Amphenol deal could require legal action

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June 21, 2012

Amphenol deal could require legal action

By Mark Boshnack Staff Writer The Daily Star Thu Jun 21, 2012, 03:30 AM EDT

An effort to provide Amphenol Corp. in Sidney with a new location could soon be turning to the courts.

Officials said this will not affect plans to keep the manufacturer in the village.

The Delaware County Industrial Development Agency has worked with the Sidney employer that was flooded twice in five years, most recently last fall, to find a new location out of the flood plain in the village.

The manufacturer of electrical connectors used in aerospace and other applications had threatened to move from the area in its search of such site.

As part of a $28 million state aid package, the company has agreed to employ at least 950 at the new site for 20 years.

The IDA has reached agreement with owners of two of the four parcels needed for the 23-acre site on Delaware Avenue in Sidney, IDA chairman James Thomson said. It has taken the steps to acquire the final two properties through eminent domain if necessary.

Eminent domain is a legal process that involves a public hearing held in May, county Economic Development Director Glenn Nealis said.

The IDA attorney has been instructed to bring the issue before a judge.

If he agrees that the public good requires it, the properties can be transferred to the IDA and a price negotiated later.

The portion of the Kmart property needed is expected to be acquired before that is necessary, Nealis said.

He said he was less certain, yet still hopeful, on the 6.45 acres parcel owned by Benedetto Borgia Jr. of the Bronx. Nealis said he doesn't want to use the authority the IDA has "but this project has to move forward. To lose 950 jobs would cripple the village." This is the only parcel that meets Amphenol's needs in the village.

Thomson said that the county has made several offers to Borgia, all at least double what he paid for it several years ago. Based upon appraisals, this included an offer of $15,000 an acre to start and increased that to $120,000.

"The sticking point is the price," he said.

"It's not like we are the big, bad government agency that is trying to steal his property," Thomson said. But something has to be done. The IDA has to go to court and demonstrate a public need to take this action. With so many jobs at stake, "It's easy to show," he said. "This is vacant land that has never been used. It's not like we are taking someone's home."

Borgia, who was reached by phone Wednesday, said he plans on keeping the property until he gets what he wants. "What was offered was a little too low," he said. He was not aware of any court proceedings, he said.

He purchased the parcel for $40,000 in the mid-2000s, he said. He said he was not approached by anyone from the county, but over the years he had an offer for $140,000, and another for $15,000 an acre.

Similar properties have sold for $200,000 to $250,000, but even at that price, "I don't know," he said. He is self-employed and said he works for his brother, who has a construction company.

Amphenol spokeswoman Mimi Morgan did not return a call made late Wednesday afternoon.

Nealis said the last time he spoke with anyone on the Borgia property was last fall. At that time, a party who said it was speaking for the owner said it was not interested in selling.

"We have made a real effort on it," before legal action began, Nealis said.