Tax puts $70M plan in doubt

By ALAN WECHSLER, Business writer
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GREENPORT -- The Columbia County Industrial Development Agency has decided not to consider a proposal to give tax breaks to a planned half-million-square-foot big-box plaza in Greenport, causing the developer to question whether it will go ahead with the project.

The IDA made the decision Tuesday because of a lack of definite leases, officials said. The only signed tenant is a Wal-Mart Supercenter, although developer Widewaters Group Inc. of DeWitt is in talks with Lowe's.

"The IDA decided not to take action at this time, but didn't shut the door on it," said Jim Galvin, executive director of Columbia Economic Development Corp., which oversees the IDA. "If they come back with leases ... the IDA may very well consider it."

The IDA had received more than 35 letters about the Route 9 project, located north of Hudson. One was from the Columbia County Chamber of Commerce, which opposed the project.

"We had a number of members who said it wasn't in the best interest of the community," said President David Colby.

The project could affect the quality of life in the town and could hurt local businesses, the chamber said. Also, IDAs generally provide help to retail projects only if it's a major tourist destination, such as a Cabela's, or would locate to another location without the benefits, according to the chamber.

If the project won IDA approval, the developers would save on property taxes through a payment in lieu of taxes, or PILOT program. The project already had been approved by the local planning board, officials said.

Marco Marzocchi, general counsel for real estate development at Widewaters, said the company was rethinking the $70 million project in the wake of the IDA's decision. It was originally supposed to be open by early 2008. "The project has been compromised and perhaps jeopardized," he said. "We'll continue to do the best we can, but we've been severely handicapped."

The retail business has been slowing its expansion in recent months, he said. Now, the extra taxes that will have to be passed onto tenants will make the site less attractive, he added.

"Many of the retailers that we had envisioned occupying the center have been rethinking their expansion plans," Marzocchi said. "The goal was to seek the IDA's assistance to induce some of these retailers to keep Greenport on the radar screen."

Alan Wechsler can be reached at 454-5469 or by e-mail at awechsler@timesunion.com.