Monday October 6, 2003

Nestle Plant Investor Secures Vital Equipment

By Chris Motola

The latest act in the ongoing drama of the fate of Fulton?s former Nestle plant unfoldedMonday with the announcement that Lion Capital Management had acquired vital chocolate-making equipment for one of the plant?s prospective buyers.

?This a major first step toward completing this project and bringing much needed jobs back to Fulton,? said L. Michael Treadwell, executive director of Operation Oswego County and County of Oswego Industrial Development Agency (IDA) board member.

The Fulton Chocolate Company is one of two companies interested in the Nestle plant and its equipment. The Duffy Group, headed by investor Richard Duffy, previously secured an entire wrapping line?s worth of equipment for its operations should the IDA?s plant ownership transfer go through successfully. The Duffy group is interested in buildings 95 and 76 while Lion Capital is interested in the rest of the building. Loeb Equipment and Appraisal Company were responsible for putting the equipment into saleable packages. Both companies could operate in Fulton simultaneously.

?We?ve come to a tentative agreement,? said Fulton mayor, Mike Stafford, concerning the negotiations with Nestle. The IDA is attempting to negotiate with Nestle over the aging plant?s environmental condition and liability for dangerous materials like asbestos that could present a problem for future inhabitants.

?One of the things we?re trying to negotiate is a longer due diligence date,? said Stafford. Under terms set by Nestle, IDA would have less than a month to complete its inspections and paperwork.

Treadwell said, ?Although the IDA is still working toward finalizing an agreement of the terms and conditions of the property transaction with Nestle, negotiations have been positive and we anticipate an agreement in the near future.?

?On behalf of Operation Oswego County and the IDA, we are grateful for the invaluable support of U.S. Senator Charles Schumer, state Senator James Wright, and Empire State Development during the equipment acquisition process,? said Treadwell.

Stafford said he is ?cautiously optimistic? about the possibility of chocolate-making returning to Fulton. ?We?re in a better position than we have been.?