3rd Quarter 1998
What Cap Rate Should I Use?
by Kevin L. Bruckner, MAI
This is one of the most commonly asked questions of appraisers by lenders, buyers and sellers seeking advise on how to value investment property. The "cap" or capitalization rate is the ratio of net income divided by value (R=I/V). Inversely, net income divided by the cap rate equals value (I/R=V). The cap rate is typically a function of both a mortgage and equity rate since most real estate transactions involve mortgage financing. Investment properties are valued assuming market financing and market returns on equity.
Changes in mortgage rates will theoretically have an overall effect on the cap rate. However, cap rates tend to remain relatively stable even in a volatile mortgage market as corresponding changes in equity rates will have a balancing effect. Nevertheless, over the past several years decreasing mortgage rates, the availability of mortgage money and the presence of major capital investors such as REITs in the marketplace have caused cap rates to decline.
So what cap rate should I use? That is going to depend upon three main factors: location, property type and the quality or credit of the tenant(s). Cap rates can vary from property to property but generally fall within a relatively narrow range for investment properties having similar location and tenant characteristics.
In the Rochester, N.Y. market, the following cap rate ranges are typical.
Class A Office 9.0%-10.5%
Class B Office 10.0%-11.5%
Retail (Single Use) 8.5%-10.5%
Retail (Regional) 8.5%-10.0%
Retail (Community) 9.0%-10.5%
Retail (Neighborhood) 9.5%-11.0%
Industrial (Single Use) 10.0%-11.5%
Industrial ("Flex") 10.0%-11.5%
Industrial (Older) 10.5%-12.0%
Mobile Home Parks 10.0%-12.0%
Ground Leases 8.0%-9.5%
Class A Office 10.0%-12.0%
Class B Office 11.0%-15.0%
Retail (Community) 10.0%-11.5%
Retail (Neighborhood) 11.0%-13.0%
Mixed-Use 11.0%-13.0%
Industrial (Newer) 11.0%-12.0%
Industrial (Older) 11.0%-14.0%
The better located properties with higher quality or credit tenants will have cap rates at the lower end of the above ranges and vise versa. Cap rates in the City or urban areas will tend to be up to 100± basis points higher than physically comparable properties in the suburbs. There will always be exceptions to the above ranges but most properties will fall within the ranges indicated above.
Properties with regional investment appeal will tend to command lower cap rates while properties with only local investment appeal will tend to have higher cap rates.
Other significant factors which can have an effect on a property's cap rate are its present condition, current management (or mismanagement as the case may be) and deferred maintenance. In essence any factor which influences value will also effect cap rates. How net income is developed will also effect the cap rate. Conservative net income estimates may warrant a lower cap rate because of the lower perceived risk associated with the potential for achieving the income stream and vise versa.
A comprehensive analysis is required to properly estimate the cap rate. The above ranges and the identified general trends which define each range can be used to approximate the cap rate and market value of an investment property. Ultimately, since every property is unique in its investment characteristics, its cap rate will be unique.
We welcome any questions relating to a specific property or property type as to.
ECONOMIC & BUSINESS
Xerox Corporation (Employment)-- Xerox Corp. stated that 2,000 U.S. workers have agreed to take early retirement as part of the company's drive to cut its global work force by 9,000. In the Rochester area, 669 employees have opted to retire early or leave voluntarily with up to one year's pay. Xerox, which employs 13,900 people in Monroe County, planned to eliminate 1,400 jobs locally. The job reductions, and plans to cut overhead expenses, are expected to free up cash to reinvest in areas that are growing. (7/29)
Xerox Corporation (Expansion)-- Xerox Corp. announced it will expand its manufacturing operations in Ontario County. The expansion includes construction of a 17,600 square-foot addition to its existing 105,000 square-foot Canandaigua facility and renovations to a newly leased 27,200 square-foot building on Collett Road in Farmington. The project is expected to add ~ 400 jobs over the next two years. Both projects are expected to be completed in early 1999. The company did not disclose the cost of the project. (8/18)
Home Properties-- Home Properties of New York Inc., the Rochester-based real estate investment trust announced the value of its holding has reached $1 billion. According to Vice President Amy Tait, about 66% of the company's total market capitalization reflect equity at current market values and about 34% is debt. Home Properties is 58% larger than it was at the start of 1998 after doubling in size in 1997. The company operates 31,324 apartment units, owning 22,244 of them. (7/11)
Paychex Inc.-- Paychex Inc. is exploring a major expansion of its corporate headquarters at 911 Panorama Trial. The plans call for the construction of two 150,000 square-foot complexes, each large enough for 400 to 500 workers. In addition, they are converting a 70,000 square-foot warehouse into offices in Perinton to accommodate its growing business-service divisions. Employment at Paychex Inc. has increased 70% since 1994 to its current total of 5,100. Profits rose 36% last year, to $102 million, on revenues of $493 million, up 24%. (8/14, 8/19)
