A senior housing complex in downtown Schenectady will be sold and upgraded through a $10 million investment, Schenectady County officials announced Thursday.
Summit Towers, a 12-story facility that includes 183 apartment units, will be sold to Preservation Development Partners, a New York City-based firm that focuses on rehabbing affordable multifamily properties, according to a prepared statement.
The building is now owned by Albany-based L.A.S. Schenectady Redevelopment Corp.
The $10 million covers rehabilitation costs, said Ray Gillen, chairman of the Schenectady County Metroplex Authority. The new owners plan to invest $40,000 in each apartment unit, which would include a new kitchen, bathroom, countertops, appliances and cabinets.
The upgrades will cost a total of $7.32 million. The rest of the $10 million will cover improvements to the building’s heating, cooling and electrical systems, elevators, common areas and a roof replacement, Gillen said.
The purchase price has not been disclosed, though it is not part of the $10 million investment, Gillen said. The building is assessed for $4.6 million, he said.
The new owners plan to install cameras and security equipment, as well, according to the prepared statement.
The building, located at 718 Albany St., is HUD-subsidized Section 8 housing for those 62 or older and for people with disabilities. Increased security measures were installed in the building earlier this year, after residents signed a petition calling for changes.
The City of Schenectady IDA, which is overseen by the county’s Metroplex Authority, has approved a payment-in-lieu-of-taxes (PILOT) agreement for the project that changes the tax structure on Summit Towers. The new owners will pay more than 50 percent of full taxes at the start of the deal, with the tax amount increasing by 2 percent each year, according to the prepared statement.
The PILOT payments start at $104,000 annually. The building is now exempt from local property taxes, Gillen said, based on a previous agreement with the city dating back to 1978, when the building was constructed.
“With the cooperation of the new owners, Summit Towers will be renovated from top to bottom and make meaningful tax payments for the first time ever, with increases every year,” Gillen said in a statement.