JOHNSTOWN — The Fulton County Industrial Development Agency on Tuesday gave final approval to Gloversville-based Century Linen & Uniform, which seeks $724,800 in sales tax exemption benefits.
IDA Executive Director James Mraz said Tuesday the resolution approved for Century Linen’s expansion project to the Johnstown Industrial Park “assures it moves forward.”
Officials say the proposed project is needed by Century Linen to upgrade and modernize its operation, remain competitive, and support recent and future growth of its business.
The firm seeks IDA benefits for the purpose of constructing and equipping the project facility.
Mraz told the IDA board that a public hearing on Century Linen’s request for sales tax benefits was conducted Oct. 31 at the Fort Johnstown Annex. He said two persons spoke at the hearing, both spoke in favor of the project.
Century Linen & Uniform, employing 300 full-time workers, provides healthcare linen services, work uniform programs, entrance mats, and other linen services to businesses throughout New York state. It has two Fulton County locations — 335 N. Main St. in Gloversville, a plant that serves exclusively healthcare; and 542 N. Perry St. in Johnstown, a plant that the IDA said serves restaurants, hotels, industrial, and retail medical sectors.
The company also operates three service centers on Railroad Avenue in Albany; in Canastota, Madison County; and in Potsdam, St. Lawrence County.
Century Linen & Uniform wants to expand to 123 Union Ave. in the Johnstown Industrial Park. The firm hopes to eventually purchase the existing building, relocating its Gloversville operation there. The building contains 60,000 square feet and is currently owned by STAG of Boston, Mass. Century Linen may invest about $12 million in the project through renovating the building and purchasing and installing new machinery and equipment.
The company doesn’t expect any layoffs of its 225 Fulton County employees.
STAG will lease the building to Century Linen for 10 years. STAG will continue to own the building for approximately three years due to existing debt it has on the building. Once STAG pays off the existing debt, Century Linen will have the option to purchase it.
The IDA would eventually enter into a lease-leaseback structure with STAG/Century Linen.
Michael Anich covers Johnstown and Fulton County news. He can be reached at [email protected]