Harris RF buys Xerox building to consolidate work force
Harris RF Communications, with manufacturing operations stretched across four Rochester locations, has been looking to consolidate them under one roof.
Xerox Corp., with more real estate than it needs, has been trying to sell several of its area properties.
The two companies, cornerstones of the Rochester economy, have struck a deal that helps both. By the summer of 2011, Harris RF will move 1,100 manufacturing workers from Rochester to a massive Henrietta office building it is picking up from Xerox.
Harris RF, which makes military and emergency response radios, is paying $19 million for Building 801 and the 86-acre site it sits on. The company then plans to spend close to $20 million renovating the 573,000-square-foot building into manufacturing space, said Dana Mehnert, president of the RF division of Harris Corp.
“Manufacturing our products among four facilities has been a real challenge,” said Charlie Roberts, vice president of manufacturing operations.
Mehnert said Harris RF had looked at a variety of sites, including some out of New York state. And government officials on Monday portrayed the relocation as a win for the Rochester-area economy.
“The real issue here is the fact there was significant pressure to move those jobs out of state, never mind outside of the city,” said R. Carlos Carballada, commissioner of neighborhood and business development for the city. “We’re really happy they’re staying here.”
Empire State Development Corp., the state’s economic development arm, is putting up $4 million toward the project while the town of Henrietta is providing some tax breaks.
The Xerox building, at 1350 Jefferson Road, houses 1,140 Xerox workers, primarily in engineering, product development and customer services. Most of those workers will be moved to Xerox’s Webster campus, while some will relocate to the Xerox Square skyscraper in downtown Rochester.
Xerox spokesman Bill McKee said the company plans to be out of the building by the end of September.
Mehnert said it was the size and condition of the building that attracted Harris RF. And personnel issues motivated the company to keep manufacturing in Monroe County, he said: “Our success has been directly related to the caliber of our work force right here.”
Harris RF’s four sites are on the city’s east side, in the Browncroft neighborhood. The company plans to keep its University Avenue site, which houses engineers, and its Humboldt Street site, which houses administrative functions. It intends to end its lease of a Carlson Road building and likely vacate its Culver Road building, though the company has not made final decisions.
Harris RF employs 2,300 in Rochester. While the move to Henrietta will have no short-term impact on employment, the site gives the company room to expand. “We’ve got significant elbow room there,” Mehnert said.
The Jefferson Road site also provides enough space to create a “supplier village,” with some major suppliers having personnel and equipment there.
The sale by Xerox comes as the printing and imaging company has been shedding excess space and consolidating its local operations. Xerox, which employs 6,900 locally, also has been marketing the 29-story Xerox Square building with hopes of leasing back the tower from a new owner. But there are no active talks with prospective buyers, McKee said.
The sale of the Henrietta property also ends what has been a costly legal battle between the town and Xerox over the assessment for tax purposes of the Jefferson Road property, town Supervisor Michael Yudelson said.
Under terms of the sale, Xerox will drop its appeal seeking a refund of some taxes and Harris RF has agreed to what it will pay the town in property taxes for the next 20 years, Yudelson said.
Carballada said the city has been in discussions with potential buyers or tenants of the space Harris RF plans to vacate, though he would not give any details.
“There’s a lot of interest, a lot of people who have inquired,” he said.
MDANEMAN@DemocratandChronicle.com
Area employers
Figures are as of January, were provided by company, agency or organization, and may include both full- and part-time employees.
1. University of Rochester/Strong Health: 19,595
2. Wegmans Food Markets: 13,912
3. Eastman Kodak: 7,400
4. Rochester General Health System: 7,210
5. Xerox: 6,900
6. Rochester School District: 6,440
7. Unity Health System: 5,200
8. Monroe County government: 4,923
9. Greece Central School District: 3,724
10. City of Rochester government: 3,691
11. Paychex: 3,300
12. Rochester Institute of Technology: 3,100
13. YMCA of Greater Rochester: 2,702
14. Harris RF Communications: 2,300
15. Hillside Family of Agencies: 2,200
