After weeks of waiting, the Bethlehem Industrial Development Agency has approved an Enhanced Tax Abatement for the first tech-use building to be constructed within the Slingerlands Vista Technology Campus.
On Friday, May 24, the IDA approved the application for the nearly $5.5 million project to be constructed at 65 Vista Blvd., just behind the ShopRite grocery store. A portion of the 27,386-square-foot building would house Breonics, an Albany company specializing in organ regeneration research.
“I think this is the catalyst to bring more projects that are tech-related to Vista,” said IDA Chairman Frank Venezia.
The enhanced abatement includes a 100 percent tax break from property taxes in the first two years. This declines by 10 percent per year for the nine years following until the property is fully on the tax rolls. According to the IDA, development at Vista brought in about $272,700 in tax revenue to the town in 2012. That figure is up from $5,894 in 2011.
Representatives for Columbia Development said there are still no other tenants signed on to locate within the building. They are currently in the discussion stages with two potential tenants and are working on making sure leases are signed before any announcements are made.
Breonics would occupy about 6,000 square feet of the building, leaving about 78 percent of the building unspoken for. The company is moving because the lease at its home in the state’s Harriman Research Center is ending in August, so construction is on a tight schedule.
Breonics Chairman Ernie Green said the company was also looking to move because the next phase in their research calls for the use of sterilization rooms. Moving into a new building that has yet to be built will allow the company to design the space how they see fit.
Officials estimate there will be 44 new jobs in total at the new building. Breonics currently has five employees and it is not clear how many new jobs would be created at the company once the move takes place. Some residents have said they are concerned that the plan could move forward without all tenants officially signed on.
“This decision was a departure from the IDA’s core mission,” said resident Dan Cunningham, who has attended several of the agency’s meetings on the subject. “They have given tax giveaways to the developer, when they are supposed be focused on bringing technology businesses to the Vista campus.”
Venezia said the time for movement is now. Vista could face competition under Gov. Andrew Cuomo’s Tax Free NY initiative that would essentially allow businesses located on a SUNY campus outside of New York City to operate tax free. IDA members also cited issues in the Saratoga Economic Development Corporation that might help draw companies to Bethlehem.
“I think this is a good first step to get tech companies interested in what we have to offer,” Venezia said.
Local business owner Jon Phillips, who is also chairman of the Bethlehem Chamber of Commerce Board of Directors, said after the meeting that he was in favor of the project but didn’t want to speak on the behalf of every chamber member.
“We need these projects to stimulate the economy,” he said. “I even said I’d have to go on record even if it hurt my business personally, I have to look at the bigger picture. In the long term it’s bringing more cars to the town, growing workers and revenue and hopefully attracting people to Delaware Avenue.”
At the end of the meeting, IDA board members opted to not begin webcasting their meetings, arguing it might limit open discussion.
Members decided to place more focus on attracting residents to public hearings, so as to better gauge public perception on future projects. Those meetings will be webcast and the time has been changed to Wednesday nights prior to Town Board meetings instead of at the early morning IDA board meetings.
