ROTTERDAM SI advisory panel discusses wood-burning boiler BY JASON SUBIK Gazette Reporter
Members of SI Group’s Community Advisory Panel met Wednesday night at the Rotterdam Junction Volunteer Fire Department and talked about the planned wood-burning boiler the company wants to install at its Rotterdam chemical manufacturing plant. “I was given a complete background presentation on it,” CAP Chairwoman Maryde King, who said she was a retired chemist who once worked for GE Global Research. “I’m very much in favor of [the wood burning boiler] because it has very few emissions and its very efficient and it uses up some waste material that otherwise sits around and doesn’t do much good and might end up in landfills.” SI Group Corporate Communications Manager Kim Perone said SI Group is in the process of receiving regulatory approval for the 5 megawatt boiler from the state Department of Environmental Conservation. She said approval is expected in the next several months, at which time an eight-month construction project is planned to reconfigure the plant to run on electricity generated from steam powered by burning wood chips. “It’s definitely a multimillion dollar investment,” Perone said. Last year SI Group received a $1 million grant from the New York State Energy Research and Development Authority Board to help SI Group serve as a demonstration model for other companies in the state to observe the viability of wood burning boilers. Perone said the planned boiler would enable SI Group to significantly reduce its demand for natural gas and thus reduce cost pressure for the commodity for the region. She said SI Group consumes the second largest amount of power in Schenectady County and the third most in the Capitol Region. SI Group recently founded a subsidiary called SI Group Energy LLC to sell power generated from a wood-burning boiler plant in Monticello, Fla. Perone said SI Group does not plan to sell back energy in New York. She said the boiler will not increase carbon dioxide emissions at the plant, and may through the use of other equipment help to reduce them in the future. SI Group Global Energy Manager F.J. Colacino said the cost of natural gas has tripled for the manufacturing plant in New York in recent years. Perone said the wood used for the boiler is from wood brokers in New Hampshire and Vermont.
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BIGK75
June 21, 2007, 9:43am
Guest User
Interesting, and as long as they replace the trees that are being cut down to supply this boiler, I don't really see a bad side to this. In fact, I could see another angle on this that would actually help the town. What if someone local contracted with Schenectady International that the local tree cutting company would remove local residents trees at the cost to SI? Then, the townspeople could dispose of trees that they wanted down anyway, gasoline use could be decreased (has to cost less to drive, even from Hamburg St / Highbridge than it would to come from New Hampshire / Vermont), and SI could cut down (no pun implied) on some of their costs and help the residents of the town out at the same time.
I don't want them to work for National Grid. I asked National Grid at one point to come out and look at a tree for possible trimming. They came out and looked at it and told me to my face that I could hire a professional to do it. I told them that I would leave it and that when the tree became a problem for the wires, they could come and fix them.
SI announces plans to shrink company for faster growth BY JASON SUBIK Gazette Reporter Reach Gazette reporter Jason Subik at 395-3198 or jsubik@dailygazette.net.
Steve Large on Monday announced plans to shrink SI Group in order to make it grow faster. Chemical manufacturing fi rm SI Group, a private corporation formerly known as Schenectady International, will be eliminating 21 jobs out of 2,200 worldwide, 15 of them based in Schenectady County, as part of a company restructuring plan to combine its two internal divisions, chemical and performance resin, into one seamless unit. “For over a century, Schenectady has been our home, and that’s not going to change,” Large stated in a news release. “But, to continue to compete and thrive in the global arena we have to shift the way we do things. This includes conducting business the best way possible for our customers: as a single global company with regional execution.” In May, Large was hired as SI Group president and chief operating officer. He was the first company president ever hired from outside the family-owned business, a move which often signals the need for internal change. Along with consolidating two divisions, the restructuring has included the formation of a new executive leadership team. Large is also taking over the chief executive officer position from SI Group Chairman of the Board Wally Graham as of Jan. 1. “The board of directors is excited about Steve’s vision and we know that SI Group is poised for continued growth in the future,” stated Graham in a news release. Graham has served as company CEO since 1995. Large and other SI Group offi - cials were unavailable for interview Monday. The company released information through Albany-based public relations firm Media Logic. SI Group has been going through a period of changes as it expands its global presence, including changing its name from Schenectady International in spring 2006. Executives said at the time that changing the name was aimed at courting a more global market and they were worried “Schenectady” was a word that could put off foreign customers. The company was originally founded in Schenectady by Howard Wright in 1906 and operated as Schenectady Varnish Works, a producer of electric insulation materials and varnish, before changing its name to Schenectady Chemical, then Schenectady International and finally SI Group. According to company officials SI Group today has 20 sites in 13 countries across six continents. It is headquartered in Niskayuna and has a factory in Rotterdam Junction.
