A potential hockey arena and events center at Mohawk Harbor is on the brink of securing $5 million in funding from Schenectady County. This is the latest round of public funding for the project, which is projected to cost around $50 million.
On Tuesday, the county Legislature will deliberate on a resolution that proposes the allocation of $5 million from the American Rescue Plan Act to finance the 97,000-square-foot facility. The facility is planned to be situated between Rivers Casino & Resort and the harbor. The project is spearheaded by Galesi Group, a renowned developer responsible for the revitalization of Mohawk Harbor.
“The project wouldn’t be possible without this $5 million,” stated Schenectady County Attorney Christopher Gardner, who drafted the proposal.
If the proposal is approved, the county will enter into a seven-year public benefits agreement with West Yard Properties, LLC, a subsidiary of the Galesi Group. This agreement would designate the venue as a contingency site for the popular SummerNight event and SUNY Schenectady graduation in case of bad weather.
The venue would also be obligated to host 15 events each year for the duration of the agreement. If the arena fails to achieve 75% of the annual events target in a year, West Yard Properties would be required to refund 1/7th of the initial grant to the county, as per the agreement. The agreement will come into effect the first calendar year after the facility is granted a certificate of occupancy.
Gardner mentioned that the county has been in talks about the proposed funding for approximately a year with the Galesi Group and Union College. Union College is expected to sign a long-term lease agreement with the developer, making the facility the new home for its Division I hockey teams.
Union College hockey is currently played at Messa Rink at the Achilles Center on campus, a facility built in the 1970s that is in dire need of upgrades.
Union games played at the arena will count towards the 15 required events under the benefits agreement. Union’s men’s and women’s teams had over 30 home games scheduled for their 2023-24 seasons.
“As long as they get it built, they should be able to comply with it,” Gardner said, referring to the public benefit agreement with West Yard Properties.
The idea for an arena at Mohawk Harbor was first introduced as part of Schenectady’s Downtown Revitalization Initiative award in 2019. However, the idea was put on hold in favor of other projects.
The concept was revived in April 2022, when Assemblyman Angelo Santabarbara, D-Rotterdam, announced that he had secured $10 million in state funding for the facility.
“This is Schenectady’s next major project,” Santabarbara told The Daily Gazette at the time.
The arena, which will have a seating capacity of 2,200 for hockey games and 3,595 for other events, had its site plans approved by the Schenectady Planning Commission last year.
Since then, the project has received millions in public support and tax exemptions, which developers have said are necessary to advance the project due to high interest rates and escalating costs of construction materials.
The Schenectady County Metroplex Development Authority approved a mortgage and sales tax exemptions for the project last December, and entered into a payment-in-lieu-of-taxes agreement with the developer.
The Schenectady City Council was also expected to award $2.5 million in ARPA funding for the project on Monday. The funds were originally awarded to the Capital Region Aquatic Center, but were withdrawn after the organization announced it would be proceeding with plans at the ViaPort shopping mall in Rotterdam last year.
The council meeting took place after the Daily Gazette family of newspapers’ print deadline, but lawmakers expressed support for the funding during a committee meeting last week.
The city is expected to enter into its own public benefit agreement with the Galesi Group in exchange for the funding.
Gardner stated that the arena is expected to break ground soon and highlighted the positive impact the project will have on the county’s sales and occupancy tax once the facility is built.
“I believe it will be a tremendous asset to the community,” he said.
The Schenectady County Legislature will convene at 7 p.m. Tuesday at the Schenectady County Office Building, 620 State St., Schenectady.
This is a terrible decision. There are much more pressing needs in Schenectady County that should be prioritized over funding an arena. #Disagree