Legislature authorizes $2 million for Remington Arms

Herkimer, N.Y. -

In an attempt to show county commitment to keeping the Remington Arms plant in the village of Ilion, the Legislature on Wednesday authorized spending up to $2 million for future equipment purchases by the firearms manufacturer.
The budgetary impact of the amount serves as sufficient proof of legislator loyalty.
The size of the allocation totals roughly 25 percent of the county’s contingency fund, according to County Administrator James Wallace.
Several legislators took turns emphasizing how important it is to provide incentives for the company to maintain its facility in the county.
Herkimer County Industrial Development Agency Director Mark Feane estimated the annual economic impact at $105 million. It is hard to find another company in the entire Mohawk Valley that has that “magnitude” of impact, he said.
There are also between 12 and 15 local companies acting as “feeder groups” by providing services to Remington which would be affected if the company decided to leave, Feane added.
Al Russo, director of marketing for Remington, said in a phone interview the $2 million from the county resurfaced as part of original grant applications related to a $14 million capital project.
Aimed mainly at providing supplies and parts for the federal government and military, the project resulted in Remington hiring 100 new employees in the past year, Russo said. None of the positions are deemed temporary employment and all have been filled, Russo added.
Legislators and county officials during the meeting said they hoped the county’s $2 million would facilitate additional jobs.
Russo said there is a “possibility” the county’s “grant” could generate more jobs in the future.
The 100 recent hires, however, were not all products of investment and growth alone.
Another factor was the recent closing and consolidation of a Remington plant in Gardner, Mass., Russo said.
The plant in Ilion has already acquired or invested between $12 million and $13 million into its capital project, according to Russo.
More than $3 million of this total derived from previous grants.
An Empire State Development grant contributed $1.5 million to assist with relocation and consolidation of the Gardner plant, as stated in releases from Governor David Paterson.
The New York State Senate also provided a $1.5 million grant for capital costs.    
Herkimer County also previously secured $734,000 in federal funds for the capital project through the state-administered Small Cities program grant, according to Feane.
Specifics on how Remington receives the recently approved county funds are yet to be determined.
Feane said the approach is likely to consist of county reimbursement for purchases after the company submits some form of receipt.
Legislators Bruce Weakley and John Brezinski were absent and Legislator John Piseck abstained from the vote.