ITT Industries-- ITT Industries Inc. announced it is selling its ITT Automotive Electrical Systems North America Inc. operations as part of a $1.7 billion deal with French auto-parts maker Valeo SA. The 3,500-worker Rochester plant is the biggest single component of the sale. (7/3)
Eastwind Airlines-- Eastwind Airlines, a three-year-old low-cost carrier based in Greensboro, N.C. will begin flying out of Greater Rochester International Airport starting in August. A fleet of two new 737-700 will service the Rochester area. Monroe County Executive Jack Doyle said county government offered no financial incentives to Eastwind. (6/25)
Convention Center-- The Rochester Riverside Convention Center reported events the facility hosted in 1997 generated $26 million in business at area hotels, motels, restaurants and retail emporiums. Attendance rose 12% in the year ended June 30 and was up 28% over 1995. The convention center's 1997 revenues were $4.7 million; in 1996, they were $4.6 million. Expenses for the two years were $5.8 million and $5.6 million, respectively. The convention center continues to run an annual operating deficit of ~ $1 million. The non-profit corporation that runs the convention center receives public contributions to cover the gap. The subsidy comes from two sources in a roughly 70/30 split. The larger amount comes out of a 4% tax imposed by the county on all hotel and motel room rentals. The balance comes directly from the city's operating budget. In addition, the city owns the convention center building, which it leases to the non-profit operating corporation at no charge. ((7/28, 8/17)
Disposition-- USAirports, a developer and operator of air-freight facilities, has sold its Air Cargo Division to Airport Group International of Glendale, California. The division provides cargo services at nine airports and ranks as the nation's third-largest cargo handler. USAirports, with revenues totaling more than $65 million, has grown at an average of 12% annually over the past three years. AGI will continue to operate its fixed-based and tenant-based operator facilities, including those at the Greater Rochester International Airport. (7/15)
Home Sales-- According to data released by the GRAR, realtors in the 11-county Genesee region closed sales on 1,201 single-family homes in July, an increase of 2.2% from 1,175 in June, and 9.3% from 1,099 closings in July 1997. The associations Genesee Region Real Estate Information Service reported 5,950 closing for the first seven months of 1998, up 10.9% from the year-before period. The dollar volume of sales for the first seven months of 1998 was $617.7 million, up 13.2% from $545.6 million in the year before period. The total paid for existing single-family homes in July was $133.6 million, up 12% from $119.7 million in July 1997. (8/11) Realtors in the 11-county region closed sales in August on 1,216 existing single-family homes, up 16.8% from the 1,041 homes sold in August 1997. Statistics complied by the GRAR stated that 2,034 homes were listed for sale in August, a decrease of 29.2% from the 2,872 listings the previous August. (9/10)
Rental Housing Market-- The Monroe County Rental Housing Market Study reported the average gross rent for the County, including all unit types and sizes, was $649 per month. The average gross rent within the City sample was $558, roughly 20% lower than the $680 average for all areas outside of the City. Per square foot gross rents averaged $0.65 per foot for two-bedrooms, $0.59 for three bedrooms and $0.68 one-bedrooms. The survey results showed 1,100 vacant units, 341 of which are located within the City, indicating a market-wide vacancy rate of 6.1%. Among those vacant units, 25% had been vacant for less than 30 days, 35% had been vacant for 30 to 60 days, and nearly 40% had been vacant for more than 60 days. (5/15)
Unemployment-- The Rochester area unemployment rate fell to 3.9% in June, reflecting a strong local economy despite job losses at Eastman Kodak Co. and Xerox Corp. The number of unemployment insurance claimants was down 14% from June of 1996. The June figures reflect a gain of 3,300 jobs from May. (7/17) The state Labor Department reported that 3.6% of the work force was unemployed in the six-county Rochester area in August, down from 4.5% in July. The Rochester rate was 1.1% below the U.S. average rate of 4.7% and 2% below New York State's average of 5.6%. The area got back 3,800 non-farm jobs when General Motors auto workers returned to work and gained 600 jobs in business services, reflecting more jobs in temporary agencies and contract computer programming businesses. Overall services employment was up by 2,400 from last year. (9/18)
Automobile Sales-- According to figures released by the Rochester Automobile Dealers Association, 22,463 new vehicles were sold in the first six months of 1998, an increase of 143 from the year before period. (8/11)
Median Sale Price-- The National Association of Realtors reported the median sale price of existing single-family homes nationwide rose from $103,700 in 1992 to $124,100 in 1997, a 20% gain. The Rochester region reported a median sale price of $93,000 in July, a 3.4% increase from $89,900 in June and in July of 1997. The region reported a median home sale price of $94,800 in August, the highest median price on record. The August median sale price rose 11.6% over the $85,000 median in August 1997. (7/19, 8/11, 9/10)
New Construction-- Housing starts in Monroe County for the first five months of 1998 are up 7.3% from the year before period. The National Association of Home Builders projects only a 1% increase in 1998 for the nation as a whole. (7/19)
OFFICE
