 2250.

        

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