This being America, it’s not exactly shocking that Canajoharie village officials have reacted to the impending departure of the Beech-Nut baby food plant with a threat to sue those responsible — the company? the Montgomery County Industrial Development Agency? the state? — for the village’s resulting economic hardship. People in this country will sue, or threaten to do so, at the drop of a hat, but it’s not always the best way to win friends and influence people so you get what you want. It certainly doesn’t appear to be in this case.
Village officials have a right to be concerned about the economic havoc Beech-Nut’s 2010 departure will cause. According to one estimate, the direct impact on village coffers will be $1.9 million a year in sewer and water tax revenues, and $186,000 a year in property taxes. Then there’s the hit that Canajoharie merchants will take as the company’s 350 employees go elsewhere during the day.
Officials also have a right to be mad, since a lot of public money — $100 million worth of grants, tax breaks and other incentives — was used to lure Beech-Nut from its plant in Canajoharie for a new one in the town of Florida.
But it was pretty clear — especially after the floods in the summer of 2006 — that the century-old Canajoharie plant had outlived its usefulness to the company. Ideally, county officials would have gotten Beech-Nut to rebuild in the village, but at least they managed to persuade the company not to move somewhere hundreds of miles away.
Village officials have since been assured by the company and county that Canajoharie won’t be forgotten when the move takes place. An active effort is under way — paid for by Beech-Nut — to find new tenants for the building, for example. But village officials want written guarantees, which would be quite unusual, frankly; and because they haven’t gotten any, they’ve hired a high-powered Albany lawyer and are threatening to sue.
This strategy might work, but it also might backfire, costing a lot of money ($300 per hour) and alienating the village from the people most likely to help it. Lawyers and fighting words should be used as a last resort. Meanwhile, Sen. Hugh Farley has secured a $500,000 member item for the village, which should help buy some time.
Village officials can — and should — keep up the pressure and make sure they’re not forgotten without taking the drastic measure of suing.