Lockport Union-Sun & Journal — Trek has proposed occupying the first floor and part of the second floor of Building 4 immediately, and the remainder of the second floor within two years as the business grows. Manufacturing and process operations would take place on the ground floor and administration would be on the second floor.
The proposed lease provides Trek a 5-year option to take the third floor, as well as 10-year lease renewal and building purchase options.
There’s a very good chance Trek will occupy Building 4 for at least 20 years, according to Bell.
“Both sides expect the (renewal) option will be exercised or Trek will purchase the building. We’d be shocked if one or the other does not occur,” he said.
Lockport’s proximity to the University of Buffalo, with which the business has an electrical engineering training arrangement, was a factor in Trek’s decision to relocate here, various officials have said.
It’s expected the Niagara County Industrial Development Agency board of directors will approve a 20-year tax relief agreement with GLDC and Trek, covering Building 4, at its Wednesday business meeting.
Relief consists of a five-year Opportunity Zone Payment In Lieu of Taxes agreement, which fully exempts the building from property taxes, followed by a 15-year Industrial PILOT agreement which gradually raises the property tax bill over time.
Both PILOTs also provide exemptions on mortgage recording tax and sales tax on construction and furnishing-related purchases.