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A maker of machine-tool components will receive about $60,000 in tax breaks from the Lancaster Industrial Development Agency to support a $400,000 expansion that will add at least five jobs to the company’s payroll.
PRZ Technologies plans to construct a 3,800-square-foot addition to its 28,000-square-foot facility at 5490 Broadway and add 13 parking spaces on the site.
This is the second time PRZ, which serves clients across the country and around the globe, has received IDA tax breaks to support an expansion.
“The level of business is just very high. We need more equipment, more tool-and-die makers, more engineers, to meet our customers’ demands,” said Walter M. Przybyl Jr., PRZ’s president, in an interview after Tuesday’s IDA meeting. “We have picked up several new customers.”
The Lancaster IDA, like many of its suburban peers, has come under fire for approving tax breaks for retail and restaurant developments. Agency officials say the PRZ expansion is just the kind of industrial project that should receive IDA incentives, and they praised the under-the-radar company.
“I think it’s a little gem kind of a thing that nobody knew about,” said Lancaster Supervisor Dino J. Fudoli, who serves as chairman of the IDA, in an interview before Tuesday’s vote, adding, “It’s a big success story.”
Przybyl incorporated PRZ in 1995, and the company moved into its current location in January 2001, when Przybyl quit another job he held and began to focus on PRZ.
The Lancaster company designs and makes jigs, fixtures and other machine-tool components used in the production process in the automotive, aerospace and firearms industries.
PRZ’s clients are the suppliers to the major manufacturers, Przybyl said, and the company ships its components across the United States and to Mexico, France and China. PRZ employs highly skilled tool-and-die workers and engineers to perform specialized work.
“It’s a niche thing,” he said. “We make the tools that help our customers make the parts.”
The company received its first IDA tax break about five years ago, when it built a 3,000-square-foot addition.
PRZ wanted to stay at its current location and, as part of its most recent tax-break request, it committed to hiring five additional workers.
Przybyl said the company already has hired three workers over the past three months to gear up for this extra capacity, boosting total employment to 27, and it plans to hire three more workers in the coming months.
The cost of the expansion includes $350,000 for construction and $50,000 in new equipment.
An analysis conducted for the Lancaster IDA shows that five new employees will boost the company’s payroll by $215,000 and that the expanded operations will generate $1.3 million in additional economic impact.
IDA members voted, 6-0, to grant PRZ $36,171 in property tax exemptions, $19,687 in sales tax exemptions and $4,000 in mortgage tax exemptions.
One member of the audience spoke at the public hearing that preceded the IDA vote. Lancaster resident Carmen Hangauer, who closely monitors the operations of town government, praised the use of tax incentives to support a manufacturing company.
Also Tuesday:
• The IDA board approved a budget for 2013 with anticipated revenues of $133,500 and expenses of $127,100.
The IDA expects to bring in $125,000 in project fees – a figure that is largely an educated guess at this point – and its expenses are primarily made up of payments to administrative and professional staff, including consultant Paul R. Leone, who earns $18,000 per year.
• The board voted to extend until September its contract with the lobbying firm Masiello, Martucci, Calabrese & Associates, which receives $6,000 per year from the Lancaster IDA.
Just before the vote, Fudoli lauded Carl Calabrese’s work on behalf of the local IDAs after County Executive Mark Poloncarz and Assemblyman Sean Ryan, D-Buffalo, pushed legislation that would rein in the agencies.

email: swatson@buffnews.com