IDA agrees to modify deal with Great Lakes Cheese Co.

By Rick Miller ELLICOTTVILLE

— The Cattaraugus County Industrial Development Agency approved April 5 modification of the agreement with Great Lakes Cheese Co. to reflect higher costs at its new state-of-theart cheese plant now under construction near Franklinville.

The Hiram, Ohio-based company had projected the cost of building and equipping the 486,000-squarefoot plant along Route 16 at $500 million. That cost has since escalated by more than 20% due to inflation and supply chain issues.

Great Lakes Cheese Co. officials now estimate the final bill will be about $621 million for the plant that will supply its cheeses to much of the East Coast from Florida to Maine.

The Franklinville plant will replace the aging cheese plant in Cuba owned and operated by Great Lakes Cheese, and employ the 230 employees currently working there. With new employees, total employment at the new plant will be just under 500.

The higher costs faced by Great Lakes Cheese represent about $73 million in higher costs of materials and $48 million in higher labor costs largely due to inflationary and supply chain challenges, said Corey Wiktor, IDA executive director.

Material costs went from $122 million to $195 million and labor went from $81 million to $129 million. About $45 million of the higher costs will be subject to sales tax exemption, or about $3.6 million in state, county and local sales taxes.

The project was earlier approved for $153 million in tax exemptions including $23 million in sales taxes, a $5.6 million mortgage recording fee and $125 million in property taxes over the life of a payment in lieu of taxes (P.I.L.O.T.).

Only the sales tax exemption is affected by the modification requested by Great Lakes Cheese and approved by the IDA at a special meeting on April 5. The increased exemption will be worth $3.6 million to the company.

Wiktor said people working at the site include local labor and companies, although a specific breakdown is still being worked on.

The economic impact of one of the largest construction project in the county’s history extends to restaurants, food and convenience stores, gas stations and other local businesses, Wiktor explained.

When the IDA induced the Great Lakes Cheese project last year it was aware the company planned to double its capacity at the new plant with a need for 4 million gallons of milk a day. It would assure the jobs of about 600 farming jobs and 36,000 dairy cattle.

Before presenting the modification request, Wiktor shared the comments from a public hearing on the plan held last week at the Farmersville Town Hall. Much of the plant is located in the town of Farmersville.

County Legislator Ginger Schroder of Farmersville apologized for many of the comments made at the public hearing. The only one in support was Supervisor Melanie Brown. Schroder is a legislative representative to the IDA.

The new plant, once it is fully operational next year she said, will produce $171 million in goods and services each year. It will be responsible for $459 million in economic activity across Western New York and will support 1,186 jobs.

Wiktor said most speakers wanted to know what was in it for the town of Farmersville.

Jobs for one thing, he said. It is also generating economic activity every time a vendor comes to the site, a food truck or a truck hauling gravel, he said. Local laborers, food trucks, trucking companies, propane and concrete deliveries are also benefiting.

Great Lakes Cheese is visiting all the schools in the county in their recruiting efforts, Wiktor said. Several job fairs have been held. Jamestown Community College in Olean and CattaraugusAllegany BOCES have been recruited for job training.

Great Lakes Cheese is on track to begin making cheese at the new plant by the end of 2024, but will begin processing cheese — slides and shredded — made at other plants in fivepound food service packs earlier next year.

Wiktor, who thought much of the criticism at the public hearing was scripted, suggested backing up the comments with minutes from the IDA meeting. He said Great Lakes Cheese documents are on the IDA website to increase transparency.

“It’s a shot in the arm for the (local) agriculture industry,” said IDA President Thomas Buffamante.

By Rick Miller OLEAN

— Cattaraugus County continues to rank among the least healthy counties in New York state.

“The only county below us is the Bronx,” observed the Cattaraugus County Board of Health’s president, Dr. Joseph Bohan, who noted the county is No. 61 out of 62 in health outcomes.

“We are sitting in the same spot as last year,” said Public Health Director Dr. Kevin D. Watkins.