A $2 million upgrade to the old state bakery and warehouse in the Rotterdam Corporate Park is expected to attract new tenants and new jobs to the area.
The Galesi Group will fund extensive renovations of the 260,000-square-foot structure, including a new roof, new truck dock canopies, exterior painting, new siding and interior work. The warehouse is a little more than half full, and a renovation will help county officials market the remaining 100,000 square feet to potential tenants.
“We want to get this building renovated and filled up,” said Schenectady County Metroplex Development Authority Chairman Ray Gillen. “We’re actively showing the building, and we’re talking to a company right now about taking 43,000 square feet in the building.”
The space, known as Building 14, is currently home to three companies: ITR America, a construction equipment supplier that moved in last summer; J&B Importers, Inc., a bicycle parts distributor; and Distribution Unlimited, a third-party logistics company owned by Galesi.
The building is divided into seven bays that were previously used by a pizza dough company and food grade distribution center. The bays have rail service and some include cooler space, freezer space, floor drains, dock doors, locks and lights, high ceilings, and an adjacent tractor-trailer lot.
For a long time, the massive industrial building served as the state bakery. The state Office of General Services closed the bakery in 1995, with Metroplex helping to surplus the building and prepare it for sale.
In 2008, Metroplex entered into a lease agreement with Galesi Group affiliate FG Rotterdam Holdings LLC that would have Galesi make lease payments totaling $1 million to Metroplex, which in turn would use the lease payments to purchase the building from the state. The agreement also gave Galesi the option to purchase the building before 2017. Galesi has told Metroplex it plans to purchase the building by March 2014.
“This $2 million investment is proof of our commitment to working with Schenectady County and the town of Rotterdam to continue to attract new jobs and new companies to the largest business park in the Capital Region,” said Galesi Group Chief Operating Officer David Buicko in a statement.
Metroplex approved extending this master lease at its monthly board meeting Wednesday night, effectively extending the closing date on the sale of the building, as well.
Schenectady County Legislature Chairwoman Judy Dagostino said she considers the warehouse a key building in Rotterdam.
“The Rotterdam Corporate Park is the source of many jobs and opportunities for county residents,” she said in a statement. “This investment of $2 million will help us to continue our effort to attract more tenants and more jobs to the former state bakery building.”