Canandaigua-- Messenger-Wolfe Publicatons submitted plans to the City Planning Commission for preliminary site approval to expand and upgrade their facility. Plans call for a two-story, L-shaped expansion to wrap around the north and west sides of the building on Buffalo Street, adding 20,400 square feet to the existing 16,000. Although company headquarters will be in Canandaigua, the weekly newspapers' satellite offices in Pittsford, Brockport, Greece, Irondequoit, and Webster will remain open. The move will involve relocating ~ 55 Monroe County production workers. No cost estimate was disclosed for the proposed project. The existing building is assessed by the city at $680,000. (9/17)
Irondequoit-- The Town Planning Board approved the move of the Rochester Business Institute from its current location on the corner of East Ridge Road and Brown Road to the empty Grossman's building off Portland Avenue. RBI plans to renovate the 29,300 square-foot building inside and out in anticipation of the more than 500 students who will be attending the institute. (8/11)
Irondequoit-- Eastman Kodak Co. has sold the Kings Park office complex in Irondequoit for $19.5 million. HRPT Properties Trust, a Boston-based real estate investment trust, bought the fully leased 309,000 square-foot facility at the end of June. Kings Park is HRPT's first Rochester property. Tenants at the complex located at 100 Kings Highway include Danka Office Imaging, Paychex Inc., ESL Federal Credit Union, GE Capital Assurance, and Sutherland Group Ltd. (7/18) (7/24)
Rochester-- The Salvation Army has purchased the former Monroe Savings Bank FSB headquarters building at the corner of East Main and Franklin Streets from M&T for $500,000. The Christian charitable organization will relocate its administrative offices from 70 Liberty Pole Way to the second floor and basement of the bank building. Approximately 9,000 square feet of ground floor office space will remain empty at the two-story, 18,000 square foot structure. (6/26)
Rochester-- Knowlton Associates LLC have closed on a $3.4 million deal to renovate a four-story vacant building at 69 Cascade Drive. The developers would retrofit the 96,600 square-foot Knowlton Building for computer-oriented businesses. Plans call for 10 loft/working spaces to be constructed on the fourth floor. As part of the project, the developers would also purchase a smaller vacant building at 35 Washington St. and demolish it for parking. The city would initially buy that 27,800 square-foot building for $325,000 and then resell it to the developers. The city would then provide a 22-year mortgage to the company at an interest rate of 4.8%. The new tenants would create at least 100 jobs. (7/9)
Rochester-- Rochester developer David Flaum, president of Flaum Management Co., has purchased the Harro East building, 400 Andrews Street for $1.2 million. The building features an athletic club, concert hall and office space. (7/11)
Rochester-- Buckingham Properties Inc. has sold the Cox Building to entrepreneur Taib Elketani, who also has purchased several retail and apartment properties on Monroe Avenue. The seven-story Class C building on St. Paul Street sold for a little more than $1 million. (9/18)
Rochester-- CBS Radio plans to move its radio stations - including 125 employees - from Winton Road in Brighton to the Marine Midland building by November. CBS, which owns WCMF-FM (96.5), WARM-FM (101.3), WPXY-FM (98) and WZNE-FM (94.1), will lease 22,000 square feet; two floors of the 19-story building. The company has signed a 10-year lease, but declined to say how much it will pay. (7/17)
Rochester-- The former Bausch & Lomb Inc. warehouse and manufacturing plant at St. Paul Boulevard and Bausch Street is undergoing a multi-million dollar renovation by general contractor Midland Construction Corp. Tenants including the County Department of Social Services and the Department of Health will occupy the 200,000 square-foot building, owned by Rochester attorney Dante Gullace. (6/23)
Rochester-- The Natapow Management Group has leased 60,000 square feet at First Federal Plaza to two firms - Bergmann Associates Architects and Engineers P.C. and the Davie, Kaplan, Chapman & Braverman P.C. accounting firms. Bergmann Associates has signed a 15-year lease on 42,500 square feet of space on the second floor and 3,500 square feet on the third. The Natapow Group bought the 21-story, 245,000 square-foot tower in February from Marine Midland Bank. (8/28)
RETAIL
Brighton-- The new Bagel Bin Café has opened in the old post office building at Brighton Commons near the Twelve Corners. Designs and structural problems over the past several months were cited as the main reasons for the delay in opening. The Bagel Bin employs approximately 23 part-time and full-time people. The café has seating capacity for 100 people as is open Mondays through Saturdays from 5 a.m. to 3 p.m. and Sundays from 6 a.m. to 3 p.m. (8/26)
Brighton-- Developer Fred Rainaldi, has proposed adding a 90-seat "family restaurant" as part of a single building that would also house a Rite Aid and Mail Boxes, Etc. at Twelve Corners. In a statement submitted to the town planner, Rainaldi proposed tearing down the Princess and a nearby building that house Mail Boxes Etc. and the Bagel Bin. The developer would replace them with a single 15,230 square-foot building. (7/23)
Greece-- According to the town's 1992 master plan, Greece has about 2.8 million square feet of retail space. The Greece Chamber of Commerce reports that approximately 274,500 square feet of retail space on Ridge Road is vacant, which represents ~ 10% of the existing space. The total number of parcels on Ridge Road from Mt. Read Boulevard to Manitou Road is 343.
