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$2 Million Galesi Group Investment in Building 14 at Rotterdam Corporate Park

Sale of Former State Bakery and Warehouse in Rotterdam Will be Completed in 2014

January 16, 2013

Schenectady, N.Y. — The Schenectady Metroplex Development Authority today announced that the Galesi Group is in the process of investing $2 million to upgrade Building 14, the 260,000 square foot former State bakery and warehouse located at the Rotterdam Corporate Park.

The building is now home to three companies:  ITR America, a major distributor of construction parts and equipment, J&B Importers, Inc., a large distributor of bicycle parts, and Distribution Unlimited, a third-party logistics (3PL) company owned by the Galesi Group.  The building has rail service and a large number of truck docks.

The $2 million investment is being used to pay for extensive renovations including roof replacement, new truck dock canopies, exterior painting and new siding as well as upgrades to the interior of the building.

David M. Buicko, COO of the Galesi Group, said, “This $2 million investment is part of our commitment to work with Schenectady County and the Town of Rotterdam to continue to attract new jobs and new companies to the largest business park in the Capital Region.”

Judy Dagostino, Chairwoman of the Schenectady County Legislature, said, “The Rotterdam Corporate Park is the source of many jobs and opportunities for County residents.  This investment of $2 million will help us to continue our effort to attract more tenants and more jobs to the former State bakery building. We appreciate this commitment by the Galesi Group and Metroplex to redevelop this key building in Rotterdam.”

Metroplex Chair Ray Gillen said, “This renovation of Building 14 helps us to provide space at the Rotterdam Corporate Park for growing businesses.”

In 2008, Metroplex entered into a master lease agreement with FG Rotterdam Holdings LLC, an affiliate of the Galesi Group. Under the terms of the master lease, Galesi made lease payments totaling $1 million to Metroplex. The Development Authority used these lease payments to purchase the building from New York State. Under the terms of the lease agreement, Galesi has the option to purchase the building prior to 2017.  The Galesi Group has notified Metroplex of its intention to purchase the building by March of 2014.

The Metroplex Board is expected to approve an extension of the master lease on the building at its meeting this evening. The closing date for the building sale will then be extended until March of 2014 when the sale will be finalized.

The 260,000 square foot building is one of the largest industrial buildings in Schenectady County. For many years, the building served as a bakery and warehouse for the New York State Office of General Services (OGS). OGS closed the facility in 1995. Metroplex helped OGS surplus the building and prepare it for sale.

The Rotterdam Corporate Park is the largest business park in the Capital Region with more than 4.5 million square feet of space and 245 acres of land.  The Rotterdam Corporate Park is home to Railex, which recently received funding for the Governor’s Regional Council to help with a major expansion. The Rotterdam Corporate Park is also home to Price Chopper’s Frozen Food facility, FedEx Freight, a regional office of NYS DEC and many other large and small business tenants. The business park is located very close to the spot where I-88, I-90 and Route 7 meet.

For more information, see www.galesi.com.

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