Tuesday, April 15, 2014

Downtown developer asks for loan extension, exercises option to buy Midtown parcel for $1

Posted By on Tue, Apr 15, 2014 at 4:55 PM

The developer of the Windstream building at Midtown is asking the city to extend its $5 million loan out to July 2051 at its current 1 percent interest rate. This would be the second extension. The city already extended the term of the loan from 15 years to 20 years. The latest extension would reduce the company's annual payments for years four through 38 of the loan from $312,269 to $165,306.

The same company is also exercising an option to buy 245 E. Main Street from the city for $1, according to legislation currently being considered by City Council. A building will be constructed on the site for the Democrat and Chronicle's new headquarters. 

Extending the term of the loan will allow the company to pass savings on to Gannett, which will result in lower rents "more in-line with the downtown Rochester office market," the legislation says. 

Windstream Corporation is in the old Seneca building at 20 S. Clinton Avenue on the Midtown site downtown. The building was redeveloped by Seneca Building of Monroe County, a limited liability company formed by Pike Development Company. The sale of 20 S. Clinton to Pike included an exclusive option for the company to buy 245 E. Main, the legislation says. 

The legislation would also allow 250 parking spaces in the Midtown garage for exclusive use by Gannett employees at a discounted rate. 

Gannett will use the first two floors of the 60,000-square-foot building, with the third available for future tenants. A public "media cafe" is planned for the building's first floor. Projected cost is approximately $12.6 million.

Pike will also ask for a 15-year payment-in-lieu-of-taxes agreement from COMIDA for the Gannett project, the legislation says. 

The legislation will be considered by City Council's Neighborhood and Business Development Committee on Thursday. Committee hearings begin at 4 p.m. in Council chambers at City Hall, 30 Church Street. Council's monthly meeting, which is the earliest Council could vote on the legislation, is on Tuesday, April 22, beginning at 6:30 p.m. 



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