Eastman Kodak Co. and Recycled Energy Development LLC on Thursday said they have closed on a deal to shift Kodak’s utility infrastructure at Eastman Business Park to RED.
The utility business today provides electricity, steam, chilled water, compressed air, industrial water, sewer services, nitrogen, natural gas and potable water to the park’s more than 40 owners and tenants. RED-Rochester plans to make significant investments over the next five years in energy efficiency projects and to convert the plant from coal to natural gas, officials said.
“RED-Rochester looks forward to supporting the park’s revitalization and to working with a great staff that has operated the facility for many years,” said Sean Chasten, CEO of the Illinois-based RED, in a statement.
An acquisition agreement was signed Dec. 21, and the parties have been working through 2013 to finalize customer contracts, secure various operating permits and coordinate with Kodak’s Chapter 11 restructuring process.
Empire State Development Corp., the state’s economic development agency, provided $7.1 million in state assistance, including a loan of up to $3.5 million and a grant of $3. 6 million, to facilitate the project and will be used for a portion of the cost of RED’s acquisition of all the Kodak utilities and some near term investments to upgrade the utility systems, the companies said.
“Kodak is delighted that RED-Rochester is investing in infrastructure, helping ensure the park is a desirable place to do business,” said Michael Alt, director of Eastman Business Park. “Kodak will continue to work closely with RED-Rochester to make EBP one of the most competitively priced and attractive industrial and technology parks in the nation for both our current tenants and for those who choose to make EBP their home in the future.”
(c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail firstname.lastname@example.org.