Canajoharie to sue IDA

Town supervisor opposes move

BY KERRY McAVOY, The Leader-Herald

CANAJOHARIE - The village will take legal action against the Montgomery County Industrial Development Agency over the Beech-Nut Nutrition Corp.'s plan to consolidate its operations in the town of Florida.

Canajoharie Town Supervisor Bob McMahon told the Town Board on Thursday that the village decided Thursday to hire an attorney to conduct an Article 78 action against the Montgomery County Industrial Development Agency.

Village officials assert it was improper for the IDA to work with Beech-Nut on the company's move to the Florida Business Park. The move is seen as a boon for Florida and the county as a whole but potentially devastating for Canajoharie, which has long depended on its local Beech-Nut factory for jobs and tax revenue.

"A lot of effort has been put in by both the county and the government to keep Beech-Nut not only in New York state, but within Montgomery County," McMahon said Thursday.

Earlier in the week, McMahon was one of several people who urged the Village Board not to take legal action in the Beech-Nut matter. Others applauded the proposed lawsuit.

McMahon said he objects to the village not putting a cap on the amount of money that can be used to pay for attorneys. The Village Board agreed to pay the attorney up to $300 per hour for work on the Article 78 action.

"They have basically written a blank check," McMahon said. "They should say they cannot exceed $50,000 or $100,000."

McMahon said village taxpayers will end up paying for lawyers on both sides of the legal fight, because they also pay county taxes.

McMahon said Board of Supervisors attorney Doug Landon and IDA attorney Paul Wollman and Joe Scott all will being looking into the matter.

McMahon said the Village Board conducted a special meeting at about 4 p.m. Thursday. After a lengthy executive session, the board announced it decided to continue hire an attorney for the case.

McMahon said a court battle could hurt the community's chances of attracting a new occupant for the factory after Beech-Nut leaves the village.

Town Attorney Charles Clark said the battle will likely be a hard one for the village to win.

He said in order to be successful, the village needs to show dereliction of duty on the part of the IDA or that it overstepped the limits of its authority.

"It's up to the village to show that the IDA was in the wrong," Clark said. "The question is whether a public authority violated its duties."

Village and town residents themselves have mixed feelings about the village officials decision.

Ames resident Joe Carney said he doesn't like the idea of having the village sue the county.

"It gives the village a reputation and could alienate business," Carney said.

Village resident Litisha Folts said the community should try to get compensation because it will fall into debt after Beech-Nut leaves.

"Without Beech-Nut, we have nothing here," Folts said.

Rick Corlett said the legal action would be too little too late, but he can understand why officials want to pursue it.

"Its a big blow to the village now that the company is leaving," Corlett said.

McMahon wrote a letter to village Mayor Leigh Fuller stating the county will be looking into the matter at its next meeting.

"The village's threat to destroy the hard work that has been an enormous effort for many people and an equally enormous expense for the entire county can not be accepted without an appropriate counteraction," McMahon's letter states.

McMahon's letter goes on to say he has asked Board of Supervisors Chairman Vito Greco for an executive session at a committee meeting Tuesday to evaluate the county's options.

Village officials could not be reached for comment.

Kerry McAvoy covers Montgomery County. She can be reached at montco@leaderherald.com.