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The Auburn Industrial Development Authority has scheduled a special meeting Friday afternoon to consider the application from Tessy, which has said it would need to hire 200 people. In its application, Tessy said most of those jobs would be temporary, while the company is doing hand assembly work. The permanent job creation number provided to AIDA is 50.

Tessy confirmed last week it has formed a partnership with an unnamed medical company to ramp up a production facility in Auburn within 15 weeks and begin making 10 million COVID-19 diagnostic tests per month.

Tessy would use its facility on Technology Park Boulevard, which it acquired from聽Daikin McQuay for $8 million in 2016 and has used for warehousing.

The company is seeking AIDA's approval to effectively extend a payment-in-lieu-of-taxes agreement that it inherited from the Daikin McQuay purchase and was scheduled to expire in 2022-23. It's also looking for an exemption on sales taxes for materials purchased in building out the manufacturing facility.

Tessy described the assistance requested from AIDA as "crucial" to allowing the project to go forward.

The current PILOT is allowing Tessy to pay school, county and city property taxes on an $8 million assessed value, compared with the $13 million value placed on the site by the city's assessor. The proposed extension would establish gradually smaller exemptions each year through 2030-31.

The lifetime property tax savings on that deal can't be known for sure because future tax rates will change, but an estimate for the 2021-22 tax year shows it would be worth roughly $164,000 in savings: $77,000 in school taxes, $52,000 in city taxes and $35,000 in county taxes.

The amount paid under the PILOT, though, would not be any lower than what Tessy is currently paying, and it will gradually increase. In the current fiscal year, Tessy paid $316,293 that was distributed to those entities.

The sales tax exemption is being estimated to have a value of $720,000, based on a projection of $9 million in costs subject to sales taxes.

The total cost of the project isn't clear from the company's application to AIDA. In one section of the application, it shows an $18 million cost estimate. In a project description, though, it says Tessy "will invest more than $100 million in the renovation and equipping of the facility in what can only be characterized as a high-risk project. A major medical company has agreed to finance a portion of the initial costs, with Tessy required to repay a portion of the financing through terms still under negotiation."

Tessy officials declined to answer questions about the AIDA application, saying it will "will no longer be sharing any information about this project with anyone outside of Tessy Plastics." It cited unspecified "false reporting" and non-disclosure agreements in connection with the project as the reason for this policy.

According to the application, Tessy is projecting a permanent annual payroll of $2,927,500 for 50 jobs, which would be an average of $58,550.

The 200 new jobs that Tessy referenced in statements about the project last week would be temporary: "Once the automation equipment is fully installed and operational, the stabilized, full-time employment at the Auburn facility will be 50-workers; but, in the initial hand assembly phase, there will be up to 200-workers on site," Tessy said in the application.

The company also warns that the fast pace of putting the project together made job creation estimates difficult: "The Company cannot guarantee that post-pandemic operations and employment at the facility will continue at the levels reflected in this Application. It is possible that post-pandemic the Company will need to make workforce reductions and possibly diminish or suspend operations."