Saratoga Economic Development Corp. (SEDC) is working with Precision Valve & Automation (PVA) of Latham and its founder, Tony Hynes, to obtain Mechanicville-Stillwater IDA incentives to re-purpose the recently closed DiSiena Furniture headquarters and warehouse in Mechanicville.
PVA’s investment would re-purpose the building as an entrepreneur space, providing prototyping machinery, software, professional technical support, as well as health and child-care benefits for accepted early stage companies, according to SEDC.
SEDC said it is focused on local business innovation and acceleration by fostering professional mentors and resources supporting product research, market analysis, and access to potential capital. Site acquisition is expected in 2018 with a total initial investment of $3.9 million. Three early stage companies expected to locate at the facility in Mechanicville will initially provide 12 jobs.
SEDC is asking the Mechanicville-Stillwater IDA for incentives valued at $600,000 in the form of a 10-year PILOT (payment in lieu of taxes) and sales tax abatements.
“What PVA and its founder, Tony Hynes, do is truly inspiring,” said Dennis Brobston, SEDC president. “This is an example of a community-led initiative to do well by doing good. PVA will re-activate this space for promising growth companies and innovators who will breathe new life into the community.
“Project companies admitted [to the building] will have benefit of not only key equipment and technical support of PVA, but through our SPARK Saratoga platform, we will assess key business gaps and pair companies with proven area mentors and professional resources to help them succeed,” said Brobston.
“The approach PVA takes to provide not just the space, but meaningful support like health benefits and child-care onsite, really enables innovators to focus on developing solutions valued in the marketplace. Accelerating these company’s products into the market will help fuel growth that leads to more jobs and wage opportunities for the area workforce. We are excited to promote needed incentives from our partners at the Mechanicville-Stillwater IDA.”
PVA’s $3.9 million investment will start with the $1.6 million site acquisition expected to close in January. Site investment and companies relocating to the facility are estimated to take place by June. The 75,000 square feet of space could support additional companies and staffing, SEDC said.
“Since my time as a startup at the RPI incubator, I have always wanted to create a business incubator of my own,” said Haynes. “I know first-hand how difficult startup is and my hope is that we can create an environment which allows entrepreneurs to succeed faster and with less risk.”
SEDC coordinated the initial IDA application and presented it in December.
The benefits requested to support this initial $1.6 million investment include a 10-year PILOT, for an estimated savings of $564,250; and sales tax abatement against materials purchased for the project expansion, for an estimated savings of $78, 386.
“It is always a challenge as an economic developer when we see a longtime company close its doors,” said Brobston. “What better way to re-open than with a proven team supporting next generation local businesses putting down roots to grow here. Our economic development approach has increasingly focused on attracting and retaining talent to bolster area businesses to successfully enter the marketplace and grow.”