Canajoharie lawsuit moves forward
Most at meeting not in favor of village’s decisionBy KERRY McAVOY , The Leader-Herald
Article Photos
CANAJOHARIE - The village is moving ahead with plans to file a lawsuit against the Montgomery County Industrial Development Agency despite objections from several village residents.
More than 30 people attended a special meeting Monday night, and many who spoke objected to the village's hiring of an attorney to try to get the village written promises of monetary help.
Village officials said Monday they have hired attorney Lewis B. Oliver of the Albany firm of Oliver & Oliver to file the lawsuit. The trustees were unsure when the lawsuit would be filed or if the village would seek an injunction to stop the building of the new Hero/Beech-Nut facility in the town of Florida.
"The pending legal action is unfortunate and it's wrong," said Mohawk Valley Heritage Corridor Commission Executive Director Fred Miller.
Miller said filing this lawsuit could hurt the village's reputation and could undo years of work many have done to make the village a desirable place to live, work and visit.
"Your actions risk losing your reputation as a can-do community and creates a new one as an obstructionist, litigious municipality," Miller said.
Village resident Amy Dievendorf said she felt like the village was hiding behind executive sessions for pending litigation.
"Filing a suit is easy. You turn all the work over to an attorney and avoid talking to the public," Dievendorf said.
Village resident Bob Buck said he would rather keep Beech-Nut in the county than seek legal action and see them possibly move to another state.
"I would rather take the chance and continue with the process of building the plant
in Florida, then [proceed with] a lawsuit when my questions aren't being answered," Buck said.
Hero/Beech-Nut Financial Manager Gabriel Robinson said the company will remain in the village until 2010. He said the company is committed to finding an appropriate company to purchase the building within the next two years.
"There is plenty of time to find a user with the right impact," Robinson said.
Village resident Alice Smith-Duncan was one of only two people who said they support the village's decision to pursue the lawsuit.
"My feeling is what they have discovered is a legitimate legal case," Smith-Duncan said.
Randall Houge was the other supporter, saying the state and IDA were wrong in leaving the village out of Beech-Nut's environmental impact statement.
The village officials did field a number of questions Monday from concerned citizens.
Village resident Melanie Shibley asked what the village would get if it won.
Trustee Garth MacFarland said if the village won the case, the county would have to reimburse the village what it will be losing. MacFarland said the village wouldn't be made whole, but would get some relief if it won.
Deputy Mayor Jeffrey Baker said the village has seen nothing in writing to say it will receive help when Beech-Nut departs. Baker said the village was not involved in any step of the decision-making process.
Baker said the village will be left with a massive debt of about $5.6 million when the company leaves in 2010. Baker said the village will lose tax revenue that will have to be made up elsewhere.
Mayor Leigh Fuller said if the village does not receive some help, it would have to take drastic measures. He said the village taxpayers are looking at a $7 to $8 per $1,000 increase in their tax rates, and the village may lay off as much as 50 percent of its workforce in an effort to keep the village from falling too far into debt.
MacFarland said the trash collection in the village would be hampered as the village would only have enough money to support a skeleton crew.
"Down the road, if nothing happens, you people will say 'why didn't you do something.' We're trying to do something," Fuller said. "Every one of us cares about Canajoharie."
Trustee Tom Grainer said the village needs to move fast because the time it has to take action is quickly running out.
"We going to lose our legal rights soon," Grainer said.
MacFarland said the state had an obligation to take care of Canajoharie when Beech-Nut decided to leave.
"If we do nothing, it's a roll of the dice, MacFarland said. "If we do this, we may get some attention."
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Howeclose
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07-17-08 5:31 AM
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Markva and Iknooow, I couldn't have said it better! With any luck Canjo will mirror of what Fort Plain has turned into over the past 30 years.
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sighing
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07-16-08 9:47 PM
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I wonder how long the town of Florida took to approve the new Beechnut site...probably not as long as Gloversville has been dragging its toes over the POSSIBLE new WalMart. Didn't Canjo have any idea (until it was made public) they were about to lose their main tax base?
