Renovations Planned for Vacant South Street Building

February 13, 2011

Article by Maury Thompson
of The Post Star

GLENS FALLS -- The demolition of the Madden Hotel has not yet begun, but already the ripple effect of Glens Falls National Bank’s plans to expand its downtown headquarters is showing up in the neighborhood, city officials said Thursday. 

Developers Tom and Audrey O’Neill have agreed to buy a former factory building on Elm Street, around the corner from the bank’s planned project on South Street. The property will be renovated for retail, offices and apartments.

O’Neill, who in a "letter of intent" agreed to pay $110,000, said he plans for retail shops or a restaurant on the ground floor, offices on the second floor and four apartments on the top floor of the building at 36 Elm St., known in recent years as the incubator building.

The building, originally a garment factory and later a warehouse, has been vacant for about six years.

O’Neill said if the process of closing the sale and getting Planning Board approval goes as ex pected, renovation would begin later this year, and the building would be ready for occupancy by late 2012, O’Neill said.

Financing for the project is already arranged, said Jonathan Lapper, a lawyer representing O’Neill.

The Greater Glens Falls Local Development Corp., which owns the building, has been attempting to sell it for several years, with little interest until now.

In spring 2008, the city’s economic development group sought redevelopment proposals from 27 potential developers, but did not receive any offers on the building.

O’Neill said Thursday that the timing is right from a neighborhood development perspective, as well as the status of his other real estate ventures.

"With the city and the mayor’s efforts on South Street, it really allows me more latitude," he said.

O’Neill said space is completely leased at his Union Square complex, at the bend where South Street turns into Broad Street, and in another building he owns on Broad Street.

Michael Kaidas, owner of the recently renovated Empire Theatre Plaza on South Street across from the Madden Hotel, said the former factory at 36 Elm St. has been "an eyesore" and he’s pleased to hear about O’Neill’s plans to redevelop the building.

"It will be a welcome addition. That’s fantastic," he said.

City Code Enforcement Officer John Ward said O’Neill has a record of doing quality renovation work.

"Everything he does is of the utmost perfection," Ward said.

The LDC bought the former factory building in 2004 to renovate it to house the now-defunct Adirondack Business Incubator Program.

The idea was to provide shared work space and consulting to fledgling entrepreneurs launching new business ventures.

That plan never materialized because renovation costs exceeded available funding.

Proceeds from the sale of the building will be divided proportionately with the various municipalities and groups that originally invested in buying the building, at Matthew Fuller, a lawyer for the LDC.

Glens Falls Mayor John "Jack" Diamond said O’Neill’s plans for the incubator building continue the revitalization of the South Street neighborhood, which until recently was known more for its rundown buildings and late-night rabble-rousing.

The LDC bought the Madden Hotel property in November, with the intention of reselling it to the bank for its headquarters expansion project.

The sale to the bank is expected to be finalized in early to mid-March, city Economic/Community Development Director Edward Bartholomew said Thursday.

Separately from the bank project, the city is scheduled to begin a South Street infrastructure improvement and streetscape beautification project in the spring.

A rendering shows planned renovations for 36 Elm St. in Glens Falls, which is currently vacant. Developers Tom and Audrey O’Neill have agreed to buy the property for retail, offices and apartments. The image shows the structure with a view to the South Street intersection.