Gallivan Withdraws Offer; Berlin Board To Consider Purchase Resolution
by Kieron Kramer
On Tuesday, October 5, Berlin Town Supervisor Rob Jaeger received a telephone call from Laurie Leckonby of the Kinderhook Group, a realty company in East Chatham representing Berlin Lumber, informing him that S.M. Gallivan of Brunswick had withdrawn its offer to purchase the Berlin Lumber property on Route 22 in Center Berlin. Since July of 2009 the Town of Berlin has debated, sometimes heatedly, whether to purchase the property for use as a municipal center and has held two referenda on the issue. The first referendum rejected authorizing the use of Berlin’s Capital Fund for the purchase, but the last referendum, held on July 19 of this year after the original asking price for the property had been reduced from $569,000 to $499,500, authorized the Town Board to use the Capital Fund for the purchase by a vote of 186 to 137. By the time the Town could proceed, Gallivan had put in an offer.
Now, with this latest news, the path has been cleared for Berlin to move ahead with the project. Jaeger said that he thinks that several other prospective buyers are interested but that no other offers for the property have been made yet. According to Jaeger, the Berlin Town Board will be presented with a resolution to purchase the Berlin Lumber property at its October 14 meeting.
County Legislature Authorizes Block Grant Application For Gallivan
Even though, last Thursday, Jaeger informed County Executive Kathy Jimino and Vice Chairman of the Legislature Stan Brownell, who represents the towns of Stephentown, Berlin, Petersburgh, Grafton, Hoosick and the Village of Hoosick Falls, of Gallivan’s withdrawel, the Legislature passed a resolution at its regular meeting on Tuesday night authorizing the County Executive to submit a Small Cities Community Development Block Grant application to New York State on behalf of Gallivan Corporation (or its affiliated corporate designee) in an amount not to exceed $350,000 for use in this project. The funds are available to municipalities on a competitive basis to address their economic development needs, and there is no certainty as to whether this application would succeed. Since the County Executive and Brownell had been informed of Gallivan’s withdrawal, there is no coherent explanation as to why the Legislature voted on this resolution at all, a resolution which passed unanimously.
The draft of the project, in documents provided by Brownell, states, “SM Gallivan LLC was founded by Sean Gallivan in 02/29/2000 and specializes in the manufacturing of landscape supplies, truck transportation, wood waste recycling, concrete and asphalt crushing and the sales of agricultural commodities. SM Gallivan is the largest manufacturer of mulch products sold to nurseries in the region…SM Gallivan, plans to expand horizontally by entering the renewable energy products market and will create a wholly new company called Northeast Green Renewal Energy Products (NEGRE). The new corporation…is proposing to purchase an existing lumber mill, equipment, client base, out buildings and surrounding 23.8 acres in the Town of Berlin for the purpose of manufacturing renewable energy products for distribution…The foremost focus of Northeast Renewable Energy Products is to present itself as a Green Energy production company creating biomass fuels that respect and protect the environment…NEGRE will focus on the production of renewable energy products such as wood chips, wood bricks and bulk biomass derived from lower grade wood products to be sold to local manufacturers to be used as a power source…The company will purchase raw lumber from the local area and then separate and grade wood species. Lower grades will be used to manufacture energy products, mid-grade wood species will be used to produce Grade stakes. Tree stakes, Surveyor stakes etc. Higher-grade wood species will also form a product line…Potential customers for these products will be any company requiring products derived from the wood supply chain such as manufacturers of furniture, pallets, flooring etc…The company will focus marketing efforts within a sixty mile radius of the Berlin site as transportation costs will be a major factor of profitability.
“In addition to the manufacturing of wood products as noted above, NEGRE will bag the mulch, chips and wood shavings currently produced by SM Gallivan. The company will also be producing firewood to be sold either bagged or open. In addition to the production of these wood products, the company plans on eventually bagging stone products. Future plans call for the expansion of the bagging process, perhaps growing this activity through contracting with other wood-product type businesses.
“Mr. Sean Gallivan’s proposed project calls for the new corporation, Northeast Renewable Energy Products, to purchase the facilities and equipment of Berlin Lumber Company. After more than 38 years of operation in the Berlin hamlet of Cherry Plain, the owners of the lumber processing and forestry business have retired and have listed the properties and real estate for sale. A contract contingent on financing in the amount of $499,500 for the purchase of the facility and real estate, and $250,000 for the purchase of equipment has been accepted between the owners of Berlin Lumber and Mr. Gallivan. Currently, contract contingencies are in the process of being met and funding identified. Additionally, it is estimated that $226,500 in operating capital will be required for a project cost of $976,000, plus $16,000 for program delivery and administration, equaling a total project cost of $992,000.
“Mr. Gallivan’s plans call for much of the lumber company’s timber business to continue, while at the same time, NEGRE will outfit the mill facility for the production and bagging of biomass fuel products. Equipment needed for this segment of the business includes a kiln, scales and a shaving machine. Bagging equipment is still being researched.
“Sixteen new full time jobs will be created as a result of the project. While Northeast Renewable Energy Products anticipates drawing a number of its new employees from the Town of Berlin, attention should also be given to Rensselaer County’s two cities – Rensselaer and Troy.
“Berlin’s economic growth, like so many small communities, has relied on one or two key employers which have primarily included W.J. Cowee, LLC, a manufacturer of floral associated wood products and firewood, and the Henry J. Seagroatt Co., a producer and distributor of flowers and floral supplies. Seagroatt, who at one time employed an estimated 125 persons, closed its businesses in April of 2009 leaving only a small cash and carry business in operation. W.J. Cowee Company, also well known in the floral and timber processing business, has merged with Forestland Group to become Cowee Forest Products, Inc. This company, too, has significantly reduced the size of its employment base, contributing to a population decline in the Town of Berlin in the past few years.
