There's good news and bad news about the long-vacant Maranatha Family Center in Warnerville.
The good news is that Maranatha has been approved for the job-creating START-UP NY program.
The bad news is that a recent bankruptcy filing may delay plans at Maranatha for months, even a year.
Empire State Development announced Monday that Maranatha, Echelon Materirals and Royal Meadery are now included in START-UP NY, which provides breaks on income taxes. (See related story.)
The plan at Maranatha is for Blenheim Pharmacal, now operating in North Blenheim, to expand into the former gym and create 18 new jobs.
Maranatha, however, was to be included in a foreclosure sale with two other properties also owned by Stella McKenna: a camp she owns on Canadarago Lake and her former Maranatha gym on Elm Street, Cobleskill.
The three sales were to take place on April 14, but Ms. McKenna filed for Chapter 7 bankruptcy in South Carolina the same day.
"It was a last-minute filing that surprised everyone," said Richmondville Town Attorney JR Parshall.
"It freezes all legal proceedings. It freezes all debt collection. It freezes all foreclosure orders."
Several attorneys estimated that resolving the bankruptcy could take from one month--the bare minimum--to more than a year.
"I heard at least four to six months, and that was the low number," said Ron Filmer, CEO of the Schoharie County Industrial Development Agency.
"It doesn't seem positive, obviously. I hope people stick it out."
Blenheim Pharmacal will likely stick it out, according to Jason Evans, who's coordinating SUNY Cobleskill's START-UP NY program.
Even though Maranatha is tied up in bankruptcy court, it will retain its START-UP status, Mr. Evans said.
And when the bankruptcy case is settled, Blenheim Pharmacal can presumably move ahead with its plans.
"They're on top of this," Mr. Evans said of Blenheim Pharmacal. "Right now, it's not clear what will happen, but the property will still be tax-free."