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CCIDA Approves Sanzo, Olean Gateway Projects

Salvatore Marranca (right, with CCIDA Board Chair Thomas Buffamonte) has resigned his position on the CCIDA board of directors. The board thanked him for his 24 years of service to the agency and the community with a formal commendation. Marranca also recently retired as president and CEO of Cattaraugus County Bank in Little Valley.

Salvatore Marranca (right, with CCIDA Board Chair Thomas Buffamonte) has resigned his position on the CCIDA board of directors. The board thanked him for his 24 years of service to the agency and the community with a formal commendation. Marranca also recently retired as president and CEO of Cattaraugus County Bank in Little Valley.

New Hotel Complex Strategic Tourism Attraction

By Jann Wiswall

The board of the Cattaraugus County Industrial Development Agency (CCIDA) has moved forward on three applications for tax inducements.

Applicant Sanzo Beverage Co., Inc., in Hinsdale/Olean proposes to construct a 13,000-square-foot addition on its property for temperature-controlled storage of beer and other beverage products. It also plans to purchase three new rig trucks and other equipment to service the new storage space. The value of the company’s investment is an estimated $1.6 million.

The company, one of the last privately owned beverage distributors in western New York, expects to expand its product line, which now includes primarily soft drinks and beer, with additional soft drinks, hard liquor and wine.

Sanzo, a family-owned company that has been in operation for more than 80 years, currently employs 32 individuals. With its planned expansion, it hopes to add as many as 15 new jobs over the next few years.

Company CEO Christopher Sanzo noted that the beverage distribution industry has been changing rapidly over the past several years, as independent distributors are being “bought up by the big guys.” This expansion, he said, will help keep the company competitive in the five counties it services.

The board felt that the project meets the CCIDA’s goals and resolved to schedule a public hearing and begin the preliminary SEQR process. If approved, the company will receive New York State sales tax abatement, a commercial/new construction PILOT (payment in lieu of taxes) and, if necessary, relief from state mortgage recording taxes.

Olean Gateway, LLC, and HK Olean, LLC, have applied for sales tax abatement, a tourism PILOT and mortgage recording tax abatement for two projects on a 58-acre parcel at 1404-1406 Buffalo St. in Olean. Olean Gateway, LLC is owned by Krog Corporation.

The parcel, a long-standing brownfield formerly owned by Exxon-Mobil, has been remediated per DEC requirements by the developer, said Krog Corporation President Paul Neureuter. Its application to the CCIDA involves two phases for redevelopment of the property. The first is for initial site work — roads, “dirt works,” utilities, etc. The second is to begin construction of a 105-room, four-story hotel (with Hart Hotels) and a 40,000-square-foot retail shopping center with parking. The value of these two projects is estimated at $16 million or more.

Neureuter said construction of the infrastructure is scheduled to begin in spring 2015, with completion targeted for 2016. The hotel and retail portions of the project will be completed “soon after,” he said. He also noted that long-term plans for the site include additional retail and parking areas.

CCIDA Executive Director Corey Wiktor explained that this is a strategic project to attract tourism and visitors from around the region and beyond. The initial hotel/retail project will create 50-plus permanent jobs and 50-plus local construction jobs, generate considerable revenue through bed and sales taxes, and could attract additional investors to the region. It has broad support from Olean officials.

The CCIDA board approved resolutions to schedule public hearings on both projects and to begin the preliminary SEQR process, which will be led by the City of Olean.

The next meeting of the CCIDA board will be held on Thursday, Feb. 5 at 10 a.m. at the CCIDA offices at 9 East Washington St. in Ellicottville.

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