Schenectady, N.Y. – City, County and Metroplex officials today agreed to sign a memorandum of understanding (MOU) concerning the sale of the Broadway Parking Garage and seven surface lots downtown to Metroplex.
“This is a giant step forward in our efforts to restore Schenectady’s financial integrity. I appreciate the efforts of the Metroplex Board of Directors to put in place an agreement that provides for the prompt transfer of the garage while keeping Schenectady moving forward,” Mayor Brian U. Stratton said.
City Council President Frank Maurizio said, “This is truly a win-win agreement for City taxpayers, downtown merchants and our efforts to keep making progress downtown.”
City Councilman and Chair of the Council’s Finance Committee Mark Blanchfield said, “This is a positive step in the right direction that will improve Schenectady’s financial picture.”
City Councilwoman Cathy Lewis said, “I am pleased that this multi-party agreement is finally in place. It will help to restore financial stability and is vital for successful economic development efforts in the City of Schenectady.”
Under terms of the MOU, the City IDA will sell the Broadway Center Parking Garage and seven surface lots downtown to Metroplex. Metroplex will pay $4.65 million for the garage, which represents the amount of existing debt on the structure. Because the outstanding debt has a reserve fund of $924,000, the net cost to Metroplex for the garage will be $3.7 million. In addition, Metroplex will pay the City $1 million for seven surface lots downtown. The City will pay the Downtown Schenectady Improvement Corporation (DSIC) $50,000 per year for 20 years to satisfy DSIC’s interest in the seven lots.
Earlier versions of the MOU called for the City and DSIC to share 70% of the proceeds from any future sale or lease of the surface lots.
Ray Gillen, Chairman of Metroplex said, “This would have limited our ability to aggressively seek new investment downtown. By agreeing upfront on a purchase price for the lots, we set the stage now, not later for new deals downtown. We appreciate the fact that the City and DSIC both worked cooperatively with Metroplex to craft this agreement.”
Mayor Stratton added, “In addition to enhancing the City’s fiscal health, this agreement supports our downtown businesses by preserving free two-hour customer parking at the surface lots for at least the next three years. In finalizing this deal, putting this deal together, we paid close attention to the needs of downtown merchants.
Collectively, they represent the heart of downtown and we are pleased to have their support for this new agreement.”
The MOU preserves free two-hour parking on the surface lots for the next three years. Metroplex will work with DSIC and the City to complete an integrated parking strategy for downtown inclusive of city merchants, downtown employers and local residents. Although the City will continue to manage the parking garage until the property transfer is complete later this year, Metroplex will make interim bond payments due in March and October under terms of the MOU.
Bill Glock, Chairman of the downtown Schenectady Improvement Corporation (DSIC) said, “Our Board believes this MOU addresses the primary concerns of our membership and the best interests of the City. We look forward to continuing this close working partnership with the City, County and Metroplex.”
Following signing of the MOU, all parties have agreed to expedite the property transfer. Metroplex is expected to have site control of the garage and surface lots later this year.