IDA of the Month: Chenango Industrial Development Agency provides numerous valuable services and incentives

Over the past several years, the County of Chenango Industrial Development Agency (CCIDA) has made key decisions that have positively impacted its small rural county and encouraged business growth. Like most IDAs, the agency provides payments in lieu of taxes (PILOT), tax exempt industrial revenue bonds, sale/lease back transactions, NYS sales and Use Tax exemptions, and mortgage recording tax exemptions. However, its success has not just been a result of providing incentives to businesses, but providing them to the right businesses at the right time. The CCIDA's strategic choices have helped stimulate the growth of businesses like Chobani, Norwich Pharmaceuticals, and The Mid-York Press. Success Stories In 2010, Chobani, a producer of Greek yogurt, approached the CCIDA regarding an expansion project to renovate 70,000 s/f of manufacturing space and purchase manufacturing equipment. Additionally, the company planned to build a 150,000 s/f warehouse and acquire an eight acre parcel of land. The construction of the warehouse would also include the purchase and installation of new equipment, and the modification of its existing building to accommodate a linking conveyor belt to the warehouse. Chobani requested a sales tax exemption, mortgage recording tax exemption, and a PILOT on the warehouse property-totaling a benefit of $2.6 million. In return, the company would invest $84 million in the project-creating 100 jobs over a five year period with an annual payroll totaling $17 million. The CCIDA saw the advances Choboni had already made, believed in the potential of the company, and granted the request. Over the next year, consumer demands for the Chobani product continued to increase. The company more than doubled its workforce and nearly doubled its projected annual payroll. With such rapid growth, Chobani needed to expand, and approached the CCIDA for assistance. The company proposed to invest another $134 million in a project to construct several new buildings, update and improve existing buildings, and purchase additional equipment. The project would create 106 jobs, 30 to 40 construction jobs, and add over $4 million to its annual payroll. The CCIDA agreed to grant another sales tax exemption and a new PILOT agreement on the increased assessed value of Chobani's property. Due to Chobani's hard work and investment, combined with the assistance of the CCIDA and other partner organizations, the company now employs more than 1100 people in Chenango County. It is currently the number one yogurt company in America. The CCIDA has a long history of involvement with the Norwich property that is now home to Norwich Pharmaceuticals, Inc. (NPI), a custom/contract developer and manufacturer of pharmaceutical products. NPI's parent company, Alvogen, acquired the company in 2007. Previously, the property was home to Proctor & Gamble and then later OSG Norwich Pharmaceuticals. Over the last decade, the CCIDA's involvement with these businesses via a PILOT agreement has led to the retention of over 200 jobs and the creation of 200 additional jobs. In March of 2012, NPI approach- ed the CCIDA about a workforce expansion project. The company proposed to invest $22 million to update space in its manufacturing facility that was being under-utilized, and purchase new equipment. The project would create 12 full-time equivalent construction jobs over a two year period and nearly 80 jobs in the first five years of operation. The CCIDA believed NPI had the potential to grow, and granted $160,000 in sales tax abatements. In the past four months NPI has already created nearly 30 jobs. According to COO Elin Gabriel, "NPI is very appreciative of the long-time support and guidance provided by the IDA for a multitude of projects. The IDA's support has been instrumental to NPI's rate of investment increasing from $17 million in 2009 through 2011 to the current level of $40 million that will be invested from 2012 to 2015. Our investment has made it possible to increase site capabilities for R&D and manufacturing to ensure long-term competitiveness and growth potential in a highly competitive and global marketplace." The Mid-York Press, a manufacturer of printed fiberboard folding cartons, first approached the CCIDA for assistance in 1982 when it was facing financial difficulties. The company owned a plant in Hamilton, and a plant in Norwich, with 18 employees at each facility. With the help of a tax exempt industrial revenue bond through the CCIDA, The Mid-York Press was able to consolidate the business into one building located in Sherburne, and purchase a new printing press. According to president and CEO Robert Tenney, "If it hadn't been for the CCIDA, we wouldn't be talking about The Mid-York Press today, because we would have gone under." In 2008, The Mid-York Press approached the CCIDA for another tax exempt industrial bond in the amount of $3.5 million to help with an expansion project and the purchase of new equipment. The project would help to retain 67 jobs at an estimated annual payroll of $2.8 million. The company also projected it would create five jobs within the first five years of operation. As the CCIDA already had a vested interest in the company and had been a part of and witnessed such a positive turn around for the business, it agreed to grant the tax exemption. Now, almost 30 years after coming close to declaring bankruptcy, The Mid-York Press is thriving. Since the issuance of the second tax exempt industrial revenue bond, the company has increased its payroll by over $1 million and created 20 jobs. Why Do Business in Chenango County? Businesses that are considering expanding or moving to the Chenango County area will find a plethora of opportunities. The CCIDA is not only active in its community, but it also works closely with its lead economic development organization, Development Chenango Corp. (DCC). DCC offers businesses several resources including access to low-cost financing, grant-writing assistance, business planning, and site location assistance. It administers a Business Assistance Loan Fund (BALF), Dairy Revolving Loan Fund (DRLF), and Microenterprise Loan Fund. Most recently, the organization has applied on behalf of the County for Foreign-Trade Zone status and the application is currently under review by the federal government. With an active IDA and development organization that have a strong partnership, many businesses have been able to combine the assistance from each organization to prosper.