EASTERN NEWS ZONE......

New York Gov. David Paterson announced that GEICO will open a new operations site in Amherst in Erie County, for the GEICO Insurance Agency.

The company, a subsidiary of GEICO, will sell homeowners, renters, boat and other types of insurance coverage. GEICO will invest $2.4 million in the expansion, creating an estimated 300 new jobs over three years and laying the foundation for future growth.

The key component in attracting GEICO Insurance Agency to Amherst was to certify the location and GEICO entity as a Regionally Significant Project (RSP) for an Empire Zone. With the support of the Town of Amherst, the Town of Tonawanda Empire Zone will serve as the local Empire Zone administrator and provide this designation. The collaboration and approval given by both towns was instrumental to getting GEICO Insurance Agency and the Amherst location RSP designation.

To support the company’s efforts, GEICO will receive an estimated value of $1.5 million in Empire Zone tax credits over the next five years from Empire State Development. Further, the company will receive sales tax exemption on equipment purchases from the Amherst Industrial Development Agency and an extension of low-cost power to 2013 from the New York Power Authority for the company’s Amherst facility. Additionally, the Erie and Niagara County Workforce Investment Boards will provide GEICO with workforce training assistance, as well as connect available workforce with the company.