The former site of the Rotanelli Foods plant in New Rochelle is set to be repurposed into a multi-million dollar self-storage facility.
The New Rochelle Industrial Development Agency (IDA) announced that an estimated $2.5 million in tax relief for to help developers help offset costs for the $25 million facility, which will be constructed on Birch Street.
Developers intend to demolish the former frozen foot plant and construct a five-story structure. The project will comprise of 152,000-square-feet and is expected to contain 1,182 units.
Construction is set to begin later this year and is expected to take up to 14 months to complete. Developers are also expected to donate a vacant lot near the site, which is to be converted into a parking area for a proposed maintenance facility in the area.
According to the IDA, the property is currently taxed at $114,434 annually, but the full tax rate as a fully developed site over a decade would be more than $3.5 million. Under the 10-year payment in lieu of taxes (PILOT) agreement, developers will pay nearly $1.9 million and receive a tax abatement of more than $1.6 million.
“Without the use of such benefits, the development would likely not proceed,” consultant Kevin Gremse of the National Development Council told the IDA in a statement. “Even with the proposed PILOT, the returns are fairly modest and a little lower than what is typically seen in the marketplace.”
The project is expected to create nearly 200 construction jobs, as well as a pair of full and part-time jobs when it opens. ExtraSpace Storage of Salt Lake City will run the facility once it is officially open.
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