An expected decision on tax breaks for the first tech tenant at the Vista Technology Campus was delayed when the developer couldn’t make an Industrial Development Agency meeting.
Joe Nicolla of Columbia Development sent word to the IDA before its most recent meeting on Friday, March 22 that he would like the proposal to be tabled because he would be unable to attend the meeting. The agency approved his request, and now the project will be voted on either at the IDA’s next meeting at the end of April or sooner if a special meeting is convened.
A public hearing on the project was held on Tuesday, March 19. The IDA is in discussions with Breonics Inc., an Albany company specializing in organ regeneration research, to lease space within a new building proposed for a now undeveloped portion of the campus. Breonics is considering the move because the lease at its current location in the state’s Harriman Research Center isending in August.
Breonics would occupy part of a 27,000-square-foot building on a plot behind the ShopRite grocery store at 65 Vista Blvd. The company would occupy about 6,000 square feet of the building. Another tech company, potentially two, are also in talks with the town to occupy the rest, though the players in the negotiations have not be disclosed.
Erecting a building with less than a quarter of the occupancy accounted for doesn’t worry developers.
“What we found out in our examination of where people are, we found there is a shortage of this type of lab space facility, so that’s really the focus and thrust of what this building is,” said Nicolla at the public hearing.
Columbia is seeking an enhanced property tax abatement for the building, as well as sales tax and mortgage tax relief. The enhanced abatement would mean the town and Bethlehem Central School District would see no property taxes from the tenants for two years, and then property tax rates would increase by 10 percent over the next 10 years to full levels.
Although it had been previously believed Breonics alone would be bringing 44 new jobs to the campus, Nicolla said that figure is the expected job count for the entire building. The building would cost about $5.4 million to build.
“We would like to start construction soon, because Breonics has to be in this year,” Nicolla said. “They are out of space, they are expanding and they need to be in.”
Four people spoke in favor of the project and the tax breaks at the public hearing, including Supervisor John Clarkson, the school district’s Chief Business and Financial Officer Judith Kehoe and two members of the Bethlehem Chamber of Commerce.
“I think this is the big one we’ve been waiting for for some time. Maybe not the biggest one, but big enough anyway,” said Clarkson.
The supervisor said he knows many in the town were unhappy the IDA granted advanced tax abatements to the grocery store and two banks, but he believes that plan was successful in attracting technology tenants and he now supports the idea of giving those same abatements to those technology users.
“Are we giving up anything? Would there be anything now at all if we hadn’t taken the steps that we did?” asked Clarkson. “I think the common sense view point will tell you no.”
Former Supervisor Jack Cunningham also spoke at the hearing and said he was in favor of the project and the IDA granting sales andabatement. However, he said he was concerned about giving so much tax relief when agreements are not secure for all the building’s tenants, ensured job creation figures are low and Breonics’ business plan is, in his opinion, not solid.
“If you’re going to make a decision of this magnitude, I think you need to have a lot more to support it,” Cunningham told IDA members.
Other users get the green light
In addition to considering the Breonics abatement, the Bethlehem IDA approved three other Vista projects after a lengthy discussion.
Nicolla had presented an application last May for a 7,500-square-foot, two-story, multi-use building at 15 Vista Blvd. It would have had retail users on the first floor and office space on the second floor. Expected tenants included a hair salon, a medical center and a telecommunications user.
Columbia Development revised the plan for the entire property to be either medical or commercial office space. The property was granted a standard tax abatement with a mortgage tax exemption and sales tax relief.
Bethlehem Director of Economic Development and Planning Michael Morelli said he believes the plan was changed because the Columbia has seen more interest in using the building for office space and there should be enough interest to fill the entire building instead of just half.
Also approved was a revised application for 5 Vista Blvd, to include retail space and the second Garden Bistro location owned by local chef John Grizzaffi. Nicolla removed his request for a property tax exemption for the building and only requested sales and mortgage relief, which were granted. The 6,000-square-foot building is expected to bring 25 new jobs and the restaurant will occupy half of the space.
“I think basically what happened is the applicant looked at the criteria for the tax abatements, and he (Nicolla) knew the project did not meet that criteria and would not be approved by the IDA,” said Morelli.
The last project approved was a 10,500-square-foot building at 10 Vista Blvd for five retail tenants. Nicolla said he expected several long-term leases, as two of the tenants are national companies. The leases are still being negotiated, so names for the tenants have not been released. The project was granted sales tax and mortgage relief.
The next regular IDA meeting is scheduled for Friday, April 26, at 8 a.m. in Bethlehem Town Hall.