Wellsville: Town Board listens, challenges and responds to progress on GE/Lufkin building near airport

Craig Clark (standing) addresses the Wellsville Town Board

The Wellsville Town Board, or at least a few members, were intent on getting answers about the sale of the GE/Lufkin building during a public hearing Monday evening. The focus of the hearing was on the potential transfer in ownership of the GE building adjacent to the Wellsville Airport to the Allegany County Industrial Development Agency (ACIDA). ACIDA Executive Director Craig Clark was on the proverbial hot seat, fielding questions about who, what, where, when and why. It was  a 40 minute meeting, sometimes complicated, so here are some bullet points:

•  GE/Lufkin purchased the industrial building a while back and then dumped Wellsville. As part of the purchase incentive, the company was granted a PILOT or and agreement called payment in lieu of taxes (They don't pay property tax on the building, but do make a payment).
• The ACIDA reached out to a Wellsville company (officials still refuse to confirm). That company would relocate to the property...keeping and/or adding jobs.
• The ACIDA is working to finalize the sale with GE, by the end of the year.
• The new tenant would pay a PILOT for, likely ten years.
• If the deal crashes, the property would return to the tax rolls and GE would have to cough up property taxes.

Council member Jon Gardner
expresses a point

The current rub and the cause for the hearing is that confusion surrounds the deal and the 2017 PILOT was not paid, costing Wellsville town, school and county taxpayers about $40,000. That's what agitated Wellsville Council members Shad Alsworth and Jon Gardner.
Alsworth and Garnder maintained there was a breach of contract, and GE cheated Wellsville out of payments. Alsworth said some of the negotiations were "pie in the sky.
Town Supervisor Donald LaForge supports the current efforts by the ACIDA saying the new tenant is "gonna have jobs."


Wellsville Board member Shad Alsworth

While Alsworth constantly maintained his comments were not personal to Clark or other, he repeated that "you didn't follow any basic protocols." He stated firmly that GE was in 'default' of an agreement and taxpayers were cheated. The Councilman was also irritated that the ACIDA never pursued a 'breach of contract' when GE/Lufkin failed to pay 2-17 payments to the town and others.
Alsworth stated (regarding tax deals offered by the ACIDA) "we are willing to give away the farm...we need to hold corporate America a little more accountable."
In the end, Gardner and Alsworth heard what they needed to hear - If the ACIDA doesn't assume ownership of the property by December 31st, the building returns to the tax rolls where the governments can fight it out in court.
IDA Director Craig Clark assured Alsworth that if the deal isn't closed by the end of the year, he will pursue a breach of contact against GE/Lufkin.
Currently, everyone seemed to agree that Wellsville, the school and county will get shafted in the amount of $40,000.