ROTTERDAM Metroplex looking to buy bakery building BY MICHAEL LAMENDOLA Gazette Reporter Reach Gazette reporter Michael Lamendola at 395-3114 or lamend@dailygazette.com.
The Metroplex Development Authority is setting its eyes on a huge prize in the Rotterdam Corporate Park — the 260,000-squarefoot former state bakery and warehouse. Metroplex is negotiating with the state to purchase the structure, also known as Building No. 14, for $1 million. It will hold a public hearing on the purchase next month. “This is one of our major goals for Rotterdam. Building 14 is one of the largest commercial buildings in the county,” said Metroplex Chairman Ray Gillen. He expects the sale to occur later this year. State Dormitory Authority spokesman Marc Violette said there have been discussions between his agency and Metroplex about the sale of the property. The Dormitory Authority owns the building and has begun the process of having the building declared surplus, officials said. After the sale, Metroplex would lease the structure to the Galesi Group, which owns the corporate park, Gillen said. Galesi would put the building back on the tax rolls and allow Metroplex to market it to companies. The park is off Duanesburg Road and close to the Thruway. Gillen did not know how much in taxes the structure would generate, saying assessors will have to set the value after the sale. Metroplex expects to recoup its $1 million purchase price through the lease agreement, Gillen said. The Dormitory Authority arrived at the $1 million value based on several appraisals, he said. Building 14 has been tax exempt for more than 50 years. It is one of 14 buildings of a former Army depot. The Army closed the depot in 1969, and the Galesi Group purchased 13 of the buildings. The state took Building 14, opening up a bakery and warehouse there. Former Gov. George Pataki closed the bakery in 1995 as part of efforts to privatize public services. About 80 of the 200 workers at the warehouse were laid off. After the closure, the state signed a master lease with the Galesi Group and worked to find tenants for the structure. In time, tenants filled around 160,000 square feet of the 260,000-square-foot building. Gillen said Metroplex and Galesi have been unable to fill the remaining space because the lease will expire in 2009 and the state does not plan to renew it. “The state is saying no more tenants can move in, and we can’t offer tenants a longterm lease,” he said. “We are a bit frustrated now because our hands are tied because of the fact the current master lease will expire.” Under the new lease, “we will be able to create jobs and expand the tax base,” Gillen said.
Why isn't Galesi buying this building themselves? I'm sure there is one, but what is the financial benefit to the taxpayer for the Metroplex to buy the building only to lease it to Galesi?
Why should $1M of public revenues be spent to purchase the building so that it can be leased back to Galesi Corp? Why would Galesi Corporation not want to purchase a property/building located in its own corporate park?
This arrangement spends $1M of public revenue by the Metroplex that cannot be invested to support other projects. The Gazette fails to provide the important details including those pertaining to the lease agreement. The reporter (Lamendola) reports that, after the lease is executed, Galesi would put the property back on the tax roll. How will this occur if the property is owned by the Schenectady Metroplex (a public authority). Do public authorities pay property taxes on owned facilities? Lastly, it is reported that Galesi Corp will then "allow Metroplex to market it to companies".
So, as I read the article, taxpayer funds will be used to purchase and own a building that will be leased, at an undisclosed rate, to a developer who will then (sub)lease the property through the marketing efforts of the owner (the Metroplex)? And, the oppressed taxpaying county residents should accept, without question, Gillen's statement that "Metroplex expects to recoup its $1 million purchase price through the lease agreement".
Does any of this make sense? Galesi was recently sold the building on lower Broadway that will house DSS. The developer is rehabilitating the building to lease back it to Schenectady County for an extended period of time. Meanwhile, the Metroplex is purchasing a building in the developer's corporate park to lease it back to the developer who will sub-lease it to business tenants secured by Metroplex. Perhaps, the Metroplex and Schenectady County should find a way to exchange the titles to these two properties.
The fleecing of Schenectady County residents continues ... Demand answers and accountability.
After the sale, Metroplex would lease the structure to the Galesi Group, which owns the corporate park, Gillen said. Galesi would put the building back on the tax rolls and allow Metroplex to market it to companies.
Somebody correct me if I'm not interpreting this right.
The Galesi Group, which owns the Rotterdam Industrial Park, has a vacant building which is currently owned by DASNY. DASNY is another one of New York's many authorities. The Schenectady Metroplex Authority is going to pay DASNY $1M, and then lease the building to Galesi. Then Galesi is going to ALLOW Metorplex to market it to companies.
Can anybody explain why DASNY can't lease the building directly to Galesi without Schenectady County taxpayer being the middle man and putting up $1M of our money.
I am going to assume that during those 13 years Building 16 was vacant, DASNY was marketing it to potential companies.(that's assuming that these authorities are really concerned about the taxpayer, and getting a 260,000 sq ft. building back on the tax roll) I'm also going to assume Galesi was aware that DASNY owned Building 16, and seeing how Galesi makes its money by leasing buildings in the park to companies. You would have to believe Galesi did their own marketing of building 16, to no avail.
So what we have is an authority buying a building off another authority, leasing it to a private business, for I'm sure considerably under market value. Then having the tax funded authority do the marketing for the private business. Eliminating another expense for Galesi.
Folks, this is Galesi we're talking about ... they get WHATEVER they want ... they've got an awful lot of political power in this county right now - a lot of "chips" in the game that can be called in at any time. The "favored son of Metroplex".
No you people are all wrong my friends, the Gal_sis are paisans of Rotterdam people and should get the white gloved treatment and of course the demos are for the little guy only not the big businessmen
You are a sly one Sal.....I'm sure you are a rep just trying to stir the democratic pot!!!
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
Another time of the (Communist organization) Metroplex working behind the iron gate. The ONLY way a project in Rotterdam gets Metroplex money, even though we pay it in.
Salvatore, if I were you, I would be comparing the Conservative line with the Republican line. If they match, then vote the Conservative line. If not, turn around and vote the Republican line. It doesn't show much in the end, except that there are people looking for conservatives, not just voting the Republican party line. This is exactly what I had to do in the last County election. I voted for Mr. Santabarbara on the Conservative line and Mrs. Lazzari on the Republican line, since that was the only place I could find her.
well she snubbed hereslf when she said she couldnt run and then change the mind over there. finally she ran as a running mate behind Angelo and she didnt do a bad job but Ang could have picked a better number 2 person in the end since she didnt run strong. being a flip flopper and changing her mind reminded me of Ross Perow.
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