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FOR IMMEDIATE RELEASE: December 10, 2012

SCHUMER LAUNCHES PLAN TO CONTINUE REVITALIZATION OF SCHENECTADY LANDMARKS LIKE ALCO SITE, ROBINSON FURNITURE & FOSTER HOTEL – PUSHES FOR EXPANSION & EXTENSION OF FED TAX CREDITS THAT ARE CRITICAL TO REHABILITATE & BRING NEW LIFE TO BUILDINGS, LIKE CENTER CITY



Schumer Tours Center City With Local Developers and Pushes Two-Pronged Plan to Spur Development of Dozens of Vacant and Underused Historic Buildings & Sites Throughout Schenectady for New Businesses

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

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

 

 

Today, U.S. Senator Charles E. Schumer launched his two-pronged plan to boost the continued revitalization of dozens of Schenectady landmarks such as the Alco site, the Robinson Furniture Building site and the Foster Hotel, by encouraging developers to renovate these underutilized historic buildings. Following a tour of Center City with local developers, Schumer announced his proposal to extend the New Markets Tax Credit, set to expire at year’s end, and his support of the Creating American Prosperity Through Preservation (CAPP) Act, which would increase the Federal Historic Tax Credit, and make more buildings eligible. Schumer’s proposal would help developers throughout Schenectady in their continued efforts to harness the huge revenue-generating potential of Schenectady’s renowned historic buildings, and keep the recent progress of downtown’s revival moving forward. Schumer noted that his plan to ensure the availability of this federal support will benefit a number of potential projects and help build on the success of local developments like the renovation and expansion of Proctor’s Theatre, the YMCA’s complex at Center City, as well as the rest of the State Street corridor, Jay Street, the Former Schenectady International Building, and the new Golub Corporation Headquarters.

 

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 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 program has been a critical component of a number of Schenectady projects, and its extension is key to continuing the progress that has been made downtown.

 

Schenectady is chock-full of impressive historic buildings and downtown sites prime for revitalization and new life, and I am launching a proposal to give Schenectady a thriving future based on its noteworthy past,” said Schumer. “Schenectady’s potential for economic growth and new jobs through the development of properties like the Alco site, Robinson Furniture site, and the Foster Hotel, and deserves federal tax credits to revitalize these 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 Schenectady and by extending the New Markets Tax Credit and expanding of the Historic Tax Credit we can continue to build on that success. This effort will put people to work and better honor Schenectady and its proud history, and it will be a top priority before year’s end.”

 

“The extension of the New Markets Tax Credit and Historic Tax Credit Programs are critical for the continued redevelopment of Upstate New York’s urban areas,” said Dave Buicko, President of The Galesi Group. “The utilization of these programs levels the playing field and enables developers to offer competitive lease rates to attract tenants to locate in buildings in our downtown areas.”

 

“With strong support from Senator Schumer, Schenectady County has utilized both the New Market Tax Credit Program and the Historic Tax Credit Program to help attract over $120 million in new investment to our community. We are grateful for Senator Schumer’s efforts in Washington to retain and expand these vital programs,” said Ray Gillen, Chair of the Schenectady Metroplex Authority

  

Schumer launched his plan following a tour of the Center City complex, and was joined by David Buicko, President of The Galesi Group, Schenectady Mayor Gary McCarthy, Ray Gillen of the Schenectady Metroplex Authority, and many other developers, construction and business leaders from the region. Portions of Center City’s building go back to 1900, and the current complex was formed in the 1970s as a mixed-use retail, office building, and sports arena in order to help stop downtown’s decline.

 

Schenectady has made great strides towards revitalization and redevelopment, particularly on State Street, and Schumer noted that his proposal to extend the expiring New Market Tax Credit and expand the Historic Tax Credit will be critical in continuing on that path. For example, Center City’s continued revival could be complemented and accelerated by this plan as The Galesi Group continues to revamp the building. Schumer also cited the Foster Building as a prime example of where these tax credits could help turn unused space into valuable centers for business. The building, which is currently being rehabilitated by Metroplex, has the potential to be a center for visitors to Schenectady if investors can be confident of the continued support from the federal tax credits. Schumer also discussed the need to target the Alco site with these vital tax credits. It is expected that the New Markets Tax Credit Program would play a vital role in helping to finance redevelopment projects at the Alco site. In fact, $150 million in new construction is planned at this site including a hotel, new residential units and commercial development creating tax base and new jobs in Schenectady.

 

Schumer has long been focused on developing this plan to help revitalize historic buildings, rejuvenate impoverished neighborhoods, and give downtown Schenectady a thriving future, based on its noteworthy past. Schumer emphasized that with the fiscal cliff deal pending, it’s critical that the New Markets Tax Credit and the Historic Tax Credit be extended and expanded to see development in downtown Schenectady 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 Schenectady, particularly in Downtown and the Stockade.

 

Schumer explained the urgent need to extend the New Markets Tax Credit, which would help leverage private investment and jump-start construction efforts in Schenectady. 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.

 

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 Schenectady.

 

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