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FOR IMMEDIATE RELEASE: December 10, 2012

SCHUMER LAUNCHES PLAN TO HELP REVITALIZE ROCHESTER LANDMARKS, LIKE EASTMAN DENTAL DISPENSARY, SIBLEY BUILDING, COX BUILDING – PUSHES FOR EXPANSION & EXTENSION OF FED TAX CREDITS THAT ARE CRITICAL TO REHABILITATE & BRING NEW LIFE TO HISTORIC BUILDINGS



Schumer Tours the Academy Building With Local Developers, Pushes Two-Pronged Plan to Spur Development of Dozens of Vacant and Underused Historic Buildings Throughout Rochester for New Businesses and Residences

Schumer Pushes to Extend New Markets Tax Credit & Expand Historic Tax Credit to Better Benefit Developments in Rochester – Plan Will Increase Federal Support for Job-Creating Projects and Encourage Downtown Growth

Schumer: Revitalizing Historic Rochester Will Create Jobs, Boost Downtown Development & Honor City’s Legacy

 

Today, U.S. Senator Charles E. Schumer launched his two-pronged plan to help revitalize dozens of Rochester landmarks, such as the Eastman Dental Dispensary, Sibley Building, Cox Building, and others, by encouraging developers to renovate these underutilized historic buildings. Following a tour of the Academy Building on S. Fitzhugh Street with local developers, Schumer announced his proposal to extend the New Markets Tax Credit, set to expire at years end, and his support of the Creating American Prosperity Through Preservation (CAPP) Act. Schumer’s proposal would help harness the huge revenue-generating potential of Rochester’s renowned historic buildings, and keep the recent progress of downtown’s revival moving forward.

 

The CAPP Act would increase the Historic Tax Credit from 20 percent to 30 percent of investment costs for smaller projects that cost less than $7.5 million, such as the Academy Building or the planned Mills III at High Falls, and make more buildings eligible for the tax credit. The CAPP Act also adds additional tax credits for including energy efficiencies in redevelopment projects and allows for any state historic tax proceeds to be exempt from federal tax. Schumer also announced his support to extend the New Markets Tax Credit, which covers 39 percent of the investment costs for eligible development projects, and are targeted towards low-income communities. The New Markets Tax Credit (NMTC) program has been a critical component of a number of Rochester projects, and its extension could bolster the progress that has been made downtown. Schumer noted that his plan to ensure the availability of this federal NMTC support will benefit a number of potential projects and help build on the success of local developments that were made possible by NMTC like the new Kodak Hall expansion at the Eastman Theater, and Brooks Landing.

 

Rochester is chock-full of impressive historic buildings and downtown facilities prime for revitalization and new life, and I am launching a proposal to give Rochester a thriving future, based on its noteworthy past,” said Schumer. “Rochester’s potential for economic growth and new jobs through the development of buildings like the Eastman Dental Dispensary, Sibley’s, or the Academy Building is massive, and deserves federal tax credits to revitalize historic buildings as an alternative to the wrecking ball or years of neglect. We have seen the tremendous impact these programs have already had throughout Rochester from new developments like the Eastman Theater expansion and Brooks Landing to historic redevelopment like the new Frederick Douglass Apartments in the Susan B. Anthony neighborhood. My plan will continue this momentum to all pockets of the community. By extending the New Markets Tax Credit and expanding the Federal Historic Tax Credit we can continue to build on that success. This effort will put people to work and better honor Rochester and its proud history, and it will be a top priority before year’s end.”

 

George Traikos, developer of the Academy Building said, “Federal Historic Tax Credits make a difference when it comes to saving historic structures like the 140-year-old Academy Building from destruction. Historic structures have unique architectural elements that reflect the history of the community. Historic preservation doesn't only save buildings – it saves communities. Besides, preservation is one of the "greenest" activities available to us. Without the historic tax credits, I could not have undertaken this project to rehabilitate this iconic property with 21 new apartments and new retail and restaurant space. As it was, I purchased the building just before the Great Recession and the lack of available financing that followed upended my timeline and forced the building to weather through four more winters. If Senator Schumer’s plan had been in place then, the 30 percent historic tax credit would have helped both in terms of funding the project and accelerating the timeline. Downtown Rochester would already be enjoying the benefits of a resurrected Academy Building.”

 

“We are so proud of Rochester’s rich history and we are committed to the task of protecting our viable historic buildings to the best of our ability,” said Mayor Thomas S. Richards. “When funding becomes tight, these improved Historic and New Market Tax Credit programs can mean the difference between projects moving forward, or projects withering on the vine. Extending these federal programs is critical to the momentum of Rochester’s transformation, and I am pleased to support Senator Schumer’s efforts.” 

