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Grants to create 1,000 jobs in Upstate New York announced

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ALBANY - Governor David Paterson Tuesday announced six grants totaling $5.5 million to help businesses in Upstate New York expand their operations, retain 148 jobs and create 1,013 new jobs. The grants will be allocated towards community and economic development initiatives benefiting six Upstate counties, including Albany, Cattaraugus, Essex, Montgomery, Niagara and Steuben.

The awards, all of which were approved today by the state’s Housing Trust Fund Corporation, included nearly $3.8 million in Community Development Block Grants.

The projects include:

Green Island Power Authority Expansion: In Albany County, a $750,000 grant to the Village of Green Island will help that municipality’s power authority expand in order to serve two growing local businesses, Arcadia Supply, Inc. and John V. Warren, Inc., both of which had considered relocating out of New York in order to reduce their largest expense -- energy costs.

Data Listing Services, LLC Expansion:  The City of Olean in Cattaraugus County has been awarded a $750,000 grant for Data Listing Services, LLC to establish a new call center, resulting in the creation of 450 new, full-time equivalent jobs over a three-year period. More than 390 of those jobs will be made available to low- and moderate-income persons.  The total project costs are anticipated to be $4.3 million, including $700,000 from ESDC and $2.8 million in owner equity. The company currently employs close to 1,100 people at five call centers in the United States, including one in Jamestown, NY, that employs 492. The company chose to open a new facility in Olean, NY rather than locating in neighboring Pennsylvania after receiving financial commitments from ESDC and OFSC.

Power Pallet Inc. Expansion: Montgomery County was awarded a grant of $503,500 to assist with the expansion of Power Pallet, Inc., which manufactures and recycles wooden pallets used in transportation and storage. CDBG funds will offset the costs associated with the purchase of machinery and equipment. In 1975, the company’s first year of operation, they repaired and recycled more than 22,000 pallets with a two person production staff. In 2006, after moving into their new facility, Power Pallet repaired and recycled more than 2.1 million pallets with a work force of 120 employees. Since opening its Amsterdam facility, Power Pallet has engaged several new large clients such as Target, Staples, Lowe’s and Home Depot.  The total project costs are about $3.2 million, with company’s owners providing $2.5 million in equity and securing $200,000 in bank financing.

Niagara Produce Expansion: The City of Lockport will receive a $266,000 Community Development Block Grant to help Niagara Produce, Inc., a retail grocery and market seeking to expand into a second location. CDBG funds will be used for machinery and equipment. Total project costs are slightly more than $900,000. In addition to $266,000 from the Office for Small Cities, $626,000 will come from private equity and financing and $25,000 from a NYS Legislative Item.

Town of Ticonderoga Grant: The Town of Ticonderoga in Essex County will receive a $750,000 grant to help build a municipal wastewater collection system that will support a total of 22 properties, including a new Best Western Inn & Suites, eight existing businesses and 16 residences.  Without access to municipal sewer, Ticonderoga faced the loss of many established businesses, which were faced with significant costs of sewage removal. The lack of municipal sewer has also stifled efforts to attract new development to the area. The Town of Ticonderoga is also investing $38,500 into the project.

Sitel Corporation: In Steuben County, the Town of Erwin has been awarded a Community Development Block Grant of $750,000. The grant complements a previously announced ESDC grant of $1 million.  The funding will help the Sitel Corporation establish a new customer service call center in the former Corning, Inc. building, which has been vacant for five years. CDBG funds will be used to offset training costs for new employees.