Kolmar: staying or going

Company weighing state offers as the area waits, By Anya Tikka PORT JERVIS, N.Y. — Cosmetics manufacturer Kolmar is considering moving out of Port Jervis, and many area residents are worried. Kolmar is the largest employer in town, employing between 500-700 area residents, some of who reside in Pike County. If the plant leaves, the economic woes of Port Jervis and surrounding areas will magnify. The company has little to say. A spokesperson for Kolmar, CEO, Roger Theroux, said on July 26, “We are still in discussions with the State and have nothing to add.” According to Port Jervis Mayor Gary Lapriore, there was a meeting on July 3 with Kolmar representatives, the representatives of the governor’s office, elected town officials, and various New York State agencies. As a result of that meeting, Kolmar was offered a new financial incentives package that should ensure that it is attractive for them to stay in Port Jervis. The state reportedly upped the July offer again earlier this month. Lapriore especially mentioned Assemblywoman Aileen Gunther, and Congressman John Hall, as well as the CEO of the Empire State Development Corporation, chief Dennis Mullen, for taking active parts in the negotiations. The process of renegotiation has been going on for 1.5 years, according to Lapriore, and there has been a very strong effort from the governor’s office. The Tri-State Chamber of Commerce in Port Jervis and Pike County Chamber in Milford were given an opportunity to comment, but did not respond. According to John Wortman, who is the Republican candidate for Port Jervis Council in the upcoming elections in November, the high utility costs and the surcharges Orange and Rockland Utilities charges for delivery based on usage, unlike anywhere else in the country, and the high taxation rates are driving business out town. He would like to see a special taxation zone set up for New York areas bordering on Pennsylvania that has the advantage of easier taxation and lower utility costs. Lapriore commented that New York State Public Services Commission regulates utility rates. He conceded that with high taxation and perhaps utility costs and high workers’ compensation laws, it’s hard to do business in New York State. Despite this, he remains confident that Kolmar will stay as result of the negotiations and the deal offered. He declined to disclose any specifics of the deal being discussed. Port Jervis is a historic railroad town that has between 9,000 and 10,000 residents. Although it still has a railway line to New York City with only one change in Seacaucus, N.J., and is within about 1.5 hours driving distance from the city, it has not been able to attract new business from the Metropolitan area, and remains a depressed area. John D’Ambrosio, president of the Orange County Chamber of Commerce, has been critical of costs prompted by the MTA. He believes a 12-county tax — which supports the Metropolitan Transportation Authority — is unfair to Orange County. The tax, of 34 cents per $100 of payroll, is as high in Orange County as it is in Manhattan, despite a huge disparity in MTA-provided services.