Capitalize Albany Corporation's 2017 Annual Report

Page 1



Each year we’re one step closer to unleashing the Capital City’s full potential. We’re seeing progress and new investment throughout all of Albany’s neighborhoods and commercial districts. Park South has become a neighborhood of choice, Central Avenue businesses are thriving, our emergent Warehouse District is buzzing with new investment and Downtown—Albany’s newest neighborhood—is embracing its role as the heart of the Capital District. It’s an exciting time to be Mayor in the City of Albany. We will continue to build on the momentum of this year’s achievements and I look forward to a promising year ahead. Sincerely,

Hon. Kathy M. Sheehan Mayor

Capitalize Albany’s proven strategies—executed by our talented team of professionals working collaboratively with the City of Albany and development partners—are driving economic growth, inspiring new investment across the Capital City and throughout the Region. I am honored to serve as chairman of an outstanding volunteer Board, directing an organization that is creating opportunities, and making New York’s Capital a vibrant place to live, work and play. Undeniable progress is visible throughout the City of Albany. This year's annual report demonstrates many examples of how our newest and most established strategic initiatives are creating neighborhoods of choice and strengthening commercial districts citywide. Sincerely,

Michael Castellana Chair, Capitalize Albany Corporation















22-23 24

CAPITALIZE ALBANY CORPORATION Powered by investors composed of Albany’s community and business leaders, Capitalize Albany is a catalyst for economic growth


apitalize Albany is the City’s 501(c)(3) economic development arm, coordinating all economic development functions and resources citywide.

By matching projects with the right partners, tools and resources, the Corporation stimulates transformational local real estate development and business investment. OUR SERVICES & SUPPORT • Real Estate Loan Fund • Downtown Albany Retail Grant Program • Amplify Albany Grant Program • Coordination with Community Partners • Coordination with City Agencies • Site selection • Local coordinator for Consolidated Funding Application process and other NYS economic development initiatives We invite you to learn more about Capitalize Albany Corporation in this year’s 2017 annual report. Celebrating a year of new investments, this publication highlights the success of our strategic initiatives, each guided by a goal-oriented plan and developed with public input.

Throughout the City of Albany, neighborhoods and commercial districts are thriving. Pictured here, Jim DiNapoli Park in Downtown Albany bustles with creative and entrepreneurial activity.


“This is only the beginning. There are so many amazing projects going on right now. I can only imagine where we're going to be at in five years." Tyler Wrightson, founder, Leet CyberSecurity and co-owner, Stacks Espresso Bar All Over Albany 11.3.16


SMALL BUSINESS BREWS SUCCESS Whether a start up or an established business, Albany's small businesses create authentic experiences that are leaving people wanting more


s the City of Albany’s economic development organization, Capitalize Albany Corporation works to create, retain and attract business in the City of Albany.

The City of Albany is composed of a diverse and vibrant mix of commercial districts—and supported by the City's ten higher-education institutions, it has a deep pool of talent and resources. It’s a strategic location for logistics and access to a significant portion of the North American population. All of these assets are available in a State Capital at a scale that can advantageously showcase a business and support it in making a tremendous impact. Our team will help make the most of these assets while fostering a business-friendly environment. The professional staff at Capitalize Albany can assist small and large businesses alike in navigating and providing clear access to the abundance of tools and resources available through Federal, State and local partners.


Capitalize Albany Corporation is here to help businesses locate, relocate or expand in Albany.

We are about so much more than ribbon cuttings. Staff will work with the business at all stages of the project as a guide, advocate and resource.

Capitalize Albany staff can lend expertise and assistance in finding an available space and guidance through the permitting and approval process.

Capitalize Albany is the local coordinator for New York State economic development initiatives and programs, including the annual Consolidated Funding Application (CFA) process, enabling large projects to support small retailers.

In partnership with Albany Community Development Agency, the Corporation recently launched a new round of the City's Small Business Facade Improvement Program.

The Corporation continually looks to support and grow programming designed to assist local businesses and advance commercial district growth.

Staff helps businesses of all sizes ensure a project is completed as efficiently as possible.


Downtown Albany Retail Grant Program assistance provided by Capitalize Albany has helped to expand the variety of retail within Downtown, cultivating the "Downtown Retail Experience".

