CHEEKTOWAGA – L&W Supply Corporation will be keeping its business and 30 jobs in Cheektowaga after a developer was able to secure tax incentives from the Erie County Industrial Development Agency.
Column Development will receive $311,434 in total incentives over seven years to construct a new $3,000,000 facility at 380 Dick Road to keep L&W Supply in Cheektowaga. The Duke Road facility that L&W currently leases was recently sold and L&W could have consolidated operations outside of Erie County.
County, local property, and school taxes will be paid through a seven-year Payment In Lieu of Tax agreement. Cheektowaga’s portion amounts to $936 for years one and two, $1,872 for years three and four, and $2,808 for years five through seven for a total of $14,040.
“Even though there is a hardship at the beginning there’s always an end to it,” said Supervisor Diane Benczkowski who sits on the ECIDA Board. “They’re going to create jobs in our town and eventually they’re going to be paying full taxes.”
It’s estimated that 14 construction jobs will be created pumping $743,668 into the economy. Part of the deal mandates that L&W Supply creates eight additional jobs which combined with the 30 current jobs will pump $1,140,000 into the economy.
“This is one of the reasons Amherst has been so successful with development in their town is because they were offering these incentives,” she said.
But there is a line when it comes to handing out tax incentives.
“We also have to keep in mind that seniors can’t put food on the table and they’re some families who can barely feed their kids,” added Ms. Benczkowski.
She says the ECIDA even will enforce “clawback clauses” to recover tax incentives if the board finds out companies aren’t living up to the agreement.
After receiving $440,000 in sales tax benefits and $1,500,000 in real property tax savings in 2014, Derrick Corporation on Walden Avenue hoped to employ 487 full-time employees.
In 2015, a slowdown in the energy and oil drilling industries – which Derrick serves – forced a downturn in labor in the fall of that year and the company reported a 25% reduction in its workforce.
“They did not hold up to the number of jobs they were supposed to create in the set amount of time. We needed to hold them accountable and take action before it got out of hand,” said Ms. Benczkowski.
The board voted to modify the company’s incentives by 25%.
Copyright 2018 Crabapple Media, LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without prior permission.
Subscribe to our mailing list below and read the latest news from Cheektowaga Chronicle in your email every morning at 9 am.