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Saratoga IDA grants tax breaks for Malta project

Saratoga IDA grants tax breaks for Malta project

The Saratoga County Industrial Development Agency has granted more than $200,000 in tax breaks to he
Saratoga IDA grants tax breaks for Malta project
Land on Stonebreak Road in Malta has been cleared for a warehouse to serve GlobalFoundries suppliers.
Photographer: Stephen Williams

The Saratoga County Industrial Development Agency has granted more than $200,000 in tax breaks to help a Clifton Park company build warehouse or light manufacturing space near GlobalFoundries.

M.J. Properties, of Clifton Park, plans a $3 million, 25,000-square-foot warehouse on 4.7 acres it recently purchased at 7 Stonebreak Road.

The land has been cleared and construction could start within the next few months.

The site is about a mile from GlobalFoundries' $12 billion computer chip manufacturing complex. The developer said he is looking for the building to house companies that supply or service GlobalFoundries, though no tenant has been identified.

"We're in discussions with multiple (prospective tenants)," said Mark Rekucki, president of M.J. Properties. "With construction not started, it's all speculation, and businesses have a hard time planning based on speculation."

Once work starts, he said, he expects to have no trouble signing a tenant.

At a meeting Monday at Malta Town Hall, the IDA granted a five-year property tax exemption - worth an estimated $207,000 - on the building. It also granted a sales tax exemption worth $52,500 and a mortgage recording tax exemption worth an estimated $10,000.

While the building has no identified tenants, Rekucki has committed that companies locating there will provide at least 15 new jobs within two years of its opening.

Saratoga County economic development officials have often said there is a need for industrial space built on speculation, including warehouse and light manufacturing buildings that would be available on short notice to companies looking for a location.

As a condition of approval, M.J. Properties will have to return to the IDA once a tenant is identified to be sure the tenant meets the criteria for M.J. Properties to receive IDA financing.

M.J. Properties' other projects include the Fairchild Square industrial park, off Northway Exit 10. Of the 30 companies there, Rekucki said about 10 are suppliers or otherwise connected to GlobalFoundries, which has a constellation of high-tech support firms interested in serving it.

Reach Gazette reporter Stephen Williams at 395-3086, [email protected] or @gazettesteve on Twitter.

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