Rotterdam, N.Y. — The Town of Rotterdam, Schenectady County and the Schenectady County Metroplex Development Authority today announced that they have reached an agreement that will run a new sewer line to Burdeck Street helping to spur economic development in the Burdeck Street/Route 7/I-88 corridor.
An innovative public-private financing partnership calls for the new sewer project to be built with no out of pocket costs for the Town due to an $88,000 grant from Metroplex and the cooperation of a developer building a new $20 million apartment complex in Rotterdam.
The developer, Mr. Timothy Larned, has approvals already in place to build a non-gravity force main system to serve only the new apartment complex at a cost of $489,000 plus an $186,000 sewer hook paid to the Town of Rotterdam for a total cost of $675,000. This type of sewer line if it were built would not be able to serve new users on Burdeck Street.
The Town, County and Metroplex, working in close cooperation with the developer, have reached agreement that calls on the developer to build a gravity system and enlarge the size of the sewer line connecting the Town’s sewer treatment plant to the Burdeck Street corridor at a cost of almost $1 million. The developer will incur the added expense of installing the larger gravity feed system that will enable additional users to tie into the system in the future. The developer will receive an $88,000 grant from Metroplex. In addition, the Town will waive a sewer hook up fee of $186,000 to help offset the cost of building the more expensive sewer system. The developer will donate land for the expanded sewer project.
While the Town forgoes a one-time sewer hook up fee of $186,000 in exchange for the larger sewer system, it benefits many times over in the form of new revenues. First, the developer will pay the Town a park fee of $148,800. Next, the new apartment project will generate more taxes for Rotterdam helping the Town recoup its investment in waiving the fee within one year. Finally, the Town will benefit as other users tie into the system and pay the Town sewer hook-up fees.
Rotterdam Supervisor Harry Buffardi said, “This is a great deal for Rotterdam. The Burdeck Street sewer project has been on the drawing board for many years in Rotterdam, but nothing ever got built by past Town Administrations. We are very proud that our team in Rotterdam is moving this forward with the full support of the County and Metroplex.”
County Legislator Anthony Jasenski said, “The Burdeck Street corridor offers the opportunity to add substantial jobs and tax base. To get there, we need sewers and this innovative partnership provides the funding needed to move forward with another game changing project for Rotterdam.”
Metroplex Chair Ray Gillen said, “This sewer project will help us develop the Burdeck Street Business corridor which ties into Route 7 and the I-88/I-90 exchange. In addition, we believe the availability of the new sewer line will help existing businesses in this area that will have the opportunity to tie into the expanded system.”
The Rotterdam Town Board approved the formal expansion of the sewer district at its meeting last week.