(Rochester, N.Y.) – It will likely cost taxpayers far more to redevelop the Midtown Plaza site than the $65 million pledged by the state for demolition.
Consultant EDAW, Inc. did a study that was included in the city’s recently-released final environmental impact statement. EDAW estimates the site will need $26 million to $28 million in infrastructure improvements. City Zoning Director Art Ientilucci said the estimate is too high, and put the figure at $18 million.
The city has already set aside about $13 million for property acquisition and maintenance, and relocation of tenants.
The city plans to divide the giant Midtown block into seven blocks, and that will cost money.
“You're going to need streets. You're going to need all kinds of utility lines that are going to have be run through there,” said Heidi Zimmer-Meyer of the Rochester Downtown Development Corporation. “There's some talk of a park, possibly two, but more likely one.”
Water, sewer, streets, trees, lighting, roads, and sidewalks must be added, said Zimmer-Meyer, or private developers will not want to build on the site.
“You have to have the basic infrastructure in place,” she said.
EDAW estimated the city could get back the infrastructure expenses in the form of increased property and sales taxes. Under one scenario, the city could achieve $11 million a year. However, it would be some time before that kind of money came rolling in, as the site is in an Empire Zone and developers could get 10-year tax breaks.
The Midtown truck tunnel was not included in the infrastructure estimates. The little-known tunnel serves the Midtown, Alliance, Hyatt, Clinton Square, and Chase buildings.
The environmental impact statement recommends demolishing and rerouting parts of the tunnel. Ientilucci said it hasn't been determined how much that would cost and who would pay. A Hyatt worker told 13WHAM News the tunnel is vital for 90 percent of deliveries.
“The service tunnel is a quiet asset I would suggest, that a lot of people don't even know is there. It's an underground roadway that services about five or six very huge properties downtown and keeps delivery vehicles and the like off of city streets,” said Zimmer-Meyer.
Whatever the final price tag of the project, the public will likely foot a significant portion of the bill. EDAW said the city should seek other government help, as well as private funds for the infrastructure.
“I think ultimately the taxpayers are going to pay and our cost benefit analysis as taxpayers has got to be: if we put this money up what are we going to get out of it at the other end?” said Zimmer-Meyer.
