GRANDVIEW - The Grandview Foods plant, located near the intersection of West Second Street and Grandridge Road in Grandview, closed its doors Jan. 28. The closure of the vegetable processing plant is the third in recent years.
Operated by a cooperative of area farmers living in the Horse Heaven Hills, the plant processed corn, peas, beans, sugar snaps and carrots. The plant had not been processing any produce since November, according to City Administrator Jim Sewell. All that remained since the close o the 2004 growing season were the office staff.
The plant is owned by Kenyon Zero Storage. It has opened and closed several times in recent years. Sewell said he believes that as more sophisticated processes and new methods come along, newer plants are more efficient than the circa 1940s behemoth and processors are looking to new methods to save money.
Currently, the owners of Grandview Foods, who don't plan on filing bankruptcy, owe the city $268,000 in water and sewer fees, according to Sewell.
"They have indicated to us that we'll be paid," said Sewell. "The officials of the company have been very good to work with to make this work out."
In 2004, Grandview Foods paid $600,000 to the city in water and sewer fees. With the plant closing there will be a wide gap in the city budget, but Sewell said the city has already begun putting projects and hirings on hold to make up for the reduction in water and sewer revenue.
Amongst the cuts will be a $100,000 dump truck for the water treatment plant and a $20,000 pole building.
"We're going to cut our costs as much as we can to mitigate this," he said.
Sewell said benefiting the city of Grandview is the increased production at the Smuckers and Shonan plants, which will hopefully keep the city from having to raise rates.
No one from Grandview Foods was available for comment.