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Seminary Commons
A vacant shopping center in central Auburn is a step closer to getting a substantial face-lift. The Auburn Industrial Development Authority board voted during a special meeting to grant a package of incentives to a real estate developer looking to turn the empty building at 23-37 Seminary Street into Seminary Commons.
The $1.45 million project is expected to bring multiple retail and service businesses to a renovated structure in the largely residential area. The board approved a number of tax abatements to Syracuse-based Washington St. Partners, including a 15-year agreement for payment in lieu of taxes, also known as a PILOT agreement.
However, the main sticking point between members on the board and representatives with the developer has been a clause in the agreement that could force the developer to pay back some or all of the PILOT benefits if the property is sold.
Under the recapture agreement approved 7-2, Washington St. Partners can sell the property within the next seven years and transfer the benefits to the new owner without approval from the AIDA board if the buyer is credit-worthy. If that stipulation is not met, the AIDA board can still allow those benefits to transfer at their discretion.
If the firm sells the property within the first seven years and neither of those conditions are met, they will have to pay back the tax breaks they received at the following rate: 100 percent for the first four years, 66 percent in year five and 33 percent in year six. The approved recapture policy ends at year seven, making it three years shorter than AIDA’s standard policy.
The proposal calls for keeping the 38,000 square-feet and improving the facade. Half of the building would be a grocery store, with the other half possibly being subdivided and rented as retail or office space, and the parking lot will receive an overhaul.
AIDA Chairman Jim Dacey called it a “wonderful” project after the meeting. “To take an eyesore and put business in there, it’s definitely a plus,” Dacey said. “And I believe (this developer) can do it.”
The board debated the recapture policy for quite a while before approving the project, continuing a discussion that started on Wednesday at AIDA’s regular meeting. Some members suggested keeping the 10-year policy, while others proposed five years.
Board member Monika Salvage said they already deviated from the agency’s standard PILOT agreement, which usually lasts 10 years, adding that these policies are in place for a reason. “We’ve got to have some sort of credibility and some sort of standards in place,” she said. William Graney, who is also on the board, said these agreements and packages need to change depending on the project and businesses involved.
Under the PILOT agreement granted to this project, the property will be assessed at $700,000 for the first 10 years. For the next five years, the assessment would increase annually until reaching the full value in year 15.
The projected assessment for the property’s full value is $1.4 million. The developer estimates the project will eventually create 58 full-time and 12 part-time jobs.
—The Citizen, Staff writer Christopher Caskey
http://auburnpub.com/news/local/article_600e7aa0-e631-11df-8181-001cc4c002e0.html
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