Deal reached to stop TechCity electricity shutdown
A deal to prevent an electricity shutdown at TechCity will save 14 Tech City businesses and prevent the loss of 140 jobs, according to Ulster County Executive Pat Ryan.
In an announcement Friday, Ryan said a backup county assistance package, working with the town of Ulster government, Empire State Development and Central Hudson Gas & Electric Corp., has saved the jobs and businesses from shutting down following the
“inaction of the Tech City landlord and the imminent threat of electric utility shutoff to the entire site,” a press release says.
Businesses located at the TechCity in the town of Ulster were notified two weeks ago by utility company Central Hudson of the imminent shutdown late this week of power to the entire complex due to the long-term failure of landlord Alan Ginsberg to pay overdue electric bills, Ryan said.
“This week, following extensive discussions between County Executive Ryan’s administration, Central Hudson executives and businesses located at the Tech City complex, plans were solidified to keep the power on,” the press release says.
“AT&T, which provides mobile telecommunications services from a tower at Tech City, agreed to take over responsibility of electric usage charges on site, keeping the power on for all other businesses currently operating there,” the release says. “The agreement will enable the businesses to fulfill holiday season orders and continue working with Ryan’s Department of Economic
Development to potentially secure new locations for long-term continued operations and the retention of the more than 140 employees at those businesses.”
Ryan laid blame squarely at Ginsberg.
“Alan Ginsberg has failed to pay his taxes, he has failed to clean up environmental issues that he has caused, and now he has failed to provide basic services to his own tenants,” Ryan said. “I want to thank Supervisor (James) Quigley, AT&T and Central Hudson for partnering with us to ensure that the over 140 people will continue to have work during the holidays. As I said from the moment that I took office, I will continue to prioritize turning around the Tech City property and returning it into the economic asset that it once was.”
AT&T Project Manager Timothy Connelly said that the company was committed to help.
“AT&T was happy to help in this difficult situation by working with the tenants of Tech City to keep their lights on during the holidays,” Connelly said in the release. “We applaud County Executive Ryan and his team for collaborating with us in our efforts to save jobs and help local businesses in a time of need.”
Central Hudson Spokesman John Maserjian said:
“Central Hudson has been working diligently with Ulster County, the Town of Ulster, the Public Service Commission and business tenants at the site to maintain utility services to the extent possible, preserving more than 140 jobs during this holiday season.
“We continue to work with the tenants and others to identify creative ways to overcome the challenges this site presents,” Maserjian said.
Town of Ulster Supervisor James Quigley felt similarly.
“The Town has worked diligently with Ulster County government and Central Hudson and we are pleased that together we are able to continue to deliver on successes and ensure jobs remain in the community,” Quigley said in the release.
Business owners at TechCity also expressed gratitude.
“I’d like to thank the Ryan administration and Supervisor Quigley for their willingness to help our business and thirteen others here at Tech City,” said John Parker, owner of JSP Plumbing and Heating, which employs 35 people at the Tech City campus and anticipates expansion in 2020. “They demonstrated a commitment not just to keeping the lights on but to keeping more than 140 people employed.”
“During this very stressful and difficult time, I’m so grateful for the hard work County Executive Ryan and the Ulster County Department
of Economic Development have offered” said John Burkhart, owner of File Fish, a film production company.
Business tenants at Tech City, which receive power through a single industrial meter system from Central Hudson, were first notified of imminent electric shutoff in April following months of non-payment by Ginsberg, according to the release.
Shortly after, one of the corporate tenants agreed to take over responsibility of the bills for all tenants.
That business since moved out, and Central Hudson notified all other tenants anew of an imminent shutdown this week unless a business could take over the account on behalf of the entire site.
Following the most recent notice from the utility, Ryan’s Office of Economic Development worked with business tenants to determine a “short-term solution while assisting them in locating new facilities for their operations. “Initially, JSP Plumbing and Heating, with a commitment from the Ulster County Revolving Loan Fund Committee and Economic Development Alliance for a short-term bridge loan to defray initial costs, agreed to take on responsibility for electric usage payments temporarily until their planned move this spring to a new location in the Town of Ulster,” according to the release.
AT&T’s subsequent agreement superseded that short-term plan.