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City Outlines Goals for Restore New York Funding Application

State Street, Robinson, College Park Projects Could Mean Over $30 Million in New Development in Schenectady

September 11, 2006

Schenectady, N.Y., September 11, 2006 – City officials today outlined plans to apply for funding from the Restore New York program. The Governor and State Legislature enacted the Restore New York Program as part of this years’ budget to help local governments revitalize urban centers, encourage economic development and attract residents and businesses to urban areas creating vibrant communities new tax base and new jobs. A total of $50 million is available this year with another $250 million to be awarded in the next two years.

This year’s funding was announced on August 11th with proposals due on September 15th. The Schenectady City Council will adopt a resolution endorsing the City’s funding application at its meeting tonight.

Schenectady Mayor Brian U Stratton said, “We have been working closely with the City Council, Metroplex, and the County Legislature to prepare the best possible application for funding under this program. This is an important opportunity for us to advance the College Park Project, move forward with rehab of the former Robinson Furniture Building as well as a new project that will create mixed use space on State Street across from the new Hampton Inn. In total, if all three projects move forward as we hope, we are looking at over $30 million in new development downtown.”

The College Park project involves construction of up to four buildings including two office buildings, a new YMCA and a new Union Graduate School with a total cost of more than $23 million. The Robinson Furniture Project, announced several weeks ago, is a $3 to $5 million project on lower State Street that will convert a long vacant building downtown as new urban residences.

The new mixed use project on State Street is a $6.5 million project that involves construction of more than 30,000 square feet of retail and office space in the block between Clinton and Jay Street across from the Hampton Inn. Metroplex purchased three buildings on this block with the hope of creating a shovel-ready site downtown for further redevelopment on the block of State Street downtown now referred to as the Proctors Block. Metroplex will commit $1 million to the project while a development company based in Central New York has committed to invest $4 million. Restore New York funding would be utilized to demolish the buildings, prep the site for new construction and help with reconstruction costs.

HDB Ventures, a development company with offices in Central New York, New Jersey and Connecticut will joint venture with Highbridge Development, a local development company and invest $4 million in the State Street project.

Rick Diamond a principal with HDB Ventures said, “This is an exciting opportunity that I would have never found without the efforts of the Mayor’s Office, the City and County of Schenectady and Metroplex. Their combined efforts have made Schenectady a model for revitalization and urban renewal. I am looking forward to being a part of the downtown momentum.”

Construction of the State Street project between Clinton and Jay Street will begin next summer if the City’s funding application is approved by the State.

Mark W. Blanchfield, President of the Schenectady City Council said, “This is exactly the sort of investment “kick start” needed for these critical pieces in our Downtown and near-Northside puzzle. Not only will the Robinson Building, the 400 Block and College Park benefit from this program, but so will the surrounding residences, businesses and cultural institutions. It is our hope that the State of New York will continue to recognize the hard work we’ve put toward Schenectady’s recovery and look favorably on this application.”

Gary Hughes, Chair of the County Legislature’s Committee on Economic Development said, “The new mixed use project on State Street gives us the opportunity to take yet another important step in transforming the Proctors Block into a great entertainment, office and residential hub for the Capital Region. This project along with College Park and the renovation of Robinson Furniture will move us that much closer to a strong, vibrant City with new tax base that is critical to all City residents. The County is pleased to offer assistance to the City in pursuing this important grant opportunity.”

Award decisions on the first round of Restore New York are expected in mid-October.

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