New York Power Authority board of trustees on May 21 approved more than $6 million of funding awards to three Western New York enterprises: Launch NY, Coolture and Diversified Manufacturing.
The awards represent the first grants under legislation signed into law last year by Gov. Andrew Cuomo for applying net earnings from unutilized power from the Niagara Hydroelectric Power Plant to spur capital investments and job creation. Last year’s Western New York Power Proceeds Act authorized NYPA to deposit the net earnings from the market sale of unused electricity from its expansion power and replacement power hydropower programs into an established Western New York Economic Development Fund. The fund has already accrued more than $23 million.
Launch NY is a Buffalo nonprofit venture development organization dedicated to accelerating growth of high-potential area startup companies. It will receive more than $5.4 million as seed capital to assist Western New York startups gain market traction in their commercializing of transformational technologies and ideas.
Previous funding to support Launch NY’s incubator efforts for startups has been obtained through the federal government and the Western New York Regional Economic Development Council. The organization intends to hold a competition for disbursement of the grant in Western New York for the best business plans by startups and small businesses looking to expand. It will receive portions of the grant as it identifies startup companies for financing.
The other two companies designated for the proceeds awards, Coolture and Diversified Manufacturing Inc., will receive a total of up to $800,000 to support approximately 150 jobs and capital expansion plans for their manufacturing operations.
Coolture, a manufacturer of Buffalo-based medical cooling apparel, is planning to invest $3.1 million to ramp up production capability and growth, leading to the creation of 32 new jobs.
Diversified Manufacturing, a fabrication, machining and assembly shop in Lockport, is planning a 45,000-square-foot addition to its Lockport plant that will facilitate its retention of 145 jobs.
Bertola, D. (2013 May 22). 3 WNY companies cash in on NYPA program. Business First. Retrieved from http://www.bizjournals.com/