JOHNSTOWN - The Common Council on Monday approved an intermunicipal agreement with the town of Johnstown that will allow Eagle Chevrolet to build a new dealership that will straddle the boundary of both municipalities.
The dealership's existing building, at 108 S. Comrie Ave., lies only in the city, but Eagle wants to construct a new 26,122-square-foot building on land that mostly lies in the town. When discussions about possible annexation fell through, the municipalities reached a property-tax revenue-sharing agreement.
The agreement was approved by the Town Board on Thursday.
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Johnstown Councilwoman Helen Martin, standing, reads a revenue-sharing agreement Monday. Seated is Councilman Chris Foss.
The Leader-Herald/Bill Trojan
The dealership's new building would straddle the town-city border, with 89 percent of the building sitting on a now-vacant lot in the town.
Under the agreement, the city will allow the company to access municipal water and sewer lines in exchange for collecting the sales-tax revenue from the dealership's parts and service business.
The town and city will share property-tax revenue on the new building, with the town taking 89 percent and the city 11 percent.
A sewer hookup to the new building must also be approved by Gloversville's Common Council. Gloversville Mayor Dayton King said he anticipates the council to authorize the hookups at tonight's meeting.
When the project went before the Johnstown City Planning Board in March, it was noted most of the proposed site would have to be annexed from the town of Johnstown into the city. That board took no action then, and still needs to take final action on the project.
Eagle Project Manager Paul Slazik said earlier this month the expanded dealership could add 10 new jobs, and the company is ready to start work.
The Johnstown Common Council approved the revenue-sharing agreement with little comment.
"I think it's correct and proper for us to do this tonight," Mayor Sarah Slingerland said.
Second Ward Councilman Chris Foss abstained because he said he has done survey work for Eagle Chevrolet.
Eagle owner James Provenzano couldn't be reached this morning for comment.
The council resolution noted Shoal Creek Limited - doing business as Eagle Chevrolet - owns the South Comrie Avenue property.
"The city and town of Johnstown agree that the expansion of the business will now benefit both municipalities," the resolution states.
The project will include a new car dealership building with paved driveway, parking lots for car displays, a customer lounge for the vehicle maintenance department and a sales showroom with administrative offices.
The new, freestanding building will be east of the current dealership building, which eventually will be demolished.
Michael Anich covers Johnstown and Fulton County news. He can be reached at johnstown@leaderherald.com.