Prime Group Withdraws Self-Storage Tax-Break Application in Saratoga County, NY

Update 4/13/18 – A Saratoga County IDA public hearing scheduled for Monday was canceled after Prime notified the IDA it was temporarily withdrawing its application seeking more than $460,0000 in tax breaks on its self-storage project on Route 50 in Wilton, according to the source.

It’s not clear why Prime withdrew its application nor why the move was characterized as “temporary.” Site work on the property is already under way, the source reported.


3/21/18 – The Saratoga County, N.Y., Industrial Development Agency (IDA) is debating whether it should provide mortgage and sales-tax savings to New York-based real estate group Prime Group Holdings for a two-story self-storage facility it intends to build near Edie Road and Route 50 in Wilton, N.Y. County officials are hesitant to grant the tax break because it would be unprecedented for a self-storage project, according to the source.

Part of the quandary for the county is six other self-storage developers have come forward to indicate they will also seek tax breaks if the IDA approves the Prime application, IDA Chairman Rod Sutton told the source. “This is a thought-provoker,” Sutton said. “You open the floodgates if we go ahead with this. Saratoga County being what it is, other storage units are going to spring up all over the place.”

The construction project would create 90 jobs, though the completed storage facility would only employ five full-time employees. The property will target business customers, according to Marty Vanags, president of the Saratoga County Prosperity Partnership, the county’s designated economic-development organization.

Though the county hasn’t previously awarded tax breaks to self-storage businesses, officials also have never received an application from one until now, the source reported. “This would be setting a precedent,” Sutton said.

Prime already owns the 3.41-acre parcel on which Wilton planners have recommended the project for approval. A public hearing is scheduled on April 9 to discuss the proposal.

Headquartered in Saratoga Springs, N.Y., Prime Group Holdings owns self-storage and other real estate interests. It owns and manages more than 170 self-storage facilities in 23 states. Its operating portfolio comprises more than 10 million rentable square feet.

Source:
Saratogian, IDA Has Reservations about Self-Storage Tax Break
Saratogian, Spa City Company Withdraws Tax Break Proposal

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