The Schenectady County Legislature at its meeting on Tuesday, March 12, approved the sale of a 23-acre parcel of land in Glenville to the Schenectady County Industrial Development Agency (IDA) as part of a $5 million economic development deal with the Schenectady-based company Fortitech.
As part of the deal, Fortitech will purchase the land from the IDA for $1,050,000 and will build a 40,000-square-foot distribution facility, costing the company approximately $4 million.
In turn, the county IDA will sell the property to Fortitech for the same amount.
Fortitech, a global producer of custom nutrient premixes for the food, beverage and pharmaceutical industries is headquartered in Schenectady’s Riverside Technology Park.
Because Fortitech will make the transaction through the county IDA, the company will receive tax breaks on construction materials, according to county officials.
The vacant parcel at the county airport along Route 50 in Glenville will become the new Airport Tech Park, according to Metroplex Development Chairman Ray Gillen. Fortitech will be the first business to occupy the technology park.
Fortitech is a fast-growing global company, said Gillen. `They could have gone anywhere, but they chose to stay in Schenectady County.`
Gillen said the county will seek Empire Zone program benefits for the airport site. Under an Empire Zone, Fortitech would pay full property taxes and receive complete reimbursement.
If the site does not qualify as an Empire Zone, Gillen said the county would make a payment-in-lieu-of-tax agreement with Fortitech.
According to Rich Schlief, marketing director for Fortitech, the company is in the midst of a global growth initiative. Fortitech recently completed a 35,000-square-foot expansion to their Schenectady headquarters and is also building state-of-the-art manufacturing facilities in Ontario, Calif., and Kuala Lumpur, Malaysia.
Schlief also said that Fortitech is in the preliminary stages of planning to build a research and development facility at the Airport Tech Park in Glenville.
Susan E. Savage, D-Niskayuna, chairwoman of the Schenectady County Legislature, said that the Fortitech project, along with possible future projects at the Airport Tech Park, will expand Glenville’s tax base.
`This business will also be an important part of the community and will provide jobs in Schenectady County,` said Savage.
Only Minority Leader Robert Farley, R-Scotia, publicly criticized the legislation. Farley voiced concerns over the language of the law, which does not specify Fortitech as the ultimate purchaser of the property. Farley was also concerned that the legislation did not specify the exact use of the parcel.
Gillen said the IDA has been transparent about the purpose and specifics of the Fortitech project and that a number of presentations had been delivered at the Legislature’s committee meetings.
The Legislature will allow Fortitech to break ground on construction before the company closes on the property.
Schlief said construction will start immediately. He’s optimistic the first building will be completed in nine to 11 months.
Gillen said he’s been in negotiations with several other companies in an attempt to fill the Airport Tech Park.
`There’s been strong interest in the site,` he said.
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