ANNUAL PROJECT SUMMARY
CITY OF HORNELL INDUSTRIAL DEVELOPMENT AGENCY
04/01/08 – 03/31/09
LOWES PROJECT - Lowes broke ground in July 2008 and agreements had been reached by all municipalities and we had annexed the property into the City prior to that. We received signed agreements on the Payment in Lieu of Taxes in November of 2008 and in December 2008 Lowes paid a $450,000 PILOT which we distributed to the City, School District, County, Village of North Hornell, and the Town of Hornellsville. Lowes projected to open in July 2009.
ALSTOM - This year Alstom requested the City and IDA to do some work on Transit Drive by moving a guard shack and repaving all the way around the back of the plant. The City agreed to do the work and the IDA would upfront the money in the amount of $265,000. The City would reimburse the IDA from Small Cities Grant. Of that $265,000, $86,500 that the IDA advanced was an EDA Grant that we received for outstanding performance for finishing up the South Yard Project on time and on budget. This was one of the only grants awarded in the United States to a small project by EDA.
GENERALLI PROPERTY - The IDA purchased property from the Generalli Estate in the neighborhood of Interchange I-86 and Route 21. That project was completed this past year.
BOCOBO PROPERTY - The IDA agreed to purchase the Bocobo property on Fairview Avenue from the Bocobo Estate. Agreements were signed and we are awaiting the deed and title work. We expect it to close very soon. That property we hope will attract developers for housing and perhaps condominiums. The City has already provided additional water pressure in that area.
SOUTH YARDS - The South Yards switch project is still being negotiated with Norfolk Southern and the Western New York Pennsylvania Railroad for the installation of the switch and a siding to be able to provide siding and storage for Alstom as well as other manufacturers. This will also help us to attract other related businesses in the South Yard.
ARC MARKETING - It was decided we would put forth an effort to upgrade our web site and our marketing materials and as such we agreed to publish a request for proposals. We received one from a company - Dixon Schwabl - who was selected. We will be working with them for a complete new marketing program to be funded with a grant of $25,000 from Appalachia Regional Commission and a matching local share..
TRIKEENAN TILE - Trikeenan Tile this past year came to the IDA for additional assistance in refinancing their entire program. That was accomplished with the IDA in conjunction with the New York State Business Development Corporation, Steuben Trust Company, and our Regional Economic Development Fund. This was completed and it is expected that after the refinancing, Trikeenan will be able to move ahead and become a viable manufacturer here in Hornell.
EMPIRE ZONE - Because of the changes in the Empire Zone this past year we have spent the majority of our time working with existing companies and trying to get them recertified as the State chose to decertify everyone and then review each one of them. We wound up with all but two of our 87 businesses recertified and we are working with those two companies to put forth an argument to the State as to why they also should be recertified. The Empire Zone, as we all know, has been elusive and up in the air because of the supposed changes in the legislature on Empire Zone and it is our feeling that they will have to continue some type of program similar to this. Our IDA provides the administrative assistance to the Zone Board.
EXECUTIVE DIRECTORS COMMENTS - This coming year should be a challenge with our major manufacturer Alstom facing some major layoffs due to a lack of contracts. We have been working with Alstom in conjunction with the City over the past year and a half trying to fill that gap and will continue to do so. We are also working with a Workforce Investment Board and human relations people from Alstom to provide services that may be needed for people who are laid off. Such services as providing assistance in resume writing, assisting them to look for jobs and also as important, trying to put together training programs while they are off that they will be able to avail themselves to upgrade their skills so that when the jobs come back, as we all feel they will, be in a better position to apply for and accept better paying jobs.
The Empire Zone Programs are critical to the entire State of New York as well as the Hornell IDA to continue to attract firms for our area. We will be working very closely with the City of Hornell on the Airport in Hornell and try to turn it into an aircraft refurbishing area and the City being successful in obtaining money for some major hangars in the area. We felt once one hangar gets built, we may be able to look for and attract other clusters of aviation services.
Respectfully Submitted,
James Griffin, Executive Director