Letter to Agriculture Secretary Vilsack

Letter

Today, U.S. Senator Charles E. Schumer called on the U.S. Department of Agriculture to provide several hundred thousand dollars in federal funds for sewer and water infrastructure work to prepare a Genesee County site to host a massive food processing plant. Build out of the new plant will occur in two phases and could bring hundreds of jobs to Genesee County over the next several years. The Genesee County Economic Development Center is currently preparing a site to host a 363,000 square-foot manufacturing facility, capable of hosting 300 to 400 jobs just three years after it is completed. The GCEDC is currently finalizing a contract with a food producer for the site, and is seeking federal funding to cover part of the costs of infrastructure improvements to ensure that the site is compatible with the needs of the food company. Today, Schumer called on Secretary of Agriculture Tom Vilsack to provide $300,000-$500,000 in USDA funds for several projects that will ensure the site is ready to serve as a major job creator in Western New York.

"This massive plant could be a game-changer for Genesee County and Western New York," Schumer said. "We can't let inadequate sewer systems and wastewater lines, stand in the way of jobs. The USDA should realize the massive potential this project has and provide the seed funding that will help grow jobs and economic prosperity in the county. The funds are there to spur development and USDA would be hard-pressed to find a better return on their investment than this new plant. Secretary Vilsack should do the right thing and help us make these infrastructure improvements as quickly as possible to ensure that we don't miss out on a chance to bring hundreds of good paying jobs to Upstate New York."

To ensure the site is ready to host the manufacturing plant, GCEDC must complete $1.8 million in infrastructure upgrades to the site. These upgrades include the construction of a second access road into the park, the addition of a new turning lane and road re-striping at the site's main entrance as well as up to $500,000 for wastewater and sewer pump station upgrades. The GCEDC is seeking $300-500,000 in USDA rural development funds to complete these upgrades.

With Schumer's encouragement and support, GCEDC plans to apply for funding through the USDA Rural Business Enterprise Grant Program. The application is due to USDA in April and funding would be awarded in June. Schumer noted that in 2010, Genesee County applied for and won over $200,000 under this program to build out sewer infrastructure to land the Alpina Yogurt Plant, which will serve as another major job creator for the County. Schumer is pushing the USDA to help Genesee County build on this success by providing funding that will help the county ensure that the site is prepared to host a major food manufacturer in the months ahead.

In his letter, Schumer wrote, "Simply stated, securing USDA funding to complete these new upgrades will bring this $247 million project and its associated 300 jobs to Batavia, NY. As such, and with my full support and encouragement, GCEDC is submitting an application for Rural Development funding by the April 2012 application deadline.

"Funding this upgrade will create an enormous return on investment. Already New York's rural and agricultural regions are quickly becoming centers of tremendous job growth due to the rise in yogurt and other food processing. This new food processor will join the ranks of the 900-employee Chobani Greek Yogurt manufacturing facility in New Berlin, NY, the 240-employee Fage plant in Jamestown, NY and the 50-employee Alpina yogurt facility in Batavia, NY."

The full text of Senator Schumer's letter to Agriculture Secretary Vilsack appears below:

Dear Secretary Vilsack,

I am writing to request USDA's assistance in my efforts to meet a critical infrastructure need in Batavia, NY that stands to usher in hundreds of millions in new economic development, create hundreds of new jobs, and bring a significant new customer to the region to buy agricultural products from farmers across Western New York.

Specifically, I am working in conjunction with the Genesee County Economic Development Center (GCEDC) to secure the commitment of a major food processing company which is positioned to construct a $247 million food processing facility within the 202 acre Genesee Valley Agri-Business Park (Ag Park) in Batavia, NY. The company anticipates creating over 300 new jobs immediately once the planned 363,000 sq ft facility is constructed with an anticipated long-term phase II expansion that would grow employment to 850 jobs. In order to accommodate this facility, GCEDC must complete $1.8 million in new infrastructure improvements within the AgPark, including up to $500,000 to add capacity and upgrade pumps to the AgPark's sewer pump station to accommodate the extra wastewater volume from the new facility and to widen the entrance road into the campus.

Fortunately, the USDA's Rural Development grant programs in particular, with their mission to finance infrastructure investments to improve the economy and quality of life in rural or agricultural regions, is tailor-made to help complete the critical sewer upgrades needed to enable this development. Indeed, my request for your support of this new project builds upon USDA Rural Development grants awarded last year to the GCEDC which funded similar new sewer utilities on the new 50-employee Alpina yogurt plant that is now under construction in the AgPark.

Simply stated, securing USDA funding to complete these new upgrades will bring this $247 million project and its associated 300 jobs to Batavia, NY. As such, and with my full support and encouragement, GCEDC is submitting an application for Rural Development funding by the April 2012 application deadline.

Funding this upgrade will create an enormous return on investment. Already New York's rural and agricultural regions are quickly becoming centers of tremendous job growth due to the rise in yogurt and other food processing. This new food processor will join the ranks of the 900-employee Chobani Greek Yogurt manufacturing facility in New Berlin, NY, the 240-employee Fage plant in Jamestown, NY and the 50-employee Alpina yogurt facility in Batavia, NY. Moreover, estimates by Cornell University show that within the next two years alone, demand for local milk production will increase 15% due to local yogurt and food processors, providing an important new market for our local dairy farmers.

Again, I request your consideration of this grant application and your assistance to help finance this needed infrastructure. Moreover, I would appreciate your assistance to identify any other USDA funding programs that could help accomplish the required upgrades. Thank you for your consideration and please do not hesitate to contact my Washington, DC office at 202-224-6542 to discuss this matter further.

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