Time Release Sciences wants to double tax breaks; Eastman Machine wants expansion help

The company's project itself hasn't changed in scope, nor has its business, since the ECIDA last year approved $4.2 million in assistance. But TRS – also called TMP Technologies – anticipates spending more on equipment and materials, plus an additional $1 million in moving expenses from its existing location at 205 Dingens St. to its new building at 2303 Hamburg Turnpike.

That's where the 18-year-old manufacturer, which makes five variations of Mr. Clean Magic Eraser for Procter & Gamble, is constructing a 288,000-square-foot factory on 28 acres off Route 5, which it is purchasing from an affiliate of the ECIDA for $1.06 million. The brownfield site is part of the former Bethlehem Steel complex that is now being gradually redeveloped.

The factory will include 190,000 square feet of manufacturing and processing space, 90,000 square feet for warehouse and storage, and 8,000 square feet of office space. That's more than twice the size of its current 120,000-square-foot facility, which will be sold once the project and move are complete.

TRS will spend $14.3 million on construction, $3.5 million on infrastructure, $6 million on manufacturing equipment, and $4.6 million on furniture and soft costs. Previously, the total project cost was $22.7 million.

The company already received a package of sales, property and mortgage recording tax breaks from ECIDA in August 2019, along with $750,000 in workforce development funds. In exchange, it pledged to add 60 jobs to its current 103.

But now it wants to increase the sales tax exemption from $463,167 to $869,400 because of changed circumstances. According to its revised application, "a significant amount" of the equipment purchases may be completed before the company relocates, so it will have to store it and then move it.

Meanwhile, TRS said, "our only customer" – P&G – "wants us to move close to either their major distribution centers or their corporate headquarters," especially since TRS' sales with P&G "have increased considerably."

"We are resisting that pressure and need to put before them a financial reason to stay in Western New York," the company added. "A significant part of our presentation to them is to outline the cost-efficient move within the Buffalo area, the low cost of the actual move, that we are not requesting any increase in their prices to accommodate this move. A significant part of maintaining a low cost move is the incentives this application is applying for."

ECIDA will hold an online public hearing on the request at 9 a.m. Feb. 16. The project is expected to come up for approval as soon as Feb. 24.

The ECIDA board will also consider an application by Eastman Machine Co. for tax breaks to assist a 7,400-square-foot expansion of the downtown Buffalo manufacturer's facility at 775 and 779 Washington St.

The addition would provide more space for loading docks, storage and automated assembly. 

Eastman Machine produces cutting and material handling equipment, using its existing 130,000-square-foot facility. But it needs more room to store materials or other purchased items that are used in the manufacturing process. Those are currently just kept on the factory floor, so removing them will allow the company to rearrange its equipment and operation to be more efficient and productive.

The company wants to construct the addition on vacant land and a parking lot area on the west side of the building. It owns the land and has applied for site plan approval from the city.

Eastman Machine says its aging two-story complex is limiting its ability to grow and keep up with customer demand, particularly for its automated CNC cutting equipment. And it needs to stay competitive with both domestic and foreign rivals.

Without ECIDA's help, it claims, it can't do so. And it's already been contacted by economic development officials in South Carolina, Georgia, Texas and Michigan.

"To fall behind and not capitalize on our growth potential in this market is not an option," it warned in its application.

The $1.665 million project includes $1.44 million for construction, plus furniture and soft costs. Financing includes a $1 million bank loan and $415,000 in company equity, plus $200,000 in incentives. Eastman is seeking a package of sales, property and mortgage recording tax breaks, in exchange for retaining 126 jobs and creating three new positions.

If approved, the company hopes to start work by April and finish by year-end.