Schenectady, NY – The City of Schenectady Industrial Development Agency (IDA) today agreed to fund a Phase II environmental study of the former Castelo’s building at 183 Nott Terrace in downtown Schenectady.
The City of Schenectady is foreclosing on the building but will not take title until the environmental work is completed by the IDA. The City has several organizations and businesses that want to buy the building and renovate it but uncertainty about the environmental condition of the land beneath the building has prevented a sale and redevelopment of the property.
Mayor Gary McCarthy said, “We appreciate this support from the City IDA. Our goal is to move forward with the sale and redevelopment of this property on Nott Terrace.”
Ray Gillen, Metroplex Chair said, “The City IDA funded a similar environmental study of a City-owned site on Erie Boulevard last year. This led to the sale of the property netting the City $200,000 and getting the property back on the tax rolls. We want to duplicate this success on Nott Terrace.”
Metroplex administers the City IDA as part of Schenectady County’s unified economic development team.
The Nott Terrace site housed a Pizza Hut that later became a restaurant called Castelo’s. Many years ago the site housed a service station and thus the concern that some potential environmental work might need to be completed prior to redevelopment.
Metroplex will contract with an environmental consulting firm to conduct a Phase II report on the property which will include drilling to thoroughly test the site. The Phase II study is expected to cost approximately $20,000.
A Phase II report done by Metroplex allowed the County to purchase an abandoned site on State Street from the City that now is home to the Bornt Library and new Family Dollar store.
Earlier this week, Metroplex also announced plans to buy 218 Nott Terrace and demolish the building as part of efforts to continue redevelopment of this corridor which is home to a new $15 million DoubleTree by Hilton.
The City IDA also agreed to sell a parking lot it owns at 451-453 Duane Avenue. The lot was constructed by the IDA under different management in 2003 prior to the establishment of Schenectady County’s unified economic development team in 2004.
The IDA must follow property disposition outlined by the Public Authorities Law which requires obtaining an appraisal and selling the property for full value. An appraisal shows the property value at $170,000 for the 2.55 acre site. The IDA is now soliciting offers for the property.
Gillen said, “We want to sell this lot and get it back on the tax rolls.”
Anyone interested in buying the lot may contact Metroplex. Minimum bid must be $170,000.