Greece-- Captain's Attic North, formerly in Greece Ridge Center mall, will open under a new name, "aaahs" in the vacant Cantina del Rio Mexican restaurant on Center Place Drive. The new location will increase the size by 3,300 square feet over the former building, to 8,700 square feet and fill a vacancy in the town. High overhead at the mall was cited as the reason for the move. (9/3)
Greece-- The development on the 84,000 square-foot shopping plaza at the corner of Long Pond and Latta Road has stalled due to the size and location of the largest tenant, a Vix Discount drugstore. Last year, the town approved plans for the plaza and a 30,000 square-foot Vix. Benderson Development Co., a Buffalo-based development company, is under contract to buy the plaza, but the purchase is contingent on getting approval for the pharmacy. (8/6)
Henrietta-- Representatives from the Roadhouse Grill are seeking Town Board approval for a special permit to build a 7,292 square-foot restaurant on roughly two acres at 900 Jefferson Road, just east of the Marketplace Inn. The Roadhouse Grill Corp. is five years old, but has already acquired 47 locations, with plans to build at least 20 more next year. If approved, the Henrietta location would be the second in the Rochester area. (7/8)
Hopewell-- Maurice's women's apparel store in the Wal-Mart plaza will close its doors after five years. Officials at the Duluth, Minnesota-based chain's headquarters stated the outlet was unable to compete with area mall stores. (8/26)
Penfield-- Wegmans Food Market's received final approval to develop the 75-acre parcel at the corner of Routes 441 and 250 and to alleviate the anticipated increase in traffic. The board approved the final environmental impact study in July but expressed concern over the size of the Target building. The proposal includes construction of a 123,000 square-foot Target store, a 160-bed nursing home, a restaurant, bank, day care center, and medical office. Wegmans plans to increase the size of its 85,000 square-foot grocery store by 20,000 square feet. Preliminary work at the Target store is scheduled to begin in late September. (8/4, 9/9)
Perinton-- The Town Board approved a special-use permit for Monro Muffler Brake to build an eight-bay garage on ~10 acres on Route 31 in the hamlet of Egypt. Monro Muffler must comply with the following conditions: Hours of operation must not exceed 7 a.m. to 9 p.m. Monday through Saturday, they must donate 8 acres to the town for buffering and obtain approval from the Planning Board. (9/14)
Perinton-- The Perinton Planning Board granted approval to Jay Birnbaum to build ~ 22,000 square feet of retail space. The two buildings - one 14,300 square feet and the other 7,791 square feet - would both be rented as retail businesses. They would border the south and east sides of the First National Bank on Route 31. (7/8)
Pittsford-- The village's joint Planning and Zoning Board has approved E.J. Del Monte Corp.'s plans to renovate the Depot Inn at 41 N. Main Street. The plans for the newly named Del Monte Lodge call to enlarge each of the hotel's 102 rooms, build a new lobby and restore and remodel a turn-of-the-century warehouse south of the hotel. The warehouse will house meeting rooms, the hotel laundry, a pool, and a coffee shop overlooking the Erie Canal. Renovation work on the restaurant, Ernie's, in the old train station building is on hold pending Planning and Zoning Board approval. (7/17)
Pittsford-- Clover Monroe Associates LLC has purchased the vacant Eber Brothers Wine & Liquor Corp. building on Monroe Avenue for $2.1 million. Developer, Fred Rainaldi, has received Planning Board approval for a new 11,384 square-foot Rite Aid store. (7/16)
Rochester-- The York, Pa. based McCrory Corp. confirmed it will close the 21,000 square-foot store, which occupies three buildings on East Main Street, near Clinton Avenue, when the lease expires at the end of January. The McCrory store at Westgate Plaza in Gates will remain open. The five-and-dime store employs about 20 people. (8/10)
Victor-- Borders Books & Music will join the Route 96 retail market as the first tenant announced for the Benderson Development project near EastView Mall. Borders is a national chain of super bookstores, complete with music store, coffee shop, and an extensive book collection. Borders, which already has a store in Henrietta, has over 200 stores worldwide. (9/4)
Victor-- The Fishers Landing Plaza is now under new ownership, following a foreclosure action. The International Order of Foresters, a Canadian pension fund that loaned plaza owner Mike Valle the bulk of his money, purchased the plaza for $1.8 million. Valle owes the fund more than $4.2 million. (6/30)
