NORTH NORWICH – The Chenango Industrial Development Agency deviated from normal practice Wednesday and granted a business only a portion of its request for a tax abatement.
The move could result in an estimated $135,000 to the Town of North Norwich’s coffers.
According to minutes from a public hearing held at the North Norwich Town Hall the day before, Norwich Pharmaceuticals Inc. (NPI) has requested an exemption from paying a $300,000 mortgage tax refiling fee. The fee would result from refinancing a $42 million mortgage on the state Route 12 South plant, and comes along with a planned $22 million capital investment in research and development space and new equipment.
In turn, the full-service contract developer and manufacturer of prescription and over-the-counter pharmaceuticals expects to create 52 new jobs initially, plus an additional 27 by 2016. Payroll one year from now would increase from $27.2 million to $31.9 million. (The pharmaceutical company currently employs about 348.) Construction would begin in April, provided NPI officials agree with the action taken and the IDA obtains completed legal approvals from state environmental conservation authorities in sufficient time.
NPI Controller Jeff Ammons responded to the development on Thursday. He said while management appreciates receiving a portion of the abatement requested, it was important for the local business community to realize that NPI contributes significantly to upstate New York’s overall economy.