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Niagara IDA lends $200,000 to warehouse project

WHEATFIELD – A Canadian company building a warehouse in Wheatfield will receive a $200,000 loan from the Niagara County Industrial Development Agency.

The IDA board approved the loan to Borderworx, a company that has purchased 31 acres of land for $155,000 in the IDA’s Vantage International Point industrial park off Lockport Road. The IDA last year granted the company a 15-year property tax break on the $3.55 million project, to be called Gateway Center.

Susan C. Langdon, director of projects and finance for the IDA, said ground is to be broken this spring on the 50,000-square-foot warehouse, which is to be used as a transshipment point for products manufactured in Canada to be sold in the U.S.

The local loan from the Niagara County Development Corp., the IDA’s lending arm, is for 7½ years at 2.8 percent annual interest. It is only part of the financial package. First Niagara Bank is lending Borderworx $1.28 million, while the state Job Development Authority has made a $1 million loan.

The New York Power Authority is granting the project $285,000 from the sale of power, and the state Office of Community Renewal is making a $266,000 loan. The company is investing $374,000 of its own money.

Langdon said the company is promising to create 63 jobs in Wheatfield within three years. Only nine people now work for the company on Grand Island.

In other IDA action, the board approved a $25,000 loan to Uncorked Cafe, a new business at 73A Webster St., North Tonawanda, across from the Riviera Theatre.

The money is to be used for equipment for the cafe, which intends to employ as many as 13 people serving lunch and dinner and a wine bar in the former Hodge Podge cafe.

email: tprohaska@buffnews.com