July 9, 2007: Reynolds Delivers $199,999 for Improvements to Bates Road in Shelby

Press Release

July 9, 2007: Reynolds Delivers $199,999 for Improvements to Bates Road in Shelby

Congressman Thomas M. Reynolds (R-Clarence) today was in the Town of Shelby to deliver $199,999 to help reconstruct Bates Road near the town's new ethanol plant, which is currently under construction. The funding, from the United States Department of Agriculture's (USDA) Rural Development program, will improve approximately 1,150 feet of the road to alleviate traffic congestion expected from the new plant and will benefit several existing nearby businesses.

"This funding will allow Shelby to make improvements to Bates Road that will make drives easier and safer for workers and residents," Reynolds said. "This grant continues the flow of investment dollars into Shelby as a result of the new ethanol plant."

"One of USDA Rural Development's primary missions is to improve economic conditions in rural areas and our Rural Business Enterprise Grant program is one of the tools we use to accomplish that goal," said Patrick H. Brennan, State Director for USDA Rural Development in New York. "This grant will help the Town of Shelby improve the road that serves the industrial park and the ethanol plant, eliminating current traffic concerns while paving the way for future growth."

Currently, construction is undergoing near Bates Road on the first modern, state-of-the-art dry mill ethanol plant in New York State. The plant, which is expected to directly create 50 new jobs, will produce a projected minimum of 55 million gallons of fuel-grade ethanol per year, using 20 million bushels of corn with about 6 million bushels purchased from local growers.

Reynolds has been involved from the early stages of the ethanol plant project working with the USDA to address potential federal regulatory hurdles that could have slowed the project down. In August 2006, Reynolds announced that the USDA approved a loan guarantee of $25 million, which was the final financial component needed to move forward with development. In October 2006, Reynolds announced another $1 million in investment for the plant.

In addition to the new ethanol plant, the road reconstruction funding will benefit several current businesses and hundreds of employees along Bates Road, including those in the Medina Industrial Park such as BMP America Inc., with 118 employees, and Trek Industries, with 99 employees. Brunner Inc., which employs 360 people, is also along the road. All employees access their business through Bates Road.

The grant was awarded through the Rural Business Enterprise Grant program (RBEG), part of USDA's Rural Development Program. The purpose of RBEG is to finance and facilitate the development of small and emerging private business enterprises in rural areas through grants to public bodies and nonprofits.

"This funding will help ease traffic and will allow for current businesses to grow and for new businesses to come," Reynolds said. "I'm pleased to help deliver this investment to Shelby."

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