ROTTERDAM SI plant seeks relief on taxes Deal with school, town part of plant upgrade idea BY JUSTIN MASON Gazette Reporter Reach Gazette reporter Justin Mason at 395-3113 or jmason@dailygazette.net.
Officials from the SI Group are hoping a multi-million dollar project to build a biomass boiler in Rotterdam Junction will help establish a 15-year tax agreement with the town and the Schalmont Central School District, Members of the Rotterdam Industrial Development Agency accepted the company’s application for a payment-in-lieu-of-taxes deal Monday and planned a public hearing for late February, The agency is hoping a 15-year PILOT agreement can be reached between the SI group, town officials and the school district. “We’ve been trying to negotiate the terms for a PILOT,” said Gerard Parisi, the agency’s lawyer. The Niskayuna-based chemical company is banking on the estimated $12 million investment into their production facility off Main Street in Rotterdam Junction, coupled with the tax agreement between Schalmont and the town, to improve its finances. The PILOT agreement would be approved by the IDA and would incorporate other tax agreements on its properties in Rotterdam. SI Group representatives approached the agency last month with its proposal to build the woodfired boiler, which has already passed the state’s environmental quality review with the town Planning Board. The boiler project would help SI Group avoid natural gas costs, while the agreement would allow it to control its tax bill. The company claims taxes on its property “have almost doubled over the last five years.” “The facility has been operating at a loss for the last five years,” according to a company statement that cited Asian competition and high taxes. The “green fuel boiler project” would build a boiler, an electric generator, an electrostatic air cleaner and other technologies to limit air emissions. The company projected its project would create seven jobs and roughly $600,000 in new capital, according to the proposal. The SI Group launched the biomass initiative after receiving $1 million grant from the New York State Energy Research and Development Authority in 2006. The plant’s old natural gas boiler would be converted. The biomass boiler could be completed by November 2009, according to a December presentation. SI Group representatives contacted late Monday were unable to comment further about the project. Any PILOT agreement would need to be ratified by Rotterdam’s IDA. Agency Chairman Angelo Santabarbara was optimistic about the ongoing efforts. “We want to work with them on this,” he said Monday. “But it has to be beneficial for the town as well.”
I understand that Mr. Santabarbara is optomistic about this project / PILOT. I just have a few questions, which I am e-mailing to him. Here's a copy of the e-mail.
Quoted Text
Subject: Question Re: SI Group / IDA
Mr. Santabarbara,
I see that, per the article in the Gazette this morning that the IDA, the town of Rotterdam, and Schalmont Central Schools are all working together, trying to help SI Group to finish their new biomass boiler. Now, the question I would have is if SI Group is given this tax break, wouldn't this just be pushed off onto the other groups, i.e. the taxpayer / residents of Rotterdam and Schalmont School Districts, and more so onto those who live in both?
Please explain to me, as a resident of the County of Schenectady, the Town of Rotterdam and the Schalmont School District how giving this tax break to SI Group is going to help all of the above.
Doesn't it mean that during this 15 year PILOT that the taxpayers are going to end up footing this bill?
Per the article, The company claims taxes on its property “have almost doubled over the last five years.” Well, at this point, I'd have to say that MOST of us have seen this type of jump in our taxes.
I'm just afraid this means more of a jump for the residents.
I'm hoping that I'm missing something and you could explain.
Thanks,
Kevin March 163 Princetown Road Rotterdam, NY 12306
Last year SI Group received a $1 million grant from the New York State Energy Research and Development Authority Board to help SI Group serve as a demonstration model for other companies in the state to observe the viability of wood burning boilers.
Great questions as I was thinking the same things. I guess that the SI group also has a biomass boiler program in Florida. Perhaps they will have the rest of their international facilities manufacture their chemicals and the Rotterdam and Florida plants will get into the POWER business. Perhaps?
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
They will need $$ later for when they close the plant and have to do environmental cleanup......take a hike SI.....I'm sure you can manage this without a PILOT......
SI GROUP PITCHES $12 MILLION ‘GREEN’ PROJECT IN ROTTERDAM
Posted on: 01/23/08 Written by: Ross Marvin, Spotlight Staff email: marvinr@spotlightnews.com
Schenectady International (SI) Group, Inc. has decided to go green, and they’ve decided to do it in Rotterdam.
The Rotterdam Industrial Development Agency (RIDA) voted unanimously to accept an SI Group application that would authorize the installation of a bio-mass boiler and add seven jobs to the company’s Rotterdam workforce. The financially struggling SI Group currently employs 175 people at its Rotterdam Junction location.
According to the SI Group’s application, a large part of its financial burden stems from the cost of real property taxes. The company paid approximately $800,000 in taxes in 2006.
The SI Group pointed to an increase in the prices of raw materials and fuel costs, coupled with increased property taxes as the reason for its recent financial difficulties.
