JOHNSTOWN -The Fulton County Industrial Development Agency has determined the Crossroads Incubator Corp. doesn't owe the IDA a payment of more than $90,000, as originally thought, from an industrial park lot sale made in 1988.
At a recent IDA meeting at the Fort Johnstown Annex, agency Executive Director James Mraz said the issue - hanging since 2010 - was cleared up.
The IDA the last few years has maintained the CIC - a subsidiary of the Fulton County Center for Regional Growth - owed the IDA a payment totaling $93,060. The IDA board on Sept. 10, 2010, approved a motion to request the payment from the CIC.
The amount was arrived at by multiplying $18,000 per acre for 5.17 acres of land on Lots 4 and 7 in the original Crossroads Industrial Park on Route 29 in Gloversville. The IDA at the time claimed it had documentation showing that on Jan. 29, 1988, its board provided those lots to the CIC at no cost to construct a proposed incubator building.
The deal was made on the condition payment on the lots would be deferred until the property was sold, he said documents show. The lot-sale price in 1988 was $10,000 per acre. The two lots, totaling 5.17 acres, were sold to Boston-based Stag Capital Partners in 2007 at $18,000 per acre. The total value of the sale was $97,060.
But Mraz told his board recently that CRG President and Chief Executive Officer Michael Reese went through old documents related to the 1988 incubator building project. Mraz said Reese found two promissory notes, collateral security mortgage related to the project, as well as another document from 1989. He said all indications are that the $93,060 was paid.
In regular IDA action, the board approved paying two 2014 fire tax bills from the town of Johnstown totaling $27.94 and $28.32.
"Each year, we receive a tax bill from the town of Johnstown on the two pieces of property we own on Route 30A," Mraz said.
He said the vacant parcels are on the east side of Route 30A. Mraz said that even though the IDA is tax exempt, it is not exempt from fire taxes.
Michael Anich covers Johnstown and Fulton County news. He can be reached at email@example.com.