Supply chain breakdown. Material costs that are sky-high. Shortage of labor.
All of these factors have contributed to the repeated delays in Ryan Jankow’s plans over several years, which were intended to expand and convert an empty building downtown Albany into twenty apartments.
Recent hurdles: Higher interest rates for debt financing.
Jankow, the president of Jankow Cos. is asking for property tax exemptions of $1,42 million over a period of 20 years in order to offset the cost associated with the $8.1-million redevelopment project at 48 N. Pearl St.
In addition to the payment-in-lieu-of-taxes, Jankow is seeking sales and use tax exemptions worth an estimated $296,800 and a mortgage recording tax exemption of $65,200, according to an application submitted to the IDA.
Jankow stated, "Initially we were going to use a 485A but with the increased costs and rates we are going with a PLOT because we require it."
The 485-a is a local property tax exemption available to redevelop mixed-use building in the City of Albany.
Plans call for the renovation of the two-story building, which is 21,000 square feet in size, at the corner North Pearl and Pine streets. Two floors will be added to the building to create 20 new apartments. The first floor will be commercial space of 12,000 square foot.
Jankow Cos. has developed more than 500 apartments for market rate in the Albany area, but this is its first project downtown.
Other developments in the city include The Rise in Pine Hills and Rise Midtown Square, which is currently under construction across from St. Peter's Hospital.
According to an analysis presented to the IDA, even with the requested PILOT the estimated total tax collections for a period of 20 years will be $543 726 more than if North Pearl Street was not completed.
Construction would begin in the summer of 2024 and finish by summer 2024 if approved.
Jankow is one of the local developers that opposed a more strict inclusionary zoning law in the city, arguing that it would make projects unfinancially viable due to lower returns on investment.
Last month, the Common Council overruled Mayor Kathy Sheehan and approved stricter requirements to help make new apartments affordable for people on lower incomes.
The plans of Jankow for 48 N. Pearl St. are in compliance with the new law, as it has at least 20 apartments (the old minimum threshold was fifty units).
Jankow stated that one of the twenty apartments would have to meet the rental regulations based on the new requirements. Jankow explained that such a small number of apartments is not a problem given the size and scope of the project.
He said that if the number of units was substantially higher, he would have probably not pursued this project.
The site plan for 48 N. Pearl St., which was approved by May 2017 but expired since then, is another wrinkle.