March 25, 2008
GOVERNOR PATERSON ANNOUNCES GRANTS TO CREATE 1,000 NEW JOBS IN UPSTATE NEW YORK
Governor David A. Paterson today announced six grants totaling $5.5 million to help businesses in Upstate New York expand their operations, retain 148 jobs and create 1,013 new jobs. The grants will be allocated towards community and economic development initiatives benefiting six Upstate counties, including Albany, Cattaraugus, Essex, Montgomery, Niagara and Steuben.
The awards, all of which were approved today by the state’s Housing Trust Fund Corporation (HTFC), included nearly $3.8 million in Community Development Block Grants (CDBG). Those grants are administered by the Housing Trust Fund Corporation through the New York State Office for Small Cities (OFSC). Additionally, about $1.7 million in grants were provided by the Empire State Development Corporation (ESDC). The vast majority of the new jobs created through the grants will be made available to low- and moderate-income New Yorkers, providing them and their families with a greater degree of financial security.
“Revitalizing the Upstate economy is a top priority of my administration, especially in light of the national economic downturn,” said Governor Paterson. “Our State will not prosper unless cities and communities throughout Upstate New York are benefitting from strong, vibrant local economies.”
Department of Housing and Community Renewal (DHCR) Commissioner Deborah VanAmerongen said: “Working collaboratively with outside partners, whether they are local governments, business owners or financial institutions, allows us to maximize the positive effects our limited resources have on the communities we are trying to help.” VanAmerongen noted that the grants would help to leverage more than $20 million in additional financing, largely from private sources.
The projects include:
Green Island Power Authority Expansion:
In Albany County, a $750,000 grant to the Village of Green Island will help that municipality’s power authority expand in order to serve two growing local businesses, Arcadia Supply, Inc. and John V. Warren, Inc., both of which had considered relocating out of New York in order to reduce their largest expense -- energy costs.
The upgrades will allow the Green Island Power Authority (GIPA) to supply both companies with adequate power at affordable rates delivered in a reliable manner. This project will create 23 new full-time jobs over a three-year period with 22 made available to low- and moderate-income persons. In addition, 120 jobs will be retained and remain in New York. The total projects costs are approximately $10 million, $5.4 million of which will come from private financing and equity.
Data Listing Services, LLC Expansion:
The City of Olean in Cattaraugus County has been awarded a $750,000 grant for Data Listing Services, LLC to establish a new call center, resulting in the creation of 450 new, full-time equivalent jobs over a three-year period. More than 390 of those jobs will be made available to low- and moderate-income persons.
The total project costs are anticipated to be $4.3 million, including $700,000 from ESDC and $2.8 million in owner equity. The company currently employs close to 1,100 people at five call centers in the United States, including one in Jamestown, NY, that employs 492. The company chose to open a new facility in Olean, NY rather than locating in neighboring Pennsylvania after receiving financial commitments from ESDC and OFSC.
Power Pallet Inc. Expansion:
Montgomery County was awarded a grant of $503,500 to assist with the expansion of Power Pallet, Inc., which manufactures and recycles wooden pallets used in transportation and storage. CDBG funds will offset the costs associated with the purchase of machinery and equipment.
In 1975, the company’s first year of operation, they repaired and recycled more than 22,000 pallets with a two person production staff. In 2006, after moving into their new facility, Power Pallet repaired and recycled more than 2.1 million pallets with a work force of 120 employees. Since opening its Amsterdam facility, Power Pallet has engaged several new large clients such as Target, Staples, Lowe’s and Home Depot.
In order to meet its new market demands and recent growth patterns, Power Pallet will expand its current operation by adding a second production line at its Amsterdam facility. The expansion project will result in the creation of 65 new full-time jobs, with 62 made available to low- and moderate-income persons. All positions offer employer-sponsored health care benefits.
The total project costs are about $3.2 million, with company’s owners providing $2.5 million in equity and securing $200,000 in bank financing.
Niagara Produce Expansion:
The City of Lockport will receive a $266,000 Community Development Block Grant to help Niagara Produce, Inc., a retail grocery and market seeking to expand into a second location. CDBG funds will be used for machinery and equipment.
Niagara Produce has operated from a single location at the Erie/Niagara County line since 1961. The operation specializes in fresh fruits and vegetables, nursery stock, and is well known for its deli products and competitive pricing. The company will be opening a second store in the heart of downtown Lockport, in a building which has been vacant for nearly two years. In addition to helping redevelopment efforts of the city’s downtown, the project will also result in the creation of 31 new full-time jobs, with 30 made available to low- and moderate-income persons.
Total project costs are slightly more than $900,000. In addition to $266,000 from the Office for Small Cities, $626,000 will come from private equity and financing and $25,000 from a NYS Legislative Item.
Town of Ticonderoga Grant:
The Town of Ticonderoga in Essex County will receive a $750,000 grant to help build a municipal wastewater collection system that will support a total of 22 properties, including a new Best Western Inn & Suites, eight existing businesses and 16 residences.
Best Western is investing $5.5 million in the project, which will create 19 new jobs, all of which will be made available to low- and moderate- income persons. This project will also retain 28 jobs.
Without access to municipal sewer, Ticonderoga faced the loss of many established businesses, which were faced with significant costs of sewage removal. The lack of municipal sewer has also stifled efforts to attract new development to the area. The Town of Ticonderoga is also investing $38,500 into the project.
Sitel Corporation:
In Steuben County, the Town of Erwin has been awarded a Community Development Block Grant of $750,000. The grant complements a previously announced ESDC grant of $1 million.
The funding will help the Sitel Corporation establish a new customer service call center in the former Corning, Inc. building, which has been vacant for five years. CDBG funds will be used to offset training costs for new employees.
The Sitel Corporation employs more than over 67,000 people in 27 countries, serving more than 450 clients world-wide. The new call center will create 400 new full-time jobs, with 350 made available to low- and moderate-income persons. The company will also create 50 new part-time jobs, with 26 of those positions being made available to low-and moderate-income persons. All full-time positions are offered employer-sponsored health care benefits.
