County Board Approves $2.5 Million in Breaks for Mainbridge Project

Above photo: A tractor-trailer advertises what many hope is coming to the Village of Schoharie. Photo by Chris English.

SCHOHARIE COUNTY — An ambitious commercial/residential project in the Village of Schoharie got another boost recently when the Schoharie County Board of Supervisors granted financial breaks that will save the developer about $2.5 million.

At its Friday Feb. 20 meeting, the BOS approved financial assistance for the Mainbridge Project at 218 Main Street at Main Street and Furman Drive. The project involves in its first phase demolishing a long vacant and rundown grocery store and constructing a two-story, 38,800 square-foot building that will be the new home for the practice of highly-regarded local dentist Dr. Hazem Elbialy. His practice is currently nearby across Main Street.

According to information presented at the Nov. 3 County Planning Commission meeting, Phases Two and Three will involve the construction of 46 rental apartments in four new buildings. At the Feb. 20 county BOS meeting, Schoharie County Industrial Development Agency Executive Director/CEO Trevor Bender and Commercial Lending Advisors President Pier Bruno were present to give information and answer questions about the project and the financial assistance being requested.

In a telephone conversation after the Feb. 20 meeting, Bender explained the IDA was contacted in Mid-December to get involved with the Mainbridge Project with its role being to "provide some economic benefits allowed under New York State law" and designed to "attract new businesses and retain businesses."

Bender said the financial relief granted by the county BOS at the Feb. 20 meeting included the approval of a 15-year PILOT (Payment in Lieu of Taxes) agreement that will save the developer about $2.2 million by making payments totaling $1.8 million over the 15 years rather than the approximately $4 million that would be due if full property taxes were being paid.

In addition, the BOS excused payment of the mortgage recording tax and the sales and use tax on construction materials and office equipment that will save a total of about $608,000. When factoring in that the developer will have to pay about $250,000 in fees, the net savings for the developer will be about $2.5 million, Bender estimated.

He noted at the Feb. 20 meeting that the savings will be needed and is appreciated because site work costs including mitigation to bring the property out of the flood plain "just continue to climb." 

Town of Schoharie Supervisor and county BOS member Ben Oevering indicated at the meeting that he was excited about the Mainbridge Project and its potential to bring a long-dormant property back to life. He pointed out that Dr. Elbialy's reputation for a high-quality practice extended well beyond the county.

"He's the largest private employer in Schoharie, he's bursting at the seams," Oevering said. "This is a major project."

Bender said that 38,000 square feet of the new commercial building would be for Dr. Elbialy's practice and 8,000 square feet for other uses, with a day care and dialysis clinic among the possibilities.

"I'm glad to hear about a possible dialysis center," said county Supervisor Earl VanWormer III of Esperance. "I would support it 100 percent."

At the Feb. 20 meeting, Bruno mentioned "potentially a housing component" of 44 units in later phases. Information presented at the Nov 3 County Planning Commission meeting had 46 residential units. Bruno added that the hope is to break ground on the new commercial building in April. He stated in an email the project has a SEQRA negative declaration and that a needed zoning change has been granted.

The project still needs site plan approval and subdivision/lot line adjustments from the Village of Schoharie Planning Board, and also some area variances. "Hopefully we can get all the approvals in March," Bruno stated.

The long-vacant grocery store will be demolished if plans for the Mainbridge project in Schoharie go through. Photo by Chris English.