Lancaster Hose Distributor Plans Expansion with Tax Breaks | Business premises

A Cheektowaga-based stainless steel pipe maker wants to expand its Lancaster warehouse as part of a $7.65 million project, but is asking the city’s industrial development agency for tax breaks to help to pay.

Boden LLC, a real estate investment group with properties in Cheektowaga and Lancaster, is looking to build a 50,000 square foot warehouse at 4543 Walden Ave., which it will lease to Robert-James Sales.

Boden is seeking $297,500 in tax incentives for sales and mortgage registration, plus unspecified tax relief, from the Lancaster Industrial Development Agency, as well as site plan approval by the town planning council. Property tax breaks are usually the most lucrative part of an incentive package.

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Costs include $5 million for construction, $2 million for infrastructure, and $600,000 for furniture and fixtures. Funding will come primarily from bank loans, plus $650,000 in company equity. The project will maintain four full-time jobs, but no new jobs will be created.

Founded in 1972, Robert-James Sales offers a range of stainless steel piping products and can also build a custom corrosion resistant piping system. It currently employs 63 people at its factory at 2585 Walden Ave.

“Robert James Sales requires modern warehouse space to remain competitive in the metal service center industry and to sustain current employment levels,” Boden wrote in the application to IDA. Without help, “we will not build the building”.

Besides Lancaster, the company operates 11 other warehouses in Chicago; Cleveland; Florida; Indianapolis; Los Angeles and Stockton, California; Missouri; New Jersey; Raleigh-Durham; Salt Lake City; and Wisconsin. Boden noted that the company could grow in these areas.

“Over the years, many agencies have approached us about relocating or expanding our locations,” Boden wrote.

The company previously secured $686,000 in tax breaks for a $6.47 million, two-phase expansion project in 2018 and 2019 that added 45 acres and a 98,000 square foot warehouse.

If approved, the project will begin this summer and end next winter.

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