Two packages relating to incentives for a $2.7 million expansion of FedEx Ground Package System Inc.'s operations in Cheektowaga, prompted the debate.

FedEx Ground Package System, an affiliate of the shipping giant, is acquiring a five-acre parcel along Walden Avenue that will see the development of 25,000 square feet of distribution space. The deal is being put together through Monmouth Capital Corp.

The 15-year payment-in-lieu-of-taxes package will save the company about $560,000 in taxes and fees while the firm will be creating 16 part-time jobs and another full-time independent contractor's position.

Without the incentives, the distribution center could have potentially gone to Rochester, IDA officials said.

The pilot offering was questioned by Amherst Supervisor Satish Mohan, who felt Federal Express shouldn't be seeking public sector incentives.

"It's a growing company. Do we really need to help them?" Mohan asked.

Yes, according to IDA officials including some of its board of directors.

Following a 20-minute debate, the IDA's board of directors approved the incentive package by an 11-2 vote, with only Mohan and Erie County Executive Joel Giambra voting against the deal.

"As long as we continue to give, people will be there to take," Giambra said. "We have to be careful about what we are doing."

The project will serve as an upstate distribution hub for FedEx.

"They need to be in this region," said Andrew Rudnick, Buffalo Niagara Partnership president and CEO. "This is an opportunity cluster and that's the reason why we need to support this project."

Charles Webb, ECIDA president, said projects like FedEx or Geico are essential to the region because they encourage other companies to invest in the Buffalo Niagara area.

"Incentives encourage economic development here," Webb said.

http://www.bizjournals.com/buffalo/s...ml?jst=b_ln_hl

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$560,000 in taxes and fees for 16 jobs? ????????????????