Despite a delay in renovations at the former Guilford factory, officials from both sides remain optimistic about the future of the project that could eventually bring hundreds of jobs to Schoharie County.
Representatives from Green Recycling Solutions International had hoped to begin renovations on the buildings in the spring, but those plans stopped quickly when the renovation costs ballooned after a thorough inspection.
Instead of an estimated $3 to $4 million renovation cost, engineers put the estimate at nearly $40 million, according to Barbara Acuff, the chief financial officer for GRSI.
The cost of the roof alone is about $3 million, she wrote to county supervisors in an update on the project.
She noted that the smaller 100,000-square-foot building was "unsalvageable," according to engineers and needs to be torn down and completely rebuilt.
The changes forced the group to come up with different financing plans for the project, according to Ms. Acuff.
GRSI was able to partner with EcoConvergence Group, an international company involved in hydroponics, geo-polymers, and other agricultural ventures.
Schoharie County Treasurer Bill Cherry, who engineered the sale late last year, noted that GRSI currently has not fulfilled requirements for the sale, including insurance on the building and a PILOT agreement.
He asked Ms. Acuff to come to Friday's county board meeting, but she could not attend and sent a short update on the project.
GRSI will be able to satisfy those requirements by August 20, according to Ms. Acuff.
"A that time, our financing will be finalized and we can proceed with the renovations."
Ms. Acuff has denied that the project's financing has fallen apart and that, though delayed, the project remains on track.
Though "there have been may unforeseen obstacles to overcome since we signed the purchase agreement for Guilford...
"GRSI and EcoConvergence, now Eco Tech Group, have been 100 percent committed to bringing this project to fruition," Ms. Acuff wrote to the county board.
"We have called upon" many people "to work tirelessly on this project...Let's not be short-sighted because we need to 'save face,' temporarily, amongst our peers and business associates."
She added, "We're confident that Schoharie residents would rather wait several months for the renovations to begin, than to have the building remain vacant for another 14 years."
Despite the delay, county Attorney Mike West sees progress.
"I still feel confident we're moving forward," he told supervisors Friday afternoon.
"I see this as a little hiccup and this can work. We have to give a little string (to GRSI)."
Mr. West added, "This project is going to take a lot of effort."
GRSI showed the business plan to 49 lenders in the spring and six have shown an interest and all are committed to offering a small "bridge loan" to cover the IDA and insurance fees. They have also said they would like to participate in the second round of fundraising for another $25 million.
If the county board terminated the project, EcoConvergence will likely "pull the plug on the expansion to Guilford," Ms. Acuff informed supervisors.
Cobleskill Supervisor Leo McAllister stressed that GRSI has to get insurance on the building very soon.
Jim Buzon of Middleburgh asked if GRSI has spent any money on cleanup of the property.
"I don't think they're spending any money on maintenance," Mr. Cherry responded.