An upstart cheese company is wedging its way toward opening a factory in Cayuga County. And it is asking for both state and federal help to get it over the hump.

The city of Auburn accepted in July an initial application to extend its Empire Zone to include the Saratoga Cheese Corporation. That was the first of three bureaucratic steps the company must clear before work begins on the proposed site.

At the same time, a U.S. Congressman has been seeking some $1.7 million in federal aid for the project.

According to Cayuga County Planning and Economic Development Director Steve Lynch, the Empire Zone application will now be evaluated by Empire State Development. If it is deemed eligible for regionally significant status, the company will have to submit a full application for final approval with the city, Lynch said.

“The county planning and economic development and the city are working very closely on this project,” he said.

If Saratoga Cheese is deemed regionally significant, it can receive attractive Empire Zone benefits, which include tax breaks and exemptions, refunds and capital credits from the state.

But the proposed factory site is in the business park adjacent to Route 5 and 20 in Aurelius, which is owned by the Cayuga County Industrial Development Agency. Auburn contains the only Empire Zone in the county, so the city must sponsor the project before the zone is extended.

City Manager Mark Palesh confirmed Friday that city and county officials have been discussing the terms of a possible agreement. Water and sewer rates have been a major focus of those talks, as the city would provide those services, he said.

The city's Empire Zone Board approved the initial application understanding that the discussions can continue until final approval, Palesh said.

Talks have been positive, he continued. And as part of the negotiations, the city has offered to extend its Empire Zone to the entire business park, he said.

“I think the county has been great to work with on this,” Palesh said.

According to the application, the 64,000 square-foot facility is expected to employ more than 70 people and produce more than $100 million in annual sales. The company would produce specialty cheeses such as feta, fresh mozzarella, muenster, havarti and other varieties, according to the application.

Saratoga Cheese would also use kosher Cholov Yisroel milk from local farmers, which would allow all of its products to advertise as Cholov Yisroel and halal certified to tap in to a niche market.

Chief Executive Officer Lawrence Rosenbaum said Friday that the company has secured all but $10 million in equity investments to fund the $40 million project, he said. If the factory is deemed regionally significant, the $12 million in tax preferences will go a long way toward securing that final amount, he said.