AUBURN -- An upstart cheese company will build a factory in Cayuga County, company, local and state officials announced Thursday.

Representatives from the Saratoga Cheese Corporation said during a press conference that they are committed to building a 64,000-square-foot production facility in the business park in Aurelius. Along with company executives, a number of elected officials discussed state funding and financial incentives that will go to toward the factory.

State Sen. Michael Nozzolio announced a $400,000 state grant will go toward site design and development. And the city of Auburn and Cayuga County are finalizing an agreement that should extend millions of dollars in state development benefits to the business park, according to officials.

While discussions have taken place for more than a year about the possible project, this is the first commitment that has been made in public. According to the company's proposal, the factory should create 77 direct and 180 indirect jobs and generate $3.6 million in dairy producer revenues per year.

William Teator, a representative of Saratoga Cheese and Capital Advocates -- a communications firm representing the company -- said that in a perfect world, the factory will be operational by fall 2010.

Teator said Saratoga Cheese has been impressed with the cooperation that has occurred between the city and county.

"The cooperation has been incredible," he said. "That's one of the reasons why we're moving here."

That cooperation is still taking place, as city and county officials work out an agreement to extend Auburn's Empire Zone to include the Aurelius business park. If the city agrees to extend the zone, the factory will be eligible for millions of dollars in tax breaks and exemptions, refunds and capital credits from the state.