The Chautauqua County Industrial Development Agency is modifying its tax agreement for the new owners of the former Welch building in Westfield.

Rich Dixon with the county IDA told board members that 2 Portage LLC had requested a change to its 15-year Payment In Lieu Of Taxes agreement, which was approved in December 2021.

“The developer was taking to his investors and with the people who were making him the loan and were hoping that they could get some more certainty as to what the tax payments would be after year 15,” he said.

Dixon said the IDA proposed to them a 20-year tax agreement. There would be no changes to the current 15-year PILOT plan. For years 16-20, it would be 100% tax, but the amount would be fixed.

“For the investors in this type of project and the lenders, certainty is the key,” he said. “So while we’re not really giving them a break in years 16-20, we are fixing it. … The investors are happy, the banks are going to be happy, and the developer is happy.”

A public hearing was held and no comments were made, either in person or in writing. Dixon said he spoke with the Westfield town supervisor, who expressed her support for the change.

The county IDA Board of Directors unanimously approved the change.

Regarding the property, 2 Portage LLC is looking to renovate the entire existing building and create a mix of affordable and market rate residential apartments and commercial tenant space. The project was originally expected to cost around $11.5 million.

The county IDA previously approved a $475,000 loan for the project.