$50M vision of city's future at risk Squabbles between Metroplex, ALCO site owner threaten to derail ambitious redevelopment proposal
By LAUREN STANFORTH, Staff writer First published: Friday, March 14, 2008
SCHENECTADY -- The $50 million redevelopment project at the former American Locomotive plant on the Mohawk River has stalled over disputes between the Schenectady Metroplex Development Authority and the site's owner.
The Schenectady Industrial Corporation, which owns the sprawling ALCO site near Erie Boulevard, sent a letter to the City Council this week saying the Pennsylvania developer Metroplex attracted no longer appears interested, and that Metroplex is now trying to take the 60-acre site by eminent domain. But Metroplex chairman Ray Gillen disputed much of the letter Thursday, saying Schenectady Industrial Corp. Vice President Louis Buhrmaster is holding up the development by not letting some environmental engineers on the site. Buhrmaster, who is CEO of First National Bank of Scotia and heads the Industrial Corp. on a volunteer basis, couldn't be reached for comment. "Lou has stopped us repeatedly from completing (the state Environmental Quality Review). He has not allowed SEQR teams to go on site. He has blocked access to the plant," Gillen said. Gillen said the project, which involves knocking down much of the blighted ALCO factory and replacing it with offices, condos and a marina, is at least six months behind schedule. Metroplex held a public announcement about the project -- its largest redevelopment proposal to date -- in February last year. At the time, Gillen said it would take about a year to complete the environmental review before the land purchase could go forward. Metroplex said it would pay $1.2 million for the site. Buhrmaster's letter to the City Council dated Monday was mainly to protest the city's proposal to rezone the site from a manufacturing use to a mixed waterfront district. But the letter also covered the Industrial Corp.'s mounting debt and its displeasure with Metroplex. Currently, the Schenectady Industrial Corp. owes at least $500,000 in back city and school taxes. The corporation filed a legal action against the city last year, requesting its assessment be reduced from $7.5 million to $750,000. Both sides are still working out how assessors will be used in the case, said Schenectady Corporation Counsel L. John Van Norden. Buhrmaster also said in the letter that Metroplex rejected a housing proposal by the developer of Harmony Mills in Cohoes, and that there has been no resolution about what will be done with a Rensselaer Polytechnic Institute reactor on the site. Buhrmaster wrote that his corporation has heard nothing from Metroplex's chosen developer, Preferred Real Estate Investments Inc., since August. "They obviously have no interest in the ... site," the letter states. Buhrmaster said that in December, Metroplex said it was proceeding with eminent domain. Gillen said Metroplex is still working with the Harmony Mills developers to build at the ALCO site. Claude Rounds, RPI vice president for administration, said Thursday he has had no discussions with Metroplex since the beginning of last year.Preferred Real Estate is still very much on board, Gillen said, adding that he has no intention of seeking eminent domain. Preferred Real Estate's CEO Michael O'Neill couldn't be reached for comment. Gillen said he hopes Buhrmaster will allow a subcontractor on the site to replace the engineers Buhrmaster doesn't like so things can move forward. "As long as everyone wants to come to a deal, and in the end have a product that's best for everyone, then we'll resolve those issues," said City Council member Gary McCarthy, who is on the Metroplex board. "If people don't want to come to a deal and are looking for reasons to fight, we'll end up with a Schenectady of the past." Lauren Stanforth can be reached at 454-5697 or by e-mail at lstanforth@timesunion.com.
"As long as everyone wants to come to a deal, and in the end have a product that's best for everyone, then we'll resolve those issues," said City Council member Gary McCarthy, who is on the Metroplex board. "If people don't want to come to a deal and are looking for reasons to fight, we'll end up with a Schenectady of the past."
What Gary McCarthy is REALLY saying is that...if you don't do it the 'metroplex way' and 'play by our rules', we won't play ball with you!! Basically a threat! No body is looking for a fight here. They just have a different direction and idea than the Metroplex does. And the Metroplex is just an arm extension, or puppet, of the democratic dictatorship that pulls the strings. Saying that we'll end up with a Schenectady of the past is where it is headed now ANYWAY!
