JOHNSTOWN - The Crossroads Incubator Corp., which will eventually be dissolved, has sold one of its properties at Gloversville's Crossroads Industrial Park for $825,000.
The Fulton Center for Regional Growth - parent company for the CIC - announced in October it was restructuring itself and forming a stronger partnership with county government. Under the plan, the CRG will dissolve the two agencies it oversees, the CIC and the Fulton County Economic Development Corp.
The CIC - real estate entity of the CRG - has been selling its properties in recent months.
The CRG board of directors were told last week the CIC's property at 178 Corporate Drive was sold to Albert Gentile and closed on. CRG President and Chief Executive Officer Michael Reese reported the sale Thursday at the Johnstown Professional Office Complex.
The Fulton County Industrial Development Agency had owned the building for many years and leased it to the CIC, even though the CIC originally built the building. The building has been subleased to Gen-Fame Inc., a pallet reprocessing company owned by Gentile, who wants to expand.
Gen-Fame Inc., a wooden shipping crate manufacturer, was established in 1987. Gentile couldn't be reached for comment Friday or this morning.
Even though the CIC built the building, IDA Executive Director James Mraz said IDAs in the state have to "own" such buildings, according to law, to legally offer tax exemptions to companies moving into the buildings.
But the IDA recently indicated it approved early termination of the building lease, which Mraz said automatically triggered the transfer of ownership of the building to the CIC. The CIC has now sold the building to Gen-Fame, he said.
This past week, the property was officially deeded over to Gen-Fame. Court papers filed in the Fulton County Clerk's Office in Johnstown indicated the sale was for $825,000. The IDA received an Oct. 30 letter from the CIC advising that corporation was exercising its right of early lease termination.
The private property at the Crossroads Industrial Park will now be on the tax rolls.
Officials say the CIC and EDC are in financial difficulties but are not bankrupt. The restructuring deal involves a new business development marketing plan for the county, and dissolution process is expected to take several months.
The CIC has unloaded several properties in the last couple years. A similar early termination of a lease this fall involved termination of a lease involving the property of Epimed International Inc. at the Crossroads Business Park in Gloversville. Early termination of six other local industrial property leases were also done in 2011.
Michael Anich covers Johnstown and Fulton County news. He can be reached at email@example.com.