HURLEYVILLE – Formaggio Cheese in Hurleyville is looking to build new employee housing in the Town of Fallsburg, but before going through the full planning process, the company came before the town board on May 6 to see if the board would be open to the project.

The discussion centered on a sewer district extension for property on Route 52 that is already on town water, but would need sewer service for the project to move forward.

Attorney Michael McGuire, who appeared on behalf of Formaggio, said the presentation was only conceptual and that the company wanted to know whether the board would support the idea before spending money going through the Planning Board.

“This is a conceptual presentation. That’s all it is. It’s early,” said McGuire. “As we deal with these things, it’s always the chicken or the egg. We know we’ve got to go to the planning board.”

McGuire said the property was not included in the sewer district because of elevation issues and that the project would require a pump station. He said Formaggio would be responsible for the cost of the pump station and extending the sewer line.

According to McGuire, Formaggio, a cheese manufacturer, currently employs 353 people and paid $17.5 million in salaries in 2025. He added that the company paid $41,000 in property taxes.

He said the company is looking at potentially 16 duplexes, or 32 units, on the property. Some variances may be needed, and the company’s engineer is still reviewing the plans.

McGuire said the work may be done in phases, with buildings that are currently not habitable being taken down and replaced first.

“We may or may not build them all simultaneously,” said McGuire. “We’ll probably take down some of the buildings that are currently not inhabitable and replace them with new duplexes, and then over a period of time, replace all of them, replace the roadways, replace the parking areas, but stay within the same footprint.”

He added that there would be no new curb cuts and no additional water needed, but sewer service would be needed because of the added population and the limits of the current septic system.

McGuire said Formaggio is growing and needs the housing to keep up with its workforce needs.

“We need employee housing because we need to continue to grow,” said McGuire. “Formaggio has grown precipitously over the last several years, and they’re going to continue to grow, but they can’t without a workforce.”

When asked how many employees would live there, McGuire said the project could house roughly 35 to 50 employees, depending on families and household makeup.

Fallsburg Town Supervisor Nathan Steingart asked whether the units would be rented to the public or only used for employees.

McGuire said the company is not looking to rent them out to others.

“We have to have housing for our employees,” said McGuire. “We’re not looking to outsource it. We’re looking at employees.”

Steingart said the project was appealing because it supports an existing business, but he also noted that Fallsburg has had ongoing concerns with water and sewer capacity.

“This is something that appeals to me because it supports a business and it makes sense,” said Steingart. “But knowing our struggles with our water and sewer, extensions are–unless it’s a very unique situation–irresponsible, if we approve them. But to me, this is something that absolutely I would be okay with.”

Fallsburg Councilmember Michael Bensimon was more cautious, saying the town has to be careful before adding new properties to the sewer district.

Bensimon said that if a property is in the district and paying capital taxes, the town has a responsibility to provide the service. If the property is not in the district, he said, the town has no responsibility to provide service.

“Once we bring someone into the district, they’re forever our responsibility,” said Bensimon.

Bensimon said there may be some capacity left at the treatment plant, but he said the town also has to consider what would happen if properties already in the district were built out under current zoning.

“If everyone that’s currently in the district builds according to the current zoning with no variances, we don’t have enough to cover our own people,” said Bensimon.

He said that has made the town more cautious about granting water and sewer district extensions.

McGuire said Formaggio would provide more information on how much sewer capacity the project would need.

“I don’t want to venture that. I’m not an engineer, but I’ll get that information,” said McGuire. “What I would want to give you is the 32-unit number for gallons.”

Steingart said he was comfortable with Formaggio going to the Planning Board, but said the town engineer would have to be comfortable with the numbers.

“I’m comfortable personally telling you to go ahead to the Planning Board with some confidence that as long as [Town Engineer] Ken [Ellsworth] is comfortable with it, that we’ll extend the district,” said Steingart. “But again, I’m one person.”

No final approvals were given at the meeting. The project will still need to go through the Planning Board and the town’s sewer district extension process.