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Posted by
Gold_12TH
on Wed Jul 4 21:47:40 2012
edf40wrjww2msgDetail:detailStr fiogf49gjkf0d Hornell, NY — Less cost for Alstom. More space to market for the IDA. And at least three more years of employment for the Hornell area.
In what officials called a “win-win” Wednesday for themselves and Alstom, the Hornell IDA approved lease changes providing rent relief to the French company in exchange for marketing rights to two buildings and a guarantee Alstom remains in the Maple City for at least three more years.
Wednesday's action is temporary pending further review by IDA officials, but a full approval is expected in July.
Added to the required two-year notice if the company intends to terminate its lease, Alstom is guaranteed to remain in Hornell for at least five more years, said IDA Executive Director Jim Griffin.
“To me, it's a big plus that Alstom is willing to do that. Past management, I had questions about whether they would terminate their lease or not,” said Griffin. “This new group, they're good to work with, they're upbeat on Hornell ... they're planning on going after some big contracts.”
Alstom's contract with the IDA still expires in 2020. Payment-in-lieu-of-taxes won't change as a result of the deal.
Griffin said Alstom officials approached the IDA approximately three-to-four months ago to discuss the deal.
A similar proposition was advanced with the previous Alstom management, said Griffin, and a verbal agreement was reached.
Alstom officials then backed out without providing an explanation, he said.
Under the new agreement, the IDA can market the former depot on Loder Street and the Alstom plant on Seneca Street to other businesses.
If a company is found for either location, Alstom will transfer the facility to the IDA for $1.
Alstom officials aren't expecting to use either facility, said Griffin.
“We've talked about it a lot, about those buildings being good buildings sitting vacant, and that we'd like the opportunity to try to market them to someone else and put some people to work,” he said.
Both of the buildings aren't in use, said Griffin.
While the IDA receives the marketing rights for the two buildings, Alstom receives a total of $1.05 million in reduced rent from the 2012-2013 fiscal year through 2014-2015.
Each of the three fiscal years will provide $350,000 in financial relief for the company.
In a statement emailed to The Tribune, Adam Pratt, Alstom's U.S. media relations manager, said the company remains committed to the North American rail market.
“The restructuring of our lease in Hornell reflects that commitment,” he said.
In the past three months, Alstom lost bids in New York City and San Francisco to Bombardier. The company rebounded earlier in June, picking up a $104 million contract with the Massachusetts Bay Transportation Authority.
Alstom officials have also acknowledged they've submitted a bid on a second contract with the MBTA.
---http://www.steubencourier.com/news/x1497927882/Alstom-gets-rent-relief-will-stay-in-Hornell
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