Apartment complex planned for Binghamton under scrutiny. Why it's still going forward

Developers of a multi-million dollar project slated for the former site of the Boscov's parking garage in downtown Binghamton will receive a major tax break despite dozens of concerns about the validity of the project brought forth by Binghamton residents, community members and housing advocates Wednesday.

Last month, a representative of the United Group of Companies based in Troy, NY, the developer UB Family LLC's parent company, asked city council for a 28-year payment in lieu of taxes (PILOT) agreement for The Apex at Water Street project.

Many Binghamton residents are frustrated with the potential tax reduction and some disapprove of the project entirely.

It all came to a head inside Binghamton city hall Wednesday during a special business meeting, where for several hours, over 20 community members, advocates and city council members expressed their opinions about the future of the project.

What project is being considered

The Apex at Water Street project began with the 2021 demolition of the declining Water Street parking garage, which was built in 1970 and was the main parking source for Boscov's customers since 1984.

The developer plans to build a housing and parking complex with 120 market rate, one-bedroom and two-bedroom housing units and six workforce apartments — these apartments are geared toward teachers, nurses and employees within the city's police and fire departments — on top of a 486-space parking garage.

Costs for the project are totaling around $60 million — $22 million for the parking garage and an additional $37 million for the housing element, according to city officials.

New parking garage: Water Street Parking Garage, serving Boscov's customers for almost 40 years, to be rebuilt

Why a tax break was proposed

The project increased in cost due to COVID-related price hikes in material costs and interest rates, developer representative Jeff Smetana said during the June 5 city council work session.

"It's been a long process here from when we first responded to the RFP as everyone knows what cities and communities have been through in terms of COVID and this incredible escalation in costs," Smetana said. "A PILOT is really a tool that a community can use to create development that wouldn't otherwise happen."

Without the PILOT, Smetana says, this project won't happen. With the 28-year term, UB Family LLC would be paying only $507 to the city annually in taxes for the first 10 years.

What residents, city council members are saying

Many business owners shared their support of the project through letters written to city council because of the increased parking, potential employees and business it would bring to the downtown area.

Some city council members acknowledged that without the project, there would be no tax revenue coming in and Boscov's depends heavily on that source of parking. Still, all city council members disagreed with aspects of the PILOT agreement, and residents, business owners and advocates in attendance Wednesday argued those issues should be enough to reject it.

"If this project cannot happen without this PILOT structured the way it's structured, then it is not a sustainable project and it shouldn't be happening," said Teri Rennia, a Binghamton business owner, resident and former city council member.

Binghamton city councilwoman Angela Riley pushed the other council members to vote against this specific PILOT and renegotiate with the developer.

"We allow mediocrity and then the results weigh on the backs of the people that struggle to live here," Riley said. "We know that this does not meet the needs of our residents ... I know we can do better."

Ultimately, city council passed the agreement 4-2, with councilwomen Riley and Aviva Friedman dissenting.

"I haven't given up on Binghamton," local housing advocate Salka Valerio said. "We just need to do a lot better."

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This article originally appeared on Binghamton Press & Sun-Bulletin: Binghamton project gets tax break despite public dissent: What to know