The media hype over the discontinuation of the Big House restaurant project at 411 State St. isn’t big news according to Metroplex Chairman Ray Gillen.
Earlier this week, reports in several news outlets characterized the discontinuation of a Big House Restaurant project by owner Stephen J. Waite in favor of a Big House Underground nightclub as a breaking development.
These same reports indicated Gillen hadn’t properly informed county officials of the project’s status.
The allegations that led to the news items were made by County Legislator Joe Suhrada, R-Rotterdam, who found a real-estate listing on Monday, April 28, that offered the site’s 9,000-square-foot first floor for lease.
Suhrada said that Gillen had been dishonest with the Legislature about the status of the Big House Restaurant on several occasions. He also said he didn’t think Waite should have asked for money from Metroplex, an urban renewal agency funded by a portion of the sales tax, if he didn’t intend to open the initially proposed restaurant.
In a recent interview, Gillen said Suhrada’s comments don’t hold water.
He called the media, and he thinks he has some big ‘gotcha,’ but he doesn’t, said Gillen. `I’ve been very forthcoming about this project.`
Transcripts from Metroplex’s annual report to the Schenectady County Legislature in early March show that the plans for the space at 411 State St. had already been discussed.
When questioned by Suhrada about the status of the Big House project, Gillen specifically indicated the uses for the building’s basement and for three of the building’s four stories.
He said a nightclub operated by Waite called Big House Underground would occupy the basement and that Waite’s law firm would inhabit the building’s third floor.
In March, Gillen said, Metroplex was actively seeking tenants for the building’s first and third floors. He said showings continue today and that he’s been shopping the property since January to interested retailers.
Waite said the second floor would also be office space available for lease.
According to Gillen, the building renewal project should have never been thought of as the `Big House,` but rather an investment in the failing State Street building.
`We haven’t invested in the Big House. We’ve invested in 411 State St.,` said Gillen, who acknowledged that delays in the nightclub project were a disappointment. `Our money went into a complete gut renovation of this building. Top floor office, third floor office, first floor retail, and, yes, there will be the Big House Underground in the basement.`
Susan E. Savage, chairwoman of the Schenectady County Legislature said she is updated by Gillen daily on Metroplex projects and that she knew the restaurant project had been discontinued well before Metroplex’s annual report was delivered to the Legislature. Savage said that Suhrada’s recent comments are evidence that he `didn’t pay attention` during committee reports.
`I was under the assumption that everyone knew the status of the project,` said Savage. `He [Suhrada] or anyone else had an opportunity to ask questions when the topic was in front of the Legislature.`
But Suhrada maintains that the failure of the Big House restaurant is evidence of the failure of Metroplex.
`He [Gillen] hasn’t been up front with the Legislature,` said Suhrada. `Susan Savage needs to fire Ray Gillen and get someone who will be honest with the Legislature.`
He said Gillen should be accountable to the public when they ask why something that was promised will never open.
But Savage said that the Big House is only one example of a `modified` project and that Metroplex’s more than 100 successful economic development projects show that in the majority of cases, projects come to fruition as promised.
Metroplex has awarded Waite a $1 million, 15-year loan, a $250,000 facade grant, and $50,000 to remove asbestos from the building over the past three years. They also provided a $100,000 loan toward a tax payment under the Empire Zone plan.
Waite has also invested more than $1.6 million of his own money in the project, to make renovations to the 26,000-square-foot building.
Waite said he speaks with Metroplex representatives on a daily basis and that plans for a nightclub are moving forward.
`I’m not sure why people are attacking Ray Gillen,` said Waite. `Do people remember what Schenectady looked like four years ago? They ought to be making him the king of the parade.`
Although Waite said a design for a first-floor restaurant was completed, he said that from day one, the Big House would occupy the basement alone.
`We were going to look for a restaurant tenant for the first floor and then Metroplex approached us with the possibility of a retailer who was considering the space,` said Waite.
Waite said that no final decision has been made about the first floor and that if the interested, but unnamed, retailer passes on the space, a restaurant project may yet develop if an interested tenant emerges.
The first-floor space is available for lease for $12 to $15 per square foot.
Waite said he’s currently in the process of raising $400,000, which he said would complete the construction of several additional safety features. He said he’s already invested $1.6 million into the building.
`I’ve been told that once we have the funds for the final work we can inhabit the basement and third floor within four weeks,` said Waite.
Gillen stood by the county’s original investment when he spoke to the Legislature in March.
`We had two empty dollar stores in downtown Schenectady in early 2004,` said Gillen, in response to a question from Suhrada. `Think about that. Our community, the downtown community, the city, was not even able to support a dollar store.`
While he didn’t provide a timeframe, Gillen said he was confident that Waite’s nightclub will open in the future and that `every dime` will be paid back.
To read an updated print edition of this story, pick up a copy of next week’s Schenectady County edition of The Spotlight Newspapers on Thursday, May 8.
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