By David Robinson | News Business Reporter

November 13, 2014 - 5:46 PM, updated November 13, 2014 at 5:48 PM

The state agency overseeing the planned solar energy hub at the RiverBend complex in South Buffalo has wrapped up its purchase of the remaining 96 acres of property from the City of Buffalo.

The $2.8 million purchase adds to the 88 acres of land that the state already bought from Buffalo Urban Development Corp. in May for $2.5 million and provides additional land for potential businesses at the South Park Avenue complex, which now includes 184 acres.

The extra land gives the state more flexibility after SolarCity, the nation’s largest installer of residential solar energy systems, expanded its plans for a solar panel factory on the original RiverBend site to such an extent that it now will occupy all of the original site.

The state, through Fort Schuyler Management Corp., an arm of the State University of New York that is managing property purchases for the SUNY Polytechnic Institute, closed on the purchase Wednesday, said Peter K. Cutler, a spokesman for Empire State Development Corp.

The RiverBend project is the signature piece of Gov. Andrew M. Cuomo’s Buffalo Billion economic-development initiative. The state agreed in September to invest $750 million to build and equip what will be one of the world’s biggest solar panel factories for SolarCity as part of Cuomo’s push to establish Buffalo as a key player in the fast-growing solar energy field. In all, the project is expected to create 2,900 local jobs.

California-based SolarCity agreed to create 1,460 jobs at the million-square-foot factory, while pledging to bring in an additional 1,440 jobs from companies that work with the solar energy systems installer and would set up operations in the Buffalo Niagara region to supply the RiverBend factory and perform other support services there.

State officials hope the deal will create the critical mass for SolarCity to build its own supplier and contractor base in Buffalo Niagara and help build a solar energy hub that includes all of the expertise and resources that could be a magnet for other companies in the solar energy industry. Solar Frontier, a major Japanese solar panel manufacturer, signed an agreement in April to study the feasibility of setting up a factory in Buffalo, but no deal has been announced.

The state initially planned to invest $225 million at the RiverBend site to build and equip a 275,000-square-foot facility to house two California companies, LED lighting manufacturer Soraa and high-efficiency solar panel-maker Silevo. But when SolarCity acquired Silevo in a $350 million deal over the summer, the plans for the solar panel factory became five times bigger, with an annual capacity to make enough panels to generate 1 gigawatt of electricity.

The state’s deal with SolarCity also gives New York officials an exclusive four-month window to negotiate with the company on any future plans to increase its solar panel production.

State officials now are trying to find a new home for Soraa. Alain E. Kaloyeros, CEO of SUNY Polytechnic Institute said last week that state officials continue to discuss potential local sites for Soraa’s facility and that the company remains interested in operating in New York.

The land purchase calls for payment-in-lieu-of-taxes agreements, or PILOTs, for future project development on the newly acquired land if those developments would be exempt from property taxes. That provision would ensure a steady revenue stream for local municipalities.

The agreement also includes provisions requiring that any new projects comply with state requirements that at least 20 percent of business contractors be women- and minority-owned businesses and that minorities make up at least 25 percent and women comprise at  least 5 percent of the construction workforce.

The state also agreed to work with local schools to create worker training programs to increase opportunities for Buffalo residents, especially women and minorities.

email: drobinson@buffnews.com