VICTORY — A new developer is taking on the huge, five-story factory that has been closed for nearly two decades.
Regan Development is now trying to put together the financing to turn the 230,000-square-foot manufacturing facility into an apartment building.
Developer Larry Regan is not the first to see a bright future in the hulking concrete and wood that overlooks the river. But previous developers could not get the historic tax credits, low-income housing funding and loans needed to start renovations. He estimates that he needs $60 million to create 186 apartments and a microbrewery in the building.
Regan argued that he has a track record of developing large, abandoned historic buildings. He got the support of the Saratoga County Industrial Development Agency, which agreed to a 30-year payment-in-lieu-of-taxes plan. The PILOT would be $158,000 the first year, up from $10,800 in taxes now, and increase 3% each year.
The IDA does not normally allow a PILOT to extend to 30 years. But Regan said he needed to have a cap on taxes for the length of the loans he will get for the project.
Local officials spoke as if the project was assured once the PILOT was approved.
“This is a transformational moment for the village of Victory, one that respects our past and offers a vision for the future,” said Victory Mayor Pat Dewey in a statement. “In a sense, Victory Mills will be returned to its former glory, providing a home for hard-working individuals. We are thrilled to know that this historic building will once again be a jewel in our community.”
Likewise, town of Saratoga Supervisor Tom Wood called the project a “game-changer” that would provide the town, village and school with essential taxes and an affordable place for residents to live.
The Saratoga County Prosperity Partnership issued a press release saying that construction would begin next year.
But at best it would begin at the end of 2020, said Shelby Schneider, vice president of the Saratoga County Prosperity Partnership.
“It’s a critical step,” she said of the PILOT deal. “We’re not saying they will get the state funding. It is still a competitive process. We’re saying in 2020 because the state has multiple rounds of funding. Given the experience of the development and how conservative they are with these, if he says construction will begin by the end of 2020, I think it’s pretty close.”
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