GUILDERLAND — The Guilderland Industrial Development Agency this week did not decide on Pyramid’s multi-million-dollar tax-break request for the planned Costco Wholesale project, choosing instead to gather more information from the company on the project to inform its decision. 

The IDA board on June 27 received answers to a dozen questions about the project itself, Pyramid’s financial and legal issues, Crossgates Mall’s finances, and how they are all related.

The board also appointed an appraiser to determine the fair-market value of the roadbed located under the project site that Pyramid has asked the IDA to take by eminent domain.

The company is currently facing its fourth lawsuit over the project. It also recently defaulted on its nearly $244 million mortgage for Crossgates Mall, which is adjacent to the Costco project site; that debt is due to be auctioned off.

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

The overall project cost has gone 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. Pyramid in May increased its sales- and use-tax exemption request from $5 million to $26.55 million. 

The company has requested $2.2 million in tax exemptions — $2,123,600 (up from the original ask of $400,000) in sales-tax relief and a $75,000 break on the state’s mortgage-recording tax. Pyramid has said it won’t build Costco without the tax break. 

On June 27, prior to launching into any conversation about the project, the IDA’s attorney, A. Joseph Scott, explained why one member of the seven-member board would recuse himself from voting on Pyramid’s requests and another wouldn’t.

“With respect to IDA board member, Mr. [Christopher] Bombardier,” Scott said. “First, you’ll note that he’s not here tonight … Mr. Bombardier works with a firm that is a lobbying firm and they have a contractual relationship with Pyramid, and they do work for that firm.” Bombardier is the founder and president of Catalyst Government Relations in Albany.

“While this relationship is not a legal conflict as defined under the IDA statute, or the IDA code of ethics, or the town code of ethics,” Scott said, “Mr. Bombardier has decided to recuse himself from all deliberations with respect to this proposed Costco project.”

Scott then moved on to Shelly Johnston, the IDA chair.

“Now, with respect to Chair Johnston, she is a principal and an owner of an engineering firm, and she is a member of the marketing practice group of that firm,” Scott said. 

 Johnston is a principal with Creighton Manning Engineering. 

Scott said that, about five years ago, Johnston’s firm participated in a traffic study of the Crossgate Mall area.

“The work consisted of doing the actual traffic count of vehicles,” he said. 

“Ms. Johnston did not participate or perform any of that work,” Scott said, nor did Johnston participate in more recent work performed for the CDTA that was partially funded by Pyramid and related to the roundabout traffic circle near the planned Costco. 

“I, as counsel to the IDA, have reviewed those relationships and discussed the matter thoroughly with the IDA staff, with Chair Johnston, and other members of my firm,” Scott said. “And we’ve concluded, as with Mr. Bombardier, that there’s no legal conflict with respect to her involvement and consideration of this matter, both under the IDA statute, the IDA code of ethics, and the town code of ethics.”

He said Johnston, as the chair of the IDA, “has determined after these discussions, due to the importance and size and significance of this proposed project in the town of Guilderland, to participate in the deliberations and to participate in any resolutions with respect to the consideration of this project.”