JOHNSTOWN - The Fulton County Industrial Development Agency recently approved two legal agreements with California-based CG Roxane, whose new springwater bottling plant is being constructed in the town.
"The IDA concluded the agreement with CG Roxane where we entered into a lease with them," IDA Executive Director James Mraz said, following an agency meeting at the Fort Johnstown Annex.
Mraz said the IDA also approved a Payment-In-Lieu Of Taxes agreement with the company.
The San Francisco-based company in July started construction of a new 176,757-square-foot plant. The facility is being built on a 72-acre parcel at 325 Watershed Road in the town of Johnstown.
Mraz said the term of the lease will be 10 years. But the IDA officially appointed CG Roxane as the agent to construct, operate and maintain the water bottling facility. At the end of the lease, the IDA will convey title of the facility back to the company. An administrative fee must be paid by CG Roxane by July 30.
CG Roxane is requesting two exemptions from the IDA - a 485-b real property tax exemption and a sales-tax exemption.
Mraz said the PILOT agreement also will be for 10 years. CG Roxane must pay a $400 per year fee. If it defaults on the agreement, it must pay a $1,000 payment per each default and payment of legal fees.
CG Roxane is investing more than $25 million and plans for the facility to produce more than a million bottles of Crystal Geyser Alpine Spring Water per day. The company has a contract for village of Canajoharie water and is considering purchasing Johnstown city water. CG Roxane is rebuilding Old Sweet Road to town of Johnstown standards to provide easier access from Route 29.
The company initially plans to hire 33 people and would hire more than a dozen more when it expands with a proposed second phase that would include a 65,545-square-foot addition of warehouse space.
Michael Anich covers Johnstown and Fulton County news. He can be reached at email@example.com.