ALBANY, NY — The Albany City Industrial Development Agency (IDA) is moving forward with its stagnant “Air Albany” luxury apartment project at 1211 Western Avenue in accordance with safety concerns raised by residents and elected officials. Neighbors say construction on the project near Albany University was halted more than two years ago.
CBS6 requested an interview with IDA representatives. Instead, IDA CEO Ashley Mohl received a statement. The statement said the IDA is monitoring the situation “very closely” and is involved in “recent conversations with developers” and is working with the city to “encourage reboots on-site and move forward towards completion of the project.” The developer’s construction permit expired last month.
Vincent Rigos, president of the Eagle Hill Neighborhood Association, expressed his frustration, saying, “This is what we got and it was built, and no one has touched the site in the last two years.”
Tom Wheely, a member of the Albany Common Council, highlighted continued safety concerns since the 2017 approval of the project.
“We once had a pond here and when they started pouring cement, the cement started sinking even more than they thought,” Hoey said. “The building next door was affected, and the driveway began to sink at least six inches, and they realized there was a problem. But they proceeded with the construction anyway,” Wheelie also says that the biggest fire truck in Albany can’t reach the roof of the building. An IDA spokesman told CBS6 to contact the relevant city department with questions regarding safety, fire ladders or engineering concerns.
Mayor Sheehan’s office said developer DMG Investment has to reapply for permission with the planning department and pay the recent stabilization and unresolved local government fees.
“No one is working on this project, so when they get a money review before IDA… they just get 14 mils and give them money,” Rigosu told CBS6.
IDA approved CBS6 for a total of more than $14 million in sales, mortgage and property tax exemptions in 2020, and was expected to generate more than $8 million in local tax revenue by 2039. It is also projected to create 90 construction jobs.
Whey questioned Ida’s role and said, “Where is Ida? They’re given these grants, there should be 90 construction jobs, seven permanent jobs. That’s why they got the grant. There’s no work here right now.”
CBS6 has been asking for an interview with DMG Investments since last week, but has not received a response.
Below you can read the full statement from Albany City IDA CEO Ashley Mohl.
Our board of directors and staff are super close and further monitoring the project in regards to compliance with all relevant project documents that outline the terms and conditions of IDA support. This is still an active project with the city of Albany Ida, and our board and staff have been in recent conversations with the developers and are encouraging them to work with the city of Albany to reboot on site and move forward towards completing the project.
In September 2020, the Albany IDA City Commission approved an application to provide project support in the form of New York’s sales and mortgage record tax exemptions and real estate tax reductions over an 18-year pilot period. The project application was expected to create at least 90 construction jobs.
Under the project’s pilot agreement, by 2039, the investment will only be $542,088 over that period, resulting in a total of $8,227,180 in the local taxable jurisdiction over dozens of times that would be projected without an investment. It is estimated that it will generate more than $1.4 million per year in local taxable jurisdictions following the project’s pilot period.
Estimates for tax-exempt projects approved in 2020:
NYS Sales and Compensation Use Tax: $1,000,000
Mortgage Record Tax: $320,000
Real Estate Tax: $12,845,169
