The 900-plus jobs expected for Guilford Mills won't materialize because the sale of the Cobleskill plant fell through last week.
Intended buyer Green Recycling Solutions International announced it didn't have the funds to move forward, so the vacant plant remains owned by Schoharie County.
The failed deal is the latest blow since the factory closed almost 14 years ago, and it sets the sale of plant back to square one. But the county does have options--including interested tenants.
"We're very disappointed," said Schoharie County Treasurer Bill Cherry, who brokered the deal with GRSI.
"Everyone in our Schoharie County community was on board. We did everything we could."
GRSI last year projected to bring in five tenant companies that would offer 932 jobs in five to 10 years. Negotiations dragged on through this year, however, and GRSI couldn't meet the August 20 deadline set by the Board of Supervisors.
Barbara Acuff, GRSI's chief financial officer, notified county officials that tenants did not have financing in place, which severely affected the sale.
Guilford will remain qualified for START-UP NY, a tax-break program that continues to make it attractive to a potential buyer, according to SUNY Cobleskill's Jason Evans, who's directing START-UP efforts locally.
Mr. Evans is also still negotiating with Sakat Consulting and USA Intimates, who were two potential GRSI tenants.
The GRSI failure doesn't change the picture much, Mr. Evans said, because the company was only planning to be the landlord. Tenants could still be interested in Guilford.
"They saw the writing on the wall, and it didn't scare them away," Mr. Evans said of the companies.
He said Sakat and USA Intimates might be interested in another local site if Guilford doesn't suit them.
On Friday, the Board of Supervisors leaned towards auctioning Guilford.
Carlisle Supervisor Larry Bradt suggested having an auction company advertise the plant nationwide and sell the factory "to get what we can for it."
"It's time to cut our losses and move on," added Conesville Supervisor Bill Federice.
GRSI had agreed to buy Guilford for $2.5 million, but an auction is likely to bring a much lower price.
Supervisors agreed to send the issue to their Buildings and Purchases Committee to set guidelines, including a minimum price.
If Guilford does go to auction, Mr. Evans said he'll make sure that the firms he's negotiating with know what's going on.
"We want to keep everyone in the loop," he said.
Empire State Development and SUNY Cobleskill have approved Sakat Consulting and USA Intimates for START-UP NY.
If a new Guilford owner brings in other companies, however, they would also need state and college approval for START-UP, Mr. Evans said.
"The college is not going to be an impediment," Mr. Evans said. "We're not asleep at the wheel."
Although Mr. Cherry agreed an auction is one option to sell Guilford, he suggested several others.
Guilford's poor condition was a hurdle some potential buyers--including GRSI--couldn't finance. Mr. Cherry said one option might be for the county to use state money to renovate the plant, making it more appealing.
"Make it so attractive, they couldn't say no," Mr. Cherry said.
The renovations could be done section by section in the 460,000-square-foot plant so it wouldn't be so expensive at once.
Expanding on a suggestion from Schoharie Supervisor Gene Milone, Mr. Cherry said another alternative might be to subdivide the factory into pieces.
"Instead of two big buildings, it might be more manageable as, say, five sections with separate owners," Mr. Cherry said.