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City OKs revised agreement with Fage

April 16, 2013
By MICHAEL ANICH , The Leader Herald

JOHNSTOWN - The Common Council on Monday approved a revised agreement with yogurt manufacturer Fage USA, but officials said there was no problem with the previous agreement approved in December, officials said.

"It's kind of a minor housekeeping thing," city Treasurer Michael Gifford said.

The council passed a resolution at City Hall rescinding a Dec. 3 city agreement the council approved with Fage. The same resolution also executed a revised agreement.

Article Photos

Johnstown Councilman-at-Large Bryan Marcucci reads a resolution to amend a grant agreement between the city and Fage USA on Monday at City Hall.
The Leader-Herald/Michael Anich

The council Dec. 3 approved an agreement involving $750,000 in state money for Fage's large expansion project. The grant is through the state Housing Trust Fund Corp.'s Office of Community Renewal. The funding helps pay for the ongoing $120 million expansion, which is expected to create 150 jobs.

In order to access the state funding, Fage has to expand and create the number of jobs it promised. If Fage fails to create the jobs, the city might have to pay back the money.

Gifford said the reason for the new agreement is Fage indicated in the original agreement it would use specific equipment, but its plans changed. As a result, he said, the engineering costs and expenditures identified in the grant changed.

Mayor Sarah Slingerland said city officials felt the best course of action was to approve a new agreement with the revised information.

"It will offer more easy administration of the grant," Slingerland said.

In other business:

The council voted to solicit sealed written proposals for purchase of an obsolete city 1990 utility-bucket truck. Proposals will be opened publicly at 10:30 a.m. May 3 at the City Clerk's Office at City Hall.

Slingerland read a proclamation declaring April to be Child Abuse Prevention Month in the city.

The mayor also noted upcoming events include the citywide garage sale from May 3 to 5 and the citywide cleanup, which is set for May 9 to 11.

 
 

 

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