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A large development is planned at Canal Ponds Office Park in Gates.

The $24 million, 21-acre, canal-side project would be called Gateway Landing and feature 168 “luxury” apartments and some retail. This would be the first of three phases. The developer is Morgan Management.

“Certainly it will create jobs, just the construction piece of this alone. In addition it will help develop the area. There is a small retail component. There is a phase two and phase three to the project that will bring more commercial development to the area,” said Gates Town Supervisor Mark Assini. “Part of the agreement is we will have public access to the waterfront.”

The project is applying for tax breaks with the County of Monroe Industrial Development Agency.

Gateway Landing would get tax abatements worth $2.4 million over 10 years. The county estimates the benefit in sales and income taxes and payments in lieu of taxes will be $7.1 million.

The number of construction jobs created is estimated at 223. The number of permanent jobs is nine. Only one job is required by the PILOT.

Assini sees the project as a major step in the development of the canal-front.  There’s no doubt it will bring in additional revenue and residents to the town. But should taxpayers be subsidizing luxury apartments in the suburbs?

“This is an area that needs upscale housing to bring growth and stability to the west side. We want to plant a seed for that area so that we see some growth. There’s enough acreage there to see development along the canal,” said Assini. “There’s nothing there right now. There’s no revenue other than the taxes on the property.”

The two documents below are COMIDA’s cost-benefit analysis of the project and renderings and maps.

7 Responses to Gates Luxury Apartment Project Seeks Tax Breaks

  1. Rachel – the Sagamore on East has them, as do the Capron Lofts in downtown Rochester. So, was a precedent set with those projects?

    • April 26, 2012 at 8:12 pm Rachel responds:

      Hi, Joan!

      Everyone gets tax breaks, right? They go to all developments, it seems.

      However, developing distressed areas would seem to warrant them more than a non-distressed suburban community.

      That said, I’m not a fan of tax breaks for projects for rich people to live in, including the Sagamore.

      I could be hugely mistaken, but I’d love a developer to open his books and explain exactly why the break was needed and how much money they made.

  2. April 26, 2012 at 7:48 pm Lynn E responds:

    Oh great, 1% and their friends get tax breaks from the 99%. Something is so wrong with this world.

  3. April 26, 2012 at 8:13 pm Chris Hollander responds:

    Who would even want to live in that area? You get to have 390 right next to you…not luxury if you ask me. There is no other housing in that area, so if there are school-age children, then school transportation costs will go up..

  4. April 26, 2012 at 10:36 pm Mark Assini responds:

    Rachel – good article. The developer believes the incentives are important for the projects success and the town needs development in that area. I could have challenged the developers numbers and said I won’t help but that approach may have lost the deal. So the real question is do you gamble on killing a deal which will bring jobs, economic development and 7.1 million in new tax revenue over 10 yrs to make 2.4 million more?

    • April 27, 2012 at 7:17 am Rachel responds:

      Thanks for finding my site, Mark! And thank you for providing perspective. It’s an interesting project.

  5. April 30, 2012 at 8:17 pm Mark McIntee responds:

    Tax breaks for apartments,car dealers,software upgrades,super markets, dump trucks etc. All in the name of industrial development.The question I want to know. How many who asked have been denied a tax break?

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