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APP Pharmaceuticals gets $2.9 million in tax breaks; Expansion likely to create 90 jobs

The expansion of the APP Pharmaceuticals plant on Grand Island received $2.9 million in tax breaks Monday from the Erie County Industrial Development Agency.

The $38 million project is expected to create 90 jobs at the Staley Road plant. The expansion includes a 13,000-square-foot addition that will add six new production lines for generic injectable products.

The IDA tax breaks are the latest incentives that APP has received for its plans to expand its 37,000-square-foot plant, which currently has 575 employees. APP last week was granted $1.2 million in tax credits over a five-year period through the state's Excelsior Jobs Program. The New York Power Authority in April approved an allocation of 2,000 kilowatts of low-cost electricity for the project.

Work on the project is expected to begin later this month and take two years to complete.

The IDA also awarded tax breaks and other financial incentives to seven other projects.

*The renovation of the Lafayette Hotel into commercial space and 115 market-rate apartments received more than $2 million in sales and mortgage tax breaks. Additional property tax breaks also were approved, but the amounts of those tax savings were not immediately available.

Developer Rocco Termini's $46 million project includes commercial space on the first two floors of the former hotel and 115 apartments on the upper floors expected to range in size from 800 square feet to 1,000 square feet. Monthly rents will be in the $900 to $1,000 range.

*Bryant & Stratton College was granted $529,000 in tax breaks for a $2.6 million project to build a 20,000-square-foot facility on its Orchard Park campus that will serve as a back-office call center for its online education division.

The project is expected to create 50 full-time and 15 part-time jobs. The company currently has 75 full-time and five part-time jobs.

*Hager Lofts, a $7.5 million project to convert the former Spaghetti Warehouse building at 141 Elm St. in Buffalo into apartments and commercial space, was granted $282,000 in tax breaks.

Developers Paul Kolkmeyer and James Swiezy plan to convert the three-story building, which has been vacant since 2004, into 36 one- and two-bedroom apartments, with an additional 2,700 square feet of commercial space.

The adaptive reuse project is expected to receive property tax breaks through a separate program administered by the City of Buffalo.

While the IDA generally does not provide tax breaks for housing projects, officials said the Hager Lofts development qualifies because it is an adaptive reuse of a long-vacant building and is within an area that has been targeted for development.

*HVR Advanced Power Components, a Town of Tonawanda company that makes ceramic carbon resistors, received $182,000 in tax breaks for a $920,000 project that will see the business move into a larger facility it recently acquired in Cheektowaga.

Company officials said HVR has outgrown its 3,700-square-foot plant in Tonawanda. HVR recently purchased an 8,640-square-foot facility in Cheektowaga to build a 2,000-square-foot addition to the new facility.

HVR, which currently has 13 full-time and one part-time employee, expects to create seven new jobs during the next two years.

*QuadPharma Inc. was granted $55,000 in sales tax breaks for its $1.8 million project to purchase additional equipment and to fund renovations at its facility at 11342 Main St. in Clarence.

The company, which provides contract services for customers in the pharmaceutical and cosmetic products industry, plans to expand its laboratory and offer additional research and development services.

QuadPharma, which currently has four employees, said it expects to hire an additional 43 workers during the next two years.

*Uniland Development Co. received an additional $130,000 in tax breaks to reflect rising costs at its $9.9 million project to build an office building at 300 Airborne Parkway in Cheektowaga's Airborne Business Park.

A division of the federal Department of Homeland Security will occupy 23,877 square feet of space in the building under a new $5.72 million federal contract first disclosed in January.

*The Tap Room at the Lafayette received a $500,000 low-interest loan through the IDA's Buffalo and Erie County Regional Development Corp. affiliate for a $1.2 million renovation project that will include the purchase of new brewery equipment and a renovation of the Washington Street restaurant.