Stakeholders must visit town, county before bonds can be issued
The Bethlehem Central School District Board of Education this evening gave its approval to a plan that would see the Bethlehem Industrial Development Agency heading construction of Vista Boulevard.
Developers must still have Albany County and the Town of Bethlehem agree to hand over to the IDA any proceeds realized through a payment in lieu of taxes (PILOT) agreement, which would then be used to pay down tax-free bonds. The PILOT payments would be collected from property owners and tenants in the park.
It’s an unconventional arrangement that had several members of the school board running through details with Vista Technology Campus stakeholders. Ultimately, they concluded BC would have nothing to lose by signing off on such a plan.
I most definitely think this is a win-win for the school district and for the town in general, said Superintendent Michael Tebbano.
Vista Boulevard will run 3/4 of a mile into the proposed tech park, and carry in not only traffic but infrastructure like sewer and electricity. It’s a key component in getting the stalled Vista project moving, said Joe Nicolla of Columbia Development, who tonight said he has signed leases from four tenants that are contingent on the installation of the road.
He declined to identify those tenants, though several retail interests have been unveiled, including a ShopRite grocery store.
The problem, Nicolla said, is competition from other such developments in the area and a freeze in lending set off by the recession.
`There is no money to put in right now,` Nicolla said.
That spawned the idea to have the IDA rustle up the bonds for the estimated $7 million project. The tax-free notes should be more attractive to long-term investors, who Nicolla said would be the ones exposed should the project languish.
Bethlehem Supervisor Sam Messina was at the meeting, and said tonight’s decision was an important step for Vista.
`I have seen nothing more exciting for Bethlehem, including for the school district, than the Vista Technology Campus, in the last 25 years,` he said.
BC’s agreement to hand over PILOT receipts would only extend to this bond issuance. Future PILOT agreements and tax receipts would flow to the county, town and school district normally.
The next step for Vista developers will be to meet with Albany County Executive Michael Breslin to lay the groundwork for obtaining a similar agreement from the county. The $1 million the county promised in 2003 for Vista development will probably come up at that meeting. Earlier this year the county was noncommittal on the realization of that payout, saying the money was promised to promote high-tech jobs and none have been indentified yet.
Nicolla said Vista Boulevard can be completed in about seven months once the funding structure is in place, and there are plans to build the first of Vista’s buildings even as the road is being laid. For now, developers are waiting on decisions from the town and county on the PILOT plan.
`Once we get them, then we’ll be in great shape,` Nicolla said.
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