BATAVIA – The Batavia Development Corp. is seeking proposals from investors to redevelop a site on Ellicott Street through a state program that provides liability relief and tax incentives.
Known as Ellicott Station, the four-acre parcel includes the former Soccio & Della Penna Construction Co. at 40-52 Ellicott St. and the former Santy’s Tire Sales at 56-70 Ellicott St.
It represents one of five strategic redevelopment zones in the city – 366 acres in all – that have been designated as Brownfield Opportunity Areas by the Department of State, said Julie Pacatte, coordinator of the development corporation.
“The BOA designation allows for additional tax credits,” she said. “We feel that the tax credits make the project viable and feasible. The incentives really close the gap for investors.”
Pacatte said that one acre of the site, where the former construction office sits, is included in the brownfield cleanup program, and this qualifies an investor to apply for liability and tax breaks of up to 64 percent of the costs incurred for remediation, site preparation and reinvestment.
Additional studies confirm the balance of the property also will be eligible, she said.
“We’re promoting adaptive reuse of the Della Penna building along with selective demolition and new construction for office space,” she said. “The market report shows demand moderately estimated at 50,000 square feet.”
Pacatte said the brownfield designation appears like a “badge of honor” from the Department of State but “in truth, it is bittersweet.”
“It’s sad that we have these blighted areas but happy (in that) it sanctions bonus tax credits rewarding investment,” she said.
Pacatte noted her agency has “shortened the investor’s due diligence process” by offering market reports and site investigations.
She said the actions can make the developer confident about receiving an immediate return on investment.
Proposals, due by Aug. 12, can be submitted at www.bataviadevelopmentcorp.org.