D&C building gets COMIDA approval

The County of Monroe Industrial Development Agency Tuesday approved property and sales tax breaks for a midtown Rochester building that will house the Democrat and Chronicle Media Group.

The developer and landlord for the East Main Street building is Pike Development Co. The D&C expects to move to the new building sometime in the fall of 2015, though Michael G. Kane, president and publisher of the media group, said the relocation could occur in the first part of 2016.

The media group will occupy about 40,000 square feet on two floors of the three-story building at East Main Street and South Clinton Avenue, with the third floor available for lease.

The property tax breaks for Pike involve the creation of a 15-year PILOT or payment-in-lieu-of-taxes program. Pike agreed to pay $3 per square foot of gross building area plus all special levies, assessments and other charges. COMIDA also approved sales tax exemptions for Gannett Co. Inc., parent of the media group, for more than $2.2 million in internal enhancements at the new building.

As part of the PILOT deal, COMIDA agreed to a plan by Pike to create 17 full-time jobs at the site over three years. In accordance with a supporting letter from the city of Rochester, the developer agreed to add 18 part-time employees and several full-time jobs within one year of the issuance of the certificate of occupancy.

Pike also agreed to add four additional full-timers in the second year of the agreement. The landlord is required under the tax-abatement deal to maintain the higher jobs level for the full 15 years of the PILOT term.

Kane told the COMIDA board that the company expects to add jobs at the new site as Rochester becomes more of a hub for Gannett's media operations in the east. Kane said a call center could be part of the changes.

Peter Cornell, president and CEO of Pike Development, said the COMIDA action likely will enable construction at the site to begin either in late September or early October. "We foresee a 12-month project so we expect the building will be finished in October of 2015."

Gannett put the Democrat and Chronicle's current home at 55 Exchange Blvd. on the market in 2013. The historic building remains listed for sale for $3.5 million, according to the website of real estate firm CBRE|Rochester.

In other action, COMIDA:

• Approved property tax relief for 739 S. Clinton LLC, a $5.1 million Buckingham Properties project to redevelop the former and long vacant Ward Supply Building on South Clinton near Gregory Street. Plans are to build loft apartments and 14,000 square feet of commercial space, including a restaurant. The jobs projection is 13 new full-time jobs over three years. Larry Glazer, who died recently with his wife, Jane, in a plane crash, was the managing partner of Buckingham Properties. COMIDA board chair Theresa Mazzullo led the audience in a moment of silence for the Glazers prior to the start of the meeting.

• Approved property tax relief for Zweigle's Inc., the famed Rochester sausage company. Zweigle's is planning a $1.3 million expansion of the existing plant on North Plymouth Avenue to accommodate another production line. The project is expected to affect 45 full-time jobs and to add five new full-time jobs over the next five years.

• Approved property tax abatement for South Point Landing LLC to expand a Brockport medical building now leased to Unity Hospital. The offices provide physician and physical therapy services to the Brockport area. The $1.9 million project, according to the applicant, will better enable Unity to serve the local population. The project will affect 28 full-time employees and create 11 new positions over the next three years.

• RES Exhibit Services LLC in Rochester was granted sales tax exemption for a $193,375 project to upgrade the company's data center. The company expects to add two new full-time positions.

Following the public meeting, the COMIDA board went into executive session for about 45 minutes. The discussion topic was "contracts," COMIDA director Judy Seil said. No action was taken by the board following the closed-door meeting.

TTOBIN@DemocratandChronicle.com

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