The Erie County Industrial Development Agency on Monday approved $2.7 million in bond financing to help Flexo Transparent expand its custom-printed poly and plastic bag-making operation in Buffalo.

The 56-year-old company is buying 10.75 acres of vacant land and a 41,000-square-foot warehouse at 1070, 1132 and 1146 Seneca St., adjacent to its current facility at 28 Wasson St. That will allow it to grow its bag production and warehouse operations nearby, instead of using off-site facilities and incurring extra costs.

Flexo, whose 98 employees make custom bags for clients like 3M OCell- O, expects to add seven jobs.

The loan was made through the Regional Development Corp., an affiliate of the ECIDA.

The IDA also backed a $726,250 tax break package for OMFS Properties LLC to develop a $2.3 million “state-of- the-art” oral and maxillofacial surgery facility in the City of Tonawanda. OMFS is a real estate management firm owned by Northtowns Oral and Maxillofacial Surgery PLLC, a health care and dental research and development entity that operates in Erie and Niagara counties.

Plans call for construction of a 3,200-square-foot research and development facility at 711 Young St., followed by a 3,200-square-foot addition to provide care for special-needs patients and children of low-income families who cannot have traditional maxillofacial surgery. The program will be modeled after one in Pittsburgh.

Projections are for the center to see about 800 patients a year, 25 percent of whom will be from outside the area. The center will create 10 new jobs and will operate in conjunction with the University at Buffalo’s School of Dental Medicine.

Benefits include $608,000 in property tax savings, $96,250 in sales tax savings and up to $22,000 in mortgage recording tax savings. The project was backed by Tonawanda Mayor Ronald J. Pilozzi.

The agency also approved $80,600 in sales and mortgage tax abatements for apartment developer Kissling Interests’ $1.86 million conversion of an old Huron Street hotel into an eight-unit apartment building, to be called West Huron Lofts. The benefits include $62,600 in sales tax savings and $18,000 in mortgage tax savings. It will get real estate tax breaks through the city, or through a payment-in- lieu-of-taxes deal through the ECIDA if that’s not available.

Kissling, through Kanandague Interests LLC, will turn the building at 201 Huron St., in the West Village area, into two-bedroom, two-bath units averaging 1,250 square feet in size. There’s also room for commercial tenants, IDA officials said.

The building, which dates to 1896, was named the 201 Apartments back in 1929 but became the Darrow Apartments in 1942, the Delmar Hotel in 1948 and then the Lake Hotel in 1986. It has been vacant for more than a decade. Buffalo Mayor Byron W. Brown, an ECIDA member, voiced his support of the new project, which would create 22 construction jobs and one permanent job.

Kissling, a New York City developer active in Buffalo, is also converting the National Casket Co. building at 430 Virginia St. into the luxury Allentown Lofts and the former Remington Rand warehouse in North Tonawanda into the mixed-use Remington Lofts.

The IDA also has been approved to receive a $100,000 state grant to rehabilitate the Hamburg Yard and county-owned rail line for the Erie County Fair Train. The Community Capital Assistance Program grant would be used to buy and install rail ties, switch ties and turnouts and to repair and replace a drainage culvert.

Finally, the Buffalo and Erie County Regional Development Corp., which shares the same board as the ECIDA, approved a $500,000 five-year term loan for Sweeney Steel Service Corp. in Hamburg to purchase equipment for a steel strapping production line. The agency loan will be matched by a $500,000 term loan from M&T Bank, as well as an Empire State Development Corp. grant of $150,000.

Officials said RDC closed 20 loans totaling $5.2 million last year, which they called one of the best years ever for the ECIDA’s affiliate agency. There are currently 90 active loans on the RDC’s books, and the backlog of pending projects started to pick up again last month after falling sharply last year.

Officials are now evaluating applicants for the 2010 lending round of RDC’s minority loan program, which had 89 initial applications and 32 final applications. Winning applicants will be announced in mid- March.