The Maccabi Games, an Amplify Albany grant awardee, had an estimated economic impact of more than $1.5 million.

"We have a great community to be a part of and there is very much a ‘rising tide lifts all boats’ mentality to it. I do credit a lot of other people and companies for really guiding us in the early days.” John Curtin, co-owner, Albany Distilling Co. The Alt 10.25.17

The Corporation's Amplify Albany Grant Program is helping local organizations and small businesses provide free events and services, such as the Capital City Shuttle, that drive foot traffic to Albany's commercial districts.


Steuben St. Market

Identified as a priority action through Impact Downtown, pop-up programming continues to drive additional customers to local retailers.

The Amplify Albany Grant Program has created 12 new initiatives and expanded 4 existing programs.

The Downtown Albany Retail Grant Program’s awarded projects to date will activate more than 7,500 sq. ft. of vacant downtown retail space.

Corporation resources have established loan funds through regional partners dedicated specifically to helping Albany's small businesses,.

Downtown Retail grants are estimated to create more than 40 permanent jobs and more than 50 construction jobs.

Amplify Albany will have supported more than 17,000 eventgoers’ worth of foot traffic in neighborhoods throughout the City of Albany.



nprecedented transformation is underway throughout the City of Albany. Downtown has an upward trajectory due to a steady residential market—supporting new investments that are helping downtown Albany thrive, while breathing new life into surrounding neighborhoods like Sheridan Hollow. The warehouse district's obsolete industrial spaces are finding new life as mixed-use lifestyle centers complemented by an emergent local craft brewing community. Communities surrounding institutional anchors like Albany Medical Center are thriving as new investments come through the pipeline. Capitalize Albany Corporation works with property owners and developers on each project individually to determine specific needs and enhance a project’s direct positive impact on the surrounding neighborhood, community, local economy and built environment.


The Corporation matches the right projects with the right tools and resources, and provides City investors with what they need in order to foster economic growth and job creation in the City of Albany.

From site-selection, strategic acquisition and direct real estate financing, to coordination with community partners, assistance with the local land use process and access to available resources, Capitalize Albany Corporation makes projects work in Albany.

Staff will help identify eligible resources and leverage these sources for project success.

Our team specializes in moving commercial and multi-family projects forward in ways that implement local revitalization strategies and leverage benefits to the surrounding communities.


Driven by new energy in downtown and growth of institutional anchors throughout the City, nearly 500 new downtown residential units and hundreds of newly constructed units surround Albany Medical Center and the University at Albany alone.

"I've lived and worked here for more than 25 years, and I've never been more excited about the future of the Capital Region." David Alan Miller, Grammy Award-winning Albany Symphony Orchestra Conductor

Capitalize Albany's Real Estate Loan Program supports the revitalization of strategic properties and the retention and creation of jobs for City residents.


Planned Development Citywide 2017 Multi-family residential projects Student housing projects

Affordable housing projects

$21M+ $114M+ $55M+

The City continues to experience new investment in both affordable and market-rate multifamily building on national trends.


Mixed-use projects

Projects that bring unique amenities, like this rooftop deck at 40-48 S. Pearl, appeal to Downtown's target markets.

The Corporation assists projects that support Albany's Comprehensive Plan - Albany 2030. A new Save-A-Lot store on Central Avenue enhances residents' access to produce and other fresh, healthy foods .


Commercial projects

Capitalize Albany also works alongside the City of Albany’s Industrial Development Agency (IDA) and Capital Resource Corporation (CRC). Two important resources for investment, these organizations assist eligible projects through tax abatement and conduit financing.



he team at Capitalize Albany takes an integrated, strategic approach. All efforts of the Corporation are guided by two foundational plans - the Capitalize Albany economic development strategy and the Albany 2030 comprehensive plan. Each initiative undertaken by the Corporation is aimed at implementing these goal-oriented strategic plans and developed with public input. Transformation and activity is already taking place attributable to these plans. These plans have led to more than $1 billion invested in Albany's neighborhoods, including more than $214 million of investment completed in Downtown in the past two years. Capitalize Albany continues to drive this implementation and catalyze growth through strategic project development.


Reconnecting and adding vibrancy to Albany's riverfront was identified as a priority by Impact Downtown.

