Columbia County OKs tax breaks for Valatie apartment conversion
GSCG is bringing much-needed workforce housing to Columbia County, with county approval of tax incentives for the $7 million conversion of the Blue Spruce Inn & Suites in Valatie into 52 apartments.
| Spenser Walsh | Daily Gazette
HUDSON — A county agency approved tax breaks for the $7 million conversion of a Valatie motel into apartments.
The Columbia County Industrial Development Agency approved a payment in lieu of taxes (PILOT) plan for the building’s property taxes, as well as mortgage recording and construction sales tax exemptions for the conversion of Valatie’s Blue Spruce Inn & Suites at 3093 Route 9 into a 52-unit apartment building.
While the housing will be market rate, both the project’s developer, Brian Green, and the agency’s administrative director, F. Michael Tucker, characterized the apartment building as “workforce housing” because the smaller size of the 650-square-foot units will keep prices down. The conversion of the building from a motel to apartments will have ripple effects on the local economy, Tucker said.
“There will be an immediate creation of temporary construction jobs, increased demand for local building materials and supporting regional suppliers and contractors,” Tucker said. “Once completed, the 52 new households will contribute to the economy by shopping at local businesses, and it will provide much needed workforce housing that will allow local employers to attract and retain staff that we know are currently priced out of the market in Columbia County.”
“Once completed, the 52 new households will contribute to the economy by shopping at local businesses, and it will provide much needed workforce housing that will allow local employers to attract and retain staff that we know are currently priced out of the market in Columbia County.”
The only construction work required will be the conversion of the rooms from motel rooms to apartments, Tucker said, adding that Kinderhook Town Supervisor Tim Ooms spoke in support of the project at a public hearing last month.
The board unanimously approved $564,664 in tax exemptions for the project, including $200,000 worth of sales tax exemptions and $65,625 in mortgage recording tax exemptions. It also approved $299,039 in property tax exemptions over the 10-year period of the project’s property tax exemption agreement.
The project would pay 50% of property taxes in the first year of the agreement, which takes effect only after the project is deemed completed by the agency, and pay 5% more every year until the 10th year, when it will pay 95% of the property taxes it owes.
Overall, the project would pay 75% of what it would have paid in property taxes had there been no agreement. However, 33% more tax revenue will be generated under the agreement than if the project had never been proposed.
The tax breaks allow the project to be done to its fullest extent, Green said.
“We could probably manufacture a way to do this at a lower cost basis without the incentives,” Green said. “But with the incentives, we’re able to go all in, all new kitchens, all new bathrooms, really reinvigorating the entire property the way it’s supposed to be done.”
Green cofounded property acquisition group Green Springs Capital Group, which primarily operates in Warren and Saratoga counties. The intense need for housing in Columbia County is what helped attract him to the project, he said.
“We see a lot of potential down here, so this is kind of our trial,” Green said. “It’s proof of concept, making sure it works, and then we’ll double down even further.”
The conversion could be complete by this time next year, Green said.
“We’re hopefully closing on the property this month,” Green said. “Our plan is to start as soon as June, as soon as we get building permits, and our expectation is we’ll be done within 12 months.”