A Dunkirk ice cream plant has received incentives from the county as part of its $250 million expansion.
The Chautauqua County Industrial Development Agency board approved at its December 19 meeting a Payment In Lieu of Taxes (PILOT) agreement and Sales Tax Exemption to Wells Enterprises.
Wells Enterprises will be expanding its plant by 217,500 square feet, which will result in the retention of over 400 jobs and add over 200 new jobs.
The Ferrero Group recently acquired Wells Enterprises, its operations, and its ice cream brands.
The two family-owned businesses have a strong history of success. Ferrero, which was founded in 1946, has grown to become a global leader in sweet-packaged foods, including confectionary, ice cream, biscuits, and snacks. Wells has become the world’s largest family owned and managed ice cream company since it was founded in 1913 as a dairy delivery business.
The CCIDA-approved PILOT is for 10 years and will result in payments to the City of Dunkirk, Dunkirk School District, and Chautauqua County totaling $2,219,067, with Wells Enterprises saving $450,900 in property tax payments during that time period. The sales tax exemption will total $11.5 million. Based on a CCIDA Cost Benefit Analysis, the total local economic benefit of the project is $490.8 million.
In addition to the assistance provided by CCIDA, New York State is also supporting the project with up to $10 million in Excelsior Jobs Program tax credits and a $6 million grant from Empire State Development in exchange for job creation and capital investment commitments.
The project is estimated to begin in the first quarter of 2024.
When a business is granted tax relief, the residents pay those taxes that aren’t paid, by the business. There is a lot of complaining in Chautauqua County, but no complaints when the CCIDA decides residents must pay more, so business pays less. Let’s hope the recent audit of the CCIDA encourages the agency to monitor these companies and ensure stipulations are adhered.