CVS to build 751,000 s/f distribution center at 150-acre site in Chemung: An $88 million investment

CVS/pharmacy, the retail division of CVS Caremark Corp., will construct a 751,000 s/f distribution center that will result in the creation of 600 new jobs and an investment of $88 million in combined building and equipment. The facility is designed and pre-permitted to expand an additional 400,000 s/f. In a cross border agreement, the Chemung County Industrial Development Agency (CCIDA) has entered into a development agreement with CVS to provide industrial infrastructure to the 150-acre White Wagon Rd. site. The partnership involves the extension of sewer (Athens Township Authority), water (Aqua Pennsylvania), natural gas (Valley Energy) and electricity from Pennsylvania via a cross border partnership between NYSEG and Tri-County Rural Electric Cooperative. Verizon Communications will provide telecommunications from New York. In 2004, Southern Tier Economic Growth, Inc. (STEG) received a grant from the Appalachian Regional Commission to conduct a Business Park Development Study of the site. The study supported the development of the park, after which STEG secured a Build Now NY grant to complete a Generic Environmental Impact Study of the site, resulting in "Shovel Ready" certification by Empire State Development in 2006. In November 2007, the Jones Lang LaSalle Co. contacted STEG to tour the White Wagon Rd. site as part of a site search that included over 325 sites, located from Maine to Maryland. The development of the White Wagon Rd. site was always contingent upon a large enough project that would generate property tax revenues and grants to pay for infrastructure to the site. In the case of CVS, the facility will be assessed at $51 million for building and land, increasing the tax payments on the parcel from its current $28,700 per year, to $1.45 million per year. An estimated $9.2 million in infrastructure upgrades and extensions will be financed via infrastructure bonds issued by the CCIDA and funded by CVS. The bonds will be reduced by grants, which have been applied for, from the NYS Office of Community Renewal, U.S. Economic Development Administration, and various utility programs and are expected to total over $2 million. A portion of the new tax revenues will be returned to the CCIDA via a Payment In Lieu of Tax agreement approved by the town, county and school district to pay the infrastructure bonds over a 12-year period. CVS/pharmacy is eligible for incentives as a result of its eligibility for the Empire Zone as a Regionally Significant Project. CVS was also awarded a capital grant from the Empire State Development Corp. to offset its capital investments to the project. CVS's plans are to construct its new distribution center starting in the spring and be ready for occupancy mid to late 2011. Aerial of the White Wagon Rd. site, Chemung