Victor-- The Town Board approved the application from Benderson Development Co., to rezone the 24-acre triangle of land across Turk Hill Road from Cobblestone Court Plaza south of the Perinton town line from residential to a planned development district. Plans call for construction of three stores and a restaurant on the site. The three stores will be 30,000, 25,000, and 20,000 square feet, and the restaurant will be 7,500 square feet. There is also an option to build 35,000 square feet of office space. The land was purchased for $2.5 million and is assessed at $59,700. (7/14) The Perinton Town Board voted unanimously to take Victor to court over the rezoning of the 24-acres of land, located at the northwest corner of Turk Hill road and Route 96, from residential to commercial use. (9/2)
Victor-- Buffalo-based developer, Benderson Development Co. has purchased 94.4 acres stretching from the New York State Thruway to Route 96 along I-490 for $4.25 million. The land is assessed at $1.1 million. It is not known what Benderson plans for the property. (7/5)
INDUSTRIAL
Penfield-- A stop-work order was issued to developer Linden Associates, for attempting to do construction work beyond what was authorized by the town. Construction on the Linden Tech project has ceased pending a decision of a lawsuit filed against the Penfield Planning Board by Allens Creek/Corbett's Glen Preservation Group in state Supreme Court. The lawsuit is one of several suits the preservation group has filed in an attempt to stop the Linden Tech project. Plans are under way for construction of the first structure - a 54,000 square-foot, two-story Ormec Systems plant. (7/19)
Rochester-- According to the Rochester-Genesee Regional Transportation Authority, the block of East Main Street from St. Paul Street to North Clinton Avenue has been selected as a potential site for a central bus facility. The proposed bus terminal is intended to serve as a hub for RGRTA buses and for private long-haul bus lines such as Greyhound and Bluebird. The agency has obtained $25 million in federal transportation funds and is attempting to secure $5 million in state money for its construction. (8/7)
Seneca Falls-- Specter Inc. of Waverly, Tenn. Will begin construction on an $8 million aluminum recycling plant on a 25-acre parcel at the southeast corner of Lamb Road and Routes 5 and 20. The project will include offices, a 120,000 square-foot plant, and a railroad spur. The recycling plant will employ an estimated 50 to 60 people on the construction project and will provide 30 new jobs in village. Specter was offered a reduction in utility rates by New York State Electric and Gas Corp. plus incentives by New York State, the village of Seneca Falls, and the Seneca County Industrial Development Agency. (9/11)
Victor-- Kodak Polychrome Graphics has signed a five year office lease for 24,000 square feet at the former Rosa & Sullivan building, located at the corner of Route 96 and Fishers Road. Polychrome, based in Fairfield County, Conn., plans to renovate the building and utilize ~ 75% of the space for phone surveys. (8/17)
Webster-- Xerox will move 400 people from offices in East Rochester and Henrietta to the former Thomson Legal Publishing offices at Five Mile Line Road and Route 104. Xerox will lease about 75,000 square feet at the Thomson building, not far from the company's campus at Phillips Road. The document company is consolidating workers in its new "channels" division. The moves are scheduled to be made by the end of the year. (8/12)
RESIDENTIAL
Brighton-- NewMark Development Co., the developer of a proposed housing project behind Our Lady of Mercy High School, may ask the Town Board members to grant a property zoning change in exchange for company-installed sidewalks and walking trails. NewMark wants to build on 32 acres along Clover Street. The complex would feature 298 units, including 11 single-family homes, 42 town houses, and two apartment buildings. The company has asked the Town Board to change the zoning from single-family residential to high-density residential. Incentive zoning was adopted by the Brighton Town Board in 1993 and allows board members to require a developer to provide certain "amenities" in exchange for zoning changes and code variances. (8/25)
Canandaigua-- Horizons, an adult care community on the Bristol Street Extension stretch of Route 21 will almost double in size. The 40-bed facility will add 36 beds in a new wing scheduled to open in January. Horizons, which opened in 1996, is operated by DePaul, a nonprofit organization based in Rochester. Lecesse Construction Co. of Rochester is handling the addition at a cost of between $600,000 and $700,000. (9/4)
Greece-- The Town Board has approved Unity Health System's request to rezone 21 acres of land from single-family residential to central health care. Planning Board approval is required on the proposed plan to build a 122-unit complex of independent-living housing for seniors near Unity's Village at Park Ridge facility. The Village at Park Ridge is a combination of assisted and independent-living housing for seniors. (9/17)
