Cheese plant owner pays $108,000 toward debts

OGDENSBURG— It doesn't look like the city will be locking the doors and turning off the water supply for the 30 Main St. kosher cheese plant anytime soon.

City officials received notice Friday afternoon that Toobro LLC, Hewlett Neck, which owns the plant, wired $108,000 for rent, utilities and the down payment on the recently purchased facility.

Since $50,000 of the $125,000 downpayment remains to be paid, the company is still in default of the purchase agreement it signed with the city in May. However, City Manager Arthur J. Sciorra said he will drop the Monday deadline he gave the company to settle up or be shut down.

"I think it's a good-faith effort and I'll recommend to the council working with Toobro, but at the same time continuing to demand compliance with the terms of the contract," he said.

Mr. Sciorra said Toobro paid $12,000 in rent, $50,000 toward the down payment and $46,000 for utilities, which almost brings water and sewer bills current up to August.

"Toobro would like to thank the city for its patience during this time of transition and we look forward to a prosperous and beneficial relationship in the future," said Andrew W. Moesel, a spokesman for Toobro.

Last week Mr. Sciorra had threatened to close the plant — which makes "cholov yisroel" grade kosher cheese and milk — and turn off its water supply after the company had put down only $25,000 on the property and failed to pay about $60,000 in utilities and $12,000 in rent.

Mr. Sciorra said he had created the deadline to ensure the plant would not accumulate debt to the city, as was the case with previous owner Ahava Food Corp., Venice, Calif.

In July 2008, the city foreclosed on the factory because Ahava owed $90,000 in rent and $618,138 in utility bills.

According to U.S. Department of Labor officials, plant employees might not have been paid for the past few weeks of work.

John M. Chavez, a spokesman with the department, said it is looking into whether Toobro or Ahava is responsible for reimbursing workers for two weeks of unpaid labor.

Mr. Moesel said all 60 employees were at work in the plant Friday and were on the Toobro payroll.