One of downtown Schenectady’s largest and most centrally located buildings, Center City, will benefit from a $2.5 million state grant as part of the Restore NY Community Initiatives Program announced by Gov. Eliot Spitzer on Tuesday, Jan. 14.
Rotterdam’s Galesi Group, a major area developer, took over management of the 415-419 State Street facility approximately two weeks ago. The company will be the new owner of the building. Chief operating officer of the Galesi Group, David Buicko, said his company will contribute $2 million toward the renovation of Center City and will willingly spend more if necessary.
Chairman of the Metroplex Development Authority Ray Gillen said the building will be placed back on the tax rolls. The Galesi group will pay full property taxes on the facility.
The Robert Lupe family has paid a flat $10,000 annual fee under a payment-in-lieu-of taxes (PILOT) for more than 20 years.
In my many years in economic development, I’d never heard of a 20-year PILOT, said Gillen. Under the PILOT agreement, Lupe did not have to pay any school taxes as well.
Center City was built in 1979 and needs major renovations.
Buicko said the Galesi Group planned to use the $4.5 million to renovate the somewhat tired faCade. The money will also pay for a new roof, new HVAC, and other infrastructure issues. The project will also tap into the district energy plant operated by Proctors to provide low cost heating.
County officials said the renovated facility will be an environmentally friendly green building.
`The building is in the center of the fairway of Schenectady,` said Buicko, noting that the Galesi Group was excited about the many possible uses of Center City. `It’s across the street from Proctors and sits on the corner of the Jay Street walkway.`
The four-story multi-use building had been owned by three entities, the city Industrial Development Agency, which owns the indoor soccer field in the facility, the city of Schenectady, and the Wade Lupe Companies, which own the office and retail portions of the building.
Buicko said that the Galesi Group plans to devote first-floor space to retail businesses. Offices will make up the second and third floors with residential apartments occupying the fourth floor.
Buicko called the building a `hodgepodge.`
Bombers Burritos Bar has leased space on the first floor of the facility and has begun construction. County officials said the bar could open within six months. Bombers also has a popular Lark Street location in Albany.
Gillen said Schenectady’s Bombers would be significantly bigger than the Lark Street location and would be a draw for Union College students.
Currently, Center City contains several county agencies including Metroplex. The facility also houses a drug store, a rock-climbing gym and the youth soccer team, Black Watch Premier.
While Gillen noted that the county offices will be moving to another downtown location, he said Center City will retain its mixed-use theme.
`Mixed-use buildings are a popular concept in modern economic development,` said Gillen.
The county is currently seeking tenants for Center City. One group rumored to move into the building is Schenectady County Community College’s music program.
Gillen said Center City is one of several facilities the county has shown the college that would meet its needs.
Gillen also said the county is currently shopping the building around to possible retailers who could occupy the first floor of the building.
Loan will be repaid
As part of the plan to overhaul Center City, an outstanding $750,000, no-interest city loan will be repaid.
The city used funds from the federal Department of Housing and Urban Development to give Wade Lupe Companies the loan decades ago when they bought the building. Gillen said the program doesn’t exist anymore.
The new plan stipulates that the city will be repaid $75,000 annually for the next 10 years until the loan is paid off.
Wade Lupe Companies will pay $25,000 each year and Metroplex will pay the remaining $50,000. Metroplex is funded by one-half of 1 percent of the sales tax in Schenectady County.
Metroplex will also take control of the Center City parking lot. The lot will be the eighth Metroplex-controlled parking lot in the city.
The Galesi Group will pay Metroplex $40,000 annually for 10 years to lease the parking lot.
Gillen said that the $40,000 made on the parking lot will go toward repayment of the loan. Since most of these plans are in their preliminary stages, Gillen said it’s possible that Metroplex would recoup more than $40,000 from the parking lot.
`We could get anywhere from $40,000 to $50,000 back from the Galesi Group,` he said.
Under the new plan, the Galesi Group will have 90 percent control of the complex’s interest and Lupe will control 10 percent.
`Under this plan, the city will get repaid,` said Gillen.
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