By MORGAN FRISCH

Recorder News Staff

TOWN OF FLORIDA — Although Montgomery County and town of Florida officials have given local approvals to Dollar General for a northeastern distribution center, the company has officially given its own stamp of approval.

Dollar General formally announced Wednesday its plan to build its 16th distribution center in the Florida Business Park Extension on Route 5S. At full capacity, it is expected to create 430 new jobs. There will also be up to 200 additional temporary construction jobs needed to build the project.

Dollar General plans to begin construction of the 750,000 square-foot distribution center this spring.

Todd Vasos, Dollar General’s CEO, said in a released statement that Dollar General is excited to add another distribution center to support its growing store network in New York and throughout the northeast.

“It’s very exciting to move forward on a project that will create more than 400 jobs in Montgomery County,” Vasos said. “I am grateful for our continued partnership and support on this project from New York Gov. Andrew Cuomo, New York’s Empire State Development and local leadership in Montgomery County.”

Montgomery County Business Development Center CEO Kenneth Rose said there will be a pre-construction meeting with Dollar General next week.

“I think we first had contact with Dollar General in the spring of 2015,” he said. “These types of projects take a long time, but it’s an extremely big project for Montgomery County and with 400 and some employees, that’s a real boost to the area economy. Let alone, the couple hundred construction jobs over the course of the next two years will be really good for the county and local businesses.”

Dollar General proposed a $91 million facility. The 430 jobs are expected in the first five years of operation and the company expects to invest more than $85 million in the project.

Rose said construction start-up will depend on how the rest of the winter goes. He said as soon as they can get the site mobilized, construction will begin.

He said the facility is anticipated to open sometime in the summer or fall of 2018.

In November, the IDA approved the conveyance of about 102 acres of property in the Town of Florida Business Park Extension to the Dollar General Corporation. The resolution authorized the option agreement with Dollar General for 77 acres owned by the IDA and authorizes the sale of a combined parcel for the full 102 acres.

McDonald Engineering will complete roadwork on Route 5S to allow for better traffic flow with trucks entering the site. The road will be widened a total of 12 feet, six feet on either side of the road. There will be a left-turn lane at the light and space for trucks to accelerate without disrupting traffic. There will also be a traffic light at the eastern entrance of the Dollar General facility that will blink yellow until the adjacent property, also owned by the IDA, is developed.

In October, the IDA authorized a 15-year payment in lieu of taxes (PILOT) agreement, which deviates from the IDA’s usual PILOT format.

In the proposed PILOT agreement, Dollar General will pay only existing taxes on the land, $4,430.05, for the first two years. That includes county and town taxes, and from the Fonda-Fultonville Central School District that are not abateable.

The property would be taxed at 25 percent of total assessed value for years three through five, and 50 percent for years six through 10. For the last five years, taxes would be at 75 percent and reach 100 percent in the years following. Total savings would be about $15.6 million.

However, the PILOT received will be split between the county, Fonda-Fultonville Central School District and the town of Florida, which does not have its own tax. The school district will receive 56 percent, and 40 percent will go to the county, which is down from the 44 percent it usually receives. The remaining 4 percent will go to the town.

Town of Florida Supervisor Eric Mead said it’s been an ongoing process between the IDA, county and town working together.

“I’m glad to see it finally come to fruition, and I’m looking forward to seeing construction begin,” he said.

Mead said the Dollar General facility will provide job growth and will help the tax base.

“I’m looking at it as a whole,” he said. “Not just the benefits to the town, but the county as well.”

County Executive Matthew Ossenfort said in some ways this is a relief because of the amount of work that has gone into this over the past year or so.

“It’s knowing all the permits and approvals are complete and things are moving forward,” he said. “It’s great news for the county and we are certainly very thankful to Dollar General for their commitment to this area and we look forward to being a partner with them for many years to come.”