The Erie County Industrial Development Agency hopes an incentive
package it approved Wednesday will be the prescription needed to
convince a Los Angeles-based pharmaceutical company to go ahead
with an $11 million expansion of a factory on Grand Island.
An American Pharmaceutical Partners executive said the company
needs more plant capacity and is considering an expansion on Grand
Island that could create 55 jobs.
The company, which acquired the Grand Island plant from
Fujisawa USA in 1998, is branching from strictly generic drugs to
its own line of proprietary injectable cancer drugs.
The company has 385 local employees, but said its payroll would
grow to 440 if the 18,206-square-foot expansion of its Staley Road
plant is finalized.
The ECIDA approved American Pharmaceutical for a lucrative tax
abatement package for the expansion. The company would save
$955,139 in property taxes over 15 years, $144,800 in sales tax
and $111,705 in mortgage recording tax.
The expanded plant would still generate $636,760 of additional
revenue during the 15-year abatement period, mainly for the Grand
Island Central School District, than its currently pays in local
American Pharmaceutical has applied for an allocation of
low-cost hydropower which was recently marketed by the Buffalo
Niagara Enterprise and Niagara Mohawk.
The New York Power Authority, which generates the hydropower in
Niagara County, is expected to rule on the company's application
during a meeting later this month.
The ECIDA also agreed to assist Mullican Flooring, a Tennessee
company, that plans to invest $4.5 million to modify a building
into in a new plant in Holland that will eventually employ 62
people manufacturing hardwood floor planks.
The company decided to open a new plant in Western New York,
rather than expand existing plants in Virginia and West Virginia.
The ECIDA approved an inducement package for the project
granting Mullican $93,725 in tax breaks over a 10-year period.
Empire State Development Corp. and Buffalo Niagara Enterprise,
a regional marketing initiative, worked on attracting both the
Mullican Flooring and the American Pharmaceutical projects here.
Final details regarding economic development incentives for the
Mullican plant are also still being worked out by Empire State
Development and the Power Authority, said Thomas A. Kucharski, who
heads both the ECIDA and BNE.
"We met with Mullican on several occasions to help
dissuade them from looking at other markets for this
project," Kucharski said.
Mullican makes lines of red oak and white oak wood flooring
sold nationally through distributors. The company also makes
specialty lines of ash, cherry, hickory, walnut and maple planks.
The company will acquire a 124,761-square-foot commercial
building at 324 Vermont St. in Holland and construct a
3,000-square-foot addition to start manufacturing here.
Mullican executives in Johnson City, Tenn., could not be
reached to comment.
In other business Wednesday, the ECIDA:
Approved a $338,834 tax abatement package for Crescent
Manufacturing to relocate and modernize its automotive fluids
plant in Eden and retain 121 jobs.
Authorized a $6.6 million bond sale for MHT Holdings, led by Mark
Trammell, to acquire and renovate the Pilgrim Village Apartments
on Ellicott Street and Michigan Avenue in Buffalo. The 90-unit
affordable housing complex was previously operated by his father,
former chief city court judge Wilbur Trammell.