JOHNSTOWN — The Common Council on Monday took steps toward receipt of over $13,000 in leftover assets from the dormant Johnstown Economic Development Corp., which is being dissolved.
The city of Johnstown has had a small economic development corporation known as the JEDC for many years.
But it was first announced in late 2013 that the agency was being dissolved and its remaining assets turned over to the city. The agency has had no meetings or activity for years, and city treasurer Michael Gifford has been its last board president. Dissolution has been stuck in legal proceedings for four years.
“This is the old Johnstown Economic Development Corp., which is right at the end of being dissolved,” Gifford told the council Monday night at City Hall.
Dissolution was favored because of the inactivity of the agency, and what the city has seen as unnecessary state regulations attached to such agencies.
The JEDC was incorporated on March 24, 1984 and one of its first directors was the late Donald F. Murphy, a former Johnstown mayor.
Gifford presented a resolution to the council, which he said allows the city to sign off on the dissolution through an agreement.
The resolution states that with the consent of the state Attorney General’s Office and approval of state Supreme Court, “the JEDC has been dissolved.”
The corporation assigned its assets to the city of Johnstown for administration, in accordance with the terms of a U.S. Department of Housing and Urban Development grant.
Action by the council Monday night authorized Gifford to execute a subordination agreement for the city, allowing the city to receive $13,439 in leftover assets. KeyBank National Association had requested the agreement involving the city and Skat Inc. of Johnstown.
Gifford said Skat wants to do a refinancing of a loan related to the dissolution.
The treasurer said previously that the city of Johnstown had been working with the Gloversville law firm of Wood & Seward to dissolve the JEDC. He said that once dissolution was accomplished, cash assets would be placed in a city “economic development” sequester fund.
Michael Anich covers Johnstown and Fulton County news. He can be reached at [email protected]