Albany <\/p>\n
The city's economic development arm could reap more than $1 million by helping the College of Nanoscale Science and Engineering finance its new $191 million hub for renewable energy and clean-technology research, officials said Friday. <\/p>\n
Under the proposed arrangement, neither the city nor its Capital Resource Corp., would fund construction of the six-story Zero Energy Nanotechnology building planned for the college's Fuller Road campus. <\/p>\n
But in exchange for a transaction fee estimated between $1.4 million and $1.5 million, the CRC would grant the college access to its borrowing power and an estimated $2.3 million break on mortgage taxes, which are split between the state, county, city and Capital District Transportation Authority. <\/p>\n
The mortgage tax is 1.25 percent, with one-fifth going to the city. That means a roughly $465,000 mortgage tax break would net Albany about $1 million if the deal is approved, city officials said. <\/p>\n
Though the CRC is providing access to the financing, neither it nor the city would be on hook for the $186 million debt should the college default, Mayor Kathy Sheehan said. <\/p>\n
\"It's really a win all the way around for taxpayers,\" Sheehan said, noting such transaction fees are one of the city's main sources of development money. \"This is a pretty straightforward transaction that results in a significant fee that the city can use for economic development.\" <\/p>\n
Sheehan, who served on the CRC's board as city treasurer, also noted the college is projecting a \"pretty remarkable\" 1,150 jobs at the site within five years. <\/p>\n
The college's application says it will seek bonds that would be subject to income taxes but notes it \"may request conversion\" to tax-free status in the future. <\/p>\n
NanoCollege spokesman Jerry Gretzinger said whether the bonds are taxable depends on whether any of the space is leased to private companies, as the NanoCollege sometimes does. <\/p>\n
<\/p>\n
Read the rest here:<\/p>\n
City to get $1M on nano tax deal<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Albany The city's economic development arm could reap more than $1 million by helping the College of Nanoscale Science and Engineering finance its new $191 million hub for renewable energy and clean-technology research, officials said Friday. Under the proposed arrangement, neither the city nor its Capital Resource Corp., would fund construction of the six-story Zero Energy Nanotechnology building planned for the college's Fuller Road campus. Continue reading