An Elbridge-based plastics manufacturer has completed an $8 million purchase of the former Daikin Applied plant in Auburn.
Tessy Plastics closed the deal Wednesday to take ownership of the 31-acre property at 4900 Technology Park, said Ed Pietruniak, vice president of finance and administration with Tessy Plastics. Daikin Applied, formerly Daikin McQuay, closed this past February, around three years after announcing its intentions to relocate plant operations.
With the acquisition, Tessy Plastics hopes to move into the facility within the next few weeks and use it for warehousing, Pietruniak said Thursday.
The company will first work to clean up the site, which Pietruniak said is dirty and dusty with steel cutting remains from Daikin's previous use. Company representatives have previous cited a need for $2.8 million in additional investments for maintenance needs, such as a roof replacement and sprinkler system upgrades.
Over the next few years, Tessy Plastics will look to transition the Auburn warehouse into a manufacturing plant.
The sale was closed one week after the Auburn Industrial Development Authority approved tax exemption benefits for Tessy Plastics, including revisions to an existing payment-in-lieu-of-taxes agreement associated with the property.
The PILOT, which will expire in 2022, allows Tessy Plastics to make payments based on a set assessment of $8 million. AIDA also approved $151,600 in sales and use tax exemptions to facilitate Tessy's planned renovations.