Also approves tax cap override, sets town budget workshop and hearing dates
Lebanon town board members voted 3-1 to approve the Partnership for Community Development block grant/loan application. Kriemhild is seeking an expansion and addition of employees to the butter plant on Route 12B after notable public debate at the Smith Valley Community Center in Randallsville Oct. 10.
The vote came after a half-hour of extensive comments from town residents and interested parties at a public hearing who were in favor or against the proposal.
Those speaking out against the grant application included Susan Galbraith, local organic dairy farmer Steven Bartlett, John Koonstra, Daniel Clark, all of South Lebanon Road. Their objections included allegations that Kriemhild misrepresented its products’ grass-fed claims, should not have a grass-fed label, argued the town should not support an application that engaged in “deceptive marketing practices.” Some also questioned Kriemhild’s ability to pay the loan back and the nationality of its owners.
Amish farmer Reuben Byler of Lebanon Road stated he did not support the proposal, and Bartlett and Galbraith claimed the proposal would hurt local dairy farmers like the Amish, who currently ship their milk to other dairies such as Organic Valley as their religious beliefs would prevent them from participating in a federally subsidized expansion program. Byler also felt that Kriemhild was charging a premium price earned by organic grass-fed farmers and exploiting their efforts.
John Gale of South Lebanon Road questioned some of Kriemhild’s feed practices, such as the use of dairy whey. Opponents said they thought the town board could be opening itself up to lawsuits, that there was risk the loan might not be paid, that it could hurt local farmers and the town board should not support it.
Supporters of the proposal included local farm-to-market business operators like Kenneth Mangine of Fruit of the Fungi, who said that he had attended hundreds of farmers markets with Kriemhild; he said in more than eight years, he had never heard one deceptive marketing practices complaint, he noted the product was popular, locally produced and praised the owners for taking the expansion direction.
Other supporters included Patty Grossmann, a former planning board member, who praised the product and the proposal.Amy Yahna and Brian Musician emailed a letter of support for the facility. The expansion was also supported by the local distillery operated by the Carvell family. Bruce Mosley of Hamilton praised the company, its product and the proposal.
The owners of the project, including the Rivingtons of Route 12B, confirmed that there were three owners, two Canadian and one American. The business has two women owners and employs a number of women, which is unique in agriculture. The proposal had the goal of creating four jobs, but could create as many as 14, depending on expansion and that Kriemhild is on track to become certified non-GMO and organic in the future.
Several local residents who are employed at the facility spoke in favor of the opportunity, which they say creates good-paying, local agricultural jobs. Jennifer Lutter of the Partnership for Community Development verified that this was a job-creation grant and loan application that had to meet all local, state and federal requirements and that the owners would have to pay the loan/grant back if the job creation goals were not reached.
The PCD had participated in a similar job-creation ag development expansion project for Good Nature Brewing in Hamilton. She also said the PCD and not Lebanon assumed all risk for the loan and collection of it.
Lebanon board members Ron Jones, Patricia Matson and Supervisor Jim Goldstein supported the grant. Council Carol King voted against the application due to the concerns stated. The project now goes to the application stage and then must complete a federal environment quality review.
The Town will act as the administrative pass through for the proposa,l but the PCD will handle all of the application details. Goldstein said the town should always support ag development and expansion as long as it complies with all existing local, state and federal laws and does not pose an environmental risk.
Town council members Jones and Matson shared Goldstein’s view that the proposal would benefit local farmers and not harm them. Goldstein said that the concept of a free market and competition for locally produced products like milk were at the heart of the debate. He also said that consumers have many local butter choices but that Kriemhild’s decision to move to organic shows their recognition of what is popular with consumers.
Those present who purchase the product said they were aware of it not being currently organic and that they purchased a number of products, organic and non-organic, but Kriemhild is popular due to its taste. Some also praised their new farm stand at the 12B location. Goldstein also noted that the goal of creating local jobs and adding to the tax base should always be supported in agriculture and noted that the value of the farm made the $50,000 loan a very low-risk prospect for PCD.
Goldstein also said that he felt that there were conflicts of interest at play with the objections between competitors for milk supplies and that the market should be allowed to determine the outcome. He said he thought it was a win for the town, the farm, the consumer and the taxpayers who will see added tax base and jobs, and a small portion of administrative fees will go to Lebanon, as well.
PAC 99 on Time Warner Cable filmed the meeting and it can be viewed there.
In other actions, town board members:
- Approved a local law overriding the state tax cap for 2017 after receiving no public comment. The overall budget is $5,000 over the tax cap, due to fire and ambulance budgets. The town preliminary budget, approved by the town board for review, is down about 3 percent from 2016. A budget workshop will be held Oct. 24 and a public hearing Nov. 10.
- Adopted a resolution asking the Public Service Commission to investigate Frontier Communications phone service and repair practices.
- Discussed a county grant application with Time Warner Cable (Charter Communications) to expand broadband service to rural areas not currently served by cable.
- Discussed proposed changes in the land management local law submitted to the town board by the LMLL committee. The proposed changes will be discussed and shared with the public at future town board meetings.
- Amended the town budget to show the receipt of state CHIPs revenue.
- Discussed county and town budget issues.
The town board will next meet for a budget workshop Oct. 24 at the Town Office at 7:30 p.m.
Submitted by Lebanon Town Supervisor James Goldstein