(erielack) Hornell Depot closing : Alstom moving its offices

[DChristang_@_aol.com]

    Depot closing: Alstom moving its offices to be more  efficient, local 
leaders are surprised     By LAWRENCE HOVISH - STAFF WRITER            LYNN  
BRENNAN
Alstom announced Wednesday it plans to move its  offices out of the Depot on 
Loder Street in an attempt to be  more efficient.    
HORNELL - By May, Alstom's offices at the Depot on  Loder Street will be 
deactivated as the company tries to reorganize its  Maple City structure to meet 
project demands.

John Mousaw, Alstom  Transport's NAFTA communications manager, said the 
company is preparing  for its new fiscal year in April. As part of that process, it 
determined  selective hiring and co-locating customer directors, project 
controllers  and human resources with project teams will improve  efficiency.

“We're making necessary adjustments to ensure that we  meet the delivery 
commitments we've made to customers such as New York  City Transit and WAMATA for 
example,” Mousaw said. “Alstom continues to  grow in Hornell during this 
important period and will be employing  further.”

The decision surprised Hornell Mayor Shawn Hogan and Jim  Griffin, executive 
director of the Hornell Industrial Development  Agency.

“They told us they were considering it as late as a month  ago,” Griffin 
said, adding he'd been told it could be used a training  space. “They've talked 
about, but I'd think, being their landlord, they'd  at least notify us.”

“I don't know anything at this point,” Hogan  added. “Something was 
mentioned (Tuesday) at the chamber (of commerce)  meeting.”

Hogan could see why the company would want to connect  some of its offices at 
the place of manufacturing. Still, he said a lot of  federal, state and local 
money went into rejuvenating the Depot and making  it meet the company's 
needs.

“The thing is, they added almost $1  million in extra costs for the project 
because of demands they wanted for  hard wall offices and different things they 
wanted over there,” he said.  “If they're willing to honor the agreement and 
pay what they're supposed  to be paying, that's their decision. If they 
attempt to break the lease  then there are other problems.”

Fortunately, Hogan said when Alstom  moved into the Depot in late 2003, the 
company signed a 14-year  lease.

“They're in there,” Hogan said. “Financially we're  fine.”

Griffin said the IDA owns the Depot, but leases it to Alstom  for $1 a year. 
Alstom must pay $86,000 in taxes, as well as maintain and  heat the building. 
Empire Zone benefits, he added, rebate the taxes back  to Alstom.      
(http://adsys.townnews.com/creative/eveningtribune.com/news+middle/6917.gif?r=http://w
ww.elsenheimer.com/) 
When the Depot renovations  began Griffin said the IDA, city, state and 
federal governments put up  $2.6 million for the approximately $3 million project. 
Hogan estimated the  company has put more than $1 million into the Depot 
itself.

Griffin  also pointed out the IDA borrowed $650,000 to customize the offices 
for  Alstom. The mortgage, he added, is paid for with the $800,000 annual  
payment Alstom makes to the IDA for its master lease on all the Maple City  
facilities.

The IDA, he said, has also borrowed $1 million for the  company's new 
building by the car shop. Griffin said it's a little scary  to hear about the move, 
but he also understood the tightness Alstom needs  to fulfill its contracts.

“We've done a lot of things to help  them,” Griffin said, adding the IDA 
even forgave $150,000 on a Transit  Drive parking lot. “I'm a little 
disappointed. If the depot has been a  problem, I wish them well.”

According to Mousaw, the future of the  company's lease with the IDA has not 
been determined yet.

“The  point is we might need space again,” he said, “and if we need it, 
we'll  consider reopening it.”

In the meantime, Mousaw said the company  will investigate the possibility of 
having others make use of the  facility.

According to Mousaw, every year as the company closes out  one fiscal year it 
looks toward the next. The company has begun and will  continue moving 
departments out in phases through about May, Mousaw said.  Because it has sufficient 
space in other buildings, he said it became  clear the Depot would be 
under-utilized, and the decision was made to  deactivate the building.

Besides establishing a more efficient  staffing structure, Mousaw said the 
company also will save about $50,000  per year. Decisions, he added, are made 
with the long-term perspective in  mind. Alstom's focus is on producing quality 
products on time, he  said.

“It's not a bad sign,” Mousaw added. “We're going to do what  we need to do 
to make sure that  happens.”



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