A large distribution warehouse is slated to bring hundreds of new jobs to the area and is even looking to build and expand on the site just bought for $10 million.
The CB Richard Ellis Albany Company announced the sale of 218 West Yard Road in Selkirk, and town officials say it’s a good deal for Bethlehem.
Richard Sleasman and Don Noland of CB Richard Ellis Albany were the brokers for the transaction, according to a release from the company. McNeary Inc. purchased the building from NY Realty Partners.
Bethlehem’s director of economic development, George Leveille, said a minor tax abatement will equal a big economic boost to the town when it needs it most.
A strong local company has acquired the building and wants to build another. This is a very positive thing, Leveille said.
The 450,000-square-foot warehouse and distribution facility is located on a 29.5-acre parcel. The property was officially transferred for $10 million on Nov. 25.
The warehouse is located in the Selkirk Railyards district, which is zoned heavy industrial. The north side of West Yard Road is east of Feura Bush Road, Route 32, 8 miles west of state Thruway exits 22 and 23.
Daniel Benvenuti, a real estate developer from Sacramento, Calif., made a presentation at the town’s Industrial Development Agency (IDA) meeting on Thursday, Nov. 20, and asked for assistance on the taxes as it lures potential tenants to the site.
Benvenuti told the IDA that he has been in business for 35 years and has built more than 37 million square feet of warehouse space. His company, Realty Partners, LP, owns the warehouse, which previously housed the Appleton Paper Co.
According to IDA minutes of that meeting, `One of his clients, Empire Merchants North (EMN), is considering a proposal to relocate its Kingston and Colonie facilities to the West Yard Road location. The site would serve as corporate headquarters.`
The plans called for modifying the building to include 30,000 square foot of office space. EMN would occupy 315,000 square feet of the building and employ 275 to 300 people. The company would invest approximately $6.5 million in a new operating system and $3.5 million in new real estate.
CB Richard Ellis Group asked the IDA for assistance, said Leveille, and the group has agreed to an `$8 million assessment freeze` for 10 years. Leveille explained there will be a 2 percent `escalator` assessment system in place for the property.
`In 10 years it will revert to its full value,` he said. `This gives them a little wiggle room and an incentive to move forward.`
Describing the tax break as `a relatively modest tax incentive,` Leveille said the long-term gains would have a lasting impact on the town. He said the `spin-off effective of 150 jobs` from `a solid long-term company` would go a long way during a national economic crisis.
`The hope is that bigger things will come,` Levielle said. `At this time ` let’s be honest ` we need these types of opportunities.“