Greece-- Masi Enterprises of Greece is proposing a 24-unit apartment complex on Center Place Drive. The proposal calls for the construction of three buildings, featuring one and two bedroom apartments in an expansion of the existing Cobblestone Court complex. The Town Board would have to rezone ~ 1˝ acres of land for the development, from single-family residential and restricted business to multiple-family residential. (8/20)
Greece-- Giuliano Development Corp. is seeking Town Board approval to rezone approximately 15 acres of land at the corner of Fetzner Road and Maiden Lane from single-family homes to multi-family housing. The plan calls for 80 apartment units and 80 townhouses, which would rent for ~ $850 a month. In addition, the company wants to "move" an area of commercial zoning from one area of the open land to another spot, where a private office building and a retail outlet would be built. (7/30)
Farmington-- The Planning Board granted approval for developers from Rochester-based Belmont Estates Venture to build a 44-lot subdivision on Hook Road. The 17-acre development, called Belmont Estates, will be built in two phases, and will include $125,000 -$145,000 homes on lots averaging one-third of an acre. Approval was granted with two conditions; that the developers create a lighting district and reconfigure the water lines. (6/22)
Ogden-- Ogden Center Development has proposed a plan to build 108 "patio" homes and three apartment buildings - all designated for senior citizens - off Spencerport Road. The developer is seeking a 50 acre parcel be rezoned from single family or duplexes to the new zoning category specifically for senior housing. Some of the patio homes will be available for sale, some for rent. They are expected to sell for $80,000 to $120,000. The apartments, which will be operated by Unity Health System, will rent for $430 to $650 a month. (8/1)
Perinton-- Residents are suing town leaders for approving a senior citizen complex to be built on the corner of Route 31 and Ayrault Road. Holiday Retirement Corp., based in Salem, Oregon, wants to build the 100,000 square-foot complex on 11.5 acres at the northeast corner of the intersection. The two-story facility would house 124 suites. The Town Board approved a special-use permit for the project in July. All such homes for the aged require a special-use permit when being built in residential areas. (8/25)
Perinton-- Bierworth-Riedman and Wegman Co. have submitted an application to the Town Board to rezone 24-acres of land from residential home use to apartments. Riedman's plan is to build 192 apartment units and 42 town homes just southeast of the Routes 250 and 31 intersection. A clubhouse with an adjacent swimming pool and recreational facilities are also planned. If approved, this would be the town's first large-scale apartment complex since the 1970's. (8/19)
Pittsford-- Developer Ted Spall has received Town Board approval on an incentive-zoning plan for a 264-home development, to be built on 294 acres, or seven parcels of land on Calkins Road. Spall will build more homes on three parcels of land at the intersection of Calkins and Henrietta-Pittsford Town Line roads than is allowed under town law. A total of 156 acres of open space would be donated to the town in return, including the Harris Homes parcel on East Street, a 32-acre parcel "the highest rated non-agricultural land" in Pittsford. The developer plans to construct the homes over a 12-year period. The Spall plan will now be subject to town Planning Board approval. (6/10) The Planning Board has decided to hear further public input on Spall Entities' conceptual plan to build 265 homes on 296 acres in Calkins Road-Clover Street area. If the concept plan is approved, Spall Entities will then have to come before the Planning Board with a final site plan. (8/12)
Rochester-- Home Properties will start preliminary construction on an $8 million apartment complex at East Avenue located on the vacant Hallmann Chevrolet lot. Home Properties of New York; a Rochester real estate company purchased the land from the city for $111,000. The company will build 77 one and two bedroom Tudor-style apartments around a landscaped courtyard with rents ranging from $800 to $950 a month. In addition, 28 two-story town houses will be clustered around the back of the complex. The New York Housing Finance Agency is providing a $5.5 million tax exempt bond mortgage for the project. (9/11)
Rochester-- Administrators with the city's planning and zoning department are working with Carl Penn, developer of the proposed subdivision on Pinnacle Hill, to devise an outline for a draft environmental-impact study. Under the State Environmental Quality Review Act, Penn must put together a draft EIS as part of his overall proposal. Pinnacle Hill Properties of Rochester, is proposing to subdivide three acres of the hill at the corner of Field Street and South Clinton for the construction of 11 luxury single-family homes. The homes would sell for between $250,000 and $400,000. Neighbors are urging county lawmakers to preserve the hill as a public park. (9/9)
