ERIE COUNTY INDUSTRIAL DEVELOPMENT AGENCY BOARD APPROVES $807,000 IN SALES TAX ABATEMENT TO ASSIST DELAWARE NORTH COMPANIES IN THE $17.1 MILLION RELOCATION OF ITS GLOBAL HEADQUARTER IN DOWNTOWN BUFFALOby chocieni
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November 18, 2013
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ERIE COUNTY INDUSTRIAL DEVELOPMENT AGENCY BOARD APPROVES $807,000 IN SALES TAX ABATEMENT TO ASSIST DELAWARE NORTH COMPANIES IN THE $17.1 MILLION RELOCATION OF ITS GLOBAL HEADQUARTER IN DOWNTOWN BUFFALO
The board also okayed $187,000 in tax breaks for API Heat Transfer to move its corporate headquarters from Alabama to its plant site in Cheektowaga
Buffalo, N.Y. - The Erie County Industrial Development Agency Board today voted unanimously to approve $807,000 in sales tax breaks to assist Delaware North Companies to relocate its global headquarters to a new location in downtown Buffalo.
Buffalo-born Delaware North, one of the largest privately-held hospitality companies in the world, plans to shift its headquarters from the Key Center to a proposed, new-build facility at 250 Delaware Avenue. Delaware North plans to invest a total of $17.1 million to build out and furnish 110,000-square-feet of space in a 12-story, mixed use building proposed by Amherst-based Uniland Development.
Delaware North estimates it will spend $8.9 million on the build-out of its new headquarters, with furnishings, equipment and other related expenses totaling $8 million.
Delaware North plans to add 65 employees to its current Buffalo roster of 350 staffers, with the new positions paying an average of $70,000 annually.
"This is a smart project. It's not often that we can talk about having a global headquarters in Buffalo. It will remind folks of what we have here. If they had left, it would have sent a very bad message," said Erie County Executive Mark C. Poloncarz .
"Delaware North, which will soon celebrate its 100th anniversary, did not want to move, but they were coveted by other places around the country because of their reputation of success," said Mayor Byron W. Brown.
"By retaining Delaware North, we will increase Buffalo's reputation as a place to expand international companies," the Mayor added.
A global leader in hospitality and the food service industry, Delaware North's seven operating divisions generate more than $2.6 billion in annual revenue and has 55,000 employees on four continents. It serves some 500 million customers a year through its sports, airport, national park, hotel and resort, gaming and arena operations.
The company was seeking a long-term headquarters located is state-of-the-art space to showcase its world-wide sophistication to its national and international vendors and business partners. It also wants a location that can support its incremental corporate growth, training, research and development and global recruiting efforts.
"Our new headquarters will serve as a showcase of other companies to move their headquarters to Western New York. It will also serve as a beacon, an iconic structure in downtown Buffalo," said Dan Zimmer, Delaware North Vice President.
Uniland Development Company, which is proposing the 12-story, mixed-use complex at the corner of Delaware Avenue and Chippewa Street in downtown Buffalo, has filed a separate application with the ECIDA. Uniland's $51 million proposal is expected to see action at the ECIDA's December 16 board session.
Uniland Spokesperson Jill Pawlik applauded the ECIDA Board's approval of abatements for Delaware North, its proposed anchor tenant.
"We are pleased that the Mayor and County Executive stated that they each support the 250 Delaware project," Ms.Pawlik said. "We look forward to demonstrating to the ECIDA that our application for standard inducements also merits approval. The approval is necessary to proceed with the project."
The ECIDA also approved $187,000 in property and sales tax breaks for API Heat Transfer, Inc. for a $1.7 million project that will expand its plant at 2777 Walden Avenue in Cheektowaga. The company will also relocate its headquarters from Montgomery, AL to Cheektowaga, bringing six new job to Erie County.
"This is very exciting. This area has lost many headquarters over the years, so this is a real coup to gain an international headquarters," said Mary Holtz, Supervisor, Town of Cheektowaga.
Chris Johnston, the ECIDA Board Interim Chairman, called today's support of API and Delaware North a double victory for Erie County.
"We voted to assist API in its growth, while gaining an international headquarters, and we retained Delaware North while assisting it in growing its international headquarters. This is an exceptional day for Erie County," Johnston said.