SHERBURNE – The Chenango County Industrial Development Agency has granted tax concessions to a Peruvian copper manufacturer seeking to acquire Sherburne Metal Products.

“It’s absolutely going to be an economic boost to Sherburne on many fronts,” CCIDA Interim Executive Director Sewain Conklin said of the decision, which was rendered Wednesday at the agency’s June meeting, held at 8 a.m. in the Commerce Chenango offices.

Sherburne Metal Products closed in 2009 following the death of its owner, David Harvey, putting approximately 30 people out of work. Earlier this year, the CCIDA learned Tecnofil S.A., a South American manufactuer of copper and copper alloy products headquartered in Lima, Peru, was interested in acquiring the now defunct company’s assets.

According to Economic Development Specialist Jennifer Tavares, the deal hinged on the CCIDA’s willingness to grant tax concessions, including sales and use tax exemptions and a Payment in Lieu of Taxes (PILOT) agreement.

Tecnofil’s request to the CCIDA stated the company’s intention of investing $2.5 million to acquire the Sherburne Metal Products’ assets; install new equipment; and make needed repairs and upgrades to the facility. The project is expected to 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 4 construction jobs will be created or retained as a result of the project.

Under the terms of the agreement approved yesterday, Tecnofil will receive a projected benefit of $181,671.94 over the 10-year term of the PILOT agreement. For the first five years of the agreement, the company will 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 of the subsequent years of the agreement, with payments increasing proportionally to each taxing authority. The company will become fully taxable in year 11.

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

The company has also been granted sales and use tax exemptions on construction materials and equipment rental used during the construction. The projected benefit of these exemptions is estimated at $14,000, and would only apply to materials and equipment rental purchased in Chenango County or elsewhere in New York State.

“All in all ... it’s a win-win,” Conklin said.

The CCIDA’s decision will no doubt be good news for those who attended a public hearing in Sherburne Tuesday night. All who spoke at the meeting indicated their support of the project.

Mike Westbrook, owner of Top Variety/Do It Best Hardware, was the first to speak. According to the local businessman, Sherburne Metal Products was an important customer of his Sherburne hardware store.