Lockport Union-Sun & Journal Online

Local News

February 12, 2010

TOWN OF LOCKPORT: IDA to consider PILOT for Lockport Energy Associates

TOWN OF LOCKPORT — The town Industrial Development Agency will decide in March whether to extend Lockport Energy Associates’ payment-in-lieu-of-taxes agreement.

The IDA board of directors will vote on the PILOT extension at its next meeting, March 11. The agreement is asking to keep LEA’s Lockport Cogeneration Facility on Junction Road exempt from taxes. A public hearing was held on the topic Thursday, but no one spoke.

LEA’s plant is already exempt from county or school property taxes with its current PILOT agreement in place until 2012. If the IDA approves the extension, it would be extended until 2015. Employing 14 people, the Lockport Cogeneration plant produces steam for General Motors Components Holdings plant on Upper Mountain Road.

In other IDA news, IDA Administrative Director David Kinyon said the board was deciding what to do with the Electruk Building. The building had been damaged in a fire a few years ago, and the entire site was remediated in 2009. The goal is to sell the entire site.

“They’re looking at alternatives and decide whether to demolish the building or rehab the building, then sell the land,” Kinyon said.

The Electruk Building is located at the intersection of IDA and Enterprise Drives in the agency’s Lockport Industrial Park. Town IDA attorney Daniel Seaman said work is continuing on the building resolution to transfer ownership to the town from the county. Kinyon told the board that cost estimates of fixing up the building, versus demolishing, is also being prepared.

Some board members found out about a bill from the state for “central government services,” for $926. The charges for IDAs throughout the state was first reported in the US&J; in Thursday’s edition. A letter from the state Department of Taxation and Finance/Division of the Treasury said public authorities were charged, but it did not explain how the charge was calculated. The New York State Economic Development Council, a statewide federation of economic development agencies, also is looking into the charge, Kinyon said.

“They are attempting to have discussions with the state Department of Taxation and Finance in order find out the methodology,” Kinyon said.

Contact reporter Joe Olenick at 439-9222, ext. 6241.

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