The cost of the proposed project renovations, which include the installation of a wood-fired boiler, an electrical generator, and other control technologies that will lessen air emissions, will cost approximately $12 million, including local labor and supply purchases.
The boiler could eventually generate electricity for sale on the state grid or by the town, said SI Group officials.
“Green energy is really taking off,” said Angelo Santabarbara, chairman of the RIDA. “We’re very interested in green energy sources and green building projects. This is a great project for Rotterdam.”
With the agreement, the RIDA moved one step closer to the authorization of a payment in lieu of property tax (PILOT) agreement with the company, which the SI Group said would allow them to remain in business in the town of Rotterdam. The PILOT would be set for 15 years and would come with a sales and mortgage tax exemption.
The SI Group is located in the Schalmont School District. The PILOT agreement would remove the facility from the tax rolls, but the school would still receive a negotiated amount from the company.
Town Attorney Gerard Parisi, who also provides council to the RIDA, said negotiations with the SI Group have been ongoing with both the RIDA and the Schalmont School District.
Officials for the company said that the green fuel boiler project would help keep costs low, increase jobs and allow the group to continue their contribution to Rotterdam by creating tax revenue without being bogged down by real property taxes. Real property taxes currently cost the SI Group 5 percent of their operating expenses.
The company also has plants in Tennessee, where the real property tax rate is 0.6 percent of operating expenses, and Texas where the rate is 0.2 percent of operating expenses.
The move by the RIDA toward granting the PILOT is the culmination of ongoing discussion between the SI Group and the town. The company gave a presentation about the new technology to the RIDA in early December of last year.
By accepting the SI Group’s application, the RIDA must hold a public hearing, said Parisi. The agency set the public hearing date for Tuesday, Feb. 26. According to Parisi, the RIDA could approve the PILOT after the public hearing, allowing the SI Group to break ground on the project.
The bestowal of benefits by the RIDA will be the last hurdle for the SI Group as the town planning board approved the project last year.
The SI Group is a global producer of alkylphenols, electronic chemicals and phenolic resins. Their products are used to make automotive components, adhesives, plastics, photo-imaging products, paints and other specialty coatings. The company has more than 20 operations in 13 countries.
The Town of Rotterdam Industrial Development Agency is a nonprofit benefit corporation committed to attracting new businesses and expanding existing businesses in the town of Rotterdam.
ROTTERDAM SI Group seeks $4.2M in tax breaks BY JUSTIN MASON Gazette Reporter
Officials from the SI Group have asked Rotterdam’s Industrial Development Agency to broker a 15-year tax agreement with the town, county and Schalmont school district that will save the company more than $4.2 million. The Niskayuna-based chemical company has asked for an annual exemption worth $242,000 over the duration of the payment-inlieu-of-taxes agreement. In addition, SI wants a $616,000 sales tax exemption while converting the plant’s old natural gas boiler to a biomass unit. Company officials indicated the project would require a $12 million investment in the plant and would result in the creation of seven fulltime jobs. The project would make the plant financially viable and generate $600,000 in new capital, according to a proposal submitted to the IDA in December. The plant is on a 40-acre site in Rotterdam Junction. IDA Chairman Angelo Santabarbara said the agency will weigh the impact of such an agreement. He said the goal is to obtain an economic benefit for the town while ensuring the company maintains its facility in Rotterdam. “It has got to benefit the town,” he said Monday. “If it’s not going to benefit Rotterdam, we’re not going to do it.” Company officials reached late Monday indicated the total exemption is likely to change before a final agreement is reached. They were unable to provide any further in- formation. Details of how the agreement would affect school, county and town taxes have not been released. A public meeting on the proposal is set for 7 p.m. Feb. 26 in the Rotterdam Town Hall. The SI Group launched its biomass initiative after receiving a $1 million grant from the New York State Energy Research and Development Authority in 2006. Plans for the wood-fired boiler have already passed the state’s environmental quality review with the town Planning Board. The company projected employing 50 workers during construction on the project, which is expected to last nearly two years. Afterward, the company anticipates creating one additional management position, two skilled or unskilled jobs and four semi-skilled positions. In their initial presentation to the IDA, the SI Group indicated the boiler project would help the company avoid natural gas costs and also to control its tax bill. Fuel costs and taxes contributed to the Rotterdam facility’s operating loss over the last five years, the company claims. County Attorney Chris Gardner said the PILOT appears excessive after considering the low level of economic development the SI Group has offered. He also questioned why the company would require such a tax break after receiving a hefty state grant. “We’re carefully studying it as to whether the county will take a position or not,” he said. “It does seem to be a little bit rich.” After reviewing the application, Gardner said, it wasn’t clear whether any of the seven jobs proposed would be permanent or high-paying. “Is this the best way to spend over $4 million worth of taxpayer money?” he asked. “It’s not even clear if there are any new jobs at all.” Supervisor Steve Tommasone was more optimistic. He said securing the PILOT would end costly tax reduction litigation with the company and help ensure the SI Group maintains a presence in Rotterdam. Tommasone said the potential loss of tax revenues is outweighed by the potential loss of 182 jobs if the SI Group decides to shut down the production facility. He said the agreement would also leave open the possibility of future expansion at the plant. “Sure we’re going to lose some revenue,” he said. “But the amount of revenue we’ll lose pales in comparison to the jobs that are there.”
