SHERBURNE – Sherburne Metal Products may soon get a new lease on life thanks to a Peruvian copper manufacturer.

According to Commerce Chenango Economic Development Specialist Jennifer Tavares, Tecnofil S.A. is interested in purchasing the Sherburne business, which has been shuttered since its owner, David Harvey, died in 2009. The South American corporation, which is headquarted in Lima, Peru, has requested tax concessions, including sales and use tax exemptions and a Payment in Lieu of Taxes (PILOT) agreement, from the Chenango County Industrial Development Agency.

The deal hinges on these concessions, Tavares said.

“They need to see if they are granted the benefits before they close on the acquisition,” she explained, to the CCIDA board earlier this month.

According to documents provided to the CCIDA, Tecnofil plans to invest $2.5 million to acquire the now defunct company’s assets and the roughly 15.87 acres on which it sits; install new equipment; and make needed repairs and upgrades to the facility. The investment will lead to the creation of 24 new full-time jobs in the first two years, with as many as 70 more projected to be created by the end of 10 years. The annual payroll for the initial 24 positions is projected at $1,010,000.

The company also anticipates four construction jobs will be created or retained as a result of the project.

Under the requested PILOT agreement, the company would receive a projected benefit of $293,897 over the 10-year term of the agreement, based on a combined assessment of $1,155,000 for the three parcels it intends to acquire.

For the first five years of the agreement, Tecnofil would pay an amount equivalent to 50 percent of the taxes they would otherwise owe to the village and town of Sherburne, Chenango County and the Sherburne-Earlville Central School District. That exemption would decrease by 10 percent each year, with payments increasing proportionally to each taxing authority. The company would become fully taxable in year 11.

This represents a deviation from the CCIDA’s Uniform Tax Exempt Policy, which typically grants a 95 percent exemption in the first year, which is stepped down gradually over the 10-year term of the PILOT agreement.