Five projects get tax breaks in Erie County - The Buffalo News

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Five projects get tax breaks in Erie County

A Cheektowaga manufacturer that makes vibrating machines used by oil and natural gas drillers received nearly $2 million in tax breaks Wednesday from the Erie County Industrial Development Agency to more than double the size of its headquarters.

Derrick Corp. is planning a $9.8 million project that is expected to create 10 new jobs over the next two years by building a 31,250-square-foot addition to its headquarters building at 590 Duke Road.

The office expansion comes three years after the company invested nearly $20 million to increase the size of its factory at 2185 Walden Ave. by more than 50 percent.

Under the latest project, Derrick will construct an addition to the west side of its current office building. The company, which expects to increase its workforce from 477 people today to 487 within two years, also plans to turn existing garage space into a training room and do minor renovations to several offices.

Derrick’s high-frequency vibrating machines and screens can be used to filter out particles as small as 10 microns in width by customers, primarily in the oil and gas industry and the mining industry. The company’s full-time workforce has grown by 114 people over the past three yeas. Derrick also has 47 part-time employees.

The tax breaks include $1.5 million in property tax savings, along with $440,000 in sales tax incentives.

“This is just the type of project that we want to support,” said Brenda W. McDuffie, an IDA board member.

The IDA also approved tax breaks for four other projects:

Fisher-Price, which is planning an $8 million project to upgrade and modernize its East Aurora research and development center and offices, received $568,000 in sales tax breaks.

The project will update the company’s Team Center building, which is home to much of Fisher-Price’s research and development efforts. Some of the upgrades will accommodate developments in digital technology that have been made since the building opened more than 15 years ago, along with changes to meeting areas and work spaces to support videoconferencing and more collaboration between workers, Fisher-Price officials said.

The tax breaks also will cover a range of new office equipment and the installation of a new phone system, IDA officials said.

The project is not expected to create any new jobs. The company currently has 750 employees in East Aurora.

“We are getting a commitment from the company to retain those 750 jobs” during the three-year period covered by the sales tax breaks, said John Cappellino, the IDA’s executive vice president.

Flying Bison Brewing Co. received $372,500 in tax breaks for its $2.5 million project to build a 12,500-square-foot production brewery and tasting room at 840 Seneca St. in Buffalo.

The project will allow Flying Bison to increase its production capacity from 3,000 barrels at its current facility on Ontario Street to 10,000 barrels at its new location.

The new location in the Larkin District and the addition of a tasting room are expected to increase the company’s visibility, IDA officials said. The company, which currently has five employees, expects to add four full-time and three part-time positions over the next two years.

A. Titan, a Hamburg manufacturer of dental instruments, received $106,750 in tax breaks for its $4.2 million project to move its operations from two separate buildings on Main Street in the Village of Hamburg to a much larger existing building in Orchard Park.

A. Titan will occupy 65,000 square feet of space in the Orchard Park building, located at 10 Center St., more than four times the 15,000 square feet of space it currently has in Hamburg. The company plans to either rent out the remaining space in the Orchard Park building or use it for future growth, IDA officials said.

Michael Bartlett, the executive director of the Hamburg Industrial Development Agency, told the Erie County IDA board that he did not object to the tax incentives for A. Titan because Hamburg did not have a suitable facility for the company.

A. Titan, which currently has 30 employees, expects to create 10 jobs over the next two years.

TexWeb Inc., an Egyptian company that makes specialized lifting equipment for the oil and gas drilling industry, was granted $24,500 in sales tax breaks for its $1.6 million project to establish its first U.S. operation at a largely empty manufacturing building at 8698 S. Main St. in Eden.

The company, which had worked with the Buffalo Niagara Enterprise business development and marketing group, expects to employ 10 people within two years.

Eden Supervisor Glenn Nellis said he was delighted to see a new business move into a prominent building on the town’s Main Street that was in growing need of repairs. TexWeb plans to install a new roof and windows.

“We’re eager to have them in a building that we’ve been trying to figure out what to do with for many years,” Nellis said.


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