New York State Capital Region Seeks Economic Development Funds for Paper Mills

 

According to a report this past week by the Times Union, Albany, N.Y., USA, in the latest statewide sweepstakes for $220 million in government funds, the ‘Capital’ region of the state, which surrounds Albany, has produced a wish list for 29 projects totaling $35 million of the total funds. Two of the largest projects on this list are for the economic development and modernization of local paper and paperboard plants.

 

A report filed late this past Friday by Capital Region Economic Development Council is asking specifically for the state to commit a "major portion" of its federally allocated pool of low-interest, tax-exempt bonding for the recently announced Castleton Paperboard mill project that has been planned for a location in Rensselaer County. The estimated cost of this project currently stands at $300 million according to the newspaper. The former Fort Orange Paper Mill was purchased by Castleton Paperboard in early 2014 with plans to convert operations into a facility that can produce paper products from recycled materials. The original price for the project stated by Castleton was $250 million.

The second highest total listed in the article was a request for $3 million to aid the Finch Paper mill in Glens Falls. According to this article, the cost of this entire project still stands at $20 million, the groups’ original estimate. In December 2014 it was reported that the company had already received $1 million from the state, but had already been seeking the same $3.06 million the group has sought since September of this past year.

The Capital Region is now competing in the fourth round of development funding controlled by Gov. Cuomo’s administration. The ongoing process will work to select winning projects from among the ten New York state regional councils. The council hopes to make final judgments in these next few months and begin rewarding incentives by early 2016.