Project developers seek state funds
Proposal for former diner site includes workforce housing, restaurants, offices
SARATOGA SPRINGS, N.Y.» Developers planning a mixed-use, workforce housing project at the site of the old Saratoga Diner are looking to get some funding from the state.
The three-acre project features 110 workforce housing units, ground retail, restaurants and 10,000 square feet of office space for an incubator for new and established businesses.
The roughly $30 million investment, developed by KCG Development and Saratoga Springs-based partner DEW Ventures, could revitalize a key urban in-fill asset, official say.
“It combines tens of millions of [dollars in] new equity-investment to the community with available state gap financing tied This image shows a birds-eye view of the proposed South Broadway mixed-use project.
to developing modern housing at rents aligned with the monthly wages of local working or retired households. The State Department of Homes and Community Renewal released an open round of requests for proposals to help deliver many thousands of new housing units and specifically have programmed funds for delivering workforce and middle income eligible options in places where the market rents have risen,” said Bill Teator, managing member of DEW Ventures. “We are grateful for the Saratoga Diner owners working with us so we can help deliver a project centered around so many community benefits and uses.”
The developers said they are looking for around $10 million from the state.
The project has been discussed with the state agency throughout the summer and fall. The developers said they are hoping to receive gap subsidies from the state in the coming months.
“We continued to work on identifying the commercial use of 12,000 square feet for a job-creating entrepreneur incubator led by Saratoga Economic Development Corporation to be operated in conjunction with Saratoga Coworks. Part of the state’s awarding gap funding for projects like this is seeing the will of the localities to support it through their planning process and with significant local financial incentives,” said Teator. “We will push ahead with our financial model and formal application to the state underwriters in the weeks ahead as we confirm the local incentive participation. That will help strengthen our application for gap funds from the state.”
Teator and Saratoga Economic Development Corporation presented the updated plans to City Council on Monday night. The City Council showed support Monday, and are expected to soon vote on participating in the application process.
Commissioners expressed interest in a PILOT (Payment In Lieu of Taxes) deal for the proposal. Officials plan to discuss the amount for the PILOT in the near future.
“City and business leaders have identified the growing gap for working and middle-income households to find housing closer to work and at rents that don’t overburden monthly wages. To help a project like this keep rents aligned with Saratoga’s working incomes, localities can support a payment in lieu of taxes [deal] to help mitigate the property tax burden,” said Teator. “Also, with the non-profit Saratoga Economic Development Corporation able to locate its Spark Saratoga entrepreneur incubator here — the first of its kind in Saratoga County — that job creation potential is frequently something localities offer incentives to attract and keep. We have a vibrant city. To help keep it that way making sure young professionals, working households supporting key industries and entrepreneurs looking to grow next generation businesses can approach living here will help.”
The development consists of 64 two-bedroom units and 46 one-bedroom units with common spaces for a combined total of 96,000 square feet of residential space, reserving 14 housing units to veterans in need of stable quality housing. The Veterans and Community Housing Coalition will manage those units.
Teator believes rents would range from $750 per month for a one-bedroom unit to a high of $1,650 per month for a two-bedroom. Resident amenities will include elevators, a community room, fitness center, parking, storage, in unit laundry, shared patio spaces and much more.
There’s 273 total parking spots. About 4,000 square feet will be dedicated for non-profit arts studio space.
“We are in discussion with non-profit arts based organizations about potential dance and visual media related uses,” said Teator. “We would like to be able to incorporate space for some of those creative contributors to what makes Saratoga so special.”
Teator said the project should be in position to start construction by summer 2018.