Hinsdale based Scott Rotary Seals Constructs New Facility in Olean
By Nicholas Pircio
WPIG 95.7
Scott Rotary Seals (manufacturer Of Rotary Timing Valves and Rotary Unions), located on Route 16 in Hinsdale, is proposing to construct a new 10,200 square foot manufacturing facility at 301 Franklin Street in Olean. The Cattaraugus County Industrial Development Agency has been assisting the company with its project for about two years. Agency members voted on Tuesday, March 8, to accept the application of Scott Rotary Seals to begin preliminary approval. The time and place for a public hearing on the project will be scheduled. The company, also known as DST Properties NY, LLC, is requesting tax abatements for real property tax, sales tax, and mortgage recording tax. “All of which is vital to small manufacturing companies here in New York State.” That’s according to IDA Executive Director Corey Wiktor. He told company General Manager Crystal Wiech, “We are more than happy to assist you on this (one million dollar) project.”
The new plant will be located in North Olean, not far from Napoleon Engineering and the former Henkel Loctite Company. Wiech explained that the Scott family sold the business founded by Grant Scott to Dynamic Sealing Technologies (DST), based in Minnesota, in 2005. Wiech said it’s been a good relationship. “For fifty some years, Mr. (Grant) Scott had always concentrated on custom design and making the unique and different stuff nobody else wanted to touch. Dynamic Sealing did a lot of off-the-shelf product. We’ve kind of merged the two product lines.” Scott Rotary Seals kept its name. They specialize in the design and manufacturing of rotating unions and rotary timing valves.
Wiech said one of the reasons for moving into Olean is the availably of high-speed internet connections in the city, which they do not have in Hinsdale. As for the new manufacturing plant, the front half facing Franklin Street will be office space, while the back half will be manufacturing. “We have engineers, sales, assembly tests, and a machine shop.” Wiech said with the new facility, the company is looking to get more productive and purchase new equipment. She notes that the company’s Minnesota operation “is really growing, and we’re hoping that we can follow that same trend.” Scott Rotary Seals currently employs seven people, with a job opening posted for an industrial salesperson.
Concerning their expansion, Wiech said the company thought about it a couple of years ago. “We bought the property, but with the economic downturn we kind of held back (because of uncertainty). But now, things have picked up, the economy seems to be growing again. We’ve got the property, so now it’s time to build.” Scott Rotary Seals is expecting to add “at least three to four employees over the next couple of years” and be up to about fifteen employees within five years. Wiech expects the company to break ground probably in the middle of April, “as soon as the weather breaks. We’re in the process of Brownfield cleanup,” which she said should take about six weeks. “Our drawings are all done. We just need to file for our building permit and be ready to roll.” An open house is possible by late fall.
In other business, the IDA members approved a policy to impose a penalty for companies that fail to meet employment levels. That’s when a developer states in a contract they promise to create a certain number of jobs, and receive extra tax abatements or considerations. Executive Director Corey Wiktor says, “It’s basically a way to retract what they failed to provide. Now they would have to pay full taxes. The policy protects the agency (IDA) and the impacted taxing jurisdictions. If a company pledges to produce forty jobs and they only produce ten, now we have a policy to say we’ll give you the abatements on ten, but not on the forty (promised jobs). It only happens when developers don’t follow through on their stated employment numbers. ”
IDA board members discussed a proposed Adaptive Reuse Policy. Wiktor notes, “It allows us to offer IDA inducements for buildings that have been without a tenant for three years, to try to get someone to occupy that space.” The policy would kick in when the building is sold. The idea is to enhance the tax base of a community by providing a “sweetener” which would not be a huge amount. The focus would be to fill “existing stock that’s been vacant for a period of time” to entice development. No vote was taken on the policy as the IDA is still in the draft process. But Wiktor noted the policy might be of assistance with the former Manufacturers Hanover Bank Building in downtown Olean, which has long been vacant. “Those are the types of projects we’re looking to assist.”