“You have a $4 million building that you’re essentially selling for $1 million,” Cherry said.
He also noted that once the transaction is completed, the deal calls for the county to receive no payments for three years, other than a $5,000 installment. Meanwhile, the county will have to pay its realtor $180,000 in commission, the treasurer said.
“They’re almost acting as if they don’t have a successful business somewhere else,” he added. “Why should we have to fund their expansion?”
Lawrence told the supervisors the complex requires significant repairs, including $400,000 for roof work.
Long House has received another incentive in the form of a 10-year payment-in-lieu-of-taxes, or PILOT, agreement — from the Schoharie County Industrial Development Agency. Instead of paying standard property taxes, the arrangement calls for the company to make a $62,000 payment for each of the first five years. In the sixth year, the payment would increase to $77,754 and gradually go to $152,372 in the tenth year.
The Guilford Mills plant has been largely vacant since 2001. In a county where jobs are scarce and where recovery from the 2011 flooding remains underway, officials have been hoping that new tenants at the site would become a catalyst for invigorating the local economy.