The Canadian company Teti Bakery targeted the Syracuse area for its first American plant and Volney came up the winner.
Teti bakes flatbreads, pizza crusts and pizza dough balls for sale in grocery stores. The company’s products can be found in Wegman’s, among other supermarkets and outlets.
The company plans to open by mid-2013 and employ 63 people within 3 years, according to Mike Treadwell, executive director of Operation Oswego County, the county’s economic development agency.
Treadwell said Teti looked at many buildings in the region, but settled on the former Smurfit-Stone cardboard box plant on Harris St. just outside the city of Fulton. Smurfit-Stone closed the plant in 1999.
“They saw some possibilities,” for the plant, Treadwell said.
Volney won the competition for Teti because of several factors, he said. The plant is five times larger than Teti needs for its operations, but that gives it room for growth. The price was right, at just under $1 million. And Teti will earn rental income from the two wood flooring products companies now using a portion of the facility.
Treadwell said that Teti is in talks to lease about a quarter of the building to another company that needs space to expand, which would bring between 35 and 60 more jobs to town.
Teti will receive a PILOT agreement to make annual payments instead of taxes that will save it more than $10,000 per year for 20 years. Its property assessment is capped at $600,000 and will pay only a portion of any increases in assessment for 20 years. Teti will receive a $400,000 loan and will be exempt from mortgage taxes and sales taxes for purchases that go into renovating the building.
Treadwell said Teti will need to make extensive renovations to make the plant safe for food production.