GF re Bonacio parking: ‘Better deal for us than 14 Hudson’ was

By Cathy DeDe, Chronicle Managing Editor

Jeff Flagg, Glens Falls Director of Development, tells The Chronicle that 14 Hudson — the Bonacio-Galesi Group 2018 project — set the precedent for the city to provide parking spaces for the developer’s South Street projects. The city built the Park Street Parking Garage.

Now, says Dr. Flagg, Glens Falls has promised parking for the Bonacio Spring City Development project on South and Elm Streets — but he says the city is getting a much better deal.

“In short,” Dr. Flagg writes, “at 14 Hudson, the City provided Bonacio with 220 spaces in return for them building 89 apartments and 31,000 square feet of new construction commercial space.

“On South Street, the City is providing half the number of spaces (110) for the same number of residential units (89) and around 15,000 square feet of commercial space.

“It should be noted that they are also rehabbing three buildings [the former HotShots, ‘Incubator’ and Sandy’s Clam Bar], which is generally much more expensive than new construction.

“As a result, developer’s investment is estimated to be over $13 million more than they spent on 14 Hudson, while the cost of the parking the City has agreed to provide, assuming that we build on the existing structure at 333 Glen, would be less than half of what we invested in the Park Street Garage.”

Both projects were funded in part by Glens Falls’s $10-million DRI [state Downtown Redevelopment Initiative grant].

Dr. Flagg said 14 Hudson and Park Street garage was a $26.8-million project. He said the city spent $8-million, including a $3-million grant.

For Mr. Bonacio’s South and Elm Street projects, Dr. Flagg puts the total project cost at $35.6-million. He said that if Glens Falls adds decks to the 333 Glen parking structure, the city’s cost might be in the range of $3.45-million.

“The City currently has an open $1.5 million Empire State Development grant for a parking structure,” Dr. Flagg said.

He reiterated, “The City agreed to provide 75 spaces for Phase II (the planned apartments-mixed use building on the current Farmer’s Market parking lot) and is looking at our portfolio of options for providing those spaces.

“Options include nearby public or private lots, or spaces in public or private structures….We have been negotiating with 333 Glen regarding several different options…which include leasing existing spaces in their lot or garage (for Bonacio and/or other downtown businesses and residents), or constructing additional decks on the current structure, which is much less expensive than building a new structure.”

“The length of time the City will provide the spaces will be negotiated with the developer.”

The 35 spaces for Phase I (renovation of the three existing buildings) are required to comply with zoning, he said.

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