Capitalize Albany recently issued a Request for Proposals to complete a feasibility study on the conversion of an underutilized I -787 exit ramp into the Region's first highline park - the Albany Skyway.

Working together, we will capitalize on the current momentum to build a better Albany.

The transformative, city-wide projects outlined in this publication would not be possible without Capitalize Albany’s strategic partners and the collaboration between our organizations.

Staff obtains critical feedback on project proposals through public engagement sessions, such as the Clinton Square DRI workshop.


Downtown Residential Development In The Pipeline $170M

Complete/ Underway

Data is the foundation of each of Capitalize Albany’s strategies. Market analyses are updated regularly to ensure development stays on target.


Total value of investment - $500 million 500


Total number of residential units - 1,150 120K SF

720K SF

Area of improvements - 840,000 SF

The Corporation’s strategies drive meaningful results. Downtown Residential is on-pace to fulfill its market potential – creating up to 200 new units annually.

Capitalize Albany Corporation frequently brings together key stakeholders including developers, business owners, community leaders and residents to discuss the City’s immense potential.


Albany's cultural heritage provides a rich foundation for development to a vibrant, authentic experience.

"We wanted to open a place where we could be part of a project we believed in — not just in the community but of the community." Janet Rothacker, co-owner, The Hungry Hollow Albany Times Union 4.21.17

Each commercial district throughout the City of Albany is supported by a local revitalization strategy. This stakeholder-driven redevelopment builds on local character and leads to sustainable investments.

Capitalize Albany’s initiatives - from Amplify Albany to the Real Estate Loan program - focus on community investments that strengthen Albany’s neighborhoods and grow the Capital Region’s economy.


PROJECT HIGHLIGHTS Albany Capital Center Marking the completion of a $78 million investment, the Albany Capital Center opened March 1, 2017. The 82,000 sq. ft. convention center is the Capital City’s contemporary, meeting, ballroom, and exhibit venue. Its construction utilized underdeveloped land and razed several vacant and blighted buildings. Integrated with the Times Union Center and the Empire State Plaza to maximize available meeting and exhibit space, the total capacity is 159,000 sq. ft., which exceeds all comparable in-state facilities and is twice the capacity of the largest national competitor. VALUSPACE A $6.3 million project made possible with assistance from the City of Albany Industrial Development Agency, a new 90,000 sq. ft., high-grade three-story temperature controlled self-storage facility containing 650 storage units at 40 North Russell Road came online in September. ValuSpace’s development was led by the Rosenblum Companies, the facility will serve as a critical amenity to current and incoming Albany residents. CLINTON AVENUE A $47.8 million investment, the project involves the revitalization of 210 units in 70 rowhouses and 2 vacant parcels. Approximately half of the units are vacant, eight buildings are condemned. The project will include mixed-income and affordable housing opportunities. The rehabilitation of the properties will be comprehensive and guided by the State Historic Preservation Office.


SHERIDAN HOLLOW Adding to the $18 million invested in the Sheridan Hollow neighborhood as part of the Sheridan Hollow Village project, a new restaurant - the Hungry Hollow - celebrated its grand opening in the neighborhood in 2017. Located on the corner of Sheridan Avenue and Dove Street, the business joins the nearly 100 new housing units consisting of both owner-occupied affordable homes and rental apartments in Albany’s Sheridan Hollow neighborhood. The Capital Region Chamber’s micro-loan program which is supported in part by Capitalize Albany Corporation assisted the Café with financing. Albany Medical Center Albany Medical Center is building a new, five story, 74,000 sq. ft. pediatric emergency center at the Albany Medical Center campus in Park South. Through a $50 million investment, this project will create the only emergency center of this kind in Northeastern New York and Western New England. The project is planned for completion in late 2018. 960 Broadway A project in the City’s warehouse district, revitalizing a property formerly home to the Rodgers Liquor Co., which has been left vacant for two decades. Made possible by City of Albany IDA assistance, this $6 million mixed-use reuse project when completed will transform the four-story abandoned warehouse into 24 market-rate apartments on its upper three floors and 3,000 sq. ft. of ground floor restaurant space with an entrance on Broadway. The existing two-story addition on the south side of the building will be renovated into 2,000 sq. ft. of additional commercial space.

