NY Court Halts Tax F'closure Of Factory Targeted For Bakery Expansion Over Incorrect Payment Deadline In Legal Notice; Area Cookie Lovers Disappointed

In Troy, New York, the Albany Times Union reports:

• A bakery looking to expand is eyeing a former meat processing plant as a new location, once the city completes a tax foreclosure on the building's bankrupt owners.



• The owners of The Cookie Factory, which has operated from an 8,000-square-foot plant on Congress Street since 2006, want to buy the former Levonian Brothers plant at 41-61 River St., which has been shuttered since 2009. However, problems with unpaid property taxes left by the former owners have slowed city efforts to foreclose on the property and then sell it.



• The city's initial attempt to foreclose on this property and more than 120 others in November was thrown out by Rensselaer County Court Judge Andrew Ceresia because the legal notice gave an incorrect deadline for payment of the delinquent taxes, which now total more than $805,000, said Mike Fraser, a spokesman for Troy Mayor Lou Rosamilia,



• "This was a major misstep that set us back," said Fraser. "We want to keep this company in Troy." He said the city expects to issue another foreclosure notice on Friday, which would allow the city to foreclose if taxes are not paid within 90 days.



• Cookie Factory co-owner Chris Alberino said Tuesday the company badly needs extra space to handle its increased production. Once it gets more room, the company expects to hire 10 more workers to help meet demand for its cookies and specialty baked goods, Alberino said. "We are just going through the process with the city, waiting" said Alberino. "We were basically ready yesterday." Alberino, who owns the business with his brother, Joe, said the 28,000-square-foot former meat processing plant is "the next best thing to building a new building. It is set up for how we would use it."



• However, about $350,000 would be needed to renovate the building, which would house all baking operations. Retail sales and cake decorating would remain at the original plant. Alberino said the company is experiencing a sales surge from the recent introduction of a two-pack for its specialty fudge cookie. "Once we get more space, we plan to add a second shift," he said.



• Levonian Brothers Inc. filed for Chapter 7 bankruptcy liquidation in July 2010 amidt $4 million in unpaid taxes, bills and other debts. The bankruptcy case was settled in December 2010, but bankruptcy documents did not indicate any transfer of Levonian's real estate, equipment or other assets.



• In February, Local 1 of the United Food and Commercial Workers union won an $803,000 judgment against the company for failing to make contributions to the employee pension fund through September 2011.

Source: Bakery looks to ex-meat plant for growth (Cookie Factory hopes to get site once occupied by Levonian Brothers).

See also, The Business Review: Troy judge blocks foreclosures, delaying Cookie Factory plan.