Glens Falls IDA accepts application, schedules public hearing for 4656 South Street pilot request

The Glens Falls Industrial Development Agency on Thursday accepted an application from Patent Property Management LLC for financing assistance tied to the renovation of 4656 South Street and authorized a public hearing on the request, tentatively scheduled for May 15 at 8 a.m.

The decision begins a formal review of a pilot tax agreement and related benefits (sales- and mortgage-tax considerations) the agency could offer to help restore the long-neglected downtown building into commercial space and about 20 apartments. The board said it will analyze the likely sales-tax and mortgage-tax benefits and return to the public hearing with projected numbers.

Applicant Chris Patton, who said he now owns the property through Patent Property Management LLC, described extensive structural and utility work already uncovered by demolition. Patton said crews had to “start in the basement to rebuild structural things to allow us to even support the roof system,” and that long-term restoration choices were intended to “make sure that this roof system lasts forever.” He told the board a commercial lender has issued a commitment letter contingent on an appraisal and that he expects to close on the initial loan once the appraisal is finished.

Board members and staff focused on two practical constraints that affect the project’s budget and schedule: lender conditions tied to the appraisal and an unexpected electrical-service requirement. Patton said the utility (National Grid) has required the project to accept a high‑voltage transformer and a vault room inside the building to secure the permanent service, a change he estimated could cost on the order of $200,000. He said the lender’s commitment is contingent on appraisal results and that he has already expended substantial equity on the site.

Agency staff said the public hearing will allow the IDA to compute and present estimated benefits under different pilot lengths and to consider whether a seven‑year pilot rather than the default 10 years would better reflect the project’s cash flow. A staff member also told the board the IDA could combine the hearing and a board vote on the same day to speed the process if public-notice timelines allow.

The resolution the board approved directs staff to schedule the required public notice and hearing, to assemble projected sales- and mortgage-tax benefit figures for the board’s review, and to confirm the meeting date by close of business the same day. The motion passed with no objections; the board noted two members were absent for the special meeting.

Patton and staff said the financing timetable is tight: the applicant reported an appraisal expected by the end of the week and said he anticipated closing on the loan within roughly three weeks, but that financing shortfalls could force him to slow or sequence work. Patton said he has drawn on his own funds so far and that the pilot benefits materially affect the appraisal used by the lender.

The agency’s next step is the public-notice period and the scheduled hearing, where members of the public and the applicant may present comments about the proposed financial assistance before the board takes any final action.