Town supports $1.5 million bid grant for Blue Cross building development

27 year run vacancy may be over

SLINGERLANDS –  After sitting empty for at least 27 years, the former Empire Blue Cross Blue Shield building at 1251 New Scotland Road in Slingerlands may be getting a new owner and a new life.  Cass Hill Development Companies, a Latham based commercial real estate firm, has recently contracted to purchase the property from Picotte Companies.  It intends to convert the property into apartments and retail space and is seeking the Town of Bethlehem’s assistance to secure state funding to help pay for the project.

According to a memorandum submitted to the Bethlehem Town Board by Senior Economic Developer John Taylor, Cass Hill plans to build 43 market rate one and two bedroom apartments throughout the building’s three floors, 5,000 square feet of retail restaurant space in the building’s lobby, and associated interior and exterior parking.  The developer estimated construction costs at $8 million and, as reported by Taylor, will require subsidies, such as federal and state historic tax credits, to pursue the project.  To fund the project, Cass Hill will also apply for a $1.5 million subsidy through the Restore New NY program.

Administered by Empire State Development, the Restore NY program, “supports municipalities’ efforts to demolish, rehabilitate and restore blighted structures and transform them into vibrant residential, commercial and mixed-use developments.” In this latest funding round, $60 million is available to be disbursed statewide.

Town Economic Development & Planning Director Rob Leslie said Cass Hill approached the Town this March about supporting its Restore NY grant application.  Leslie said no other business expressed interest to the Town in applying for the grant. Under the program’s terms, a municipality with Bethlehem’s population is eligible to apply for one project for up to $2 million in a grant round.

Redeveloping the parcel was incorporated into the Town’s 2022 updated Comprehensive Plan.  Taylor advised the Board in his memorandum that the property has been consistently designated as a priority redevelopment project “due to its highly visible gateway location and proximity to the Vista Tech Park.”

The development would be just down the road from The Hamlet at Slingerlands, another mixed-use apartment complex.  The Hamlet, which was developed by The Windsor Companies, has 90 units and a bakery/coffee shop.

After hearing from Taylor at its April 10 board meeting, the Town board voted to schedule a public hearing on April 24, 2024 at 6 p.m. regarding the submission of the Restore NY Grant on Cass Hill’s behalf. Restore NY grant requests must be initiated by municipalities and, as stated in Taylor’s memorandum, “typically function as a pass-through to a private development firm executing the project, as a reimbursement upon the project’s completion, with all costs associated with the application to be borne by the firm.”

The Town has already completed the first step in the application process , which was the submission by the Town of a non-binding letter of intent to ESD to confirm project eligibility.  ESD has confirmed project eligibility and the full application is due May 22.

Before an application may be submitted, the Town board must hold a public hearing and then pass a resolution in support of the funding application.  Speaking at the board meeting, Taylor noted that the resolution provides only a showing of support for funding and not project approval. Cass Hill’s project will remain subject to Town site planning and full review process.

Taylor reported that the awards should be announced in September. Leslie said the application meets the Restore NY criteria and he “hopes” it will be awarded.   Board member Maureen Cunningham asked Taylor whether the company would go forward without the grant money. Taylor responded that between $50-$60 million of funding is available and that while it is a competitive process, ‘it will be a strong application and we are happy to support it.”

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