IDA YARBROUGH The $45 million project is a multiphase, multi-year effort to develop new homes for low and moderate income families at 252 North Pearl St. and 531 Lark Drive in Arbor Hill. The project’s approximately $19 million Phase I consists of 61 new town homes and garden apartments for families with incomes below 50 percent of the area medium income, The project’s $26 million Phase II will involve the construction of 76 new units for low and moderate income families. Phase II will be offered to a range of low-income families. 1385 WASHINGTON AVENUE An August groundbreaking ceremony marked the beginning of construction of a new private student dorm facility located at 1385 Washington Avenue. This $30.5 million project, a 101-unit or 322-bed 142,000 sq. ft. student housing facility will create nearly 100 construction jobs, boost revenue to local taxing jurisdictions and assist in attracting top talent to Albany’s worldclass institutions. Wellington Row Complemented by the opening of the Albany Capital Center in March 2017, the vision for the revitalized Wellington Row has taken shape. For more than 30 years, prime property in the state’s capital city sat abandoned. The $68 million renewal of Wellington Row in total involved the adaptive reuse of six vacant buildings, the construction of a 300 space parking garage and a climate controlled pedestrian walkway connecting visitors to Albany’s new Renaissance hotel, convention center and adjoining 15,000+ seat Times Union Center arena and other attractions.

Albany Capital Center

Wellington Row


Clinton Avenue

1385 Washington Avenue

Sheridan Hollow

Ida Yarbrough 960 Broadway

Albany Medical Center 17

Palace Theatre

Quackenbush Square 99 Pine Street

991 Broadway

NYS Regional Council Initiatives 191 North Pearl Street 27 North Pearl Street


Park South 526 Central Avenue

99 Pine Street (CAPITAL CENTER APARTMENTS) Maddalone & Associates are renovating 99 Pine Street’s upper floors, bringing 38 new marketrate residential units to the heart of downtown Albany. A $5.4 million project made possible with assistance from the City of Albany IDA and Capitalize Albany Corporation, the renovation and partial conversion of the property’s third, fourth and fifth floors are transforming old office space into residential units totaling 34,000 square feet. Existing commercial tenants were retained. The project is set for completion in early 2018. 191 North Pearl Street (Wilson Apartments) A $2.8 million investment, The Wilson at 191 North Pearl, led by local commercial real estate broker Rudy Lynch will transform the vacant 9,074 square-foot lot located at the corner of North Pearl and Wilson streets creating 30 construction jobs. The new 3-story building will include 18 market-rate apartment units and a parking garage with approximately 15 parking spaces. 27 North Pearl Street A building in downtown Albany's historic district is being converted into retail space and apartments. The $1 million redevelopment of 27 North Pearl Street will convert the building into a three-story, 30,000 sq. ft. mixeduse building with four retail spaces, a residential lobby and 18 one-bedroom apartments.

NYS Regional Council Initiatives The City-guided effort for Rounds I-VI resulted in awards totaling more than $80.6 million to fund 104 projects. All projects are completed or currently under development in the City of Albany. In Round VI, the Capital Region was awarded a total of $83.1 million for 116 projects in the Capital Region, 17 directly benefit activities within the City of Albany, and will catalyze transformational development and job creation. 526 CENTRAL AVENUE In conjunction with Whitney Young Health Center and Equinox, Inc., Regan Development has proposed a 5-story, 130,000 sq. ft. mixed-use building fronting on the Central Avenue portion of the underutilized site. The developer is currently undertaking a community outreach effort and looks forward to incorporating feedback as the project evolves in 2018. The $21 million investment consists of 20,000 sq. ft. of commercial space including Equinox’s offices, a primary care facility and pharmacy operated by Whitney Young. The residential portion will be comprised of 71 affordable housing units. PARK SOUTH A $110 million anchor project led by Albany Medical Center and Tri-City Rentals is one of the many recent investments making Park South a neighborhood of choice. The project included 268 apartments that are now leasing, a 134,000 sq. ft. medical office building, an 816-space parking garage, and a mixed-use building with 12,450 sq. ft. of ground-floor retail space.

