Schenectady to receive $2.75M state grant to convert former Mohawk Honda site into grocery store

The former site of Mohawk Honda on State Street is set to be converted into a grocery store after Schenectady received a $2.75 million state grant. (FILE PHOTO)

The former site of Mohawk Honda on State Street is set to be converted into a grocery store after Schenectady received a $2.75 million state grant. (FILE PHOTO)

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SCHENECTADY — A $2.75 million state grant will allow Schenectady to transform the vacant Mohawk Honda Building on State Street into a national grocery chain location.

Gov. Kathy Hochul announced more than $112.9 million in statewide Restore New York Communities Initiative on Monday, with the proposed Schenectady grocery store selected to receive state funding.

Mohawk Honda ceased the sale of vehicles at its 756 State St. building in March 2022, with Schenectady County subsequently placing an option on the 2.31-acre lot with the aim of attracting a national grocery chain to occupy the site.

Schenectady County Legislator Gary Hughes, chairman of the Economic Development & Planning Committee, noted that the Legislature has set aside $3 million in (American Rescue Plan Act) ARPA funds for the project. Hughes said on Monday that the state grant funding will make the State Street project a reality, with a new building planned for the site.

“That is absolutely critical,” Hughes said of the state funding. “Without the Restore New York, we absolutely would not be able to complete this project and with it, we are well on our way. We certainly totally appreciate the work that Gov. Hochul has put into this and the work that has come from Metroplex and from our partners at the city.”

Schenectady County Metroplex Development Authority is in discussions with an unnamed national grocer to set up shop at the State Street location. Metroplex will retain ownership of the property.

“Metroplex is leading the negotiations with prospective tenants for that site,” Mayor Gary McCarthy said on Monday. “I’m optimistic that this will now move forward in a relatively expedited manner. I appreciate Gov. Hochul’s support and state economic development for making this happen.”

With the establishment of a supermarket at the site, Hughes said the county and city are hoping to provide access to food in a neighborhood that lacks options for procuring healthy, fresh foods.

“One of the pressing needs that has existed for many, many years is the absence of a full-service grocery store that would sit in an area that would serve both Hamilton Hill and Vale,” he said on Monday. “This actually is a site that’s close enough to downtown that it will definitely draw customers from a lot of the new housing that’s being developed downtown.”

The Restore New York Program, which is administered by Empire State Development, is designed to revitalize downtowns and generate economic opportunity statewide.

In January, the City Council passed a resolution of support for the project to receive state funding of up to $3 million.

“Our unified county economic development team is thrilled to learn that our Restore NY grant application has been approved,” Ray Gillen, chairman of Schenectady County Metroplex Development Authority, said on Monday. “We thank all of our partners who worked together to submit another winning grant application.”

Contact Ted Remsnyder at [email protected]. Follow him on Twitter at @TedRemsnyder.

Categories: -News-, Business, News, Schenectady, Schenectady County

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