Tonawanda News

Local News

March 18, 2010

Samco gets OK for tax breaks

— — When Samco Technologies outgrew its City of Tonawanda facility in 2008, the company’s owners decided to take the operation to Buffalo. But when Empire Zone benefits were extended to the new location, the company found that it would need the blessing of Tonawanda’s leaders to receive the tax breaks.

The question of whether the Common Council would approve those benefits was raised Tuesday night and remained uncertain until the leaders took the floor. At issue was a provision in the resolution that stated Samco was unable to find enough space to expand within the city. Councilman Blake Boyle, citing at least one building he knows to be vacant and able to handle the company’s requirements, was opposed to giving Samco its benefits.

“There had to have been property around here we could have given to them,” Boyle said.

At previous meetings and again Tuesday night, Councilman Richard Slisz called for the creation of a list of vacant or available properties that the city can shop around to companies who need a new home. But even if the city had such a list, Slisz said it would only be helpful if the company approached the city before making the decision to leave town.

“Did they really seek out something in the city before they moved?” Slisz asked. “That’s the issue.”

No one on the council remembers a representative from Samco asking for local options. Kevin Cook, a consultant for Samco who attended Tuesday’s public hearing on the matter, said he knew the company’s former facility wasn’t big enough to create bigger purification systems, but had no knowledge of how the new location in Buffalo was selected.

“The units they began building for municipalities out of this area were very large and they needed a larger building,” Cook said.

For Boyle and Councilman Charles Gilbert, that explanation was unsatisfactory. During the council’s informal session, Boyle said he wouldn’t lose any sleep if Samco didn’t receive Empire Zone status. But Mayor Ron Pilozzi cautioned against taking that tone when the city will be looking to draw businesses into redeveloped areas in the near future.

“If someone wants to move from an Empire Zone to Spaulding Fibre, (other cities) might say ‘Oh well’ to us too. That’s something you have to consider,” Pilozzi said.

Information provided by the company stated that even though the company was based in Tonawanda, none of its employees were city residents. Since the move, Samco claims to have employees who live in the city, which wouldn’t have been possible had they relocated to North Carolina instead of Buffalo.

Cook also pointed out that the company didn’t move into Buffalo for the Empire Zone since the area wasn’t even a part of the program when the decision to move was made.

Council President Carl Zeisz said he has his own opinions on the way Samco handled its move, but had to look at how he’d want another municipality to react if the situation was reversed.

“It’s hard enough to do business in New York state without making it more difficult for someone to operate,” Zeisz said.

The council president sponsored the approval of giving Samco its Empire Zone designation and Gilbert seconded the motion. Boyle was the only member of the council to vote no on the resolution, although Gilbert also cast a no vote before realizing he couldn’t do so after seconding the motion to approve it.

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