991 Broadway (Nipper Apartments) The conversion of the Nipper building in Albany’s warehouse district to apartments is planned as phase one of a four-phase, $70 million development project to include more than 150 additional apartments in a set of newly constructed buildings with retail space and multiple levels of indoor parking. Quackenbush Square Pioneer Companies has plans to move forward with a proposed $40 million, mixed-use development in downtown Albany to include plans for a hotel and mixed-use residential. The site is considered a prime spot to build retail, residential and commercial office space. The property is near historic Quackenbush Square and the Clinton Avenue exit ramp of Interstate 787. PALACE THEATRE Palace Performing Arts Center Inc. has plans for a $65 million upgrade to the 2,800-seat Palace Theatre located at one of the Capital City’s most prominent gateways. The investment would include creating an additional 600-seat theater on North Pearl Street next to the Palace, a video postproduction center for editing and sound-mixing, and expanding the theater's stagehouse, lobby and box office.


THE LOCH AND QUAY at 414 Broadway This new Broadway restaurant will be located at 414 Broadway across from SUNY Plaza, a building once known as the Plaza Grill and later as Franklin Tower. The Downtown Albany Retail Grant Program is supporting needed renovations. When work is finished 1,500 sq. ft. of space on its ground floor will be home to a new bar and restaurant. It will focus on diverse lunch menus, light-fare, craft beers, wines, specialty cocktails and coffee. Building renovations will also include three apartments on the upper floors, with the combined investment totaling nearly $1.4 million. ALBANY DISTILLING COMPANY Albany Distilling expanded into a new facility at 75 Livingston Avenue as part of a $1 million investment by the company. Made possible by a $60,000 Empire State Development grant and support from the Downtown Albany Retail Grant Program—75 Livingston Avenue includes a new outdoor patio, retail store and tasting room with a full bar featuring New York-made spirits, cider, wine, and beer. THE PORT OF ALBANY In 2017, the Port began two key construction projects that are a part of a three year, $40-$50 million overall maritime heavy lift and project cargo capacity improvement program. These projects will increase marine commerce activity, specifically supporting Upstate NY manufacturers exporting regionally made goods to customers around the world.


85 DANA AVENUE Made possible with assistance provided by the City of Albany Industrial Development Agency and a loan as part of Capitalize Albany’s Real Estate Loan Program—a 30 market-rate unit, 40,000 sq. ft. apartment building will rise between New Scotland Avenue and Knox Street. This $5.1 million new construction project marks a significant Park South Urban Renewal Plan implementation milestone as redevelopment will spread beyond blocks east of where Albany Medical Center and Tri-City Rentals collaborated on 268 new market-rate apartments on Morris Street and Dana Avenue. 800-804 Broadway A complete rehabilitation of the four historic properties, this $2 million project will transform the properties into 15 one and two-bedroom apartments—serving as a catalyst for the ongoing revitalization of the nearby Arbor Hill neighborhood. The Taverna at 40-48 South Pearl Street Maddalone & Associates invested $2.5 million to transform this 24,000 sq. ft. property, mostly vacant since 2011, into 16 luxury market-rate apartments combined with street level retail and commercial space. Its residential space is now fully occupied and its first retail tenant, The Taverna, will open soon. Utilizing approximately 600 sq. ft. of the ground floor, The Taverna will be an authentic Greek style restaurant. The Downtown Retail Grant program, made possible by the City of Albany Capital Resource Corporation, supported space fit up.

AMPLIFY ALBANY GRANT PROGRAM Capitalize Albany’s Amplify Albany Grant Program provides resources for the implementation of exciting activities and events that leverage the City of Albany’s most unique and strongest assets. The program, made possible with funding from the City of Albany Capital Resource Corporation, is enhancing the City of Albany’s commercial districts and businesses by providing grant funding to non-profits, businesses and other organizations that are creating and executing authentic, unique and buzz-worthy promotional programming. $42,000 has been invested into programming to date. 760 Broadway A $16.5 million investment, Fairbank Properties will construct a 5-story 130,000 sq. ft. market rate apartment building on the 1.4-acre parking lot at 766 Broadway. The building will be comprised of 100 rental units with up to 110 interior garage parking spaces on the ground floor. Fort ORANGE GENERAL STORE A popular and wide-ranging softgoods retail business that closed its doors in early June 2016 reopened under new ownership at a new location, 412 Broadway, across from the SUNY Administration building. Renovations and fit up for the Store total $100,000 and were supported in part by the Downtown Albany Retail Grant Program—made possible by the City of Albany Capital Resource Corporation and Capitalize Albany Corporation.