The Metroplex has been in existence for 10 years and what has it actually done for Schenectady? Where is the return on our taxpaid invested dollar? Our taxes are at an all time high...and rising with no end in sight. Crime is just everywhere. There are more people on public assisted programs than not. There are failed after failed Metroplex funded businesses. The Metroplex has and continues to fail miserably! It IS time for the Metroplex to be abolished and I would applaud the first sitting politician to recommend it. And it IS clearly time for a state audit!!!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Much of the soil that is going to be developed where the ALCO used to be is contaminated with pcb's, oil, weed killer[agent orange type], transformer oil, and multiple types of heavy metals so the engineers better be allowed to check out the site b4 the development starts.
Metroplex is now trying to take the 60-acre site by eminent domain.
If this is the case, it is an abuse of the application of eminent domain as the disputed use promotes the interests of private developers, not the public.
The ALCO site should be developed into a technology or research park, not privately owned condos and a marina. The site could attract companies working in alternate ("green") energy research. This would distinguish Schenectady County as the area with companies that will prosper in the 21st century and beyond. It will also result in the creation of high paying and permanent career jobs in the City of Schenectady. Such employment would promote the retail and service businesses that were financed by the Metroplex.
SCHENECTADY Rezoning of Alco site faces some opposition City plans to redevelop property BY MICHAEL LAMENDOLA Gazette Reporter
The former Alco site’s smooth transition from industrial eyesore to glamorous waterfront property has hit a speed bump, officials said. The owner of the 60-acre site, which lies sandwiched between the Mohawk River and Erie Boulevard, is upset with the city’s attempt to rezone the property, according to a letter to the City Council from Lou Buhrmaster, vice president of the for-profi t Schenectady Industrial Corp. As part of the comprehensive plan to redevelop the property, the city is seeking to rezone it from heavy industry to mixed use. Mixed use designation would allow housing and commercial buildings to be built there. “The comprehensive plan would change the zoning; he is looking to maintain the status quo,” said City Councilman Gary McCarthy. “It is an eyesore that is poorly maintained and is part of the overall rehabilitation of Schenectady.” The zoning change would not affect existing heavy industry tenants at the site, such as STS Steel, but would open up 1.5 miles of waterfront to development, said Ray Gillen, chairman of the Metroplex Development Authority. Metroplex is lead agency in the development process. “Buhrmaster is opposed to waterfront zoning, which we need and allows mixed use,” Gillen said. Buhrmaster, who is chief executive officer of First National Bank of Scotia and a major shareholder with SIC, did not return a phone call for comment. Metroplex is also having difficulty gaining full access to the property to prepare a draft generic environmental impact statement, Gillen said. “It should have taken a year to do the generic SEQR. Because of these delays, we are behind by about three months. We can catch up,” he said. Gillen plans to meet with Buhrmaster on Monday to discuss completing the environmental review of the site. Schenectady County Legislator Vincent DiCerbo, chairman of the Legislature’s Economic Development Committee, called Alco “a signature project in Schenectady, but people have to be a little more receptive to what we are trying to do. This is a minor bump in road which we will overcome and the project will be successful.” Metroplex cannot move fur- ther on the Alco redevelopment project until it has competed state environmental quality review statement, Gillen said. “Then our board can take action; we hope to buy the property on an negotiated basis.” In February 2007, Gillen said Metroplex would purchase the property for $1.2 million, using a so-called “friendly condemnation process.” Gillen on Friday would not reconfirm that figure. Once it has possession, Metroplex will work on cleaning up the site and transferring ownership to one or more developers. Metroplex is currently working with Preferred Real Estate Investment Inc., a Pennsylvania-based private developer. Preferred said last year it would spend more than $50 million to transform the brownfield industrial site into “a city within a city.” A spokesman for Preferred did not return a phone call for comment Friday. Gillen said Metroplex is also in talks with Uri Kaufman, who turned former textile mills in Cohoes into loft apartments called Harmony Hills. Further complicating the process is that SIC owes the city about $851,322 in unpaid property taxes, and sewer and water bills as of Feb. 25, Gillen said. The city sold $262,000 of this amount to American Tax Funding, he said. ATF can foreclose on the liens, but has a track record of working with property owners to obtain payment, Gillen said. The liens could be purchased were ATF to foreclose, a step Metroplex is prepared to take, he said. But the effort would tie up the redevelopment process in the courts, leading to further delays, he said. Buhrmaster is trying to lower the assessment on the property and is also trying to sell the corporation along with the property. Gillen said such a sale is not feasible because of SIC’s debts and obligations and because it lost its Empire Zone certification. “We want to reach an agreement with Lou, but we can’t do anything until SEQR is complete. If he wants to sell the property, he should be helping us with SEQR,” Gillen said.
