GLOVERSVILLE — The Fulton County Center for Regional Growth Board of Directors on Friday authorized the filing of a Chapter 7 voluntary petition of bankruptcy on behalf of the Crossroads Incubator Corp., setting up the final steps in the multi-year process of dissolving the subsidiary real estate company.
The CRG and Fulton County government in October 2012 announced plans for the agency that included dissolving its subsidiary organizations. Initial efforts focused on dissolving the Fulton County Economic Development Corp. while the CRG worked to divest itself of properties held by its real estate subsidiary, the CIC.
On Friday the CRG Board of Directors approved a pair of resolutions authorizing the filing of a Chapter 7 voluntary petition of bankruptcy on behalf of the CIC following the regulatory process outlined by the state Authorities Budget Office, according to CRG President and CEO Ronald Peters.
“This is our path for shutting down CIC and conforming to the ABO guidelines and their regulations like we agreed to five years ago. We’re finally at that stage now,” Peters said. “It’s taken a long time to shut that down, not because of us, because of the regulatory process.”
Peters said the process was also held up in the state Office of the Attorney General for “a couple of years.”
Before the decision to dissolve the CIC, the company faced numerous debt related issues that included unpaid property taxes and the organization was involved in an investigation by the state attorney general related to former CIC Executive Vice President Peter Sciocchetti and former EDC Executive Vice President Jeff Bray who received a total of $3 million in bonuses between 2007 and 2009 that were not approved by their boards of directors.
Sciocchetti had arranged with Boston-based Stag partners to sell off some of the CIC’s properties. The bonus compensation for Bray and Sciocchetti was funded largely by profits of the Stag sale, EDC officials said. Both Bray and Sciocchetti were fired in 2010. The investigation by the attorney general concluded in 2012.
As the sole member of the CIC, the CRG Board of Directors authorized the execution and delivery of all necessary documents related to Chapter 7 bankruptcy proceedings in U.S. Bankruptcy Court in the Northern District of New York on behalf of the CIC.
The board additionally authorized Peters to appear at and to perform all necessary actions related to the bankruptcy proceedings with the law firm of Nolan Heller Kauffman, LLP appointed to represent the CIC.
The board resolution went on to authorize Peters to execute all documentation necessary to affect the dissolution of the CIC.
The second board approved resolution authorized the CIC to execute and deliver all necessary documents related to Chapter 7 bankruptcy proceedings, restating that the actions will be carried out by Peters and Nolan Heller Kauffman, LLP.
CRG Board of Directors Chairman Kent Kirch responded positively as he read the pair of procedural resolutions that will lead to the final dissolution of the CIC following the conclusion of court proceedings likely sometime next year.
“It will be the end of a chapter once that happens,” said Kirch.
“It’s all good,” agreed Peters.
