Schenectady Council Details Community Benefits Agreement for Mohawk Harbor Arena

February 18, 2024

Updated: February 18, 2024

SCHENECTADY — The Schenectady City Council has approved a ‌$2.5 million allocation from the‍ American ⁤Rescue Plan Act (ARPA)⁢ to the forthcoming‍ Mohawk Harbor arena. As part of the agreement, ⁣the project developers have committed to⁣ incorporating ⁤provisions that will ensure community groups and ‌local residents reap benefits from the project.

The council initiated the process of drafting a community‌ benefits agreement during a special City Development & Planning Committee ⁢meeting on Thursday night. The board deliberated on ‌potential items to be included in the agreement ‌with the arena developer, ⁤Galesi Group.

City Councilman Carl Williams expressed ‌his desire for the benefits agreement to⁣ include representation for⁤ various community organizations that‌ could make‌ use of the planned arena.

Williams identified the‌ Schenectady Inner City‌ Ministry, ⁣Safe Inc. of Schenectady, SUNY Schenectady, and ⁣the Schenectady City ⁣School District as potential‍ stakeholders. These organizations could serve as validating ‍agents for future events at the arena.

“I‍ believe that involving them in these discussions could empower them and increase their investment in future events,” Williams stated during‌ Thursday’s ⁢meeting.

The $50 million arena project, which is expected to break ground⁣ this spring or summer, will be the⁢ home of‌ Union⁣ College’s men’s‌ and women’s Division I hockey teams.

Williams suggested that the agreement‌ should include provisions that would enable ‍community organizations to⁤ rent the arena at a ‌discounted rate.

“I envision⁣ there will ⁣be ‍days throughout‌ the month when the arena‌ is less busy. I‌ propose a monthly or ⁢quarterly listing of available time ⁤slots that could be offered ⁤to the⁣ community at a⁤ reduced rate. I ⁤understand that the Galesi Group, being a‌ for-profit organization, may⁤ want to set a limit on‌ this, but I believe this would allow community residents to make use of the space that their ARPA dollars are ⁣helping to fund,” he said.

As part of the $5 million in ARPA funding allocated to the arena project by the Schenectady County Legislature⁤ on Feb. 13, the developers agreed to use the arena ⁣as‍ a backup venue for the annual SummerNight event and⁢ SUNY Schenectady graduation in case of ⁣bad weather.

City Council President Marion Porterfield shared that she had gathered ⁤community feedback ⁤about what residents would like⁣ to see from⁤ the ‍arena. She proposed that the⁤ site maintains Union College’s public⁢ skate times and sessions for children to⁤ learn ice skating.

Porterfield also expressed her desire‌ for an art gallery in the arena that would showcase work from local⁤ artists on a rotating basis, as well as a ‍bike rack outside the arena.

The ⁢ARPA funding resolution passed by the council ⁤during its⁣ Feb. 12 meeting stipulates that a community benefits ⁣agreement will be included in the city’s⁢ contract with the ⁣arena developers.

The city will also have the right to claw back funding if the developers do not meet the terms of the eventual community benefits⁣ agreement.

During the council discussion on the benefits agreement, Schenectady Mayor Gary McCarthy⁤ asked the board if other venues ⁢in the city like Proctors that⁢ receive city funding would also be asked to agree to similar agreements.

“Is it just this sole ‍ [arena] project or⁣ is this something‍ that we’re looking to apply across the board?” McCarthy asked.

Porterfield responded that a community benefit agreement was particularly suitable for the arena project since the city is awarding $2.5 million in funding and the ⁣site is not expected to ⁣generate ⁢significant ⁣property taxes.

Williams also proposed that the arena offer two annual internships to Schenectady high students, a ⁢proposal that City⁣ Councilwoman Carmel Patrick noted that ‍she was in favor‌ of.

Patrick expressed during the meeting that she would like to see local⁣ youth sports groups factored into the forthcoming agreement.

“I think they need a collaboration with the school district and that⁣ might be the way,” she⁢ said of including youth sports.

City Councilwoman Doreen ⁣Ditoro stated ‍during Thursday’s meeting that she did not want to place restrictions on the arena developers.

“Who‍ are‍ we to say ‌that they should give discounts?” Ditoro asked. The councilwoman added that she would like to see open skating hours offered to ⁢the community at the hockey arena.

During⁣ Bucco’s presentations to the council earlier in February, the developer⁤ said that the arena was ‌being built as a⁤ community hub.

“It was clear that wanting to make sure‌ that the community benefited was‍ at the crux of this project,” Williams said ⁣during‍ the meeting.

Porterfield ‍said‌ that she would reach ‌out to Galesi Group CEO David Bucco to discuss the items that the council discussed on ⁣Thursday for‌ the community benefit agreement, with ‍the council‍ to negotiate with the framework of the document before it ⁢is brought back for a council vote on the ⁤final agreement.

“I think‌ that all of⁣ the ideas that were floated tonight were good ideas,” ⁣Porterfield said after the‌ meeting. “I think we have to flesh them out a little⁣ bit more, but I thought that the council⁢ members brought forward ‌good ideas.”