Victor-- Forest Park at EastView LLC, a Rochester-based corporation and developer was granted approval on a proposal to have the parcel of land on the east side of Turk Hill Road rezoned from residential to a planned development district, which mixes commercial and office space. The proposed development for the 15.5-acre parcel consists of an 80-unit, two-story senior apartment complex, converting existing homes into offices, and the option to convert one of the houses into a hospice care facility. The land is now assessed at $3.48 million. (8/25)
Victor-- Construction will start in October on the 24-unit complex on 1.6 acres of land just south of the village post office on School Street. The planned two-story housing complex will include 24 apartment-sized dwellings of 659 square feet each. Tenants must be over age 55 and meet state moderate-income requirements for singles and couples. State housing authorities have authorized a $468,000 loan and a tax credit of more than $101,000 a year for 10 years to help offset the costs of the $1.4 million project. The housing complex is expected to open in May 1999. (7/18)
OTHER
Batavia-- Western Regional Off-Track Betting Corp. announced plans to acquire Batavia Downs, the Genesee County harness-racing track for $2.8 million. New York's six OTB's are independent public-benefit corporations that pass all of their profits to municipalities in their region. Monroe County and Rochester last year received $1.1 million and $550,000, respectively from OTB operations.
Brighton-- Gianniny Associates, the developers of Linden Oaks, has offered $200,000 to the town in exchange for rezoning the land, which straddles the Brighton-Penfield line. Town officials would use the money to buy parkland on the east side of Brighton. The proposed Linden Oaks would bring a 100-room hotel, two office buildings, and a restaurant to the area near Linden Avenue and Route 441. Developers would build a road from the intersection of Interstate 490 and Route 441 to Linden Oaks. Gianniny Associates would pay for improvements to the Linden Oaks - Route 441 intersection. (7/9)
Brighton-- Construction is nearing completion on Monroe Community College's $13 million, 170,000 square-foot sports complex. Eastman Kodak Co. has bought the naming rights to the sports complex and main arena, renaming the Empire Sports Centre the ESL Sports Centre. ESL paid $60,000 for the naming rights for the next 10 years. (8/19)
Brockport-- Deerfield Country Club is in the middle of a five-year, $700,000 renovation project. New owner Michael Protos hopes to return the club to its former state by overhauling the 27-hole golf course. Sales rose 22% last year as a direct result of the upgrades. (8/14)
Canandaigua-- Representatives from the Amerada Hess Corp. announced plans to demolish the current structure on Lake Shore Blvd. and rebuild it with a motif to match Kershaw renovations. The city has spent roughly $4 million to renovate the lakefront park and roadway. The new building will be set farther back from the street with a 42' by 102' canopy, covering the store's gasoline pumps, extending from a side of the store. The project will take approximately four months to complete. (9/4)
Chili-- Monroe County Executive, Jack Doyle, has proposed buying the historic Streeter's Inn building and adding it to the county's Black Creek Park. The 187-year-old, two-story brick building would become the headquarters of the Chili Historical Society. The society would maintain the building at 4145 Union Street. Doyle has asked the legislature to accept the $154,000 sale offer and amend the 1998-2003 Capital Improvement Program and the 1998 capital budget to pay for it. (8/21)
Fairport-- The village's Urban Renewal/Industrial Development Agency has purchased a nine-acre plot of land for $50,000 from Conrail. The land runs along the north set of railroad tracks on North Main Street from Turk Hill Road to Barnum Street in the village. The UR/IDA plans to clean up and develop the land into a parking lot. (6/17)
Greece-- The Town Board voted to turn the property at 2505 W. Ridge Road, home of the Greece Memorial Town Hall, over to its local development corporation, Munipro. State laws prohibit the town from dealing with private developers, and Munipro was created to handle any leasing of the property. Money made from the lease of the old town hall or the land will be returned to the town's general fund. The profits would go to offset the cost of building the new Town Hall on Vince Tofany Boulevard. (8/15)