An intermediate solution between willing buyer/willing seller and eminent domain is known as “friendly condemnation”. This acquisition practice is so named because it acknowledges that the Agency has the right to acquire property through eminent domain, yet there is an understanding on both sides that no legal process will ensue.
In friendly condemnation, a property owner agrees to sell his/her property to the Agency as long as the Agency initiates the friendly condemnation process. Property owners may agree to a friendly condemnation for federal tax purposes because they may be entitled to a tax benefit. Settlements in condemnation cases may not be subject to federal tax liability for up to three years (as opposed to 45 days), as long as the property owner reinvests the proceeds in “like kind” property. Therefore, rather than being obligated for a large tax judgment if a property owner willingly sells, in this way the initiation of friendly condemnation may allow the property owner to postpone federal tax consequences for several years. However, each property owner should rely on his/her own tax advisor for final a determination. Typically, a friendly condemnation action is initiated by a letter from the Agency informing the property owner of the proposed condemnation and advising him to seek the advice of his own tax attorney.
Benefits of this method include: a. Time is not lost in possible lengthy court procedures to establish value during which payment is not processed.
b. The agreed upon value is processed for payment upon close of escrow (transfer of title to the property).
c. Capital gains taxes are postponed for a longer period of time than allowed for through a 1031 Tax Exchange arrangement.
SCHENECTADY City seeking state funds to redevelop former Alco site BY MICHAEL LAMENDOLA Gazette Reporter
The city of Schenectady is seeking a grant from the state to kickstart the comprehensive rehabilitation of the former Alco site on Erie Boulevard. The Metroplex Development Authority is helping the city prepare the application to the Empire State Development Corp. The deadline is May 4. The state is awarding $150 million in round three of the program. If the city is successful, the state could provide millions of dollars to demolish and rehabilitate buildings on the 60-acre site, said Metroplex Chairman Ray Gillen. Gillen said the project involves substantial private investment as well. “We have a mix of developers in here. It will be an extremely competitive application and it will reflect a major commitment of private investment in the site,” he said. The plan is to demolish several buildings that are beyond salvaging and rehabilitate and reconstruct two and a half others. Several of the buildings represent the core of the former American Locomotive company. “We want to save some of Alco’s history and preserve jobs on site. STS Steel would stay and we would bring in another tenant,” Gillen said. The northern portion of the site would remain industrial while the southern portion, that closest to the Stockade, would contain residential, office and light industrial buildings. “We are still looking at condos at far south of the site and at a mix of greenspace and new tech and industrial space,” Gillen said. The city is proposing to construct two 30,000-square-foot structures for high-tech companies in this area and to connect the site to the state’s bike-hike trail. Several of the buildings to be demolished are along the Mohawk River. They comprise more than 200,000 square feet and are vacant. Their removal would open up a 1.5-mile stretch of the site to the waterfront. Slated for demolition are buildings 342, 324, 322, 320 and 308. Half of Building 332, the long structure that is visible from Erie Boulevard, would be demolished and the other half restored. The half to be restored includes the tower building, which still retains the Alco name. Buildings 346 and 316 would be restored as well. “Building 316 has some distinct architecture we want to preserve,” Gillen said. The new tenant, whom Gillen would not identify, would move into Building 346. Metroplex is working with several unidentified developers who would invest in the site, and is close to completing a state environmental quality review statement, which would enhance the city’s grant application, Gillen said. He said the Alco site is a perfect candidate for Restore New York funding, which helps communities revitalize distressed areas, such as old mills, and helps create new tax base and jobs. “This site has the same conditions as two other former Alco sites across the street,” Gillen said. He was referring to the site where Golub Corp. is building a $30 million headquarters on Maxon Road and the site of the former Ramada Inn, which Union College converted into student housing, on Nott Street. The Alco site used to build locomotives, then tanks during World War II. Many of the sprawling structures of brick, iron and glass are in poor condition with crumbling facades and interiors, unheated bays and rusted equipment. Alco closed in 1969. General Electric leased most of the site between 1972 and the late 1990s. The for-profit Schenectady Industrial Corp. currently owns the site. Gillen said Metroplex would purchase the property, using a so-called “friendly condemnation process.” If Schenectady lands the grant in the third round, it will have scored a hat trick. It obtained $1.4 million in the first round and $2 million in the second round, Gillen said. “We are two for two, 100 percent. This is the richest round yet and we are going for three,” he said. The state will announce awards in late spring. The city.................http://www.dailygazette.net/De.....amp;EntityId=Ar00102
ALCO'S "smooth transition" has hit a speed bump! lol! Who writes this baloney? Nothing is happening.
