CNB Financial Corp. in upstate New York says it hopes to negotiate a new agreement after losing a property tax break in a dispute between town and county governments.
At issue is a tax break that the $720 million-asset banking company was offered by Montgomery County economic development officials when it agreed to build a new headquarters in its hometown of Canajoharie.
In 1994, CNB was scouting sites but having difficulty finding suitable land in the town. When it began searching elsewhere, the county development office stepped in and offered four acres of town-owned land.
As part of the deal, the economic development office offered the bank a break on property taxes that would last for 30 years after it occupied the site.
The bank moved in to its new headquarters in 1996.
But town officials-who did not object to donating the land-said they were never informed of the tax break. They sued last November in state Supreme Court to have the deal overturned and won the case late last month.
CNB said it expects to sit down with the two sides and negotiate a new deal.
"This is an issue that was settled years ago, but now someone has had a change of heart," said Donald L. Brass, president and chief executive officer of CNB. "We don't know exactly what they intend to do."