Henrietta-- International Hospitality has proposed a four-story, 84-unit hotel for West Henrietta Road. The hotel would be just north of the intersection of Erie Station Road and near the Fairfield Inn by Marriott. The project would be the third hotel approved by the Planning Board, who granted approval to Wilmorite Inc. for construction of a 66-unit Comfort Suites and a 90-unit Homewood Suites in the spring. (7/3)
Irondequoit-- Monroe County officials want to purchase ~ 13 acres of land for $220,000 to add to Durand-Eastman Park. Contingency funds will be used to pay for the privately owned land on Kings Highway. The 965-acre Durand Eastman Park, on the shore of Lake Ontario, is owned by the city of Rochester and Monroe County. The county operates the park under a long-term agreement. The proposal requires approval by the Monroe County Legislature's Recreation and Education Committee, The Ways and Means Committee, and the full County Legislature. (7/16)
Penfield-- The town has purchased 10-acres adjacent to Town Hall Park on Atlantic Avenue for construction of two soccer fields. The land, which cost $78,000, is next to 18 acres purchased by the town two years ago for the expansion of the park. The town received a $10,000 state grant for the project. (9/6)
Pittsford-- The Town Zoning Board of Appeals approved an expansion of the Brighton Animal Hospital. Dr. Mike Foley, owner of the hospital at 723 Linden Ave., does not know when construction on the 4,600 square-foot addition will start. Costs for the proposed project are estimated at $500,000. (9/2)
Pittsford-- The southeast YMCA was granted a zoning variance to build a 8,500 square-foot addition on its Jefferson Road facility. The YMCA was also granted a variance to create 20 additional parking spaces. The expansion will include a wellness center, spa facilities, and new locker rooms. The project requires Planning Board approval before construction can commence. (6/24)
Rochester-- CORH, a partnership of 10 corporations, and the city of Rochester, which owns the Hyatt Regency Rochester, has sold the six-year-old luxury hotel to Corporex Cos., a Kentucky based company for $27.5 million. The sale price is considerably less than the $45 million project cost. The 337-room hotel will remain a Hyatt; the hotel chain has a long-term management contract. (8/3)
Rush-- Rick Dorschel, owner of The Dorschel Automotive Group, is seeking site plan approval from the Planning Board to refurbish the former Sharp's Motor Corp. at 7238 West Henrietta Road. He is also asking for a special-use permit to park vehicles outside there. (7/29) The Planning Board gave approval to Dorschel to have up to 171 cars on site. He intends to display between 80 and 100 used cars and store between 70 and 80 new cars there. Work on the project is set to begin the beginning of September. (8/26)
Victor-- The Ganondagan State Historic Society has purchased ~ 250 acres of land adjacent to its Boughton Hill Road site. The purchase connects two pieces of land now part of the 277-acre site, which is dedicated to the history and heritage of the Iroquois nations. The farmland was purchased for $900,000 from the North family. It has an assessed value of $325,600. (7/11)
Wheatland-- Joseph Spezio, owner of Bloomfield-based Elam Sand and Gravel, is interested in a public information meeting regarding his proposal to build a 40,000 amphitheater, 18-hole golf course, and campground on 280 acres of farmland. Approximately 180 acres of the site are in LeRoy, 61 acres are in Wheatland and the remaining 35 acres are in Caledonia. No formal application has been made. (9/10)
GENERAL
Gates-- Town Officials are planning a townwide reassessment in 1999. Eastman Kodak Co. has agreed to underwrite the estimated cost of ~ $450,000. The project will involve 11,000 properties, at a cost of $40 per property. The properties will be assessed at full value and is expected to be completed in time for the 2000 tax rolls. (9/1)
Greece-- The state Department of Transportation plans to widen West Ridge Road to six lanes with a raised median within the next three years. Once the project is complete, the road will be able to handle upward to 60,000 vehicles a day. (7/13)
Hamlin-- The Town Board voted to rezone ~ 10 acres at 832 Moscow Road for commercial use. The majority of Moscow Road is zoned for residential use. It includes houses, the entrance to Hamlin Beach State Park and Ozzie's Corner Golf Course. (8/6)
Penfield-- The town will acquire a parcel of land at the south end of Irondequoit Bay for $235,000 for the development of a public park. The 1.4-acre lot is located off Empire Boulevard, just east of the bridge crossing into the town. The town has applied for state funding to help pay for the project. Town officials are seeking a single developer to come in and redevelop a large part of the area. (6/29)
Rochester-- The Rochester Psychiatric Center is demolishing two historic brick buildings to clear room for a driveway and a parking lot as part of a $91 million redevelopment project. The state is paying $236,000 to tear down the two buildings. (8/5)
