The former Truck-Lite plant in Falconer is pictured. P-J file photo by Eric Tichy

FALCONER — An Erie County developer has officially been cleared to purchase the former Truck-Lite building, although who the tenant will be is still not official.

During Tuesday’s Chautauqua County Industrial Development Agency meeting, board members approved providing financial assistance to the The Krog Group, LLC of Orchard Park to purchase 310 E. Elmwood Ave. in Falconer.

According to Carol Rasmussen with the county IDA, Peter Krog is going to purchase the building and then lease it out, possibly for manufacturing. “The lease isn’t in place right now,” she said.

Rasmussen said the property is being sold for $3.655 million. In Krog’s application, he requested assistance with mortgage and sales tax. There will also be a 15-year Payment In Lieu Of Taxes agreement. The PILOT will save him $513,993.

The Krog Group was also awarded a $900,000 Al Tech loan.

Mark Geise, county IDA director and chief executive officer, said he met with both the mayor of Falconer and the Ellicott town supervisor and both elected officials voiced support for the sale.

Geise thanked his staff for helping make this transaction a reality. “One of the goals that we’ve made year after year is getting these old buildings back into productive use. They’re always a challenge. I’m really hopeful that there will be a good outcome for this,” he said.

He said Krog plans on doing improvements to the facility, including the parking lot and roof. The Krog Group does construction and real estate development.

The German company ND PressTec has been interested in the facility. Its name is in the application for financial assistance by The Krog Group. ND PressTec, which is under ownership of the NAMMO Group, is a leading partner for ammunition manufacturing for small and medium calibers.

One IDA board member asked if this German company was committed to the plant.

“That’s not for sure,” Rasmussen said.

Geise agreed. “We don’t want to say too much about that because we don’t know what’s going to happen with that,” he said.

According to county IDA attorney Milan Tyler, because there’s no official lessee, the sale is considered as a spec building. “There’s been lots of rumors and we understand that Peter Krog is close to doing a deal for a particular manufacturer, but the approval is not contingent on that. He’s going to fix the building up and lease it to someone. It may be someone we’ve heard about, it may be someone else later on,” he said.

County IDA board member Dan Heitzenrater expressed support for the resolution. “Truck-Lite and that facility is really critical to that neighborhood, the village and the town. With Peter Krog coming in, he knows what he’s doing. It’s a big step in the right direction to getting some activity back there,” he said.

The county IDA Board of Directors unanimously approved the request.