SCHENECTADY Gillen confident downtown club will open some day BY MICHAEL LAMENDOLA Gazette Reporter
The opening date of “The Underground,” formerly known as the Big House, on State Street, remains a big mystery for now, according to Metroplex Development Authority Chairman Ray Gillen. Gillen told Schenectady County legislators Monday night that owner Stephen Waite needs another $400,000 to complete work on renovating the building at 411 State St. Gillen was answering a question from Legislator Joseph Suhrada, R-Rotterdam. Suhrada wanted to know whether “we are at a point where we should look at protecting the people’s investment.” Gillen said he is in constant contact with Waite. “I am disappointed it has not opened, but I am confident it will open and that every dime will be accounted for,” he said. “The club will open and it will be a good venue for downtown.” The club has missed several announced opening dates, with no new date set, Gillen said. “He needs the $400,000” to get a temporary certificate of occupancy from the city for the basement club. “He has the commitments.” Waite was not available for comment. He is not seeking additional public financing from Metroplex, Gillen said. Metroplex has already provided him with a $1 million, 15-year loan, a $250,000 facade grant, $50,000 to remove asbestos from the structure, and a $100,000 loan toward a tax payment under the Empire Zone plan. Gillen said Metroplex has not “invested in the Big House. We have invested in 411 State St.” As part of the Metroplex’s commitment to the project, first announced in 2005, Waite was expected to create 40 jobs by 2008. Once it opens the structure is expected to generate $100,000 in property taxes. Gillen said Waite has met or will meet the job projections this year. Waite’s law practice and staff occupy the fourth floor of the building. He plans to put a restaurant on the fi rst floor and to rent the second and third floors to professional and business tenants. Gillen said Waite continues to hold onto the building as an investment. “We have had dozens of offers to buy the building, more than enough to satisfy our commitments,” he said. “Waite is not close to default.” Waite initially named the 411 State St. project the “Schenectady Big House,” patterned on the Big House he opened in Albany in 1996. He chucked that name for “The Underground.” The scope of the work has resulted in the long delays, Gillen said. The project required both state and federal approvals and the city once requested Waite install a fire escape behind the building, a request since withdrawn. As part of the work, Waite had to nearly gut a 26,000-square-foot, century-old building, Gillen said, and Waite has invested more than $1 million of his own money in the project. During the rehabilitation he discovered that the first floor was not properly supported and only covered by layers of plywood. He also had to install the elevator, new bathrooms and complete heating, ventilation, mechanical and plumbing systems as well as a new roof. Waite is a perfectionist, Gillen said. He had the building’s facade replaced several times because he was not pleased with the work, and he has refused to pay some businesses, which have filled liens against him. He had planned to open Dec. 31, 2006, and then on St. Patrick’s Day 2007, then when Proctors had its grand opening during the summer.
Finally, some on the Metroplex board including Neil Golub and Gary McCarthy are admitting that the project is "an embarassment". Chairman Ray Gillen continues to be in denial.
Big House owner/developer and Bankrupcy Attorney Steven Waite told Greg Floyd that the Underground (bar) at the Big House could open in as little as 3 weeks. That would imply that Mr. Waite will finally be required to repay the $1M+ loan of public revenues that he borrowed years ago.
Time will tell. Perhaps, the audit of the Metroplex Development Authority by the State Comptroller's Office is prompting some aon the Metroplex Board to admit to the failure(s) of the public authority. I am looking forward to a substantial report to be released by the State Comptroller in the coming months.
I wonder why they (the media) are never allowed inside The Big House, so they could attest to the on going progress. It was rather strange to see Greg Floyd scavenging around the back of the building to see if there was any sign of the work being done, but never allowed inside.
Could Mr. Waite be using taxpayers money to fianance a real estate "flip"? And, if so, what are the provisions in the loan agreement if he is to sell the building or lease it without ever opening the business that he stated would create dozens of jobs?\
Could Mr. Waite be using taxpayers money to fianance a real estate "flip"? And, if so, what are the provisions in the loan agreement if he is to sell the building or lease it without ever opening the business that he stated would create dozens of jobs?\
Brad, IIRC, you're in Real Estate? What's with the $1 price tag?
Greg Floyd from Channel 6 did comment about The Big House on their 11 pm news last night. He said he received many emails regarding the real estate ad on the internet.
I didn't quite understand, but Mr. Floyd said that it wasn't a "For Sale" ad, but rather and ad seeking someone to rent/run the office space in the buildng. ???
Greg Floyd from Channel 6 did comment about The Big House on their 11 pm news last night. He said he received many emails regarding the real estate ad on the internet.
I didn't quite understand, but Mr. Floyd said that it wasn't a "For Sale" ad, but rather and ad seeking someone to rent/run the office space in the buildng. ???
Hmmm... reading it closer, unless it's been changed,
Quoted Text
A one of kind commercial lease opportunity on the ground floor of a newly renovated historic building amidst the growing art & entertainment district.
Logged
