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Herkimer County IDA updates redevelopment plans; contaminated Charleston parcel and billing dispute slow transfers
Summary
Agency staff reported progress on a former school site and a potential data-center parcel, described chlorinated-solvent contamination at a Charleston property that will require further investigation, and said a billing dispute over tank cleanup is preventing transfer of another parcel to the Town of Frankfort.
Herkimer County Industrial Development Agency staff reported progress on multiple redevelopment efforts and identified two impediments that could affect timelines: subsurface contamination at a Charleston property and a disputed final cleanup bill that is delaying transfer of a former tank site to the Town of Frankfort.
The updates matter because the parcels under discussion are being marketed or prepped for redevelopment, include substantial on-site power capacity attractive to data and manufacturing users, and carry outstanding environmental and lien issues that affect marketability and public liabilities.
Staff said a developer is advancing design work on a former school site; the village must sign final documents before the agency takes the project forward. Agency staff said they expect to provide a tally of site expenditures soon to inform a sale price for whoever will assume the property. The agency also has a UTEP in place for housing and plans to use it for a pilot program related to that site.
On a separate parcel in Charleston, staff described pockets of chlorinated solvents concentrated in two areas and likely pooled in fractured rock beneath the surface. The agency reported no evidence to date of off-site migration. Officials said additional investigation and cleanup planning are needed; staff estimated further investigation costs could run on the order of $150,000. They said the site has all necessary infrastructure in place, including about 185 megawatts of power adjacent to the property, and totals roughly nine acres.
Agency staff discussed pursuing state or federal cleanup and investigation grants, including Brownfield cleanup incentives, to reduce the cost of investigation and remediation. Staff said a buyer interested in an industrial or data/AI center might accept cleanup risk and move forward using available brownfield tax incentives. The current owner of the Charleston parcel was identified in the discussion as subject to a Department of Environmental Conservation (DEC) order to clean the site if the agency does not proceed; staff said the owner may lack funds and that DEC could impose additional liens.
Staff also reported a separate impediment involving cleanup of tank-related contamination handled by a contractor identified as Eagan. According to the discussion, Eagan has not finalized or delivered a bill for its work; the DEC and the county controller's office have not cleared the final accounting. Until that bill is finalized and accepted, county ownership and transfer of the tank site to the Town of Frankfort cannot proceed, delaying planned bike-path parking and canal-area improvements.
The agency said it has an extension of due diligence for another year on at least one parcel and that there is an existing $14,000,000 labor lien affecting a site; staff reported internal and external contacts (including an individual named Patrick Foster) have indicated a willingness to assist with solutions related to that lien.
No formal decisions or votes on redevelopment approvals or cleanup funding were recorded in the transcript. Staff said they will continue environmental testing and pursue grant funding and that additional details on expenditures and cleanup estimates will be provided as investigations progress.
