Schenectady, N.Y. — The Schenectady County Metroplex Development Authority met today and approved projects that represent new investments of more than $33 million in Schenectady County.
The first project involves the renovation of the former Draper School in Rotterdam for use as housing for disabled veterans. The New York State Chapter of the Disabled American Veterans (DAV) wants to retrofit the former school building to create 150 apartments for disabled veterans. The project represents a $25 million investment in the Town of Rotterdam.
Metroplex is providing a grant of $64,000 toward back taxes owed on the building allowing for the transfer of the deed to DAV. Schenectady County is providing $64,000 in tax forgiveness and the DAV is paying $64,000 toward the back taxes.
When the former Draper School was used by a local Charter School back taxes accrued on the property. By clearing these taxes, the DAV can obtain clear title to the building and start to make renovations.
Metroplex Chair Ray Gillen said, “The County Legislature and the Town of Rotterdam have both been very supportive of this effort to bring the DAV project to the former Draper School site. This is an excellent adaptive re-use of the building. Both the construction project estimated at $25 million and the residents living in this building will be a benefit to Rotterdam and to Schenectady County. In addition, Schenectady County is honored to host these veterans in our community.”
In other action, the Metroplex Board also approved tax increment financing for the Patriot Square Project in Glenville. The project takes an 11- acre site in the Town of Glenville that now produces $5,000 a year in property taxes and creates a new development site – Patriot Square — that will pay local tax jurisdictions (County, Town and School District) almost $300,000 in new tax revenue each year for Phase I of the project. Later phases will create additional tax revenues. The Patriot Square project is being developed by the New York Development Group in Clifton Park, NY.
Metroplex will put in place a payment in lieu of tax (PILOT) agreement for Phase I of the Patriot Square project that will require the developer to pay the equivalent of full taxes on the project for five years with Metroplex utilizing $50,000 of the new tax revenue generated by the project each year for five years to help defray a portion of the costs associated with building a new road that is needed to open up the site for development. The project developers will invest $1.5 million in private capital toward the cost of building the road and other infrastructure improvements needed to access and then develop the site.
Gillen said, “Metroplex is very proud of its role in redeveloping the former Kmart site – now under construction as a new Target Store — a $20 million private investment in Glenville. Right behind this site, we are working with the Town and New York Development Group to move forward with the Patriot Square project. This mixed-use project is designed to create residential, retail and office space in the center of Glenville.”
In another action, the Metroplex Board approved an extension of the PILOT agreement for the Hampton Inn Hotel in downtown Schenectady. The PILOT allows the hotel to utilize the Empire Zone program. When the hotel was constructed in 2006, Metroplex’s ability to offer a pilot on this building was limited to five years. Amendments to the Metroplex statute in 2008 allowed the development authority the ability to offer up to ten years of assistance. As the Empire Zone Program offers assistance for ten years, the extension of the PILOT allows for the Zone benefits and PILOT to run in parallel.
The Hampton Inn opened in 2007. The project represented a $10.5 million investment in a new 93 room, 61,000 square foot facility. The hotel employs 40 full and part-time employees. Occupancy rates are very high and the hotel has been a major success for Schenectady. The Hampton Inn in Schenectady is one of the most successful downtown hotel projects in New York State.
The extended agreement provides for more than $150,000 in property tax revenues in 2012, 2013, and 2014 before increasing to $175,000 and $200,000 during the balance of the PILOT period.
Metroplex estimates that the Hampton Inn, built on a vacant lot that was tax-exempt before the project was built, has generated more than $1.5 million in property, sales and bed tax for the City, County and school district during the hotel’s first four years of operations.
Metroplex Chair Gillen said, “We appreciate the investment by Schahet Hotels of Indianapolis for investing in our downtown at a key moment in our development efforts. Their investment provided a major boost to Schenectady.”