Courtesy Saratoga Prosperity Partnership
Regan Development has plans to transform the former Victory Mills, a five-story, 230,000-square-foot manufacturing facility that closed nearly two decades ago, into 186 residential apartment units and a commercial microbrewery.
The building is in the Village of Victory Mills in the northeast part of the town of Saratoga, southwest of Schuylerville.
The Saratoga County Prosperity Partnership, involved in the project, calls it one of the largest economic development initiatives in the past decade in Saratoga County; a $60 million project that will breathe new life into a long-vacant industrial building.
A Westchester County-based entity that specializes in redevelopment projects, Regan Development has done other projects in the area and has a portfolio that includes more than $384 million in new construction and adaptive reuse projects.
“In transforming an iconic, but unused building into a modern residential and commercial complex, this project epitomizes the best of economic development,” said Marty Vanags, president of the Prosperity Partnership. “We are thrilled to have played a critical role in advancing a project that will revitalize a historic structure, create jobs, generate financial support for local schools and governments, address a critical need for workforce housing, and help to reinvigorate a community.”
The concrete and wood structure on Gates Avenue in Victory, built in 1918 and listed on the National Register of Historic Places, has fallen into disrepair since it closed as a packaging manufacturer in 2000. The development will create 142 one-bedroom and 44 two-bedroom units and help to fill a demonstrated need for workforce housing in Saratoga County, officials said. Apartments will be priced to appeal to a wide range of people working in local schools, businesses and service organizations.
Construction is expected to begin in 2020, and will take approximately two years to complete.
The project will support more than 100 construction jobs during a two-year period, with an estimated annual payroll exceeding $5 million. Additionally, the apartment complex and brewery are expected to initially create eight full-time jobs, officials said.
Through an agreement approved unanimously by the Saratoga County Industrial Development Agency, the property will generate $7.5 million in PILOT (payment-in-lieu-of-taxes) payments over the next 30 years, some 23 times more than if the property remained vacant.
“We always welcome the opportunity to bring new life to a property that was once a cornerstone of the community,” said Larry Regan, president of Regan Development. “We appreciate the support of leaders in village, town and state government, as well as the Saratoga County Prosperity Partnership and Saratoga County IDA, and look forward to what will be an exciting project.”
“The ability to take a long-past prime, behemoth property that is not serving the present community and breathe new life into it with a mixed-use commercial space is exactly what the Village of Victory needs,” said state Assemblywoman Carrie Woerner. “This project aligns perfectly with Saratoga County’s vision for a brighter, more robust economic and cultural future.”
Town of Saratoga Supervisor Tom Wood called it “a game-changer” for the town, “one that will pay dividends for generations to come. The renewal and re-purposing of Victory Mills as an apartment complex and brewery will address an important community need, provide a tremendous financial impact to the town, and ensure we can continue to provide the essential services our residents need.”
“This is a transformational moment for the Village of Victory, one that respects our past and offers a vision for the future,” said Village Mayor Pat Dewey. “In a sense, Victory Mills will be returned to its former glory, providing a home for hard-working individuals. We are thrilled to know that this historic building will once again be a jewel in our community.”
Rod Sutton, chairman of the Saratoga County Industrial Development Agency, said the incentives “not only play a critical role in making this effort possible, but just as importantly, they will be returned many times over in terms of PILOT payments, increased economic activity, and the benefits that come with revitalization in the Victory community.”
The financing structure for the project includes owner equity, federal and state housing tax credits, federal and state historic tax credits, and the PILOT agreement with the Saratoga County IDA.
Officials said Regan Development will make $158,000 in PILOT payments in the first year, with annual increases of 3 percent over the 30-year term. As a result, the property will generate $7.5 million in PILOT payments, including $6.3 million to the Schuylerville Central School District, far exceeding the $324,000 that would have been paid based on current annual taxes of $10,800.