Ray should put away his smoke and mirrors and name all the private developers interested in this toxic waste site. Metrograft, County taxpayers, Metrograft-end of short list. The heralded Penn developer has fled. The State needs to say-NO WAY- to this complete waste of taxpayer funds. Gazetto refuses to challenge any of the ninny statements they receive via fax.
Ray still insists on "condo's and coffeehouses" that no one wants. Great time to expand housing in a town everyone is escaping from? If they can give away the overtaxed property. The fact that Sen Schumer supports this nonsense is another good reason to kill it. While they feek around the industrial buildings are collapsing and jobs moving to Colonie, by the hundreds.
EDITORIAL Get state grant, and get Alco project done
Metroplex and the city have applied for a $5 million grant, the maximum possible, from the state’s Restore NY program to redevelop the former Alco site. Chairman Ray Gillen is confident of getting it because: a) Metroplex and the city have already received grants in the first two rounds of funding; and b) if ever there were a project tailor-made for Restore NY — in a blighted urban core, on a brownfield, in an Empire Zone — this is it. We hope he’s right and the state comes through with the money, because this is really important for Schenectady, a mixed-use project utilizing the waterfront, one that can bring not only jobs but people back to live in the city. It’s been a little more than two years since plans were announced for a redevelopment project at Alco. That seems like a long time (although quite short compared to the 40 years since the site was fully used). And there is a reason for the delay. Metroplex didn’t own the site or buildings (the private Schenectady Industrial Development Corp. did, and SIDC wasn’t being very cooperative). Metroplex first had to get it to allow a state-required environmental review (which is now being completed), and then to agree to a price for the property (which it apparently has). Apparently one of the requirements to get SIDC’s cooperation was to allow some continued industrial use of the site, including by STS, a successful steel fabrication operation there. That’s not necessarily a bad thing, especially in this economy (no one wants to lose jobs) and on a site with Alco’s architecture and history. So the original plan, which called for relocation of STS and demolition of almost everything, has given way to a mixed-use plan that calls for some industrial, some office and some residential in the form of condos. The question is, will anybody want to live in proximity to manufacturing? We think the answer is yes, provided the plants aren’t loud, ugly, smoke-belching factories and aren’t right on top of the residences (the Alco site is 60 acres, so there is plenty of room). And provided there are other things to make the site attractive to people, like a riverfront view, plenty of green space and a bike path through the property — all part of Metroplex’s plan. Gillen says there are a number of developers interested in both the office and the residential parts of the project. In fact, retaining some of the historic flavor of Alco by saving and reusing some of the buildings could add to its attraction. And it can be done. One example is a recent project in Richmond, Va., where (guess what?) an old Alco plant was renovated to house a 17-screen movie theater by (guess who?) Bowtie Cinema, which runs the downtown theater in Schenectady. Another example of an old industrial building tastefully redone and put to a new use is Mass MoCA, the art museum in North Adams, Mass. No one would mind living in close proximity to that, and plenty of people do. (Come to think of it, one of the former Alco buildings might make a very nice, lowercost home for the Schenectady Museum, which wants to build a new science/technology museum downtown but needs somewhere between $50 million and $70 million to do it.) And those old refurbished buildings at GE’s main plant downtown, turned into offices, aren’t exactly bad to look at, either. The Big N site, where Price Chopper is building its new headquarters, was part of Alco, as was the site across the street behind the old Ramada Inn that was transformed into a soccer field by Union College. Both sat empty for..................http://www.dailygazette.net/De.....amp;EntityId=Ar00500
It will never happen. Remember they had this all over TV when Kosiur ran!!!! Like 3 years ago or something JUST to get Kosiur elected!!! HAHAH C'MONNNNNNN! We all know this is false, and will never take place. WHO wants to buy condos in the city now- WHO??? WHERE is the market???