What Elements Have Defined Our Success Through The Years?
Our keen ability to form strong bonds with our customers; our enduring capacity to adapt to an ever changing marketplace; not to mention our pioneering spirit which has enabled us to achieve continuous growth using these key deliberate strategies over the years: Backward Integration
Our founder, W. Howard Wright recognized that to survive and grow in the competitive market for electrical insulations intensive research and development were keys to success. His efforts and later Henry's, to backward integrate into key raw materials required for electrical products, and his push to invent new products like synthetic polyester wire enamels, allowed the company to withstand hard times in the first half of the 20th century and to sustain solid growth.
Globalization
Howard's son, Henry Wright had the forethought to realize the value of being strategically positioned closest to our customers. His efforts to bring Schenectady plants and products to all major markets around the world were major keys to success in the second half of the 20th century that allowed the company to grow exponentially.
Acquisitions
Wallace Graham is only the 3rd Chairman and Chief Executive Officer in the company's 100 year history. His progressive approach to expansion and growth through acquisitions and new products has added a wide range of new businesses to the SI Group family in many new regions of the world. His eye for opportunity has allowed the company to stay ahead of the competition and has cemented our position in the rapidly expanding global marketplace.
And we're still writing history every day…
LATE BREAKING WE'VE CHANGED OUR NAME! (Everything Else Stays the Same)
At first we were a pioneering force in the emerging market for electrical motors as Schenectady Varnish Works.
Over the years we intensified our research and globalized as Schenectady Chemicals, Inc.
Later solidifying our reputation for stability, reliability and the highest quality chemical products as Schenectady International, Inc.
Today, Schenectady International, Inc. is proud to celebrate its 100th Anniversary! The cornerstone of our Centennial Celebration is the unveiling of our new corporate identity.
Schenectady International has changed its name to: SI Group, Inc.
We are still the same company, with the same core values that have served our customers for 100 years - the only thing that has changed is our name. Our success and longevity as a global chemical industry leader is an enduring tribute to our founders, employees, customers, vendors and communities all over the world. As SI Group, Inc., we are poised for the next century of service to you!
Quoted Text
Officials from the SI Group have asked Rotterdam’s Industrial Development Agency to broker a 15-year tax agreement with the town, county and Schalmont school district that will save the company more than $4.2 million. The Niskayuna-based chemical company has asked for an annual exemption worth $242,000 over the duration of the payment-inlieu-of-taxes agreement. In addition, SI wants a $616,000 sales tax exemption while converting the plant’s old natural gas boiler to a biomass unit. Company officials indicated the project would require a $12 million investment in the plant and would result in the creation of seven fulltime jobs. The project would make the plant financially viable and generate $600,000 in new capital, according to a proposal submitted to the IDA in December. The plant is on a 40-acre site in Rotterdam Junction. IDA Chairman Angelo Santabarbara said the agency will weigh the impact of such an agreement. He said the goal is to obtain an economic benefit for the town while ensuring the company maintains its facility in Rotterdam.
bull-hhmm-it
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
Tommasone said the potential loss of tax revenues is outweighed by the potential loss of 182 jobs if the SI Group decides to shut down the production facility.
So are we to understand that IF they don't receive their tax break, they will close up shop?
Quoted Text
He said the agreement would also leave open the possibility of future expansion at the plant.
The word here is 'possibility'. No guarentees!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
It sounds like SI is trying to blackmail Rotterdam into giving them what they want in the form of a big tax break and again the residents will have to make up the difference in the form of higher school taxes and possibly town taxes/fees.
County Attorney Chris Gardner said the PILOT appears excessive after considering the low level of economic development the SI Group has offered. He also questioned why the company would require such a tax break after receiving a hefty state grant. “We’re carefully studying it as to whether the county will take a position or not,” he said. “It does seem to be a little bit rich.” After reviewing the application, Gardner said, it wasn’t clear whether any of the seven jobs proposed would be permanent or high-paying. “Is this the best way to spend over $4 million worth of taxpayer money?” he asked. “It’s not even clear if there are any new jobs at all.”
This portion of the article resonated with me. While reading I was thinking exactly these thoughts. I'm not necessarily opposed to a PILOT but where is the benefit? Like Mr. Gardner, I'm not quite sure I see it.
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