Sugar plant may become condos
By Susan Salisbury, Palm Beach Post Staff Writer
Friday, July 2, 2004
Two Palm Beach County-based sugar companies have sold a vintage Domino Sugar plant in Brooklyn, N.Y., to developers who specialize in residential projects.
The purchase for an undisclosed amount marks the end of the factory, which overlooks the East River and dates to 1856.
The 11-story building on 11 acres was known for its red neon Domino Sugar sign and is a landmark in the domestic sugar industry.
CPC Resources, the development arm of the Community Preservation Corp., and Isaac Katan, a developer known for converting commercial areas to gentrified residential condominiums, closed Wednesday on the building and the land surrounding it, said CPC spokeswoman Brenda Ratliff.
Ratliff said she was not sure what the plans are for the property.
CPC is a private mortgage lender specializing in financing low, moderate and middle-income housing in New York and New Jersey.
Since 1974, the CPC has financed more than 92,000 affordable housing units.
The Fanjul family's West Palm Beach-based Florida Crystals Corp. and the Sugar Cane Growers Cooperative of Florida in Belle Glade, bought the plant in November 2001 when they partnered with and acquired Domino Sugar. The buyout also included refineries in Baltimore and Chalmette, La.
American Sugar Refining Co., the umbrella company formed at the time of the $180 million-plus deal, also owns a refinery in Yonkers, N.Y., about 10 miles from the Brooklyn facility, said Don Brainard, American's vice president for human resources.
"When we announced the partial closure last year, we knew that ultimately we would be winding it down over the next year," Brainard said. "Over the last several months, we have received various phone calls and offers for the site and decided it was in our best interest to sell the property."
The older Brooklyn facility was the least efficient of the sugar plants, and the company is making millions of dollars in capital improvements in the other Domino facilities, including in Yonkers, Brainard said.
A year ago, the Brooklyn plant was down to 225 employees.
A partial closure was announced last year, and in January, the refining operation was shut down.
Only 25 packaging employes remain in Brooklyn. Some of those will be laid off, and some will be transferred to Yonkers, Brainard said.
"The operations are being consolidated in Yonkers," Gaston Cantens, spokesman for Florida Crystals, said Thursday.
The U.S. sugar industry has more refining capacity than it needs.
Uncertainty about sugar's future in the free-trade arena also played a role in the decision.
"We also have these free-trade agreements floating out there. We're not sure what is going to happen," Cantens said.
Florida Crystals, the co-op and Florida's other sugar firm, Clewiston-based U.S. Sugar Corp., collectively produced 2.15 million tons of sugar in the 2003-04 season, an all-time high, according to the Florida Sugar Cane League Inc.
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