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When Vulcraft Steel Fabrication came to Chemung STEG helped remove obstacles

By George Miner
STEG
New York Real Estate Journal
May 16-May 29, 2000

In August 1999, the Empire State Development Corporation Strategic Business Division solicited information on 100-acre sites, with rail, public sewer, and interstate access for a steel fabrication company looking for a Northeast United States site. Representatives of Southern Tier Economic Growth, the economic development agency for Chemung County (Elmira MSA), submitted a field in Chemung, NY adjacent to Norfolk Southern mainline and Interstate 86.

The alfalfa field passed the original screening and Vulcraft Steel Fabrication helicoptered in to assess it. Word got back quickly from Empire State Development that the company liked the Chemung site. However, they were concerned about the absence of natural gas, sewer, public water, and industrial electric. They also questioned topographic issues and requested verification that the railroad line would be able to serve the plant.

With a new $50 million, 525,000 square-foot plant at stake, STEG quickly assembled a team of representatives from Norfolk Southern engineering department to address the company’s concerns. Meanwhile, NYSEG made a commitment to serving the site with electric and gas, even though the gas line needed to be extended five miles. Chemung County committed to installing a sewer package plant at the county’s expense. All of this was done within 10 working days. Company officials returned to meet with the property owner and tour the site a second time.

Unfortunately, the landowner, a dairy farmer, was not as interested in selling as one might think. He demanded a purchase price ten times the land’s value as farmland, and held firm. The county, through STEG, provided a $600,000 grant, to remove land price from the equation.

The remaining obstacle was completion of the state environmental review (SEQRA). Every potential impact was reviewed, documented, and mitigated as much as possible. The public informational meeting was held in early May, attended by 200 residents from the area. After the company’s presentation, there was a generous amount of applause celebrating the fact that 300-high paying manufacturing jobs were coming to this rural town between Binghamton and Elmira. The annual payroll of $15 million would introduce new wealth to the community, with all of the dollars coming from other areas of the northeast. Property taxes, although abated significantly, would increase substantially in this town, as the land was taxed on farmland previously.

What paid off in closing this deal was the provision of "one-stop shopping," allowing the company to only deal with STEG to get answers to their questions and concerns. Also, STEG’s ability to assemble the team that would answer all the questions needed during the site location decision-making was crucial.

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