New Owners Will Invest $10 Million to Renovate Summit Towers
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NEWS RELEASE For Immediate Release
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Contact: Ray Gillen, Metroplex
(518) 377-1109
(518) 461-7137 (cell)
New Owners Will Invest $10 Million to Renovate Summit Towers
Schenectady, N.Y., October 6, 2016 – Schenectady County officials today announced that Summit Towers, a 12 story senior housing complex in Downtown Schenectady, will be sold and the new owners will invest more than $10 million to upgrade the property.
Anthony Jasenski, Chairman of the Schenectady County Legislature said, “The County is excited to see these much needed upgrades move forward at Summit Towers. After this $10 million investment, Summit Towers will be a great place for seniors to live just a few blocks from the heart of our revitalized downtown.”
Mayor Gary McCarthy said, “We welcome plans to rejuvenate Summit Towers providing quality housing for seniors in Schenectady while adding to the development momentum on Albany Street.”
The new owners, Preservation Development Partners, based in New York City, plan to convert the building back to seniors only. A major overhaul of the 183-unit apartment building includes a $40,000 investment for each unit with all new kitchens, bathrooms, countertops, appliances and cabinets. The common space in the lobby and community rooms will be renovated. The windows will be replaced throughout the entire building, along with the installation of cameras and security equipment. The elevators and hallways will be upgraded. The roof will be replaced. The exterior will feature new landscaping and renovated parking areas. The building’s heating, cooling and electrical systems will also be upgraded or replaced.
Another benefit of the project for Schenectady is that the renovation of Summit Towers will continue a strong development push up Albany Street from downtown. Already two other housing developments are underway in this area. With plans now in place to renovate Summit Towers, there will be more than $50 million in construction on the Albany Street corridor in 2017.
The City of Schenectady IDA, which is administered by Metroplex, has approved a Pilot for the project that will generate tax revenue from the building. The new owners have agreed to change the tax structure on Summit Towers which dates back to 1978 when the building was constructed. To date, the building has been exempt from local property taxes paying only a nominal amount each year based on a tax structure that was not beneficial to the City.
The new owners have agreed to structure a Pilot that starts at more than 50% of full taxes and increases 2% each year. As a senior only complex, the building will not result in any costs for the school district.
“With the cooperation of the new owners, Summit Towers will be renovated from top to bottom and make meaningful tax payments for the first time ever with increases every year. We are pleased to fix another poorly structured tax deal from Schenectady’s past as we upgrade and improve this building for the future,” said Ray Gillen, Chair of the Schenectady Metroplex Development Authority. The Pilot payments start at $104,000 annually plus full payments on special district fees and water/sewer charges.
Francine Kellman, co-principal of Preservation Development Partners, said, “We believe in providing quality housing with amenities and services for our seniors. We want Summit Towers to be a great place for seniors and a valued asset for the community.”
Preservation Development Partners has a growing portfolio of housing units and the firm plans to acquire additional properties in the Capital Region.
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