Orange County Partnership - News

Deal for Middletown factory

By Richard J. Bayne
Times Herald-Record
Published: 2:00 AM - 08/21/14

MIDDLETOWN — A beverage distributor and a restaurateur have closed on a deal with the city to take over a mostly vacant industrial building on Cottage Street and turn it into a distribution headquarters, microbrewery and restaurant.

Mayor Joe DeStefano made the announcement at Tuesday night's Common Council meeting: Kenan Porter of Pine Island, who owns Kp Hv Distribution and Sabila Corp., the aloe drink company, has teamed with Tony Tello of Goshen, owner of El Bandido in the Town of Wallkill, to buy the old Clemson Brothers hacksaw factory at 14-22 Cottage St.

DeStefano said the purchase price was $100,000, and the buyers plan to do $1.4 million worth of renovations at the site. They expect to create 20 to 40 jobs, including the construction jobs, DeStefano said. Three small businesses are operating at the building, which was taken over by the city for nonpayment of taxes a few years ago. City officials said those businesses will stay on at the 74,000-square-foot building. There are also plans to add between four and six apartments.

DeStefano said the city is holding a $425,000 second mortgage as part of the deal. If the buyers achieve their economic development goals in six years, that second mortgage will be wiped clean.

Plans call for the Heritage Trail to run near the building when the trail is extended northwest into Middletown. DeStefano said the trail plan helped attract the buyers to the site.