 

Schumer launched his plan during a tour of the Academy Building on 13 S. Fitzhugh Street. The Academy Building was constructed in 1873 as Rochester’s first high school and later was home to the Board of Education, attorney offices, as well as Edwards restaurant, and is the area’s last best example of High Victorian Gothic architecture. In recent years it fell into a severe state of disrepair and would have likely remained vacant without the intervention of developer George Traikos, who purchased the iconic building in 2007, and aided by Federal Historic Tax credits, is redeveloping it into a $5.8 million mixed-use facility with 21 new apartments and space for ground level retail and restaurants. Schumer also cited the Eastman Dental Dispensary on East Main Street as a prime example of where these tax credits could help turn a prized building that has sat virtually empty for decades into a new mixed-use development. Together with the nearby Corpus Christi School building which is being eyed for redevelopment into a 42-unit affordable senior housing complex, these buildings have the potential to be the centerpiece of a revitalized East Main Street if developers can be confident of the continued existence and strengthening of these federal tax credits. Likewise, Schumer discussed that his plan could also help leverage the new investment envisioned by Sibley’s new owner to maximize the scope of this historic downtown landmark’s redevelopment. 

Additionally based on securing sufficient funding, developers are now contemplating and actively pursuing the redevelopment of several local historic structures including the Cunningham Carriage Factory in the Susan B. Anthony neighborhood, the Alexandria Apartment complex at East and Alexander, the Cox building on St. Paul Street, the Mills III apartments in High Falls, and the redevelopment of 25 Stone Street into a new downtown Hilton Garden Inn. All of these projects could tap the expanded historic credits provided under Schumer’s plan to complete their financing and accelerate their time to construction. Recent projects that have been aided by the existing 20 percent Federal Historic Tax Credit include the Frederick Douglass Apartments, the Academy Building, and the Mills II at High Falls.

 

Schumer was joined by Rochester Mayor Tom Richards as well as members of Rochester’s development community, including Academy Building developer George Traikos, Buckingham Properties CEO Larry Glazer, Mark IV Enterprises COO Chris DiMarzo, Edgemere Development Partner and COO Stephanie Benson, Home Leasing LLC President Cathy Sperrick, Conifer Realty President/CEO Tim Fournier, Rochester Downtown Development Corporation CEO Heidi Zimmer-Meyer, Urban League of Rochester Economic Development Corp. VP and COO Carolyn Vitale, DePaul Properties President Mark Fuller.

 

Schumer has long been focused on developing plans to help revitalize historic buildings, rejuvenate impoverished neighborhoods, and give downtown Rochester a thriving future, based on its noteworthy past. Schumer, Traikos, and other local developers emphasize that with the fiscal cliff deal pending, it is critical that the New Markets Tax Credit and the Historic Tax Credit be extended and expanded to see development in downtown Rochester continue on its current path. By bringing hotels, restaurants, businesses and other projects to these locations, young people, businesses and other residents would be encouraged to stay in Rochester, particularly in its urban core.

 

Schumer also addressed the urgent need to extend the New Markets Tax Credit, which would help leverage private investment and jump-start the construction efforts in Rochester. The NMTC program was created ten years ago in order to spur new business development and real estate projects. In exchange for investing in qualifying projects, individual investors and corporations can receive a tax credit on their federal income tax return, creating an incentive for individuals to invest. The federal tax credits are allocated to banks and other organizations that review applications and award the tax credits to investors for specific projects. As congress begins to put together an end of year tax extender package, Schumer has highlighted the NMTC program as one of his top priorities. NMTC funding is responsible for the construction of several recent developments including the Kodak Hall expansion at the Eastman Theater, which received a $39 million NMTC allocation, and Brooks Landing, which garnered a $10 million NMTC allocation. 

 

Schumer is also a cosponsor of the CAPP Act, which would update the Federal Historic Tax Credit. For three decades, the Historic Tax Credit has been instrumental in boosting the local economy of cities, towns and rural communities as it rewards developers who rehabilitate underused historic spaces for new businesses to use and attract new jobs. The CAPP Act increases the current 20 percent credit to 30 percent for projects under $7.5 million or less in qualified rehabilitation expenses and would incentivize the development of less-expensive projects that could attract small businesses. This is also a green bill that grants an additional two percent tax credit to projects that increase energy efficiency by 30 percent or more. Additionally, it allows for any State Historic Tax Credit to be tax exempt for federal purposes, making it even more advantageous for Rochester.

 

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