The Glens Falls Industrial Development Agency on Oct. 9 approved a five-year pilot tax-relief package for the redevelopment of 178 Maple Street to bridge a funding gap while project owners work to monetize historic tax credits and grant awards.

City and project representatives told the IDA the total project budget is about $4.4 million and that the conversion now calls for 19 residential units and one commercial space after the owners bought a rear lot to add parking. Tom Morelli, a project representative, said finishing construction financing is contingent on the pilot agreement and other items needed to close the deal.

Why it matters: The developer and IDA staff said the project qualifies for historic tax credits and other public funding, but those benefits create a timing lag. The pilot will provide near-term tax relief — among measures discussed were sales-tax rebates and mortgage-tax exemptions — to reduce negative cash flow during the first years of occupancy while the owners secure permanent incentives.

Details of the deal and debate

IDA staff described the package as a short-term pilot instead of the agency’s more common seven-year schedule. The board approved a five-year plan the agency described as three full years followed by two years at 50 percent of the relief level to give the owners time to monetize tax credits and grants.

Jeff Flagg, representing agency staff, outlined the financing rationale and budget assumptions. Project representatives said the redevelopment began as a plan for 14 residential units but was revised to 19 units and one commercial space; the commercial area will reuse an existing garage on the first floor. The owners also purchased the rear lot from NAP Health Holdings to expand parking; stormwater management work tied to that lot was noted as a required element of the construction plan.

Tom Morelli told the board the project’s financing remains incomplete and that closing on portions of the acquisition must occur before Nov. 30. To meet that schedule, the IDA scheduled a special board meeting for Oct. 28, 2025, at 8 a.m. at the Fitzgerald Morris Baker offices so the board can act if needed before the November deadline.

Conflict of interest and vote

Mayor Irving disclosed that his company, Celtic Attitudes Clothing LLC, is a tenant in the building and explicitly recused himself from voting and comment, saying, “this building is a building that my company, Celtic Attitudes, has been a tenant in for, over the last 10 years ... I will recuse myself from any vote or any comment.” The resolution to approve the pilot was moved, seconded and approved; the transcript records one abstention and the motion passing.

What was not decided

Board members did not adopt any changes to the underlying development approvals or construction financing at the meeting; the pilot is intended only to provide short-term tax relief while the owners finalize permanent financing. Exact vote tallies for yes and no votes were not stated on the record beyond the one abstention.

Next steps

Agency staff will post the approved resolution and the pilot agreement to the IDA website and the owners will pursue final construction financing and the remaining approvals needed to close. The IDA has set a special meeting on Oct. 28 to act if necessary for the Nov. 30 closing timeline.