St. Lawrence County Industrial Development Agency
Ernest J. LaBaff Industrial Building ~ 19 Commerce Lane, Suite 1 ~ Canton, New York 13617
Phone: (315) 379-9806 ~ Fax: (315) 386-2573
Patrick J. Kelly
Chief Executive Officer
PROJECT ACTIVITY REPORT
Project:
Project Address:
Maxam North America
3 Cemetery Road
Ogdensburg, New York 13669
Application Date:
August 14, 2014
Board Approval Date: August 28, 2014
Assistance Date:
August 28, 2014
Project Overview:
Maxam North America is a wholly-owned subsidiary of Maxam Corp S. L., established in Madrid, Spain. It manufactures
oxidizers used in the mining and construction markets throughout North America. Maxam was formerly known as UEE
(Union Espanola de Explosivos, SA) a company established over 140 years ago by Alfred Nobel. Maxam North America
was acquired 12 years ago, and services mining and construction markets throughout North America.
Maxam will be constructing a manufacturing facility in Ogdensburg, New York, which will be used to support its existing and
growing markets in Eastern Canada and the Northeastern United States. A facility located in Charleston, West Virginia,
supports all of the current production requirements, but is at a strategic disadvantage due to logistic challenges.
The project includes (i) the acquisition of approximately 11.5 acres of property, (ii) the construction of a rail spur leading onto
the property, a 4,800 sf main production building and 2 silos for storage of raw materials and finished product, and (iii)
acquisition and installation of several prefabricated tanks for holding materials to be used in the blending process.
Actions Taken:
On August 28, 2014 and in accordance with General Municipal Law, SLCIDA authorized a public hearing to be held on
September 11, 2014 at 11:00 AM, in the Conference Room of the Ogdensburg Bridge & Port Authority, One Bridge Plaza,
Ogdensburg, New York. A copy of the public hearing notice, along with a Cost-Benefit Analysis, follows this page.
Proposed Financial Assistance:
Sales and Use Tax Exemptions .................................................................................................................................$150,000
Real Property Tax Exemption.....................................................................................................................................$341,061
Approved Financial Assistance:
SLCIDA-Local Development Corporation & St. Lawrence River Valley Redevelopment Agency
2014 CDEIP Grant [Rail Spur] Award ................................................................................................................. $70,000
Economic Indicators:

Jobs Generated: Maxam is new to the community and will employ three people during the startup of operations. The
Company is expected to add three more employees during its second year of operation and six more before the end of
its third year, for a total of 12 new full-time jobs. This project is also expected to create 20 construction jobs.

Community Benefit:
 Maxam will be utilizing local rail, bridge and potentially port infrastructure to bring materials in and to export to
Canada.
 This project supports Global New York and Global North Country initiatives by attracting an international company
to Ogdensburg.

Tax Base: The construction of a new facility will add to the tax base. The post-project value is estimated to increase
the property assessment from $31,000 to $900,000.

Other Financing Leveraged:
Company Equity ..................................................................................................................................................$722,000
Bank Financing.................................................................................................................................................$1,700,000
***FOR AGENCY USE ONLY***
COST/BENEFIT ANALYSIS
(As required by Section 869-A3 of New York General Municipal Law)
Project Applicant: Maxam North America, Inc.
Estimated COST of Agency Assistance:
Estimated BENEFIT of Agency Assistance:
ESTIMATED EXEMPTIONS:
EMPLOYMENT COMPARISON:
Do not include construction jobs relating to the Project.
Double click on chart to enter data
Pre-Project
Employment
2. Mortgage Recording Tax Exemption
a. Projected Amount of Mortgage:
Mortgage Recording Tax Rate:
b. Estimated Exemption:
3. Real Property Tax Exemption
Property Location:
a. Investment in Real Property
(Total Project Cost):
b. Pre-project assessment:
c. Projected post-project assessment
d. Equalization Rate (for reference only)
e. Increase in Assessed Value of Property
f. Total Applicable Tax Rates per $1,000
g. Ten Year Total Taxes (e X f X 10)
h. PILOT Payments with Standard IDA Pilot
(g X .25)
i. Net Exemption Amount (g - h)
0.75%
$0
Ogdensburg City
$2,500,000
$31,000
$900,000
100.00%
$869,000
$52.33
$454,748
$113,687
$341,061
4. Interest Exemption (Bond Only )
a. Total Estimated Interest Expense
(assuming taxable interest)
b. Total Estimated Interest Expense
(assuming tax exempt interest rate)
c. Interest Exemption (a – b)
TOTAL ESTIMATED EXEMPTIONS
$0.00
$456,021
Comments: Estimates assume 60% sales and use tax
exemption eligibility on total construction costs and
$869,000 increase in assessment (based on discussions
with Ogdensburg Assessor). This is an estimate that will
change based on post project assessment review. PILOT
agreement will use current property assessment for a
base value of $31,000.
Full Time
Part Time
Seasonal
Total:
Current
Jobs
0
Post-Project
Employment
Created
Year 3
$1,437,000
8%
$114,960
Created
Year 2
a. Amount of Project Cost Subject to Tax:
Sales and Use Tax Rate:
b. Estimated Exemption:
Created
Year 1
Double click chart to enter data
1. Sales and Use Tax Exemption
3
3
6
3
3
6
0
Total
New
Jobs
12
0
0
12
PAYROLL COMPARISON:
Double click on chart to enter data
Total Payroll Total Payroll Total Payroll
Total Payroll
3rd Year
2nd Year
1st Year
Before
after Project after Project after Project
Project
Completion Completion Completion
$0
$195,000
$390,000
$780,000
ESTIMATED OTHER BENEFITS:
Sales Tax Revenue
If the project will result in the manufacturing or selling of a new
product, estimate the amount of annual sales taxes that will be
generated on retail sales of the new product. Otherwise, enter
“N/A”. $ N/A
If the Project will result in increased production or sales of an
existing product, estimate the amount of annual sales tax that will
be generated on the retail sales of the increased production.
Otherwise, enter “N/A”. $
Real Property Taxes
Estimate the amount of annual real property taxes that will
be payable on the Project (at the end of the PILOT
Agreement, if any). Otherwise, enter “N/A”. $47,100
What other benefits will the Project bring to the community
and region? Project supports Global New York and Global
North Country initiatives by attracting an international
company to Ogdensburg. Maxam will be utilizing local rail,
bridge and potentially port infrastructure to bring materials
in and to export to Canada. Maxam is ISO certified in 14001,
9000 and OSHAS 18000 standards, a requirement for all of its
global manufacturing facilities.
For assistance please contact the St. Lawrence County Industrial Development Agency at (315) 379-9806 / TDD Number: 711.
N.B.: No written comments were received.
LE
PY
O
C
LE
FI
O
PY
C