Retail project planned for Schenectady's State Street

PHOTOGRAPHER: Marc Schultz

The former Baxter Funeral Home at 40 North Brandywine Ave. and an existing house will be torn down for redevelopment at the corner of State Street and North Brandywine Avenue. A total of five buildings will be demolished for redevelopment.

A Massachusetts-based developer is planning to invest more than $6 million to develop a three-acre site into retail space at the corner of State Street and Brandywine Avenue.

Atlantic Development is looking to add two retail buildings, one 14,500-square-foot building and another 7,200-square-foot building, plus a 5,150-square-foot bank to the site, according to documents submitted to the city.

“We don’t have a specific plan at this point but we think there are a variety of retailers that would be interested,” said D.J. MacKinnon, president of Atlantic. “The current zoning creates some obstacles to developing the site, which is probably why it has remained undeveloped for years.”

MacKinnon is looking to rezone the site from mixed-use commercial to planned mixed-use district. Under the existing zoning, the developer would be limited to 12,000 square feet of new construction.

The Schenectady City Council referred the zoning request to the Planning Commission during a meeting Monday evening. Recommendations by the commission would be referred back to the City Council, which would then hold a public hearing regarding the project.

Tenants have not yet been secured for the site, but MacKinnon said there is already interest in the location. The size of the buildings could change as development moves forward, he added.

“We have done a lot of retail development over the years so we have started to talk with retailers that we have worked with in the past,” he said. “There is interest in the site, but companies are waiting for the zoning to be changed.”

During a presentation to the City Council on Monday, MacKinnon said he is also considering a grocery store on the site due to the city’s shortage of grocery stores in the area.

Atlantic Development is currently partnered with retailers such as Bed Bath & Beyond, Lowe’s, Target and Walmart, along with grocery stores like Hannaford and Stop & Shop, and banks including TD Bank.

The three-acre property is currently vacant with five buildings, including a former restaurant and an old funeral home. Those buildings would be demolished to make way for the retail development.

After the zoning is changed and tenants are secured for the site, MacKinnon said construction could start as early as this summer. The retail property would target people who live in Schenectady’s nearby neighborhoods rather than downtown visitors.

“I look at our site as servicing the people who live within a mile or two of the property,” MacKinnon said. “We’re not looking at destination retail, but to service the people and neighborhoods in the area.”

MacKinnon said the property “looked like a good opportunity” because of its proximity to I-890 and the high volume of traffic in the area.

Improvements to traffic flow along Brandywine Avenue and State Street are being considered by the city as part of the project, including potential changes in traffic signals and removing the no-left-turn restriction at the intersection.

MacKinnon is also planning to have green space on the property to make it more attractive, plus a total of about 123 parking spaces, or one parking space per 200 square feet of building area.

“We would like to keep parking away from the corner to create some sort of open space,” MacKinnon said. “Maybe we can have a sign that says ‘Welcome to Schenectady’ or some other visual elements that are meaningful for that corner and enhance the streetscape.”

Ray Gillen, chairman of the Schenectady Metroplex Development Authority, said the development would complement the new additions to downtown and serve as a gateway to the city.

“Right now it’s a vacant lot and it’s not the right welcoming gateway to Schenectady that it should be,” Gillen said. “A lot of people cut through there to get to I-890 and it is a busy corner. The developer wants to really clean it up and make some sort of gateway feature that’s more welcoming and beautiful.”

The project marks Atlantic Development’s first in New York. The company has developed more than 4 million square feet of commercial space, including retail and office buildings, throughout New England.

The project comes as a new library and literacy center is being built nearby at 948-954 State St. Also, Schenectady was chosen for a casino at the former Alco site off Erie Boulevard by the state Gaming Facility Location Board last month.

“With the casino there will be more opportunities and more people working and living in the area,” MacKinnon said. “If there are additional opportunities in the area in the future we would be happy to take a look at them also.”

Mayor Gary McCarthy said the site currently is not visually attractive, and developing the property would benefit nearby neighborhoods. He pointed to the city’s progress with other projects as a big factor in peaking Atlantic’s interest in Schenectady.

Other projects are also planned along State Street including a nearly $20 million development by Prime Companies to transform four vacant properties on State Street and Erie Boulevard into apartments and retail space, $18 million by Norstar Development to renovate the old YMCA building on State Street into senior housing and $400,000 in state funding to reconstruct Liberty Park across from the former YMCA.

“They see the activity that’s happening in Schenectady and the site meets the criteria for a number of retailers,” McCarthy said. “This will add to the whole city. They see the potential and they see the progression that has happened in the community.”