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WNY Council Backs 8 Projects

Private Ventures Join 12 Others in Fund Bid

By David Robinson

NEWS BUSINESS REPORTER

November 17, 2011

 An expansion at Calspan Corp. to test systems aimed at helping prevent auto accidents and a new venture to produce fuel cells top the list of eight local private-sector projects vying for a piece of up to $40 million in state economic development funding.

The list of priority projects released Tuesday by the Western New York Economic Development Council is the final piece in its ranking of 20 local initiatives that it is backing for $15 million in state tax credits available through a statewide competition.

The council last week disclosed its backing for a dozen public-sector “priority projects” that are seeking up to $25 million in direct state funding.

The projects disclosed Tuesday are private-sector initiatives from local companies, valued at nearly $100 million, that could create or retain more than 830 jobs across Western New York.

The council also backed expansion projects at an adjustable bed manufacturer in Silver Creek and at DuPont’s Corian product line in the Town of Tonawanda, along with expanded information technology offerings at Computer Task Group in Buffalo.

The council also backed a Town of Tonawanda company that makes liquid natural gas fuel tanks for trucks, expanded research and manufacturing facilities at an Amherst medical diagnostics firm and an advanced manufacturer that would move to Niagara Falls from Idaho.

“We think encouraging them to expand in, and relocate to, Western New York can be a significant catalyst,” said Satish Tripathi, the University at Buffalo president who serves as regional cochairman of the WNY development council.

“They have the potential to immediately accelerate job creation and economic growth.”

The eight projects seeking Excelsior tax credits, along with the 12 that received the council’s backing last week for direct funding, now go to state economic development officials, who will compare them with similar lists submitted by the state’s nine other regional development councils in a competition for $200 million in state funding.

Four of the councils each will receive up to $40 million in funding and tax credits, with the remaining funds split by the other six. The $40 million that will go to the highest-rated areas includes $15 million in Excelsior tax credits and $25 million in direct funding through Empire State Development.

The councils also can apply for an additional $800 million from state agencies for everything from road construction to energy-efficiency grants.

The regions are competing for

funds at a time when the state is facing a potential $350 million budget shortfall. But an Empire State Development spokeswoman said the economic development funds are not at risk.

“The funding set aside to support regional councils was part of the current year’s budget, pooled together from existing programs,” Laura Magee said. “No new money has been added.”

“As part of the performance-based grading standards, projects are expected to leverage private investment for public money, which means the culmination of these projects should generate significant economic activity that will ultimately bring in greater revenue for the state,” Magee said.

The Western New York recommendations are based on a regional strategic plan the council approved last week that focuses on creating jobs and finding ways to get the biggest bang for the buck out of investments made in Western New York.

“These projects all have the potential to move the needle in creating jobs and long-term prosperity in our region,” said Howard Zemsky, the local developer who is the council’s other regional co-chairman.

The projects include:

• $12 million for Calspan to build a 90,000-square-foot facility to test collision-avoidance systems. The Cheektowaga company also would renovate more than 50,000 square feet of existing space. The company also proposes creating a training institute. The $43.8 million project would create 95 jobs within five years and retain 100 others.

• $6.5 million in tax credits for WATT Fuel Cell Corp., a Port Washington company that would develop solid oxide fuel cell systems that run on fossil fuels such as natural gas, propane and diesel fuel. The $15 million project would create a new facility in Western New York and an estimated 61 jobs.

• $5.1 million in tax credits for Sentient, an engineering firm specializing in analyzing, predicting and managing the health of critical mechanical systems. The company is proposing to move from Idaho Falls, Idaho, to Niagara Falls. The $15 million project would create 35 jobs locally.

• $1 million to add new process technology that would allow for new looks and better quality and performance for the Corian products made at Du- Pont’s plant in the Town of Tonawanda. The $6 million project would create or retain 100 jobs.

• $1 million in tax credits for Ascion, which would build an 87,000-square-foot addition to its Silver Creek factory. Ascion makes and distributes adjustable beds and operates the national customer-care call center for Tempur-Pedic adjustable beds. The $7.4 million expansion also would allow Ascion to develop a new product line. The project would create or retain 82 jobs.

• $1 million in tax credits for Immco Diagnostics to expand the Amherst autoimmune disease diagnostics company’s manufacturing and research facilities in a $5.6 million project that is expected to create 65 jobs over five years.

• Computer Task Group is seeking an unspecified amount of tax credits to support growth in its health care information technology business, as well as its staffing and outsourcing units, creating or retaining 240 jobs.

“A part of that is advancing and expanding our medical data analytics and work and consulting solutions that support health reform initiatives, some of which is related to our electronic medical records work,” said Richard Dye, a spokesman for the Buffalo-based company.

• Hebeler Corp. is seeking an unspecified amount of tax credits to expand production of liquid natural gas fuel tanks for medium-and heavy-duty trucks. The Town of Tonawanda company proposes to add 60,000 square feet of factory space in a $4.9 million project that would create 55 jobs.

News Business Reporter Matt Glynn contributed to this report. drobinson@buffnews.com