Steve Thurston (2021)
The Kiley's building at 45 South Street along with the building next door, at 36 Elm Street, were planned for renovation, but may be sold, in the latest iteration of plans for South Street's redevelopment. (File photo.)
Glens Falls Economic Development Director Jeff Flagg said the city’s negotiations with Bonacio Construction have taken a turn, with the two parties “moving on a path toward” Bonacio purchasing 45 South St. and 36 Elm St. at their appraised value.
Flagg made the comments on a Zoom meeting of the Greater Glens Falls Local Development Corporation Thursday morning, Dec. 9. FoothillsBusinessDaily.com left a message with Flagg shortly after the meeting, but had not heard back by early afternoon.
As recently as October, the city planned to give Bonacio Construction $1.5-million of Downtown Revitalization Initiative grant money to help renovate the two historic buildings.
But now the plan apparently is to sell the two buildings, which the city owns, to Bonacio Construction at market value.
Full market value of 45 South St. is $257,733, according to city assessment records. The City’s Greater Glens Falls Local Development Corporation (LDC) bought the building in Dec. 2014 for $225,000.
Full market value of 36 Elm St. is $133,333. The Greater Glens Falls Development Corporation bought it in November 2005 for $200,000. The city and a variety of city and county economic development organizations has sunk more than $1-million into the property, known as the “incubator building,” over the last 15 years
Contacted for comment, Bonacio Construction’s Larry Novik said he doesn’t comment on ongoing negotiations, but did say that Flagg’s comments were accurate.
“We’re continuing to negotiate,” he said.
Asked what prompted the change in negotiations, he said, “I don’t know the reason,” adding that it’s a complex negotiation process.
In the Zoom meeting, board member Judy Calogero said the reason for the change is significant price increases in construction materials and supply chain issues.
“They are dealing with some of the same issues that some of the other projects in the Industrial Development Agency are dealing with…so that’s kind of what’s pushing this.”
In the meeting, Flagg said: “There are other tools at our disposal that we think we can use for negotiations. At the moment, at least, the path seems to be using these other tools in support of Bonacio and have them pay the appraised value for the two properties.”
Flagg also told board members he will be looking at a revised concept designs for the market center building, which would sit next to 45 South St. and function as a farmers’ market.
As part of the $10 million Downtown Revitalization Initiative, the city is revising its plans for the market center building after cost increases, and is also negotiating with Bonacio for a new mixed-use building. That building would sit on South Street between the Sandy’s building, which Bonacio owns, and New Way Lunch about half one block west of Glen Street. Currently, that space is the South Street Pavilion.
The DRI is an New York State economic development grant the city won in 2017.