The Daily Star, Oneonta, NY - otsego county news, delaware county news, oneonta news, oneonta sports

Local News

July 20, 2013

Brewery deal hits another snag

(Continued)

Mayor Galasso said the county could end up facing hefty repair bills for Guilford Mills because the Cobleskill code enforcement office will be aggressive in scouring the property for violations that make the building unsafe. He also blasted Cherry for making statements he branded as “anti-business,” suggesting they will stifle economic development.

“Whenever a business expands, it requires capital and capital is in short supply,” Galasso said. “And when roadblocks like this — which are small minded at best — get in the way of a private sector business, they have to go find an opportunity that doesn’t have those roadblocks. Inevitably that is going to mean some place other than Schoharie County.”

The mayor added: “Here we go again — with no jobs, no opportunity, no tax base, diminishing student population. It’s a well deserved reputation of anti-business. In a 1,500 to 1,000 vote, they proved it again. This is a heck of a hurdle to overcome (for the would-be investors). They (the town supervisors) just gave the taxpayers a $2 million bill (for needed repairs at Guilford Mills.)”

In imploring the board to back a second mortgage, Galasso said if the beer operation becomes successful, the county, after 10 years, would have what he called “a $4.3 million positive position.” He also stressed no cash from the county would be funneled to Long House.

But Middleburgh Supervisor James Buzon said every constituent he has heard from voiced opposition to the second mortgage. Reflecting the division in the county over the project, the Broome supervisor, Batz, said residents who contacted her before the meeting were unanimously for the arrangement because of its potential to stimulate the local economy.

The Guilford Mills property has been valued at nearly $4 million. The pending sale agreement calls for Long House to purchase it for $2.5 million, though a significant amount — up to $1.5 million — would be returned to the company based on the number of workers it hires. The deal calls for the company to get $15,000 for each job it creates after the first 10, with the cap for the total it could receive set at $1.5 million.

Cherry has expressed reservations about the transaction, noting the county would 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, according to Cherry.

*Editor's note: This story was changed at 1:45 p.m. July 22 to correct a misspelled word. 

Text Only
Local News

Additional Content
Join the Debate
Helium
Additional Resources
CNHI News Service
Poll

Is Israel justified to conduct its military campaign against the Hamas in Gaza?

Yes
No
Undecided/no opinion
     View Results