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Sonwil Distribution eyeing Buffalo Zone
New York State's Empire Zone program has caught the eye of Sonwil Distribution Center, which is seeking permission from the town to relocate its Dewberry Lane distribution center to a larger, incentive-laden facility in Buffalo.
The company plans to move into a 308,000 square-foot facility under construction near Tifft Street in south Buffalo. Its corporate headquarters and other distribution sites would remain on Sonwil Drive.
Town board members indicated they will support Sonwil's request but, as they have told other businesses that have left town, they aren't happy.
"We want to make it clear that we're not endorsing the procedure even if we support the move," said Councilmember Jeff Swiatek.
Jane Wiercioch, president of the Cheektowaga-Depew Taxpayers Association, called the incentives porate welfare," and predicted that Sonwil will one day return to the board seeking permission to move its remaining Cheektowaga facilities to Buffalo.
Wiercioch noted that Sonwil receives financial incentives from the Erie County Industrial Development Agency for its Sonwil Drive locations.
"As soon as those blow over, I'm sure you'll be back," Wiercioch said. "I'm opposed to any such move."
Peter Wilson, vice president for Sonwil said the move is necessary to accommodate a new client.
"The difference between Cheektowaga and Buffalo has very substantial numbers," Wilson said, declining to name the customer. "The reduced travel time for this customer is literally hundreds of thousands of dollars in savings."
Sonwil has two other facilities in Buffalo: two Fuhrman Boulevard terminals leased from the Niagara Frontier Transportation Authority each measuring 308,000 square feet and 95,000 square feet, respectively.
"Our plan is to leave those facilities for the new facility," Wilson said.
The Empire Zone desired by Sonwil is adjacent to an intermodal CSX Railroad yard. Wilson calls the planned move a "strategic decision."
Empire Zones were created by New York State to attract new businesses and retain others. In order to receive the financial benefits of Empire Zones, a relocating business must receive permission from its current municipality to make the move.
Wilson said Sonwil leases the 84,000 square-foot Dewberry site. The lease expires on July 31, which is when Sonwil hopes to vacate the facility.
Wilson also said that Sonwil plans to build another facility on property it purchased in Buffalo.
Although the headquarters and other distribution facilities would remain in Cheektowaga, Councilmember James Rogowski expressed skepticism that the remaining facilities won't relocate.
"It doesn't stomach well with me," Rogowski said. "You're building another warehouse on Tifft Street. You may have visions to move out of Cheektowaga."
Wilson said he understood Rogowski's concern but said relocating has "not even been a consideration" for Sonwil. The Dewberry site is "a small portion" of Sonwil's business.
The company owns two buildings on Sonwil Drive, one measuring 150,000 square feet and a second measuring 117,000 square feet.
Sonwil employs 180 people fulltime and another 85 part-time. Both employees from the Dewberry Lane location will move to the Empire Zone.
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