FONDA — A judge rejected arguments Monday calling for a halt to construction of the new Beech-Nut baby food plant in the town of Florida business park.

The village of Canajoharie’s lawsuit seeks a stop to work on the 500,000-square-foot facility being built to replace the current plant in the village.

State Supreme Court Justice Felix Catena rejected the temporary restraining order but reserved decision on the village’s Article 78 proceeding, which alleges officials at the state and local levels sidestepped research on the relocation project’s impact on the village.

Canajoharie officials are concerned that the loss of 350 jobs and reduced revenues from water and wastewater services will devastate the village.

Through attorney Lewis B. Oliver Jr., the village filed the lawsuit against the Florida town Planning Board, which approved the project’s site plan and a subdivision; the Montgomery County Industrial Development Agency, which fostered the project’s development; the Empire State Development Corp., which produced other financial incentives for the move; and the Hero Group and its subsidiary Beech-Nut.

Oliver argued the review under the state’s Environmental Quality Review Act process basically ignored the impact Beech-Nut’s impending departure would have.

Oliver argued that not considering Canajoharie’s plight is “segmenting” the review of pertinent parts of the project, and said the work in Florida has an impact in Canajoharie.

“Under [the state’s environmental quality review laws], an action is described as all of the phases of the proposed action, not the final stages. You have to consider each phase,” Oliver said.

Oliver said state laws require officials not only to consider the environmental impact of going forward with a project but also to scrutinize the possibility of not taking any action at all — such as Beech-Nut staying in Canajoharie.

“There’s no hard look at all on any of the environmental impacts on the village of Canajoharie,” Oliver said.

Catena asked Oliver what the environmental impacts on Canajoharie are going to be after Beech-Nut departs, and Oliver said affidavits from village officials suggest improvement projects at the riverfront park, on the Canalway Trail and other open space improvements efforts would not move forward for lack of resources.

Oliver also said planned improvements on Main Street and state Route 10 in the village would be curtailed, as would the preservation of historic structures, architecture and archaeological resources.

Oliver said the fact that Beech-Nut’s departure will leave the village’s water system with an excess of capacity will result in changes in existing surface water quality.

Attending the hearing were attorney Doreen A. Simmons, representing the Hero Group and Beech-Nut; Assistant Attorney General Lisa Burianek, representing the Empire State Development Corp., and attorney Daniel A. Spitzer, representing the Montgomery County IDA.

Spitzer argued that the village’s lawsuit and request for a temporary restraining order were flawed and said there are no environmental impacts to the village of Canajoharie because the project is in the town of Florida.

Spitzer argued that environmental impacts are things like a major increase in truck traffic or ruining a scenic view, all items that were looked into during the review process in the town of Florida.

“Every single thing you’ve heard was economic in nature. You can not have standing if your injuries are solely economic in nature,” Spitzer said.

The courts, Spitzer said, cannot tell private companies how to conduct their business.

“You cannot say ‘I’m not going to let you move.’ What happened here was a proper environmental review,” Spitzer said.

As to Empire State Development Corp.’s liability, Burianek said, agencies in this case are bound by the decision of the lead agency — in this case the Florida town Planning Board. Burianek asked the court to dismiss the case altogether.

On Beech-Nut’s behalf, Simmons said the company received all the necessary permits and approvals to go forward with construction. Simmons said halting the construction now would put the project in “severe jeopardy.”

Following a 10-minute recess, Catena said the village’s case did not meet criteria required for the court to halt a project. Catena said he planned to issue a written ruling on the remainder of the case.

After the decision, Canajoharie Mayor Leigh Fuller said village officials are trying to protect residents from the company’s departure, and said he believed the village’s interests were represented well in court.