Troy

More than a year after bid-rigging charges were dismissed against prominent Capital Region developer Joseph R. Nicolla, the Columbia Development founder is back publicly involved in projects — this time in partnership with local technology entrepreneur Dan Pickett.

Limited liability company 48 4th Street, of which Pickett's private equity firm and Nicolla are partners, is requesting property tax breaks worth $220,588 to locate a health technology firm on Fourth Street in Troy. The Albany Business Review first reported about the tax break request.

Pickett's firm Hudson River Capital is an investor in a Boston-based company called aptihealth, which wants to expand. Aptihealth is working on a web-based platform for behavioral health doctors and primary care physicians to work together on behalf of shared patients, Pickett said.

Pickett said he wants aptihealth to expand in Troy because of the possibility of collaborating with researchers at Rensselaer Polytechnic Institute, where Pickett is on the board of trustees. Pickett said he is partnering with Nicolla because of Pickett's long-time relationship with Columbia Development and BBL Construction, Columbia's frequent building partner.

"I'm in technology — not in real estate, development or construction," Pickett said. "It lets me focus on helping (aptihealth) technically, while (BBL and Columbia) focus on helping them from a really innovative and engaging facilities perspective."

Columbia Development attorney Debra Lambek acknowledged in an email "it has been awhile" since Nicolla has applied for relief from an economic development agency, but that aptihealth is already a tenant at a Columbia property on Hoosick Street. "Aptihealth is considering a significant expansion in Troy and is looking to identify options and occupy new space as quickly as possible," Lambek wrote.

The LLC has submitted an application to the Rensselaer County Industrial Development Agency requesting property taxes for 48 Fourth Street remain held at $5,000 a year for 20 years, in addition to having sales and mortgage recording taxes waived. Current property taxes are estimated to be $14,560 a year, according to information provided in the tax break application.

The 7,500-square-foot building was recently occupied, and currently has an apartment tenant on the third floor. That tenant, Matthew Sekellick, spoke at a public hearing on the tax break application last week, and said that it doesn't make sense to cut taxes on the property since the current owner is paying them in full.

"Yes I am going to be forced to move. But worse than that — they're asking for an enormous sum of money for a project that I think was going to happen anyway," Sekellick said Tuesday.

The aptihealth proposal says the building renovation and other costs will total $1.4 million, and will create 14 full-time jobs in the first year.

Pickett said Nicolla submitted the payment-in-lieu-of-taxes request to the IDA, but he thinks the tax breaks will be worth it if the company continues to expand.

"The better capital base you can build the more you have to invest back in the company and generate the jobs," Pickett said.

The IDA will likely discuss the project again on Thursday. Rensselaer County IDA executive director Robert Pasinella said he couldn't comment on how the agency will rule on the tax breaks because they do not know enough about the project yet.

Nicolla has been largely silent in the local business world since he first faced criminal indictment in September 2016. Nicolla and Alain E. Kaloyeros, the former president and CEO of SUNY Polytechnic Institute, were charged in an 18-page felony complaint that accused them of taking part in rigging bids for multimillion dollar projects. The complaint alleged the bid rigging benefited Nicolla and Kaloyeros, as well as favored contractors.

In April 2018, the state attorney general's office dismissed the criminal charges against Nicolla as part of an agreement that called for Nicolla to cooperate in the investigation if asked, according to people with knowledge of the matter at the time.

Nicolla had been previously involved in some of the region's most notable developments, including the rehabilitation of Wellington Row on State Street in Albany.