How much to operate?

By Cathy DeDe, Chronicle Managing Editor

Key question: What will the Market Center cost Glens Falls taxpayers once it is built?

The project has two parts:

• The City-owned birch leaf-shaped Market Center to house the Farmer’s Market and host other events, which is currently under construction.
• 36 Elm, the former Incubator building, which Bonacio Construction’s Spring City Development is just beginning to renovate. The City will use the first floor in conjunction with the Market Center for added event space, a commercial kitchen, a makers market of locally produced goods and wayfinding technological displays to connect visitors to businesses, producers and attractions.

Says Mayor Collins, “Do we not know about the long-term operating expenses? No. That’s true. We don’t know it but we are working hard at it now that the construction is happening.

Mayor Collins said, “I’m so excited and proud of our City for doing this. It’s amazing. But are there those details of the long term expenses? There are.” He says the Glens Falls Local Development Corporation [LDC] and a committee of community members is taking the lead on this aspect.

Known, unknown costs

• The build: $3.6 million, the City’s expected bond to cover all its costs of all DRI projects, to be bonded once it’s all completed, likely in 2026.

  The Mayor says the total expected investment in all Glens Falls DRI [Downtown Revitalization Initative] projects is just under $49 million, including about $22 million in private investment and $22 million state and federal assistance.

• The lease: The City will pay $900,000 over 10 years to lease the first floor and basement of 36 Elm from Sonny Bonacio’s Spring City Development in a 10-year contract. Not clear what happens after year 10 years.

  The Glens Falls LDC will sub-lease the space from the City of Glens Falls.

  Mayor Collins, who chairs the LDC, said the lease payments will be supported by funds from three properties the LDC is under contract to sell — $395,000 from Bonacio for purchase of the former Hotshots at 45 South Street and the ‘Incubator’ building at 36 Elm, plus $270,000 from Kru Coffee, to buy land in the City’s Technical Park off Luzerne Road for its planned coffee roasting facility.

  “It doesn’t need to fund all 10 years,” Mayor Collins said. “The market will be open and generating money.”

• The 36 Elm fit-out: $980,000 to create a commercial kitchen, regional market and digital promotional displays. The city has applied for a state grant to defray $450,000 of that cost. The remaining $530,000 is included in the expected $3.6-million bond.
• New hires & staff. The mayor expects a paid general manager will run the Market Center’s dual facilities. No specifics offered yet on what that might cost. He hopes to partner with SUNY Adirondack for interns to staff the 46 Elm Market. It’s expected to be open three days a week and during special events.
• Operating costs: Unknown. Mayor Collins said the LDC also plans to fund and oversee operations of the Market Center at 36 Elm, though no formal agreement has been reached. The City “for now” will run the Market Center.

  

  Costs along with the general manager and any other staffing will include utilities, insurance, equipment, building maintenance, repairs, plowing and supplies. He said ad hoc LDC committees are workshopping plans, but “we don’t know” expected cost.

• “The object is to get over the next three to five years,” said Mayor Collins, when he said he expects grants, internships and generated income will cover costs. Eventually he plans for a private group similar to the Civic Center Coalition to take over running the operation.
• Parking provided to Bonacio: $1.5 million-plus? The City contract with Bonacio’s Spring City Development commits to providing, at no cost to Bonacio, 110 parking spaces. That’s 35 spaces for the Phase One projects to create commercial/restaurant space and 18 apartments in the former Incubator, Hotshots and Sandy’s Clam Bar buildings. Also, 75 spaces for the Phase Two, five-story, 70-unit apartment and mixed use retail project on the current site of the Farmers Market Pavilion and parking lot.

  Mayor Collins and City Economic Development Director Jeff Flagg said they are talking to owners of 333 Monument (the former Travelers building) to purchase spaces in their parking garage, but no deal has been made. They note that the city is sitting on a promised $1.5 million state grant for parking it could use.

  Mayor Collins said The Market Center/Farmers Market could open as soon as this winter. He said he hopes the holiday season Christkindlmarkt held for the last two years in City Park can expand into that South Street space as well, this year.

  Completion of Mr. Bonacio’s redo of 46 Elm, the Incubator building, is expected in “12 or 18 months,” the Mayor said, at which time the city’s financial obligations to lease and run it will begin.

Copyright © 2024 Lone Oak Publishing Co., Inc. All Rights Reserved