A $3 million warehouse project in Cheektowaga for a growing Chicago-based building materials supplier and distributor is getting more than $320,000 in tax breaks from the Erie County Industrial Development Agency.
The IDA on Wednesday approved $323,250 in property, sales and mortgage recording incentives for Column Development, which wants to build a 45,000-square-foot facility at 380 Dick Road that it will lease to L&W Supply Corp., also known as Building Specialties.
L&W, which says it's the nation’s largest distributor of gypsum wallboard and building materials, is currently located in 26,000 square feet of leased space at 675 Duke Road, also in Cheektowaga, near Union Road and Walden Avenue. But it needs more room to meet its growing demand and increased business in Western New York. And its current location has now been sold.
L&W employs 30 currently, and expects to add eight jobs with the expansion, paying an average salary of $30,000. The company does about $30 million in business in Erie County, according to the application.
Column and L&W had warned the IDA that the supplier could consolidate its local operations to another location – possibly in Niagara or Monroe counties – and still serve Western New York from outside Erie County if it didn't get the tax breaks.
Founded in 1989, Kenmore-based Column is equally owned by Roger Pasquarella, former Pano's Restaurant owner Pano Georgiadis and John Kanustu. The company buys, develops, builds and leases buildings to tenants such as Enterprise Rent-a-Car, Sherwin Williams Paint and Decor, Paul Wolf Insurance and JBM Mechanical.
The project costs include $650,000 for the purchase of the 5.77 acres of land, $1.9 million for construction, $350,000 for infrastructure work and $65,000 in professional services. Funding comes from $1.2 million in equity and $1.8 million in bank debt, according to the Column application to the IDA.