Colonie IDA approves public hearing on New York State Insurance Fund project

Developers ask for financial help

I’M PATCHING — The Urban Industrial Development Agency is continuing its public hearing on the proposed $111.6 million New York State Insurance Fund headquarters at 85 Coliseum Drive.

The proposed project includes construction of a 135,000-square-foot office building and a 430-space parking garage on a 7.24-acre site.

Starlite Associates is seeking financial assistance from the IDA in the form of exemptions from sales and use taxes, as well as mortgage recording taxes. The requested financial assistance includes an exemption of $2.1 million from the local portion of sales taxes and an exemption of $463,500 from the local portion of mortgage recording taxes.

According to a cost-benefit analysis prepared by MRB Group, the project is expected to generate significant economic benefits during both the construction and operation phases.

The construction phase alone is expected to create 45 local construction jobs with direct wages of $6.5 million and an additional 25 indirect jobs with wages of $1.9 million, for a total of 70 jobs and $8.3 million in wages. Construction is also expected to generate $58,439 in sales tax revenue through local employee spending.

Once completed, the NYSIF headquarters is expected to create approximately 600 direct jobs, with an average salary of $80,000, generating $48 million in direct wages. Including indirect impacts, the total project impact is estimated to support 1,972 jobs with $87 million in wages and $388.4 million in sales. The ongoing operations of the facility are expected to generate $608,981 annually in sales tax from local spending of new employees.

Despite the anticipated economic benefits, the project also carries significant fiscal costs. The total local exemptions sought by Starlite Associates total approximately $2.5 million, including both sales tax and mortgage registration tax exemptions. These costs are part of the agency’s considerations as it weighs the overall impact on the community.

The IDA’s decision to award financial assistance is subject to the outcome of a public hearing, the date of which has not been announced at the time of publication. Notices will be published in local newspapers, and notifications will be sent to appropriate local government officials and affected school districts.

The decision to hold the hearing was made during the agency’s regular meeting on Monday, Aug. 19, at the City of Colonie Public Operations Center.

The New York State Insurance Fund is a state agency that provides workers’ compensation and disability insurance to businesses and employees in New York State. Founded in 1914, NYSIF is one of the largest workers’ compensation insurers in the United States and operates as a self-sufficient public insurer.

Michael Hallisey is editor-in-chief of Spotlight Newspapers.