Funding for a second "incubator" building in North America Center Industrial Park was approved Monday afternoon by the West Seneca Town Board.
The $1.1 million facility, which will offer space to fledgling businesses, will be built with the assistance of a $500,000 loan.
Erie County is lending the money from its community development block grant funds to the town at 2.5 percent interest. The West Seneca Development Corp. will borrow the funds from the town at the same rate.
The corporation will lend the money to James A. Zaepfel, who will repay it over 10 years at a 4 percent interest rate. The development agency will retain any interest and other charges left over to spend on other projects.
"It's one more piece of development happening in North America Center where the town has substantial investment," Supervisor Paul T. Clark said.
The 24,000-square-foot structure, expandable to 30,000 square feet, will be built on about five acres, he said. It will be a companion to the 24,000-square-foot American Business Center Phase One, also developed by Zaepfel Development Co. with a loan of federal funds.
The Town Board amended the latest loan agreement at Councilman Christopher P. Walsh's request to make it clear that contractors with union shops are eligible to bid on work.
"I understand there were some union contractors discouraged from bidding on the first building," Walsh said.
Walsh and other board members also asked that the rear of the building, which will back up to homes on Seneca Creek Road, be more aesthetically pleasing than the first incubator.