“While the founder of the new company will be able to finance a significant portion of this through equity and bank financing, a funding gap still remains. First Pioneer Farm Credit has provided a commitment to fund the purchase of the real estate and some working capital, and the owner of Northeast Green Renewable Energy is committed to funding the operating capital but is seeking CDBG assistance to help pay for the purchase of equipment in the amount of $185,000, plus program delivery and administration in the amount of $16,000, for a total CDBG request of $201,000.”
(The Eastwick Press does not vouch for the accuracy of any of S.M. Gallivan, LLC’s assertions in the above quoted material. The extensive quote of this CDBG application draft, which, presumably, would be corrected if it went forward, is included to inform Berliners of the size, scope and possible impacts of the business interested in moving into the Town of Berlin and of the extent to which the incoming owners are in touch (or out of touch) with the Town and its history. In particular, Gallivan’s representation of the recent history of W.J. Cowee, LLC is misleading and inaccurate; W.J. Cowee, LLC is an active company that has not merged with any other entity. – Kieron Kramer, Editor)
Since Gallivan asserted in his application that the funding is in place for this project, the reasons for the company’s withdrawing the purchase offer is mysterious. Perhaps the funding was not committed after all. Perhaps it was highly speculative to begin with. Perhaps environmental restrictions and noise considerations would make the project too costly. Whatever the reason, the purchase and development of Berlin Lumber by S.M. Gallivan would have provided some Berliners with jobs and placed a, presumably, viable company on the tax rolls – a definite benefit to Berlin.
In memory Of Leverett M. LeBarron
A resolution in memoriam of Leverett M. LeBarron was passed at the Legislature’s September meeting.
The resolution says, “It is customary for this Legislative body to pay honor and respect to persons who have had a great impact and influence on the citizens of this county, and…it is the intent of this Legislative body to express sincerest sorrow upon the death of Leverett M. LeBarron, which occurred on the twenty-third day of August, of the year two thousand ten.”
According to the resolution Leverett LeBarron was born on December 10, 1909. He was the son of the late Earnest and Nora (O’Neil) LeBarron and husband of the late Margaret (Prentiss) LeBarron who died in 1974. He attended school in Potter Hill, the same one room school house also attended by his neighbor and County Legislator Lester Goodermote, and he worked for the Rensselaer County Highway Department as an equipment operator, retiring in 1972. He was active in his community as a member of the Moose Club in Bennington, VT, the Hoosick Grange, the Derby Club and a Charter Member of Eagles Aerie 2467, both in Hoosick Falls. Leverett M. LeBarron will be missed by his daughters, Lorraine and Beverly and her husband Robert, his son, Edward and his wife Uma, thirteen grandchildren, Susan, Joanne, Richard, Sandra, Sharon, Glenn, Donn, David, Robert, Montana, Todd, Jason, Beverly and Donna as well as his many great-grandchildren and great-great-grandchildren.
On Tuesday, Leverett’s daughter, Lorraine, and a grandchild appeared in the well of the Legislature to receive a copy of the resolution, suitably engrossed. The presentation was made by Lester Goodermote, Leverett’s friend and neighbor. Lorraine LeBarron said simply, “My dad had a long and good life; thank you everyone.” Leverett LeBarron was 100 years old.
Grants To Local Snowmobile Clubs Amended
The Legislature passed a resolution Tuesday authorizing the Rensselaer County Executive to amend the snowmobile trail grant agreements originally authorized in January of this year with the Rensselaer County Snow Riders, Inc., Grafton Trail Blazers, Inc., Hoosick Trail Masters, Inc., Black River Raiders Snowmobile Club, Inc. and Stephentown Trail Riders. The County of Rensselaer, together with its snowmobile trail clubs, had applied for and received funding for the maintenance of snowmobile trails in the towns of Berlin, Grafton, Hoosick, Pittstown and Schaghticoke for a term running from September, 2009, to April, 2010. According to Tuesday’s resolution, the 2010 state funding per mile calculations for this project has increased, resulting in an increase of funding for the trail clubs which have provided sufficient documentation. However, insufficient documentation by the Rensselaer County Snow Riders and the Grafton Trail Blazers has resulted in a reduction of overall funding in the County. Now the total amount of State funding for this purpose is $41,903, $7,337 less than last year. This grant is totally state funded and will produce no fiscal impact to the County. The clubs will receive amended contracts in the following amounts:
• Rensselaer County Snow Riders, Inc. Schaghticoke – $7,411.51
• Grafton Trail Blazers, Inc. – $15,712.92
• Hoosick Trail Masters, Inc. – $11,166
• Black River Raiders Snowmobile Club, Inc. Sand Lake – $4,498
• Stephentown Trail Riders – $3,114.
The resolution says that the State of New York provides Snowmobile Trail Grant funding annually to municipalities and their snowmobile trail clubs to maintain snowmobile trails open to all snowmobilers.
Shared Services
A resolution authorizing the County to enter into agreements with Petersburgh, Brunswick, Poestenkill and Schaghticoke, among other towns, for snow plowing and salt and sand application on County roads located in those towns passed Tuesday. The County has been entering into the agreements for years to help hold the line on expenses and ensure that needed snow removal services are delivered efficiently. The roads included in this agreement are easier for the towns to reach resulting in the roads being plowed in a timely manner. The agreements run from October 1, 2010 through April 30, 2011. Under the resolution, the County will pay six towns a maximum combined amount of $88,000.