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NoSenseAtAll
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07-16-08 8:51 PM
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SOUNDS TO ME THAT IF CANAJOHARIE HAS THEIR WAY ITS ALL OR NOTHING...IF WE CAN'T HAVE BEECH-NUT THEN NO BODY WILL HAVE THEM...IN NYS... SOOOOOOOO WHEN THEY PULL OUT ALL TOGETHER WHO WILL TAKE BLAME ??UNLESS A NEW TENNANT IS FOUND A LOT OF CANAJOHARIE WILL FEEL THE PINCH...TOO BAD TOO...THE STATUS QUO MEANT FOREVER...NOW THAT THINGS ARE GOING TO CHANGE BETTER PLANNING WILL HAVE TO TAKE PLACE...MEAN WHILE A ROUGH ROAD AHEAD...
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MarkVa
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07-16-08 11:18 AM
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In my opinion, Canjo became too dependant on Beech-Nut and it is noones fault but their own, why should Beech-nut, or anyone for that matter be liable for any losses canjo encurs from it's departing. Last I checked this country has free enterprise where a business can come and go as they please. Everyone's saying but what about us ? well what about the people who now presently work for the company in Latham ? What will happen to them if Beech-nut has had enough of the whining from Canjo ? Take charge of your village Canjo and stop blaming others for your dependance on others generosity.
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ve22gg
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07-16-08 8:40 AM
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Can we afford to give millions of taxpayer dollars to Dr. Arend Oetker (majority shareholder in Hero)
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wirlwind
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07-16-08 6:57 AM
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Canajoharie upgraded their sewer to accommodate Beech-Nut. People are loosing their jobs because the new owner of Beech-Nut is trying to loose the unions. They are harassing the union people currently working in the warehouse, demanding long hours. Some people who were counting on retiring will loose all benefits. My friend will loose 25 years of service. This is not a squeaky clean transition. Much is lost to both Canajoharie and to the employees.
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coachmike
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07-16-08 5:42 AM
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If beech nut moves to the town of florida site, it will still be in the county and those who worked there before will still have there jobs, if the site offers the possibility for expansion for beech nut, then more jobs are produced and the possibility of more money per salary which will make up for the increased in taxes for Canajoharie..there is also the possibility that another company might be interested in the old beech nut complex which could add more jobs and the tax increase will not exist but only revenue.
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Jr88fanNY
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07-15-08 5:39 PM
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ve22gg - to keep jobs here in the state and county and help create more jobs. Face it where Beech Nut is now in Canajohaire it is a very old building and no room to add on. Time marches on and everything changes and that is the way life is. Canajo has to face the fact they have rode the cash cow long enough and time for it to moo-ve on to bigger and better place.
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Jr88fanNY
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07-15-08 5:36 PM
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Canajoharie can not face the fact that they had it too good for too long with all the perks and mega bucks donated by Beech Nut over the years. When they started the ambulance corp there years and years ago Beech Nut gave them a huge chunk of money. They are going to keep it up until Beech Nut moves out of state making the unemployment level even worse. If you notice in the picture shown it is mostly elderly people they are getting their income now and do not have to worry about a job to feed the family so why should they care if Beech Nut moves out of state.
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ve22gg
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07-15-08 2:26 PM
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Why should Beech-Nut get $104 million in state funding and $24 million in state Empire Zone benefits?
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Bill
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07-15-08 2:12 PM
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I think the town should raise Beach nuts taxes and make them pay surcharges
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StopTheFraud
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07-15-08 1:23 PM
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And your last point IKnooow "What's to stop Beech-Nut from saying, "Who needs this headache?" and moving totally out of the area, taking jobs and everything else with it? is exactly what every able-minded politician in the county is afraid of. Nicely said. Situations like these arise when you put inept people in decision-making positions. This lawsuit is a joke. Every municipality has lost a business/businesses that has impacted the tax rates negatively. Johnstown isn't suing because Callaway is leaving, Fultonville didn't sue when Lane Construction & White Mop left, Amsterdam didn't sue when Ward Products left. This isn't just silly...it's downright embarassing.
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IKnooow
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07-15-08 12:01 PM
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I guess I'm confused. Why is the state "obligated" to help Canajoharie when Beech-Nut moves out? Why would the county have to make up the lost revenue? Did either of them force Beech-Nut to leave? Isn't Beech_Nut a private business free to do what it chooses? If Beech-Nut is only moving a few miles down the river, jobs won't be lost, only Canjo property and sewer tax. If Beech_Nut is willing to help find new tenents for the existing buildings, what is the purpose of a law suit? What's to stop Beech-Nut from saying, "Who needs this headache?" and moving totally out of the area, taking jobs and everything else with it?
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