SCCC to build student housing

The United Group of Companies will build an $11.6 million apartment complex for 264 students attending Schenectady County Community College, according to officials with the company and Schenectady County.

The project should help SCCC attract and retain students, help lower Schenectady County’s sponsorship costs and provide another economic boost to lower State Street, local officials said.

Jeffrey Buell, development executive with United Group, said the company will build the four-story, 112,000-square-foot facility on county-owned land at 117 Washington Ave. The Troy-based company will break ground later this year and open the building for occupancy by the fall 2012 college semester, he said.

“This is a high priority for us,” Buell said.

The company may later build a second apartment complex for approximately 150 to 200 students, depending on market conditions and the availability of a suitable location, Buell said.

Ray Gillen, commissioner of economic development and planning for Schenectady County and a member of the SCCC board, said United Group will use private financing for the project. The company, however, will be eligible for sales tax exemptions applied to construction materials and will receive a payment-in-lieu-of-taxes agreement, both through the Schenectady County Industrial Development Agency, Gillen said.

“The site [a parking lot] pays no taxes now,” he said.

SCCC President Dr. Quintin Bullock said the apartment complex will support enrollment growth at the college and help recruite athletes. “SCCC is very excited to move forward with student housing to support the growth of our long-standing, signature programs … We want to have students from outside of the county to have access to affordable housing and be engaged in structured activities, which add to the college experience,” Bullock said.

A major revamping of the community college’s academic programming is designed to make the college the first choice for county residents seeking higher education, college officials said. The college and county hope that by making SCCC the first choice for county residents, the county will reduce how much it pays in chargebacks. Chargebacks are tuition fees the county must pay for residents who attend a community college in New York state outside of Schenectady County. Chargebacks cost the county approximately $2 million annually.

Gillen said the college’s increase in enrollment is helping drive the need for the student housing. SCCC’s enrollment increased 9.5 percent for the 2011-2012 academic year and is expected to increase another 10 percent next year.

Buell said SCCC’s admission growth and SCCC-conducted market studies factored into the company’s decision to proceed with the project. “We build student housing for a living. We have a number of different projects across New York state. We believe in the community college concept of having student housing. Students want a live-learn environment, and we love the growth at SCCC. It is a fast-paced community and we are thrilled with the leadership of Dr. Bullock,” he said.

United Groups will own the apartment complex, which will be called College Suites at Washington Square, and lease the land from the county. The company will pay the county $250,000 for a 40-year lease, with an extension option. The land encompasses portions of the former Van Curler Hotel parking lot and a vacant service station at 101 Washington Ave., which the county bought for $140,000, with the state paying half.

Buell said the complex will contain 69 apartments, most of them with four private bedrooms and two baths, with some two-bedroom suites. Each suite will have shared living and kitchen space. The rooms will come fully furnished. The company will provide supervision 24 hours a day, seven days a week. Rent, which includes utilities, will be in the range of $600 per month.

Gillen said private financing is key to making the project happen. The college has for years wanted student housing but could not finance the project for various reasons, he said. “Despite the need for housing at SCCC and the success experienced by many other community colleges in supporting student housing projects, the state has not enacted legislation needed to allow community colleges to directly own and operate student housing facilities. As a result, most colleges utilize a foundation or affiliated entity of the college to get student housing built on or near their campus,” he said. “While the foundation does an excellent job in raising funds for scholarships and other programs, it does not have the required assets needed to secure financing for such a large project.”

An attempt to issue bonds through a local development corporation, established by the Schenectady County Legislature in 2008, was stymied by the nation’s financial crisis, Gillen said.

“When the financing failed to come together for this initial project, we shifted our approach to try and locate a developer who would privately own, operate and finance the student housing and rent housing at a price point that is attractive to students,” Gillen said.

The student housing project is the latest economic development announcement to hit lower State Street. Other projects planned for the area are a proposed $10.9 million reconstruction of State Street between Erie Boulevard and Washington Avenue; a proposed redesign of Liberty Park opposite Schenectady County Community College; and the renovation of 201 State St., the Kindl Building, for SCCC administrative and academic uses; construction of a CDTA Bus Plus Transit Station on State Street; and the Metroplex Development Authority’s decision to purchase the former YMCA with plans to redevelop the building.

Categories: Uncategorized