EDA approves PILOT plan with ethanol plant paying about $1 million annually to local munies
MEDINA – The Orleans Economic Development Agency approved a payment in lieu of taxes plan for Western New York Energy, where the company will pay about $1 million annually the next 20 years to three local governments.
The PILOT plan goes from 2021-22 to 2040-41, with the company paying $890,000 the first year to the Town of Shelby, Orleans County and Medina central School. The PILOT payment will increase 1 percent annually over 20 years to $1,075,218 in 2040-41.
The PILOT agreement was approved this morning the Orleans EDA board of directors as part of a $25 million expansion at the company on Bates Road. The 6,050-foot expansion will allow the company to produce high-grade ethanol for Covid-19 hand sanitizer products and distillation-grade ethanol for distilleries and similar end-users.
WNY Energy currently operates a 90,000-square-foot ethanol manufactory facility at 4141 Bates Road
As part of the expansion the company expects to create 10 new jobs at average salary of $55,000, while retaining 47 other full-time positions, the EDA said.
The PILOT will save the company about $611,000 annually in what it would pay in property taxes if fully assessed. The EDA also approved a sales tax exemption estimated at $16,000.