ECIDA approves Eastman Machine tax breaks, upsized Time Release benefits

Feb. 25—Downtown Buffalo manufacturer Eastman Machine Co. won tax breaks Wednesday for its planned expansion project at its Washington Street facility, gaining a needed incentive just two days after also winning approval for the project from the city Planning Board.

Eastman, located at 775-779 Washington St., plans to construct a 7,392-square-foot warehouse addition to its 130,000-square-foot facility at the corner of Washington and Goodell streets.

The $1.67 million project, designed by Dean Architects, would provide more space for loading docks, materials storage and automated assembly.

Founded in 1888, Eastman makes cutting and material handling equipment for customers worldwide.

The company, which is also buying an adjacent property, wants to construct the addition on vacant land and a parking area on the west side of the property.

The Erie County Industrial Development Agency approved a package of tax breaks for the project, totaling $124,588.

Additionally, ECIDA voted to authorize a doubling of the sales tax break for Time Release Sciences in Lackawanna, which is in the midst of constructing a 288,000-square-foot manufacturing facility on 28 acres of the former Bethlehem Steel site, off Route 5.

The 18-year-old manufacturer makes five variations of Mr. Clean Magic Eraser for Procter & Gamble, and is relocating to 2303 Hamburg Turnpike from a facility at 205 Dingens St. that is less than half the size. Plans call for 190,000 square feet of manufacturing and processing space, 90,000 square feet for warehouse and storage and an 8,000-square-foot office.

The project was originally valued at $22.7 million when the ECIDA approved $4.2 million in sales, property and mortgage recording tax breaks in 2019. But the costs have soared to $30.5 million, mostly for increased construction expenses and equipment purchases. The materials and equipment are subject to sales tax, so ECIDA agreed to raise the exemption from $463,167 to $869,400.

"It shows their commitment to our community with the increase in the overall project investment," said Erie County Executive Mark Poloncarz.

That's a total of six new projects authorized for incentives in the first two months of the year, noted ECIDA CEO John Cappellino. "It's a good sign that our companies are starting to recover," he said.

Additionally, ECIDA approved six new Covid-19 disaster emergency grants for small businesses, totaling $42,569. Recipients include Be Fit Fitness Inc., Buffalo Glass Block Co., Buffalo River Fest Park LLC, Fika Midwifery Pllc, Greco Trapp Pllc and Sherri's Little Angels Inc. Five are in distressed census tracts, four are owned by women, and one is a minority-owned firm. All told, 71 businesses have now received emergency aid totaling over $450,000.

Meanwhile, an ECIDA affiliate — the Buffalo and Erie County Industrial Land Development Corp. — approved the hiring of C&S Companies for $146,387 to provide engineering and design services for construction of new sanitary sewer and water line extensions into the Bethlehem Steel site. The work, to be performed along new road corridors, is intended to open up more of the land for reuse.

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