By Dave Parker
Cattaraugus County IDA approves tax breaks for Ellicottville’s Fitzpatrick & Weller.
At its March 25 meeting, the Cattaraugus County Industrial Development Agency (CCIDA) approved a tax break for Fitzpatrick & Weller, a long-standing, 4th-generation, family-owned business in Ellicottville, which is seeking to undertake a significant $1.6 million investment. Fitzpatrick & Weller, located at 12 Mill Street, has applied for sales tax exemptions totaling $80,000 to support this project, which involves installing advanced pollution control equipment on their wood-burning boilers to meet New York regulatory requirements.
Fitzpatrick & Weller, established in 1895 and headquartered in Ellicottville, is a major supplier in the hardwood lumber and wood components industry. The company is recognized for its high-quality products and skilled production, and is a significant local employer with 84 staff members. Fitzpatrick & Weller supplies a wide range of wood products, including strips, edge-glue panels, and CNC-machined parts, to various industries that use them in the production of furniture, kitchen cabinets, musical instruments, and other finished products. The company utilizes both locally sourced hardwoods, such as oak, maple, cherry, and walnut, as well as other varieties, including mahogany, European beech, and other exotic woods. As part of their operations, Fitzpatrick & Weller utilizes wood-fired boilers, and the approved project aims to reduce the environmental impact of these operations and comply with New York environmental regulations.
Greg Fitzpatrick, President of Fitzpatrick & Weller, presented the application to the CCIDA, seeking sales tax exemptions on approximately $800,000 worth of equipment purchases to achieve the pollution control enhancements. The company has also pursued grants from the US Forest Service and the Empire Development agency to offset the project’s costs. A key factor in this investment is the need to comply with increasingly stringent environmental regulations set by the New York State Department of Environmental Conservation (NYSDEC). These regulations lower the allowable particulate matter emissions from wood-fired boilers, necessitating the installation of advanced pollution control technology. Fitzpatrick & Weller has long employed filtration systems to limit emissions from their plants, but to meet these more demanding regulations, plans are underway to install two electrostatic precipitators, highly efficient filtration devices that remove fine particles, such as ash and dust, from the exhaust gases of combustion processes.
A further factor in this application is the competitive landscape of the lumber market. Fitzpatrick & Weller faces competition from similar businesses in Pennsylvania and Ohio, where environmental regulations regarding emissions from wood-burning boilers are less stringent and provide exemptions for existing businesses. This disparity in regulatory requirements puts Fitzpatrick & Weller and other New York-based lumber processors at a disadvantage, as these additional costs are not borne by their competitors outside of New York in an industry facing very thin operating margins. Additionally, the company’s position in the global market is an evolving concern. Fitzpatrick & Weller generates approximately 5% of its revenue from sales to foreign countries. While the company is navigating the dynamic nature of U.S. tariff decisions, Greg Fitzpatrick noted that there are both positive and negative aspects to dealing with the changing U.S. and foreign economic policies, and he is preparing the company to address this challenging and uncertain period.
The CCIDA’s decision to approve this tax break demonstrates its support for local businesses like Fitzpatrick & Weller, a vital local employer that has been a cornerstone of the Ellicottville community for over a century. The equipment purchase and installation are scheduled to begin in May 2025 and be completed in 2026.