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Utica IDA hears application to renovate 371,000-square-foot Beachborough Place building, contemplates five-year tax relief
Summary
The Utica Industrial Development Agency received an application from BG Warehouse LLC to renovate a roughly 371,000-square-foot industrial building at 2007 Beachborough Place, with proposed sales tax exemptions and a five-year PILOT; the public hearing closed with no comments.
Jack Smith, executive director of the Utica Industrial Development Agency, told the agency that BG Warehouse LLC applied for agency assistance to renovate an existing 371,000-square-foot (plus or minus 4) industrial building on a 21.81-acre parcel at 2007 Beachborough Place in the City of Utica, Oneida County, New York. "The company owns the facility and leases the facility to the agency, and the agency leases the facility back to the company," Smith said, describing a lease–leaseback structure intended to support upgrades for manufacturing tenants and to allow the primary tenant, Trenton Technology, to expand and upgrade its operations.
The project as described would include renovation of the building and acquisition and installation of machinery and equipment to support manufacturing, design, assembly, delivery and distribution of computer boards. Smith said the facility would initially be leased, operated or managed by the company and that portions of the facility would be subleased to other manufacturing tenants.
Smith said the agency "contemplates that it will provide financial assistance to the company in the form of exemptions from sales and use taxes [and] abatement of real property taxes for a period of 5 years, during which time the company will make a fixed PILOT payment." He added that the proposed financial assistance represents a deviation from the agency's uniform tax exemption policy and would be described in a final authorizing resolution to be adopted by the agency prior to closing.
The application and the agency's contemplated incentives were presented during a public hearing; the hearing was closed after no members of the public spoke. A staff member closed the public hearing session, noting there were no comments.
No final agency vote or authorizing resolution was recorded in the provided transcript excerpt. The agency's next formal step, as stated, would be adoption of a final resolution specifying the assistance, terms and any deviation from the uniform tax exemption policy prior to closing the transaction.
