Guilderland IDA approves Costco tax breaks

Enterprise file photo — Michael Koff

Sixteen acres of homes and trees like the ones here at the corner of Western Avenue and Crossgates Mall Road are due to be felled to make way for a 160,000-square-foot Costco store.

GUILDERLAND —  The Guilderland Industrial Agency this week unanimously approved $2.2 million in tax breaks for the planned Costco on Western Avenue while also agreeing to condemn portions of abandoned roads needed to build the price club within the project site.

IDA board members on Aug. 22 approved $2.1 million in sales-tax relief and a $75,000 break on the state’s mortgage-recording tax for Crossgates Releaseco, a Pyramid Management Group LLC. 

 The IDA also agreed to use its power of eminent domain to acquire portions of five abandoned roads within the project area and convey them to Pyramid, conditioned on payment of fair-market value to the town as determined by an independent appraisal. Also, the IDA will acquire and extinguish certain historic deed restrictions on adjacent parcels of property. 

Pyramid had previously said it wouldn’t build the Costco without the granting of its requests. The approval comes just as neighboring Crossgates Mall, still in the hands of Pyramid Management Group, had its loans sold at a loss (see related story).

The company plans to build the 160,000-square-foot Costco store on 16 acres at the corner of Western Avenue and Crossgates Mall Road. The site is also slated to include an 18-pump gas station, enough parking for 770 vehicles, and eight electric-vehicle charging stations. 

The overall project cost increased from $39,900,100 to $41,400,100, with machinery and equipment costs accounting for the entirety of the increase, from $8 million to $9.5 million. In May, Pyramid increased its sales- and use-tax exemption request from $5 million to $26.55 million. 

The project is currently being held up by a fourth lawsuit

At the IDA board’s June meeting, it was said Pyramid “can’t put a shovel in the ground” until the suit had been resolved. 

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