Seneca Dairy Systems seeks IDA aid for solar project at former depot
ROMULUS — Seneca Dairy Systems LLC of Romulus has applied for assistance from the Seneca County Industrial Development Agency for a $3.9 million solar energy project at the former Seneca Army Depot.
The IDA has scheduled a public hearing on the request for 5:30 p.m. Aug. 12 at the Romulus Town Hall, 1435 Prospect St., Willard.
The company, headed by Earl Martin, is proposing to buy approximately 75 acres at 1640 Deer Haven Parkway to construct a 2 megawatt solar energy generating facility with a 7.25 megawatt solar energy storage capacity facility. Martin owns 80% of the company and Lee Zimmerman owns the other 20%.
The company would build and equip the solar facility and then lease it to the IDA, which would lease it back to the company. At the end of the lease, the IDA will end its leaseholder interest in the property.
The IDA will consider providing Seneca Dairy Systems with a 12-year Payment In Lieu Of Taxes — or PILOT — agreement and an exemption from payment of sales and use taxes. A cost versus benefits analysis of the company request done by the IDA indicates financial benefits of $4.2 million and costs of $695.326, a cost to benefit ratio of 6-to-1.
The costs would be $430,326 in fewer property tax payments and $265,000 in sales tax revenue exemptions.
Benefits would be the $3.9 million in construction costs, $307,374 in PILOT payments and an IDA agency fee of $399.
“The proposed solar project is intended to support manufacturing operations by helping offset rising energy costs, improving long term cost stability and strengthening the competitiveness of our facility,” said Seneca Dairy officials.
“As electric costs continue to increase, energy has become a much larger component of our operating expenses and this project will help ensure that resources can continue to be directed toward equipment, facility improvement, workforce development and future growth rather than utility costs,” the statement continues.
The facility will not be a standalone solar development but an extension of the manufacturing campus and investments that the IDA has previously supported.
“Looking ahead, we continue to evaluate opportunities for additional fabrication capabilities, expand manufacturing and galvanizing operations, all of which will require substantial and reliable electrical capacity,” company officials said.
The solar project would not result in any new jobs at Seneca Dairy, the application notes.
A copy of the application and the cost-benefit analysis is available at the IDA offices, 2456 Route 414, Seneca Falls.