NYPA announces Low-Cost Hydropower Allocations for Multimillion Dollar Expansions by Three Erie County Firms and over 200 new jobs
July 27, 2011
FOR IMMEDIATE RELEASE
WHITE PLAINS—The New York Power Authority (NYPA) Board of Trustees has announced the allocations of low-cost hydropower to three Erie County businesses—M&T Bank Corp., Moog, Inc., and Try-It Distributing Co., a beverage wholesaler—in return for their creation of 217 jobs from expected capital investments of nearly $79 million in facilities in Amherst, Elma and Lancaster, respectively.
At its regularly scheduled July meeting on Tuesday, the NYPA board approved allocations totaling 3,500 kilowatts (kW) from the Niagara Power Project for the planned expansions by the three companies. The allocations will be drawn from a block of electricity known as Expansion Power—one of two large amounts of Niagara power set aside under New York State law for job- creating businesses on the Niagara Frontier.
“The Power Authority is making steady progress under Governor Cuomo’s leadership in maximizing the available power from the Niagara project for expanding Western New York’s job base and putting people to work,” said Richard M. Kessel, NYPA president and chief executive officer. “The power from the hydroelectric project is among the lowest cost in the country, making it an effective catalyst for capital investments by businesses and for job growth, especially during economic hard times. The power allocations to M&T, Moog and Try-It Distributing are part of the comprehensive efforts to inject vitality in the region’s economy.”
M&T Bank received an allocation of 3,000 kW in connection with its plans to purchase a building on Park Club Lane in the Town of Amherst that was previously operated as a data center by HSBC. M&T would upgrade the-more-than 59,000-square-foot building for it to serve as its primary data center. The company would relocate its current data center operations, also in Amherst, to the new facility, with the existing facility, on Commerce Drive, refurbished for additional office space and other potential uses by the bank.
M&T, which has more than 4,900 employees in Western New York, including more than 1,300 in Amherst, would invest approximately $51.62 million over five years in the overall data center initiative and create 124 new jobs.
The new Amherst facility will include new computer equipment for expanding technology infrastructure in support of M&T operations and product lines in the U.S. and abroad. The company had considered Delaware for the expanded data center project and locations in Maryland and Virginia where it also has business operations.
“As one of Western New York’s largest employers, M&T brings much to the region’s economy, in wages, purchases of goods and services, tax revenues and other benefits,” said Sen. Michael H. Ranzenhofer. “The company’s continued growth in Amherst through the investment in a new data center, and the jobs it will bring, is a positive development for our community. We’re most appreciative of the support being provided for this worthwhile initiative by Governor Cuomo and the Power Authority.”
In addition to the low-cost Niagara hydropower, the Amherst Industrial Development Agency is considering tax abatement incentives for the new data center.
Moog, Inc., a designer and manufacturer of precision motion controls for aerospace, defense, industrial and medical markets, received a hydropower allocation of 300 kW for a planned $13 million headquarters facility at the company’s campus in the Town of Elma, on Jamison Road. The firm would add 70 new jobs to a current work force of nearly 2,500 employees there.
The new building will enable various corporate functions across the campus to be relocated into one facility, freeing up space for manufacturing and other operations.
“We’re looking forward to Moog’s expansion plans and appreciative of New York State’s support of this endeavor through additional supplies of low-cost hydropower,” said Sen. Patrick M. Gallivan. “Moog is one of the region’s most acclaimed companies, with its precision control systems a global leader in the aerospace and defense industries. It’s gratifying to see Moog’s continued growth in Elma as it further solidifies its commitment to Western New York.”
Moog, which benefits from previous hydropower allocations from NYPA, will also receive tax incentives for the expansion through the Erie County Industrial Development Agency.
Try-It Distributing, a family-owned wholesaler of beer and non-alcoholic beverages, was awarded an allocation of 200 kW of hydropower in return for its plans to add 23 new jobs beyond its current employment of 242 in the Town of Lancaster. The company is planning to invest $14 million for the construction of an addition to its office and warehouse operation to accommodate the business’s growth and attract new brands for distribution.
Much of the 106,000 square-feet of the new facility’s space would be for warehousing, containing climate-control equipment for meeting exacting standards of beverage product manufacturers.
"For beverage wholesalers, warehousing typically consumes significant amounts of energy for lighting, refrigeration and other related electricity-powered equipment,” said Assemblyman Robin Schimminger. “The allocation of Niagara hydropower to Try-It Distributing will help underpin the company’s cost control, serving as a critical factor in growing the business and keeping it competitive. I want to extend my sincere thanks to Governor Cuomo and the Power Authority for supporting this initiative and helping to ensure the continued success of a long-time and highly valued Erie County employer.”
The Lancaster Industrial Development Agency is also supporting Try-It’s expansion with tax incentives. The beverage wholesaler is also working with the New York State Energy Research and Development Authority on energy-efficient measures for the new warehouse.
NYPA conferred with various New York State and Western New York economic development agencies before making the allocations to M&T, Moog and Try-It Distributing.
Hydropower under the Expansion Power Program and from another large block of Niagara power known as Replacement Power directly supports more than 30,000 Western New York jobs.
Over 120 of the Buffalo-Niagara region’s foremost companies benefit from the two hydropower programs. The companies have an annual payroll of more than $2 billion and account for more than 70 percent of the manufacturing jobs in the region.
■ The New York Power Authority uses no tax money or state credit. It finances its operations through the sale of bonds and revenues earned in large part through sales of electricity. ■ NYPA is a leader in promoting energy efficiency, new energy technologies and electric transportation initiatives. ■ It is the nation's largest state public power organization, with 17 generating facilities in various parts of New York State and more than 1,400 circuit-miles of transmission lines. ■ Approximately 80 percent of the electricity it produces is clean renewable hydropower. Its lower-cost power production and electricity purchases support hundreds of thousands of jobs throughout the state. ■For more information, www.nypa.gov.