Beech-Nut plan approved

Groundbreaking will begin next week: officials

By KERRY McAVOY, The Leader-Herald
FLORIDA — Beech-Nut officials said groundbreaking at the company’s new site in the Florida Business Park will begin next week after the site plan was approved by the town Planning Board Thursday night.

Applause broke out as the Planning Board unanimously approved the project, which does require Beech-Nut to meet 14 conditions of approval along the way.

Wetlands permits from the U.S. Army Corps of Engineers still have not been approved, meaning Beech-Nut can’t work on the creation of wetlands to replace ones that will be disrupted by the construction of the facility. The company also won’t be allowed to do any work near the 1.19 acres of wetlands until the permits are approved.

The 14th condition was added during Thursday’s meeting after concerns were brought forth about the timeline for creating a barrier between the facility and the Mohawk Mills housing development. The board agreed to give Beech-Nut 45 days to construct a small hill that will be seeded. Beech-Nut also must put trees on the hill by fall and construct a fence on the hill by the end of the year.

The Planning Board also unanimously approved a land swap between Beech-Nut and the Target Distribution Center in the park, which was needed for Beech-Nut to build its new facility. That agreement was under the condition that gas and power easements must be set with National Grid in 30 days.

Beech-Nut will move approximately 350 jobs from its Canajoharie facility and 15 from its Fort Plain site. Thirty-five corporate workers will move from temporary offices in Latham.

The company plans to hire 135 new workers.

The company will receive about $104.5 million in state funding for the new facility, including $18 million for construction, machinery and equipment costs. Beech-Nut has said it will invest $124 million in the project.

The company would be eligible for an estimated $24 million in state Empire Zone benefits.

The Montgomery County Industrial Development Agency is prepared to provide up to $38.5 million in tax incentives for the move.

Beech-Nut also will receive a payment-in-lieu-of-taxes agreement with the IDA for 13 years.

The company will not have to pay property taxes on the site for the first 13 years.

Hero/Beech-Nut spokesman Earl Wells said after the meeting he was excited and happy the project was approved and Beech-Nut could begin construction as soon as possible.

“This is great news for the company, the state, the town, the people.” Wells said. “Everyone on the board and Beech-Nut have worked very hard to get here.”

Wells stressed the company will meet the conditions of approval.

Beech-Nut also appears to have eased the worries of union officials, who organized a rally at the May 5 Planning Board meeting calling on Beech-Nut to hire more union workers from New York state to work on the project.

The move came after Beech-Nut awarded a bid to North Carolina-based Buckner Steel, a non-union company.

Union leader Frank Natalie said during the meeting union representatives and Beech-Nut officials spoke last week and the unions are satisfied Beech-Nut will be hiring more local union labor.

“We would like to see this project move forward, and we support the temporary permits,” Natalie said.

Natalie said after the meeting Beech-Nut representatives had sat down with local union representative to discuss their needs and to learn the needs of the local workers.

“We met with Beech-Nut, and we assured them we have contractors who are capable of doing the work to build the facility,” Natalie said.

He said he knows meetings are under way with Buckner Steel to try and get local workers employed for the job. Natalie said more talks with the company likely will take place

Natalie said Buckner would have to abide by local union contracts if it employs local union workers.

Planning Board Chairman Hal Hermance said he had encouraged the two groups to get together and meet to discuss the ongoing union problems.

“I’m just glad the applicant and the union were able to get together and work things out,” Hermance said after the meeting. “I’m happy everything gelled together in the end so nicely.”

Hermance said he is expecting the Army Corps permits to go through without a problem.

Board member Leon Gray joked he would be able to go home and get some sleep on Thursday night.

A ground-breaking ceremony will be conducted Wednesday. Members of the board, the community and Beech-Nut workers and representatives are invited to celebrate, Wells said. Rifenburg Construction should begin excavation the next day.

Beech-Nut and lead contractors the Facility Group are aiming to have the site enclosed by this winter with food production beginning in fall 2009.