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

Developers ask for financial aid

LATHAM — The Town Industrial Development Agency is moving ahead with a public hearing for the $111.6 million New York State Insurance Fund office facility project at 85 Coliseum Drive.

The proposed development includes a 135,000-square-foot office building and a 430-space parking garage on the 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 a $2.1 million exemption on the local portion of sales taxes and a $463,500 exemption on 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 operational phases.

The construction phase alone is projected to create 45 local construction jobs with direct earnings of $6.5 million, and an additional 25 indirect jobs with $1.9 million in earnings, resulting in a total of 70 jobs and $8.3 million in earnings. The construction is also anticipated to generate $58,439 in sales tax revenue through local spending by workers.

Upon completion, the NYSIF headquarters is expected to create approximately 600 direct jobs, with an average salary of $80,000, generating $48 million in direct earnings. Including indirect impacts, the total effect of the project is estimated to support 1,972 jobs with $87 million in earnings and $388.4 million in sales. The ongoing operation of the facility is projected to generate $608,981 annually in sales tax revenue from the local spending of new employees.

Despite the projected economic benefits, the project also entails significant fiscal costs. The total local exemptions sought by Starlite Associates amount to approximately $2.5 million, including both sales tax and mortgage recording tax exemptions. These costs are part of the agency’s deliberations as it considers the overall impact on the community.

The IDA’s decision to grant financial assistance hinges on the outcome of the public hearing, the date of which was not announced in time for publication. Notices will be published in local newspapers, and notifications will be sent to relevant local government officials and affected school districts.

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

The New York State Insurance Fund is a state agency that provides workers’ compensation and disability benefits insurance to businesses and workers in New York State. Established in 1914, NYSIF is one of the largest workers’ compensation carriers in the United States and operates as a self-sustaining public insurance carrier.

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