Lockport Union-Sun & Journal — It’s also still possible a competing site owner could sweeten its deal enough to trump Lockport’s, according to Ottaviano.
“The stars have to align. It’s between us and North Carolina,” he said. “The stars are lining up, but we’re not there yet.”
Tax relief portrayed
as critical to a deal
The NCIDA board will vote next month, after a Jan. 3 public hearing on the terms, whether to approve GLDC’s application for a deviated 20-year Payment In Lieu of Taxes deal for Building 4. That’s a three-floor, 96,000 square-foot standalone building along Walnut Street east of Locust Street.
The tax-relief package would consist of two types of PILOTs: a five-year Opportunity Zone pact first and a 15-year industrial PILOT afterward; and sales tax and mortgage recording tax exemptions throughout.
According to the application, Trek relocation is a $5.3 million project that would get 98 full-time employees working downtown — in production, finance, administration, technical work, engineering and human resources — within three years. Twenty-six of those jobs would be new and related to company expansion.
Already, 23 employees are working from the Trek Technology Center at 57 Canal St., where the company moved its research/development and design engineering departments last year. Trek would move them over to Harrison Place “eventually,” Dehn said; they are in addition to the 98 employees going to Harrison Place within three years.
Of the total project cost, Bell said, Trek would invest about $1.2 million, in new equipment, furniture and fixtures. That figure assumes the company receives a $500,000 grant from the state to acquire equipment for expansion; if the grant is not awarded, Trek would scale back its planned purchases, he said.
The PILOT would cut property taxes on the improved Building 4 by $720,000 over 20 years, according to projections by county IDA staff.
Harrison Place already is a 15-year PILOT recipient, since last year. However, the beneficiary is GLDC, a non-profit corporation, and according to NCIDA attorney Mark Gabriele, benefits cannot be passed on to a for-profit company like Trek. The agency is moving to subdivide Building 4 from the rest of Harrison Place and is applying for a 20-year PILOT for that parcel only.