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ECIDA incentives assist variety of area projects

Thu, Jun 23rd 2011 12:00 am

By JAMES FINK
jfink@bizjournals.com | 716-541-1611

In one of its most diverse agenda items in recent months, the Erie County Industrial Development Agency approved a series of incentives to help everything from the expansion of a Grand Island pharmaceutical manufacturer to the renovation of a historic Buffalo building.

All told, the incentives approved Monday morning by agency directors will kick in $101 million in private sector-fueled investments.

"We are pleased that in the last six months we have seen a surge in new investment in Erie County being assisted by the ECIDA," said Al Culliton, chief operating officer. "Part of that surge is an uptick in manufacturing projects."

Projects include:

• APP Pharmaceuticals Inc. on Grand Island got approval for an incentive package that could clear the way for a $27.8 million upgrade to its Staley Road plant. It will save the company approximately $1.19 million while triggering the expansion project, which includes renovating 37,000 square feet of its plant and adding 13,000 square feet.

Work from APP's parent, Fresenius Kabi Group of Germany, is shifting from operations in Puerto Rico and Chicago to Grand Island. Ninety jobs could be added to the plant in the next few years. APP currently has 575 workers on Grand Island.

• HVR Advanced Power Components Inc.'s request for incentives was unanimously approved. The company is moving from the Town of Tonawanda to Cheektowaga and expanding from 3,700 square feet to more than 10,000 square feet. It will add seven jobs to the current work force of 13.

"More than 70 percent of the companies in Erie County have nine workers or less and expand by adding a job here or a job there," Culliton said.

HVR produces ceramic carbon resisters for heavy industry.

• QuadPharma Inc. of Newstead, led by former executives of Westwood Pharameuticals, received an abatement package to help finance its $1.8 million purchase of new machinery and equipment at the Route 5 plant. The company exoects to add 43 jobs in coming years.

• Hager Lofts LLC - a development tandem led by Jim Swiezy of Greenleaf Co. and Paul Kolkmeyer, former president of First Niagara Financial Group - received an incentive package considered key to renovation plans for the onetime Spaghetti Warehouse property on Michigan Avenue in Buffalo.

The Hager building, which dates to 1883, has been vacant since 2004.

Swiezy and Kolkmeyer plan to invest $7.5 million to convert the building to a mixed-use development anchored by 36 market-rate apartments.

• A local partnership led by BP Southtowns Campus LLC received an incentive package that will enable Bryant & Stratton College to occupy a 20,000-square-foot building on Redtail Road in Orchard Park. It will serve as a back-office call center for the Online Education division. The college is looking to create 65 full- and part-time jobs, giving it a total 145 at the center.

• An incentive package to assist Young Development Corp. with construction of the $3 million Sylvia's Place senior housing complex in Elma sparked a discussion about whether the IDA should offer aid to senior housing projects. An incentive package was approved, although directors agreed to review the current senior-housing financing policy. Sylvia's Place will feature 48 apartments.

• A sales tax incentive package was approved for developer Rocco Termini. He is investing $46 million to renovate the Hotel Lafayette in downtown Buffalo for mixed-use development anchored by 115 apartments.

In a separate action, the IDA's Regional Development Corp. approved a low-interest $500,000 loan to Tap Room at the Lafayette LLC, a group run by Earl Ketry, owner of the Pearl Street Grill & Brewery. He runs the former Lafayette Tap Room space in the hotel for Termini. Ketry will be investing $1.2 million in the renovation project.