Metroplex Chairman Ray Gillen said the opening date for a basement nightclub at 411 State Street called The Underground, is still up in the air, though he said he was confident the project would move ahead.
The nightclub business, once scheduled to be named the Big House, has been in the works since 2005, when Stephen Waite, owner of the popular Albany hangout of the same name, said he would bring a new facility to downtown Schenectady.
Mr. Waite will finish the project, and the club will open, and it will be a good addition to downtown, said Gillen, who presented the Schenectady County Legislature with Metroplex’s annual report on Monday, March 3, and fielded questions from legislators.
Joe Suhrada, R-Rotterdam, questioned Gillen about the Big House. He said he was concerned that there would ultimately be no return on the investments made to 411 State Street, the projected site of the nightclub.
Gillen said Waite has invested more than $1 million of his own money into the project and that he is no longer seeking public financing from Metroplex. But, he said, Waite needs approximately $400,000 in additional funding for a temporary certificate of occupancy.
In order to obtain the certificate of occupancy, Waite has already made a host of renovations.
Chair of the Economic Development Committee Vince DiCerbo said the fact that the bar will be underground has been a continued concern for the city.
`The city has been tough on awarding certificates of occupancy for underground facilities,` said DiCerbo.
Metroplex has provided Waite with a $1 million, 15-year loan, a $250,000 faCade grant, a $100,000 loan toward tax payments under the Empire Zone plan and additional funding of $50,000 to remove asbestos.
Gillen said Waite had to essentially gut the building, which dates to the early 1900s. Gillen said a new roof, heating and ventilation system, bathrooms, elevators and flooring all had to be installed.
The building was also subject to state and federal approval and required the installation of a fire escape, a sprinkler system and other safety precautions.
While Waite couldn’t be reached for comment, Gillen said he speaks with his tenant nearly every day.
`[Mr. Waite] has not come back asking for a single penny,` said Gillen. `And we can account for every dime that went into that building.`
When asked by Suhrada if Waite was close to defaulting on his loans, Gillen said no.
The 26,000-square-foot, four-floor structure at 411 State Street will also be the home of Waite’s law offices on the fourth floor. Gillen said Metroplex officials were actively shopping the first and third floors of the facility.
`We have not invested in the Big House,` said. Gillen. `We have invested in 411 State Street.`
Gillen said Metroplex has taken what was once an abandoned dollar store and an unquestionable eyesore, and put the building back on the tax rolls. Gillen said the building used to pay $3,000 per year in taxes and will now pay over $100,000 per year in property taxes.
Gillen said he is disappointed in the stalled project, but that he is still optimistic that The Underground, despite having missed several announced grand openings, will open in the next few years.
`It’s much, much easier to build new,` said Gillen. `Renovation is very tough.`
Future of Main Street
While much of Gillen’s presentation touted Metroplex’s role in garnering more than $300 million in total investment in Schenectady County since 2004, he also spoke to the Legislature about possible improvements to downtown areas in Scotia and Rotterdam and retail opportunities in Niskayuna.
In Scotia, Gillen said he hopes to revitalize the village through faCade grants. He said he also hopes to do something about the village’s abandoned McDonalds restaurant.
`It casts a pallor at the entry point to the village,` said Gillen.
In Rotterdam, Gillen said many of Metroplex’s initiatives will focus on the Hamburg Street corridor. FaCade improvements, filling vacant buildings like the old Grand Union supermarket and working toward the instillation of a sewer line for Hamburg Street and Route 7 are all on Metroplex’s agenda, said Gillen.
Gillen said Glenville and Duanesburg might also benefit from faCade improvements.
`Our main street initiative takes its name from the success we’ve had in downtown Schenectady in revitalizing downtown,` said Chair of the Schenectady County Legislature Susan E. Savage, D-Niskayuna. `We’re personally committed to expanding the program to the village of Scotia where this project is really a perfect fit, and to Rotterdam.`
The main street program is only one of a number of improvements suggested by Gillen for the county’s municipalities at his presentation.
Gillen said one target area was St. James Square in Niskayuna, a shopping plaza off of Balltown Road with an abundance of empty retail space. Gillen said Metroplex was currently in the process of speaking with several potential tenants.
Gillen said many of these potential projects are in the works for 2008 and beyond, but did not specify time frames for implementation of the initiatives. “