Livingston County case studies

American Rock Salt

After the Akzo Nobel salt mine collapsed in 1993, a group of local investors proposed constructing a replacement mine that would once again be the second largest salt mine in the world. This American Rock Salt project was the first new mine construction in the state in 25 years and had an investment cost of $120 million. It also required constructing a new, three-mile railroad spur from the former site to the new mine location.

Incentives:
To enable this project, important to all of New York State, the LCIDA:

Crafted a unique Payment-in-lieu-of-Taxes (PILOT) agreement with substantial tax abatements in the first seven years and substantial increases in the next 20 years. In year eight, the American Rock Salt mine will make PILOT payments greater than the former Akzo Nobel mine it replaced.
Acted as fiscal and construction manager for the $10.5 million construction of the railroad spur, which opened ahead of schedule and under budget.
Secured $1.5 million from the federal Economic Development Administration to offset the cost of a sewer-line extension to the mine.

Outcome:
The American Rock Salt mine opened in 2001. It:

Created employment for 275 union workers
Induced a $10.5 million rail project
Preserved hundreds of jobs at industries along the Genesee & Wyoming Railroad, which would have been shuttered if the mine had not been rebuilt.

Sweeteners Plus

Sweeteners Plus furnishes sweetener ingredients to more than 300 food manufacturers in New York and nearby states. The company purchases corn syrup, sugar, and other sweetener elements in bulk rail tank car loads, mixes and formulates individual recipes for its customers and ships the custom blends over the road tankers to its customers—all the while maintaining high product quality and freshness while reducing customers need to carry inventory.

Formed in Livingsron County in 1986, Sweeteners Plus has expanded three times in the past 12 years to increase its territorial market.

Incentives:
The LCIDA assisted the company through tax abatements.

Outcome:
Sweeteners Plus directly employs 90 workers and has created many more jobs in the area at Kraft Foods, local wineries, beverage manufacturers and in rail and truck distribution.

Restoration and reuse of the former Foster Wheeler facility

Foster Wheeler Energy Corporation, after decades as the County’s largest employer, closed its business in 2003, left hundreds of unemployed workers and 550,000 square feet of vacant manufacturing structures on 56 acres in Dansville.

Incentives:
During the closure stages, the LCIDA successfully negotiated with Foster Wheeler to withhold from liquidation auction several essential mechanical systems — including overhead cranes with capacities exceeding 100 tons. The LCIDA also persuaded Foster Wheeler to maintain the property for up to three years with an on-site caretaker while the IDA attempted to market the property.

Outcome:
Successful Livingston County business owner, Larry Mehlenbacher, purchased the vacant plant and immediately reopened the building in 2005 with financial assistance offered through the IDA and Empire Zone program. He is taking advantage of the high clearances, cranes, and electrical infrastructure serving the plant. Today, all buildings are fully occupied by four companies collectively employing 200 workers in the growing “green energy” sector. Further growth is expected.