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Lancaster IDA to consider tax breaks for warehouse project

Lancaster IDA to consider tax breaks for warehouse project

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Pavement and Pleasant View

The intersection of Pavement Road and Pleasant View Drive in Lancaster.

The developers who want to build a warehouse and office complex in Lancaster for startup companies and small businesses say they need tax breaks from the town to get the $2.6 million job done.

David Kulbacki, owner of Kulback's Construction Co., together with Charles and Brenda Donner, are seeking to put up two pole barn buildings totaling 26,455 square feet that they hope to lease to tenants. One would have 14,070 square feet, while the second would have 12,385 square feet. 

They currently plan to rent part of the property to the Donners', an online greeting card company that sells cards, stationery and related items, according to their application for tax breaks from the Lancaster Industrial Development Agency. The small company is currently operated out of the Donners' home but needs more space to meet growing customer demands, the application said.

The rest of the incubator space would be leased to "companies that cannot afford typically high rents in conventional office parks," the developers said in the application. The project is expected to double employment from five to 10.

The project would be located on 1.76 acres of vacant land on Pavement Road, near Pleasant View Drive. The property is currently owned by Thomas S. Mediak, but the group has it under contract.

Costs include $1.79 million for construction, $150,000 for the property purchase, $275,000 for infrastructure, $100,000 for equipment and furniture, and $290,000 for professional expenses. Funds include $1.75 million in bank loans and $854,000 in equity.

The developers, through Pavement Road Storage, are asking the IDA for a sales tax break of $66,273 on project costs, as well as a $13,125 mortgage tax exemption and unspecified property tax breaks.

The developers say the IDA subsidies will make the project affordable and keep the lease rates competitive. Otherwise, they said, the project is not feasible.

The agency will hold a public hearing on the request at 8:30 a.m. May 4 at Lancaster Town Hall.

The developers hope to start work by June 1 and finish by the end of January 2022, although tenants may start moving in as early as November 2021, according to the application.

The Buffalo News: Good Morning, Buffalo

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