COLUMBUS – The Chenango County Industrial Development Agency voted this morning to approve a sales tax exemption incentive totaling $3,837,297 for Agro Farma’s latest expansion, following a public hearing last night in Columbus.
In addition, IDA Chairman Thomas Knapp requested an informal report from Agro Farma regarding the number of local contractors that would work on the construction.
Agro Farma, makers of Chobani yogurt, requested the sales tax exemption and Payment in Lieu of Tax (PILOT) for Phase III of its $134 million expansion project, which includes a projected 106 new full-time positions created at the plant.
The PILOT on the assessed property tax of the expansion dictates a 50 percent abatement over a 10-year period.
In the past, the CCIDA has provided Agro Farma with incentives and assistance for projects totaling $100 million. The latest phase would add more than 100,000 square feet to the existing building as well as create a 17,400 square foot Employee Wellness Building and a 300-vehicle parking lot.
Numerous questions were raised in Columbus Wednesday night about the tax incentive and possible environmental concerns with the company’s additions.
“I’m in favor of (Agro Farma) expanding; I don’t have a problem with that ... the taxes that you take away from this town are what I have a problem with,” said Richard Andrews, a resident of Columbus for 22 years. “Is there any way we can write into this proposal that Agro Farma has to at least give the Town of Columbus what it is due?”
Knapp explained that the tax incentive would only apply to the new construction, and the existing facility would still be taxed appropriately.
