The Home Depot will build a last-mile distribution center in Schuyler Business Park in Herkimer County, bringing new jobs to the area.
The Herkimer County Industrial Development Agency (IDA), in partnership with Bloom Utica, LLC, announced the project on Monday.
The project is estimated to be worth around $9 million, with initial work on the site expected to begin this fall and construction in the spring of 2023. John Piseck, chief executive of IDA, estimates that construction will be complete by fall 2023.
The last mile facility will include a 52,000 square foot distribution facility with 15 dock gates, 50 auto bays, 34 truck bays and office space, and will be located at Andrew Usyk, Sr. Drive in Schuyler. The facility will serve as a transportation hub, where trucks will pick up and then deliver products ordered online to the homes of area residents.
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New Jobs Expected at Schuyler Home Depot Distribution Center
Jim Bono, Speaker of the Herkimer County Legislature and IDA Board Member, estimates the facility will create 50 to 70 jobs when complete.
“These are good-paying jobs for, you know, people who want to work hard, and they can really get by,” said IDA chief executive John Piseck.
The construction of the site itself is also expected to generate revenue for the local construction industry. Bloom Utica’s application for IDA financial assistance for the project states that approximately $5.5 million in labor and material costs will come from the Valley Regional Economic Development Council area. of the Mohawk. The region includes Herkimer, Oneida, Fulton, Montgomery, Schoharie and Otsego counties.
“We use all local construction for this,” Piseck said. “All local construction people.”
Home Depot Distribution Center Tax Relief Details
IDA has been working with developer Bloom Utica LLC to secure Home Depot’s interest in the Schuyler Business Park for about a year and a half, Piseck said. IDA encouraged the project by granting Home Depot several different payments in lieu of taxes (PILOT) exemptions during its first 10 years of operation.
The most important exemption concerns the property tax; Home Depot will only pay 50% of its property tax in its first year of operation, estimated at $76,500, and will continue to pay 5% more each year until the end of its first 10 years. It will pay its first full year of property taxes, estimated at $153,000, at the end of its 11th year of operation.
Another exemption built into the project comes in the form of a sales tax exemption for all purchases related to the project. This exemption will erase an estimated cost of $258,860 in sales tax on the $3.1 million in purchases related to the project. Bono said sales tax exemptions are generally for any purchase of equipment associated with development projects.
“Any material they buy, wood, plywood, concrete, they’re exempt from sales tax,” Bono said.
Another exemption from the deal comes in the form of mortgage registration tax exemptions. In New York, businesses generally must pay a one-time tax of 1% on the total amount of their mortgage for “the privilege of registering a mortgage on real property located within the state”, according to a government website. New York State. . The Home Depot will be exempt from paying this tax.
“We’re very happy they’re coming to Schuyler,” Schuyler town supervisor Anthony Lucenti said. “They’re going to be a great choice for the business park.”