With modern factory space in short supply, Erie County wants YOU to build a new manufacturing building in Lackawanna.
The Buffalo and Erie County Industrial Land Development Corp. is seeking a developer to put up a "spec" industrial building on part of the former Bethlehem Steel property just south of Buffalo near Lake Erie.
The land development arm of the Erie County Industrial Development Agency has issued a request for proposals, offering to sell a 10.27-acre parcel on the Dona Street Extension to a qualifying developer that will erect a light-manufacturing and warehouse facility of at least 120,000 square feet.
That would be the second such facility created on the sprawling former industrial campus that has been largely vacant and underused since the decline of steelmaking in Buffalo. But it would be the first time that a manufacturing building was built without a tenant already lined up. Last July, TMP Technologies announced plans to buy 28 acres of the Bethlehem site to open a new $13 million manufacturing plant with 130 jobs.
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“This is the latest step in our vision to redevelop land that housed what was once the economic driving force of our community,” said Erie County Executive Mark C. Poloncarz, who is also chairman of the ILDC.
The new building must include office space, parking, truck docks and ceilings that are high enough to accommodate typical manufacturing and warehouse uses, according to the agency.
The site is already designated as an Opportunity Zone, so developers may qualify for federal tax benefits to help with the project. The project also could qualify for brownfield cleanup tax credits and other incentives from the ECIDA, among other subsidies.
“This is a great opportunity for the right developer to build on the Dona Street Extension parcel next to our first tenant, TMP Technologies,” said ECIDA President and CEO Steve Weathers. “With manufacturing spec space in such high demand, we feel that the former Bethlehem Site is an ideal location due to the available acreage and the adjacent rail, water and highway access,” he added.
The launch of TMP and the new proposal furthers efforts by Erie County and the state to revive the Bethlehem property, while also creating more industrial and warehouse space for tenants in a new manufacturing park.
That's designed to address a major shortage in industrial space in the region that has been identified by economic development officials as a big hindrance in their efforts to attract new companies to Western New York and help those already here to grow.
Only about 4% of the existing industrial facilities in the region are available for lease, and there's a dearth of options for larger buildings in particular.
"I’m confident this project will be another major component to the ongoing effort to redevelop the property while allowing us to move towards meeting a regional need for manufacturing and warehouse space," Poloncarz said.
Local officials have been seeking to redevelop the overall 1,100-acre steel campus for at least 33 years, and Bethlehem Steel Corp. itself even proposed its own plan before it went bankrupt more than two decades ago. But those efforts have largely fallen short until recently.
Erie County acquired 148 acres of the overall site from Tecumseh Redevelopment with financial help from the state, including $10 million in Buffalo Billion II funds and $2.78 million through the Western New York Regional Economic Development Council.
Since then, the county has completed infrastructure improvements to make the land more functional and attractive, including extending Dona Street into the site, moving a rail line, constructing a new bike path along Route 5, and finishing an infrastructure master plan. Officials envision a campus of private businesses centered around advanced manufacturing and green technology.
TMP, which makes Magic Eraser and other cleaning products, was the first to sign on, with plans for a 280,000-square-foot facility. It will be located near Welded Tube of Canada's plant, which opened in 2013 to make piping for the energy industry, and now employs 100.
TMP, which was founded in 1954, will relocate from an existing 120,000-square-foot plan on Dingens Street in Buffalo, although it will retain its administrative operations on Northland Avenue and in Wyoming, N.Y.
“Increasing our stock of available industrial real estate is vital as we market the region to expanding companies and site selectors, and compete for meaningful job creation opportunities," said Thomas Kucharski, president and CEO of Invest Buffalo Niagara. "This project by Erie County is an important first step in line with a regional industrial real estate strategy being worked on by national consultants that we plan to activate this summer."
The RFP is available online at www.ecidany.com/requests_for_proposals, or by phone at 716-856-6525. Responses are due March 13.