The Loch and Quay at 414 Broadway

Albany Distilling Company

800-804 Broadway The Port of Albany 85 Dana Avenue

The Taverna at 40-48 South Pearl Street

760 Broadway

Amplify Albany Grant Program

Fort Orange General Store



South End Commercial Investment ($12.3 M) Residential/Mixed-Use Investment ($126.2 M) Other Neighborhood Investment ($27.1 M)

Park South Commercial Investment ($41.7 M) Residential/Mixed-Use Investment ($129.9 M) Institutional Investment ($465.4 M)


Commercial Investment ($395.0 M) Residential/Mixed-Use Investment ($156.4 M) Public Investment ($337.1 M)


Arbor Hill and Sheridan Hollow

Commercial Investment ($3.9 M) Residential/Mixed-Use Investment ($160.1 M) Other Neighborhood Investment ($12.8 M)


Capitalize Albany Corporation

The mission of Capitalize Albany Corporation is to facilitate strategic economic development and stimulate transformative investment throughout the City of Albany, making New York’s Capital a vibrant place to thrive.

International Recognition

In 2017, the International Economic Development Council recognized Albany’s revitalization of Wellington Row, presenting its Gold Excellence in Economic Development Award. IEDC’s Excellence in Economic Development Awards recognize the world’s best economic development programs and partnerships and the year’s most influential leaders.

2017 Capitalize Albany Corporation Board Chair: Michael Castellana, President & CEO, SEFCU Vice Chair: Anders Tomson, President, Capital Bank and COO and President of Chemung Canal Trust Company Treasurer: Dr. R. Mark Sullivan, Director, Sullivan Institute for Leadership in Higher Ed., Professor in Higher Ed., The College of Saint Rose Secretary: Dorsey Whitehead, LTC, Retired as Consultant, New York State Minority Program Robert M. Curley, New York State Chairman, Berkshire Bank Michael M. Fancher, Vice President of Business Development and Economic Outreach, SUNY Poly John S. Harris Esq., Partner, Brown & Weinraub, PLLC David A. Parente, Vice President, McVeigh Funeral Home, Inc. Susan Pedo, Adjunct Professor, UAlbany, Communications & Public Affairs Consultant Matthew Peter, Executive Director, Albany Parking Authority Jeffrey Sperry, Associate Broker, CBRE – Albany Dr. James Stellar, Interim President, University at Albany Dr. Karen Torrejon, Founder and CEO, Glauconix, Inc. Michele Vennard, President & CEO, Albany County Convention & Visitors Bureau John Vero Esq., Partner, Couch White LLP Dr. Nancy L. Zimpher, Chancellor, State University of New York

Capitalize Albany Staff Sarah M. Reginelli - President Michael Bohne - Communications & Marketing Assistant Chantel Burnash - Executive Assistant Andrew Corcione - Economic Developer Joseph Landy - Senior Economic Developer II Ashley Mohl - Senior Economic Developer II Mark Opalka - Controller

Many of these projects would not have been possible without our partners. A special thanks to the City of Albany Industrial Development Agency and Capital Resource Corporation Boards. Tracy Metzger, Chair Susan Pedo, Vice Chair Darius Shahinfar, Treasurer C. Anthony Owens, Secretary Dominick Calsolaro Lee Eck Robert Schofield



ur Capital City is built on a rich 400year history and that foundation is supporting our progress. Albany’s unique neighborhoods and distinct assets are driving the incredible potential ahead— and that’s exciting. Whether you’re an inspired entrepreneur, an established small business owner, looking to distinguish yourself or your company in the corporate world, or driven to make a lasting impact by revitalizing a community—Albany provides a dynamic and supportive environment. Our talented and dedicated team, guided by a successdriven Board of the highest caliber business leaders in the City, is ready to help your idea or investment thrive. We look forward to working with you. Sincerely,

Sarah Reginelli President, Capitalize Albany Corporation

21 Lodge Street, Albany, New York 12207 (518) 434-2532