Long Island developer secures option to buy abandoned Amsterdam mill

The former Chalmers Knitting Mill
will become a mixed-use development
with office, retail and residential buildings

The Business Review (Albany) - by Michael DeMasi The Business Review

City leaders in Amsterdam, N.Y., approved an option with developer Uri Kaufman to sell an abandoned textile mill for $138,000 that Kaufman wants to convert into upscale apartments.

The Common Council voted 4-1 on May 6 to approve the sale of the former Chalmers Knitting Co. buildings on the city's south side, according to Mayor Ann Thane.

Kaufman, a Long Island developer who has bought other run-down mills in the Albany region for redevelopment projects, wants to convert the roughly 275,000 square feet of space into about 200 apartments.

The mill buildings closed in the 1980s. They are located at one end of a planned $16 million pedestrian bridge that would link both sides of the city, which straddles the Mohawk River.

Thane, a former museum director who took office in January, is a big supporter of the project, but she knows there is some skepticism in the community as evidenced by the "no" vote from 1st Ward Councilman Joseph Isabel.

"Amsterdam has had many people come through here before and make false promises," Thane said. "There is some trepidation because of past experience, but the fact is this is a very good developer with a good track record and the financial resources to back up his promises."

Kaufman redeveloped the former Harmony Mills in Cohoes into a 96-unit loft apartment building. He plans to renovate the other half of the mill into 141 additional units once he gets the U.S. Department of Housing and Urban Development to approve mortgage insurance on a $24 million construction loan.

In February, Kaufman bought the old Victory Specialty Packaging plant near Schuylerville for $50,000. He's also talking to officials in Schenectady about possibly redeveloping part of the old American Locomotive Co. plant along the Mohawk River.

Columbia Development eyes 20 Albany parcels

The Business Review (Albany) - by Michael DeMasi The Business Review

A two-block stretch of homes near Albany Medical Center would be demolished and replaced with a mixed-use development under plans being pursued by the city and Columbia Development Cos.

The east side of New Scotland Avenue between Myrtle and Dana avenues is being eyed for a development whose details are still being sorted out.

"We're in the very formative stages of what we're trying to do there," said Joe Nicolla, president of Columbia.

Ideas under consideration include an 80,000-square-foot to 120,000-square- foot development with ground floor retail, said Megan Daly, deputy commissioner of development and planning for the city.

Residential uses are not planned for the upper floors at this time, she said.

There are about 20 parcels on the two-block section of the street, most of which are single or multi-family homes. Many are vacant.

There are also two vacant lots and two commercial tenants, including a convenience store.

The city was awarded a $3.3 million grant from the state Restore-NY program to pay for demolition and construction costs. Without the grant, Nicolla said, the project wouldn't be feasible.

The Albany Local Development Corp. has negotiated contracts with the owners of all the parcels, Daly said, but doesn't own them. The state grant doesn't cover acquisition costs.

Columbia Development is interested in the site because of its success developing the 129-room Hilton Garden Inn on New Scotland Avenue across from the hospital. The $20 million hotel opened last summer.

Separately, the hospital announced plans in late February to build a six-story, $360 million expansion at the corner of New Scotland and Myrtle avenues.

The New Scotland Avenue redevelopment is around the corner from a $13.5 million gut rehab of 18 run down houses on Knox Street in the Park South neighborhood.

It hasn't been determined whether Columbia Development or the ALDC will end up buying the 20 properties on New Scotland Avenue, but the purchases are expected to be wrapped up by late spring or summer.

"It is 100 percent our intention to honor the contracts and close on these properties," said Michael Yevoli, commissioner of development and planning. "How to do it is something we're doing an analysis of internally, on what makes the best sense."

mdemasi@bizjournals.com | 518-640-6814