Parking lot district in limbo

Dec. 31 deadline for land transfer passed without deal in place

The city’s economic development arm originally agreed in May 2018 to take over what is known as “the parking lot district” from the Albany Convention Center Authority, but another deadline aimed at moving the process has not been met.

Capitalize Albany is working toward redeveloping the longblighted, eight-acre expanse of mostly crumbling parking lots sandwiched between South Pearl Street and Broadway. But a second date set for the land transfer, Dec. 31, has passed — with Capitalize still negotiating with private landowners who own parcels within the site’s footprint.

Sarah Reginelli, Capitalize Albany’s executive director and a convention center authority board member, said Tuesday she cannot disclose details about negotiations, but said Capitalize is committed to taking control of the parking lot district in 2019.

“Because of the regional impact this site can have, we all remain dedicated to moving forward,” Reginelli said, adding, “working through full site control really adds to the complexity.”

The authority, which started acquiring properties a decade

ago in preparation for a massive $200 million-plus convention center that never happened, owns 29 parcels. The authority properties would be transferred to Capitalize Albany for free.

But about 20 other parcels are owned by trusts, which are controlled by the children of two former Albany landowners.

The convention center authority has had longterm leases with the private owners, presuming that one day the authority would offer to purchase the properties. The authority rents the lots for paid parking.

But the state pulled back on the convention center project in 2013, instead providing $78 million for a smaller version that is now the Albany Capital Center on Eagle Street.

Attorney Timothy Thornton, who represents one trust executor, Daniel Chambers, couldn’t be reached for comment Tuesday. Paul Chambers, who controls the limited liability company PSC that owns the other parcels, also could also not be reached for details concerning the negotiations with Capitalize Albany.

Capitalize Albany, which is a public authority that assists with development in the city of Albany, is also working with Empire State Development on acquiring the site. The state agency released a conceptual study in fall 2017 that envisioned 1 million square-feet of residential, retail and entertainment venues for the site that would be built over seven years.

Any development would be built around what is known as the oldest house in Albany, the Van Ostrande-radcliff House, which is owned by Historic Albany. A small patch of grass, Liberty Park, would also be untouched. That plot is considered one of the oldest urban parks in America.

In 2015, ESD tried to encourage interest in the former convention center site, which is across the street from the State University of New York headquarters on Broadway. But the state required the parcels not be split up, and there was little interest from developers.

Movement on redevelopment became even more of a priority in August 2018 after one of the few buildings at the site, 6 E-comm Square, suffered a collapsed roof and had to be demolished.

Reginelli said ESD might provide assistance for purchase of the remaining parcels, as well as preparing the site for redevelopment.

“We continue to work with (ESD) on ensuring there are the appropriate resources available to make this transaction a success,” Reginelli said.

Will Waldron / Times Union The convention center authority spent $5.9 million in 2010 to buy the E-comm buildings in anticipation of building a convention center and hotel.

Photos by Will Waldron / times union the Albany fire department put red X’s on 2 e-comm Square, left, and 4 e-comm Square, right, in may after inspecting the outside and determining that the vacant brick structures on Broadway would be unsafe to enter.