Unifrax, McKesson plan suburban expansions (Cheektowaga, Tonawanda: sales, pharmacy, minimum wage)

[ckhthankgod]

Two suburban employers want to expand their operations, moves that represent more than $52 million in private sector investment.

The expansions are proposed by Unifrax 1 LLC for its Riverwalk complex in the Town of Tonawanda and McKesson Corp. for its Cheektowaga warehouse and fulfillment center. In the case of Unifrax, the Town of Tonawanda site was selected over options in Europe while McKesson opted to expand in Cheektowaga instead of a similar operation in Jeffersonville, Ind.

Both expansions hinge on incentives from the Erie County Industrial Development Agency and other agencies. The IDA has set public hearings for both projects on Feb. 26. The agency’s directors are expected to vote on the tax break packages March 27.

Unifrax, which has two Town of Tonawanda operations and another in Sanborn, wants to expand its Riverwalk plant by 90,000-square feet to handle increased production of its poly-crystalline fiber products. The fiber products are used in various applications including the automotive and aerospace industries.

The project carries a $36 million price tag.

“Unifrax is an important employer in Tonawanda, and we are delighted to see their continued commitment, investment, and growth in Erie County,” said ECIDA President and CEO Steve Weathers.

Unifrax has 122 employees at its Riverwalk operation and another 242 in the Firetower Industrial Park, also in the Town of Tonawanda. The company has 27 people employed in its poly-crystalline fiber products department and hopes to add another 10, who will earn an average annual salaries of $57,500, according to IDA documents.

Pending approval of the tax breaks, which amount to $752,500 in sales and property relief spread over 10 years, the company wants to start the project by early May and have it completed by September 2020.

McKesson, a Fortune 500 pharmaceuticals company, plans to expand its Cheektowaga central pharmacy fulfillment operations center by annexing a 45,000-square-foot building Benderson Development constructed on Broadway.

McKesson will maintain its fulfillment center, also on Broadway in Cheektowaga, where 62 people work and a 139,000-square-foot West Seneca fulfillment center in North America Center, where 91 are employed.

The $16.1 million project will see McKesson add 13 jobs with annual salaries of $39,000, based on documents the company filed with the county IDA.

McKesson is seeking $1,238,125 in sales and property tax breaks – spread over a 10 years. The company said that Indiana is offering $2.2 million in tax breaks and incentives.

McKesson hopes to have the new Cheektowaga fulfillment center operational by December.

Source: https://www.bizjournals.com/buffalo/...xpansions.html

[Thundarr457]

Unifrax hopes to add another 10, who will earn an average annual salaries of $57,500, pending approval of the tax breaks, which amount to $752,500 in sales and property relief spread over 10 years

The $16.1 million project will see McKesson add 13 jobs with annual salaries of $39,000, McKesson is seeking $1,238,125 in sales and property tax breaks – spread over a 10 years

So for 23 jobs the area will give almost 2 million dollars in tax breaks. 10 jobs at 57,500 and 13 more at 39,000. Why is this newsworthy?

[ckhthankgod]

It is interesting that they both decided to stay versus going to those other locations.

[Thundarr457]

Originally Posted by ckhthankgod

It is interesting that they both decided to stay versus going to those other locations.

I'll bet they were just using that as leverage to get tax breaks. 2 million for 23 jobs?

[ckhthankgod]

Originally Posted by Thundarr457

I'll bet they were just using that as leverage to get tax breaks. 2 million for 23 jobs?

It is between the 2 companies. Did you see what they were offering to give in Indiana just for McKesson? All things considered, that is somewhat newsworthy.

[Thundarr457]

Originally Posted by ckhthankgod

It is between the 2 companies. Did you see what they were offering to give in Indiana just for McKesson? All things considered, that is somewhat newsworthy.

Indiana is offering more because its most likely for the entire plant not just an expansion of an existing plant like here. Actually its less when you factor that in.

[ckhthankgod]

Originally Posted by Thundarr457

Indiana is offering more because its most likely for the entire plant not just an expansion of an existing plant like here. Actually its less when you factor that in.

That is just speculation though, unless you know something that wasn't mentioned in the article.

[Thundarr457]

Originally Posted by ckhthankgod

That is just speculation though, unless you know something that wasn't mentioned in the article.

Why would Indiana offer 2 million for 13 jobs paying 39,000? Its obvious that they were looking for the entire company.

[ckhthankgod]

Originally Posted by Thundarr457

Why would Indiana offer 2 million for 13 jobs paying 39,000? Its obvious that they were looking for the entire company.

Even if that is the case, all things considered, it is still remarkable that they decided to stay put.

[Thundarr457]

Originally Posted by ckhthankgod

Even if that is the case, all things considered, it is still remarkable that they decided to stay put.

I wouldn't say remarkable. It came down to dollars and cents. 13 jobs at 39k is not much higher than minimum wage. The cost of relocating the plant was probably higher, all things considered.