Published: June 11, 2008 05:13 pm            

IDA: Incentives approved for two businesses

Tax break deals offered to machining company, credit union

Local economic development officials took action Wednesday on requests for development assistance from a pair of county businesses.

Members of the Niagara County Industrial Development Agency on Wednesday granted preliminary approval to request for a 15-year payment-in-lieu-of-taxes agreement from Certified Fabrications, a Sanborn company that specializes in machining and welding. The company, owned by Chris Karnavas and his partners, recently secured a long-term contract with a customer to produce parts that have previously been made in China. To accommodate increased demand for its services, the company will construct a 6,200 square-foot addition to its 10,000 square-foot manufacturing facility on Cory Road in Sanborn.

According to IDA officials, the company plans to invest $285,000 in the project which would result in the creation of six jobs in three years. IDA officials say the company’s PILOT payments will be in excess of $200,000 over the term of the proposed deal.

A public hearing on the incentive package is scheduled for 4:40 p.m., July 7 at 6311 Inducon Corporate Drive, Sanborn.

“Certified Fabricatioins is a long time corporate citizen and we are pleased that they have chosen to expand their business here in Niagara County,” said Chairman Henry Sloma.

In addition, the NCIDA Board approved a 10-year PILOT agreement for the Niagara Regional Federal Credit Union, a North Tonawanda company that is looking to move out of its location on Zimmerman Street and into a new, 4,500 square-foot building.

According to IDA officials, the credit union will invest $970,000 in the project which will result in the creation of two full-time and three part-time positions in three years. IDA officials said the company will make $175,000 in PILOT payments to the county during the life of the deal. Once completed, IDA officials said the credit union’s new building will add about $34,000 to the property tax rolls annually.

“Each time a project involves new construction, we are increasing the tax base of Niagara County,” Sloma said. “This project will also result in the creation of new full-time employment.”

        

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