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Incubator project: bids set, but board hears warning on HVAC and utility costs

Peekskill Industrial Development Agency / Peekskill Facilities Development Corporation / Peekskill Local Development Corporation (joint meeting) · April 29, 2025
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Summary

Board members set a bid release and May 14 walkthrough for the kitchen incubator project while staff warned makeup-air fans and continuous ovens will drive high gas and electricity bills; temporary power during construction will rely on generators and contractors.

Board members were briefed on the incubator procurement schedule and operational constraints that could affect ongoing costs.

Agency staff said they expect to release bid packages as early as this week or by next Monday and scheduled a public walkthrough for Wednesday, May 14 at 10:30 a.m. Key kitchen vendors (freezers, coolers, ovens) have been notified to attend the walkthrough.

Staff warned the board that the incubator's HVAC and makeup-air systems will influence utility costs once the facility is active. "If you run the gas, the heat high, you're gonna run those fans, and they are enormous," a staff member said, describing large fans tied to the makeup-air and heating systems. The presenter noted makeup air will be unheated in practice, and the board discussed the possibility that bills will be substantial when multiple ovens and burners operate.

On construction logistics, staff said Con Edison gas service could be shut off during certain construction phases, temporary electric service may be required, and contractors may run generators until upgraded electric infrastructure is installed. The board also discussed a storage pod and a temperature-controlled trailer used to store files and incubator materials during site clearing.

The board instructed staff to proceed with bid release pending final counsel review and to return with formal procurement documents and a timetable for evaluation of vendor responses, which staff said are likely to arrive by early June.