FONDA — The Montgomery County Legislature Tuesday voted to authorize a $125,000 Montgomery County Industrial Development Agency loan to the TES Corporation and New Process Cleaners to enable the dry cleaning company to purchase the former Hotaling Florist building in the city of Amsterdam.
Montgomery County Economic Development Director Ken Rose said Johnstown-based New Process cleaners, owned by Joel Bien-Aime, first received approval for a county IDA loan in 2016, but that was for a lesser amount, $100,000, aimed at a lease-to-purchase deal that needed to be restructured. Rose said the loan amount was increased to $125,000 so that Bien-Aime could purchase the building outright, with the county IDA holding the first-position on the mortgage.
The 3,400 square foot building is located at 27 Division St.
“Hotaling has been out of that building for a number of years now, for decades it was a very successful flower shop, so this building is located right along Route 30 in the heart of downtown Amsterdam. It’s been vacant and it’s in a highly visible location,” Rose said. “We’re excited about the project, to see the building being occupied and being returned to commercial use.”
The terms of the IDA loan will require Bien-Aime’s company’s to pay back the loan in 84 monthly installments, with an interest rate of 3.5 percent.
Another condition of the loan program is that New Process Cleaners will create four full-time equivalent jobs over a three-year-period.
Rose said the county IDA’s revolving loan fund exists for the purpose of helping to create and retain jobs in Montgomery County. He said businesses that apply to the fund are encouraged to be conservative in their job creation projections, because if they fail to create the jobs the IDA could hold them in default of the loan agreement.
“[The Amsterdam location] is going to be a drop-off point for New Process Cleaners. He’s going to have a small laundromat in there, and it will be a drop off point for laundry,” Rose said. “It’s an expansion for [Bien-Aime], in terms of creating the drop off point, but the actual laundry will still be done in Johnstown.”