OLD ORCHARD BEACH — Kate’s Homemade Butter, which has operated a home-based business since 1981, said its new facility in Arundel will not be completed until Feb. 1.

The town previously said that Kate’s must vacate its home operation by Sept. 30 or face the potential loss of its business license. Kate’s was required to inform the town by Aug. 30 whether it would be able to meet that deadline.

Kate’s, which produces more than 1 million pounds of butter a year as well as buttermilk, operates in about 1,000 square feet of space in the garage of an Old Orchard Beach home. The company has been building a 17,600-square-foot facility in Arundel, but that relocation was slowed by construction problems.

In an Aug. 30 letter to the Old Orchard Beach Business Review Board, Kate’s said it had consulted with all of its major subcontractors regarding the timeline for completing the Arundel building.

“All of the companies involved agree that February 1st is a date Kate’s Butter can stand behind in order to complete the factory in Arundel,” Daniel Patry, co-owner of Kate’s, said in the letter. “We will continue to operate under the constraints of the consent agreement as we have for the past 12 months.”

Under the consent agreement, Kate’s last year agreed to modify the hours of its operations, reduce the size of its delivery trucks and plant trees and install other barriers to reduce noise.

Neighbors have complained that Kate’s, which has trucks delivering raw materials and taking away finished products, has outgrown its home location and should no longer be operating in a residential neighborhood.

Old Orchard Beach officials will meet with Kate’s on Sept. 18 at 5 p.m. to discuss the next step.

Kate’s did not immediately respond to a request for comment.

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