Owner of defunct plant will pay IDA $20,000

CANTON — The operator of a closed Heuvelton cheese plant will pay $20,000 to settle a $70,000 debt with the St. Lawrence County Industrial Development Agency.

IDA members at Tuesday's meeting approved the settlement with the Heuvelton Community Irrevocable Trust, former operators of Heritage Cheese House, by a 5-1 vote. Board member Frederick S. Morrill, DeKalb Junction, opposed it, and Jon R. Greenwood, Canton, was absent.

"I know it's the best we could probably get, but I'm just disappointed this was all we could get," Mr. Morrill said.

Board Vice Chairman Ernest J. LaBaff said the IDA risked not recovering any of its investment in the defunct cheese plant.

"This is a dying firm. We should try to get what we can," he said.

IDA officials had previously told Heuvelton Community Irrevocable Trust members that they would accept $30,000 to settle the cheese plant's outstanding $70,242.92 debt from an $80,000 loan for equipment.

Heritage Cheese closed Sept. 26 and has not made a loan payment since.

IDA Attorney William R. Small said the agency at first considered reclaiming vehicles and equipment on which it held liens, but decided against it after seeing their condition. The company offered to settle its debt for $20,000, and Mr. Small told IDA members at Tuesday's meeting he already had a check in hand if agency members approved the agreement.

Heritage Cheese House was started in 1994 under Amish ownership as a place for community dairy farmers to sell their milk. There were 65 Amish farmers selling milk to the plant, which employed 15 full-time workers.

Massachusetts-based dairy cooperative Agri-Mark, which owns McCadam and Cabot Cheese, announced plans following Heritage Cheese's closing in the fall to build 12 community milk houses for temporary cooling and storage of milk to help Amish dairy farmers meet Grade A standards. Meeting the standard would help them access a larger market for their milk, Agri-Mark officials had said.

The cooperative said in March that Agri-Mark would likely add 80 Amish farmers to its membership by the end of summer.