"While Foreign Terrorists were plotting to murder and maim using homemade bombs in Boston, Democrap officials in Washington DC, Albany and here were busy watching ME and other law abiding American Citizens who are gun owners and taxpayers, in an effort to blame the nation's lack of security on US so that they could have a political scapegoat."
Another comic masterpiece! No one wants a condo in Schenectady ANYWHERE, let alone on a toxic waste site. Look at the flopped Anthony St project. These morons should move in from Saratoga County-HA-HA!
Graham is right there is no market for any housing in the City-or County for that matter. If people want a condo they will move out of State or to Saratoga-not pathetic, laughable Schenectady. Sen Upchuck Schumer made a complete fool out of himself running up here to cheer lead for this "plan". This should be industrial ONLY-let Lou Buhrmaster run it -he forgot more about business than the Metrograft bozos ever knew.
It will never happen. Remember they had this all over TV when Kosiur ran!!!! Like 3 years ago or something JUST to get Kosiur elected!!! HAHAH C'MONNNNNNN! We all know this is false, and will never take place. WHO wants to buy condos in the city now- WHO??? WHERE is the market???
I couldn't agree more. First, I thought there was major clean up that was needed before 'anything' could be done. I mean God, nothing can be built at the old curry rd shopping center just because a little cleaners use to be there. As far as condos in the city....who would even think of buying them? OH...perhaps they will make them section 8 housing. Or perhaps turn them into a non-profit for drug rehab. And who in their right mind would move there 'on purpose' with the taxes ever increasing?
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
SCHENECTADY Alco site work gets $4M grant Money to redevelop Erie Blvd. property BY MICHAEL LAMENDOLA Gazette Reporter
The city of Schenectady on Wednesday received a $4 million grant from the Restore New York program to begin redeveloping the former Alco site on Erie Boulevard. The grant will be used to demolish five dilapidated buildings on the 60-acre site, once home to the American Locomotive Company and now called the Nott Street Industrial Park. “This funding will allow us to continue to create a new vision for the Alco site,” said Ray Gillen, chairman of the Metroplex Development Authority. Removal of the buildings will open up a 1.5-mile stretch of the site to the Mohawk River waterfront. The plan is to build housing and a 60,000-square-foot office complex in this area. Private investors will tackle these projects, Gillen said. “This key riverfront parcel is a key gateway to Glenville and to downtown,” he said. Several other former Alco buildings will be restored, including the tower building, which still retains the Alco name. “We would keep part of the Alco heritage,” Gillen said. Mayor Brian U. Stratton said the grants will “allow us to clean up this site and bring new jobs to our community in much the same way that we are developing another part of the former Alco plant for the Golub headquarters project.” Susan E. Savage, chairwoman of the Schenectady County Legislature, said the project will “reconnect our community to the riverfront.” ..................>>>>...................>>>>................http://www.dailygazette.net/De.....803&ViewMode=GIF
Trying what? This is another complete waste of State tax dollars. Death Ray will not give up on "housing" and condos on a toxic waste site. He doesn't seem to understand that there are tougher regs for housing than re-industrialization. What we need are jobs-not more surplus housing. This is just like Erie Blvd nobody wants Son of Sams plan but they keep dusting it off and forcing it on the sheeple.
Logged
ALCO'S "smooth transition" has hit a speed bump! lol! Who writes this baloney? Nothing is happening.
Trying what? This is another complete waste of State tax dollars. Death Ray will not give up on "housing" and condos on a toxic waste site. He doesn't seem to understand that there are tougher regs for housing than re-industrialization. What we need are jobs-not more surplus housing. This is just like Erie Blvd nobody wants Son of Sams plan but they keep dusting it off and forcing it on the sheeple.
