Town Attorney Gerard Parisi, who also provides council to the RIDA, said negotiations with the SI Group have been ongoing with both the RIDA and the Schalmont School District.
Officials for the company said that the green fuel boiler project would help keep costs low, increase jobs and allow the group to continue their contribution to Rotterdam by creating tax revenue without being bogged down by real property taxes. Real property taxes currently cost the SI Group 5 percent of their operating expenses.
The company also has plants in Tennessee, where the real property tax rate is 0.6 percent of operating expenses, and Texas where the rate is 0.2 percent of operating expenses.
The move by the RIDA toward granting the PILOT is the culmination of ongoing discussion between the SI Group and the town. The company gave a presentation about the new technology to the RIDA in early December of last year.
By accepting the SI Group's application, the RIDA must hold a public hearing, said Parisi. The agency set the public hearing date for Tuesday, Feb. 26. According to Parisi, the RIDA could approve the PILOT after the public hearing, allowing the SI Group to break ground on the project.
The bestowal of benefits by the RIDA will be the last hurdle for the SI Group as the town planning board approved the project last year.
The SI Group is a global producer of alkylphenols, electronic chemicals and phenolic resins. Their products are used to make automotive components, adhesives, plastics, photo-imaging products, paints and other specialty coatings. The company has more than 20 operations in 13 countries.
The Town of Rotterdam Industrial Development Agency is a nonprofit benefit corporation committed to attracting new businesses and expanding existing businesses in the town of Rotterdam.""