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NYS moving quickly to get RiverBend launched
by chocieniIn a key milestone toward the development of an 88-acre high-tech manufacturing hub on a former Buffalo brownfield site, a memorandum of understanding between New York state and the City of Buffalo has been reached.
The MOU
is expected to lead to a formal contract between the state and city, with an
anticipated closing on the $2.5 million real estate transaction expected by the
end of the first quarter. The deal would see a large portion of the Buffalo Urban Development Corp.-owned RiverBend office and industrial park in
South Buffalo used as the hub for a pair of California-based green energy firms
that want to, collectively, invest $1.7 billion to develop local operations.
The companies, Soraaand Silevo, announced plans to create 850 jobs at their
RiverBend facilities.
At $1.5
billion, it adds up to the largest private investment in Buffalo's history
considering the price tag and new jobs created.
The deal
was first announced two months ago by Gov. Andrew Cuomo, who helped recruit the firms and
convince them to open operations in Buffalo. New York is offering $225 million
from Cuomo's "Buffalo Billion" initiative to bring Soraa and Silevo to Buffalo.
Cuomo
said besides the 850 permanent jobs, construction activity alone would spur
another 500 construction jobs.
"We are
now poised to bring about one of the most dramatic developments in Buffalo's
history," Cuomo said in a prepared statement. "With cutting edge technology,
hundreds of good-paying jobs, and the attraction of dynamic 21st Century
high-tech companies, RiverBend will further strengthen the city's and region's
continuing economic revival."
The MOU
creates a legal path to transfer the land's ownership from BUDC, the City of
Buffalo's economic development arm, to Fort Schulyer Management Corp., a
not-for-profit entity created by the state to manage property transactions on
behalf of the SUNY Research Foundation.
Besides
the agreed to sale price of $2.5 million, the deal calls for a partnership with
the city to develop a "Community Development Agreement" that includes where
appropriate MWBE participation consistent with established state practices; and
permitting the Buffalo Niagara Riverkeeper organization access to the property for
a continuing federally-funded shoreline restoration project along the Buffalo
River, which flows through the development site.
Soraa is
a manufacturer of green LED lighting with the highest efficiency on the market.
The company will relocate its corporate R&D and manufacturing operations to
RiverBend, investing $750 million and creating 375 jobs.
Silevo
develops and manufactures silicon solar cells and modules, with an already
established manufacturing plant in China. Phase 1 of Silevo's project, with a
$750 million investment which will create at least 475 jobs, involves a 200
megawatt production facility establishing its sole North American manufacturing
operations at RiverBend. New York state
will invest $225 million in Empire State Development capital to establish infrastructure at
the site including water, sewer, utility and roads; construct a state-owned
275,000 square feet facility that will house Soraa and Silevo as the first two
tenants; and purchase and own equipment. Neither company is receiving direct
funding from the state's investment.
Additional
facilities will be built over time to accommodate new manufacturing companies
operating in the field of biotech, high tech and green energy. The facilities
and equipment will be owned by the State University of New York Research
Foundation.
A
designated developer will be announced this winter and a groundbreaking for
construction will occur in the spring. Occupancy of the new facilities is
targeted for the second quarter of 2015.