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September 24, 2018

Aldi’s, Nestles’ Site and a Balance Sheet


To The Editor:

At the January 17th Common Council meeting, I asked the mayor about Aldi’s and Nestles.

He said they’re still working on it and Aldi’s is still coming.

I asked if there was anything else.

He then said that they had been talking with Aldi’s in the past few weeks. He added that Aldi’s wants the building closest to Route 481 to come down. It blocks the view of the new store.

My wife had said that six months ago.

What he failed to mention is that Aldi’s has been trying to close on the property for the past three weeks.

Aldi’s hasn’t heard back from the city’s lawyer about the deal.

In the deal Aldi’s would like to close and put the money in an escrow account and deal direct with a demo company to finish the job.

If Aldi’s doesn’t close soon, we may not get an Aldi’s store for another year at least.

Then they would pay the rest of the costs out of the escrow account. Whatever is left the city would get.

The key here would be not to look for a profit from the sale of a piece of pie when the rest will be worth more once someone sees how good the one piece was.

Get the store built more will come.

Now comes the Balance Sheet part of this story.

Remember I said not to look for a profit in the sale of this piece of the pie.

Selling price of a portion of the Nestles’ site to Aldi’s to build a store: $450k original price.

Bond $300k for bricks and asbestos air testing (bricks that couldn’t be used).

Now before someone says, “that money was bonded, we didn’t use cash.” Oh I see you used the credit card. It still has to be paid sooner or later.

At that point the books looked like this:

$450k – $300k (bond still goes against sale) = $150 profit.

Then Aldi’s says they will only pay $350k for whatever reason.

Now the profit goes down to $50k.

Now the site isn’t ready yet.

Lawyer fees haven’t been subtracted and there maybe realtor fees (I don’t know).

The smart thing to do is to close now and start getting people working and collecting property tax money, also attracting more development.

Will the city do the smart thing, is the $50k question.

Frank Castiglia Jr. – concerned taxpayer

3 Responses “Aldi’s, Nestles’ Site and a Balance Sheet”

  1. Still Watching
    January 19, 2017 at 12:33 pm

    It might be time for the City and it’s leaders to get out of the business of being Developers. They have failed miserably. Yet one more failure trying to venture into the private sector. The beginning of this failure started over a year ago when they awarded the bid to a contractor to demolish the site for free. They could have stopped the bid by requiring a bond be posted with a deadline required. Just one more failure. It’s not any surprise to those really watching the dealings at City Hall. The main reason is the lack of anyone of them having any business background. We have 3 past city employees, 1 past Postal worker, 1-unknown,1-self-employed(furniture repair). Leave the private sector jobs to the private sector.

  2. Linda
    January 19, 2017 at 11:25 pm

    I moved to Fulton as a child in 1973 … over the years we have watched this city go from The City With A Future to F**ked Up Little Town On Narcotics … SAD … we no longer have anything that would attract thousands of people like Riverfest/Chocolate Fest … I am an “older” person of 55 years … I think a major shake up needs to be done to get this back to The City With A Future … we have far too many abandoned house that look like crap … we have far too many city owned homes that are either sitting or are being rented out … The city sent a notice to my landlord because we had plastic on our porch to protect smokers from the winter weather … it was put up carefully and looked fine … yet I moved in here in February 2011 and the house across the street from me has been empty and falling apart … now it has lovely plyboard on it with No Trepassing signs … how pretty this makes the neighborhood look … NOT … we need to get some fresh faces in there to run this city … and yes, by fresh I mean younger ones … Billy Barlow is kicking butt in Oswego … yep, people are mad at him … why? because he is finally doing what should have been done all along and that is make landlords (slumlords) do what is right by their tenants … Fulton has a bad reputation and it is sad to see … I loved going camping at Northbay and swimming and having fun … now you can go there and camp but you cannot swim, this can’t be done, that can’t be done,etc … we used to go to Stevensons Beach and swim, play frisbee, lay on a blanket in the sand,etc … now you can barely walk around the playground without stepping in goose poop or worse, finding used heroin needles … next election vote for a change … let’s get our city back …

  3. Erik wagner
    January 24, 2017 at 2:52 pm

    I agree with Linda. Trainwreck only begins to describe Fulton’s issues. Fulton city government has been the laughingstock of Central New York for nearly 25 years. The only qualifications necessary are a little age, and the ability to smile and shake hands when required. It would be one thing if they were building a state of the art facility costing hundreds of millions of dollars, like the Channel Tunnel connecting England and France. All this is is a tiny grocery store on the corner of an abandoned chocolate factory. Despite the extremely small scale of the project, they have screwed things up like nothing imaginable. Honestly folks, does it take nearly 3 years to clear a site and build something on it? At this point, Aldis is losing money. Before you know it you’re going to see a “thanks but no thanks” letter from that company for breach of contract. They will take their business to another small hamlet in Central New York where city government has their act together.

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