Massena board hears support for North Country Colocation Services

Mar. 22—MASSENA — There was plenty of support for the North Country Colocation Services' operation and proposed $100 million expansion during a discussion on proposed cryptocurrency mining regulations at Wednesday's Massena Town Board meeting.

NCCS is a high performance computing data center located in Massena and provides colocation services to third parties using power from a nearby hydroelectric dam and other renewable sources. It currently employs 85 individuals at the former Alcoa East site.

"Obviously, you know better than I being from here, that was a dormant site with virtually no prospects, and we've turned it into an incredible business honestly. We started with about five contract workers at that site. Now, we have 85 full-time employees. These employees are receiving competitive pay and generous benefits,' CEO David Fogel said.

He said they had one main concern with the proposed regulation, which is still being formulated. He said the regulation reads that, as a cryptocurrency mining operation, extra requirements would be imposed on them if they expanded. But, they would not apply to other non-cryptocurrency operations if that company expanded.

He asked that a portion of the language in the proposed regulation be modified so it would not impact the company's expansion plans. Without the expansion, he said, they would not be competitive, which could lead to job losses.

Among the speakers were some employees who said they appreciate what the company has done for them since their hiring. Fogel said some of those 30-plus employees at Wednesday's meeting had been with the company since inception.

"All of them obviously depend on their jobs and our site and our business for their livelihood," he said.

The employees who spoke echoed that sentiment. Among them was Joe Gilbert.

"I'd just like to speak on behalf of everybody here who came out," he said. "We all have families. This is our income. David has come on board and done a wonderful job providing for the employees, providing for the company. It's a great place to work for."

Andy Blaine, the general manager of the NCCS facility also shared his views. He said he was brought on board just under a year ago.

"I wasn't asked to improve profits or to make the facility more profitable, to make more money. I was asked to make those more desirable jobs for people. I was asked to improve conditions. I've never been given that kind of directive and I've been managing industrial plants for about 20 years. I was happy to get that and I've received nothing but support from upper management in the company for changes that drastically improve things for the employees," he said.

He said he has been "shocked by the lengths that they will go to do good things for the employees and the concern that they show for them."

"And I think that really means something and I think it would be a real loss for Massena to lose an employer like that," Blaine said.

Other employees spoke of the company's desire to hire them when the were seeking employment,

"I grew up in Massena and went to high school here. I left Massena after I graduated high school to move to Florida to search for a better job. Unfortunately, I could not find it and I found myself back here kind of at square one and decided to start working for NCCS. Over the last five years they have changed my life. They've given me opportunity over opportunity, provided me with any schooling or any type of help that I needed to get where I want to get into life. So, yes, I'm very passionate about this place, and I think that there's a couple of people in here that would agree," Skyler Cameron said.

Another employee said NCCS "goes above and beyond with the benefits they offer, the flexibility in your schedule for your children."

"I've never worked for a company like that. The things they do for not just the employees, but their families," he said.

Massena Fire Chief Patrick M. O'Brien threw his support behind NCCS.

"With the fire department side of it, we've dealt with every crypto business up here and we have not had a good experience with any of them with the exception of these guys. They've been fantastic. They've been proactive. Any time we've reached out to them for support, they've supported us 100%. So, the fire department appreciates everything you've done for us and for the community and the fire department is behind you 100%," he said.

Resident James F. Hidy said that NCCS's concerns should be addressed in the final version of the regulation. He said, unlike some other cryptocurrency operations, the company's remote location meant there was no disturbance to anyone.

"These folks are in the middle of nowhere," Hidy said. "You've got 30 employees plus that I just counted here. We're in a county where the unemployment rate is staggering. You need employment in this community. You have people that are buying and selling in this community, so it doesn't make any sense to scare away any business, and we've done that in the past. We've scared away business."

That comment drew applause from the audience. He drew more applause when he said,"If this guy needs a few verbiage changed, if you guys don't approve and keep this place going, shame on you guys because they're paying town taxes. I would work diligently to make sure they're staying in this community."