Tops adding 140 higher end jobs

http://www.buffalonews.com/145/story/309710.html

Tops moving on headquarters plan
State grant supports company expansion
By Matt Glynn NEWS BUSINESS REPORTER
Updated: 03/28/08 6:37 AM

Bill Wippert/Buffalo News
Frank Curci, chief executive of Tops Markets, wants all Tops-related decisions made in Western New York.
Tops Markets will use a $1.2 million grant from Empire State Development Corp. to bolster its plan to keep its headquarters in Amherst and add up to 140 jobs.

The state grant, announced during Gov. David Paterson’s visit to Buffalo on Thursday, is on top of incentives approved for Tops by the Amherst Industrial Development Agency earlier this year.

Tops will use the state grant to assist with costs associated with information technology and installing and acquiring machinery and equipment at the 6363 Main St. offices.

Tops also said it will retain the 145 employees who currently work at the headquarters and invest more than $5.4 million to add up to 140 jobs in areas such as accounting, purchasing and information systems.

“We want all the people making the decisions about how to run this business, from the products we carry to the prices we charge, to be located right here in Western New York,” said Frank Curci, Tops’ chief executive officer.

The supermarket chain is returning those responsibilities to Amherst from Carlisle, Pa., as part of Tops’ recent ownership change. Morgan Stanley Private Equity acquired Tops from Royal Ahold last December for $310 million. Under Ahold, many of Tops’ administrative jobs were moved to Carlisle, home of Giant Food, another chain still owned by Ahold.

Ahold had turned Tops into a division of Giant of Carlisle, leaving Tops without a CEO from Giant’s. Under Morgan Stanley Private Equity, Tops again has its own CEO.

Curci said Thursday the 140 new jobs will be added gradually over the next six to 10 months. “Some of them will be [added] right away,” Curci said.

With its job growth, Tops will lease an additional 7,000 square feet of space at 6363 Main St., where it already leases 33,000 square feet from National Fuel.

In January, the Amherst IDA approved $1.575 million in sales tax savings for the chain.

mglynn@buffnews.com

Seems like a lot of $ assistance was given to Tops, but it is good to see this local headquarters coming back to WNY.

These 140 new, full time jobs represent a $5+ million annual payroll. Investing $1.2 million once to get $5+ million every year ... it's a no-brainer that sure beats investing $50 million to get an $8 million annual payroll (Bass Pro).

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Originally Posted by Linda_D

These 140 new, full time jobs represent a $5+ million annual payroll. Investing $1.2 million once to get $5+ million every year ... it's a no-brainer that sure beats investing $50 million to get an $8 million annual payroll (Bass Pro).

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And if they don't hire 140 new full time jobs then what?

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Originally Posted by WNYresident

And if they don't hire 140 new full time jobs then what?

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What if you plant seeds and they don't sprout?

These aren't jobs that are based on "well, if you do x, then we'll add these jobs". Many of these jobs already exist because they are needed to run the "headquarters". Some were transferred or hired on when Tops was sold by Ahold and those people will move here from PA. Others will be hired locally as the headquarters units take shape.

Tops could have easily located its headquarters in Rochester or Syracuse, but it chose Buffalo. Consider it seed money.

Quote:

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Originally Posted by Linda_D

What if you plant seeds and they don't sprout?

These aren't jobs that are based on "well, if you do x, then we'll add these jobs". Many of these jobs already exist because they are needed to run the "headquarters". Some were transferred or hired on when Tops was sold by Ahold and those people will move here from PA. Others will be hired locally as the headquarters units take shape.

Tops could have easily located its headquarters in Rochester or Syracuse, but it chose Buffalo. Consider it seed money.

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So then why give them a grant?

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What if you plant seeds and they don't sprout?

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It seems a lot of what the "empire zones" programs do don't sprout. If it was me I wouldn't plants seeds that don't sprout after awhile specially if it's being subsidized.

The problem isn't that there isn't enough tax breaks... The problem is the taxes are too high all around for everyone.

Frankly I'm not happy paying a higher percentage of my revenue to run my business while other businesses get breaks period.

I'm also not happy we have tax exempt businesses running in the city of buffalo. IE the casino.

If I can't run a casino then not one should. I know it's a simplistic way to look at it but I'm being discriminated against.

Racial discrimination. I'm white and I'm not allowed to open a casino/hotel business. Illegal is illegal or it's legal. Not legal for one but not someone else.

Quote:

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Originally Posted by Linda_D

These 140 new, full time jobs represent a $5+ million annual payroll. Investing $1.2 million once to get $5+ million every year ... it's a no-brainer that sure beats investing $50 million to get an $8 million annual payroll (Bass Pro).

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A couple of items..

The number is not $50Million but rather $25 I think was the last number.

Secondly, the money you speak of is going to the construction of a building that BP will not own and in fact be paying $300k a year on a lease. Added to this, the cost of the building is higher because of the design considerations.

Added to this, not only is Bass Pro going to bring in payroll they will also bring in sales tax and people down to the Inner Harbor. The value of this is unknown but it is still there. You conveniently ignore this number.

All in all, I feel the entire $250Million being spent on the Inner Harbor is a waste but out of that, the $25 or so going to Bass Pro is the best investment. Everything else has little potential on return.

But hey, why look at the big picture....