Todd Clausen, and Meaghan M. McDermott

Democrat and Chronicle

Conduent plans to complete renovations of the former Macy’s in Irondequoit by Aug. 15.

Flaum Management signs a deal for vacant property at former Medley Centre property.

Company relocating Webster operations to Irondequoit with plans to grow employment to 750 workers.

The former business services division of Xerox Corp., now its own separate publicly traded company, is moving its local call center operations to a vacant retail store in Irondequoit with plans to nearly double its number of workers.

Loren Flaum, chief financial officer of Flaum Management, said Conduent Inc. would move sometime in the fall to the former Macy's site at the vacant Medley Centre mall.

The project, which will bring roughly 750 jobs to the site, becomes the first tenant on property since Sears left the northern end of the mall last year.

"This location checked a lot of boxes for Conduent," Flaum told reporters. "They wanted to make a splash and make a presence (in) the Rochester community."

Flaum Management purchased the 125,000 square-foot Macy's site nearly two years ago, after the department store pulled out.

Conduent confirmed the move, adding that it was transferring its call center operations from Xerox’s Webster campus to Irondequoit.

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Spokesperson Sean Collins said the move allows the company to retain 400 jobs in the county, and would provide the space to add 350 more jobs. Many of those jobs involve call center work.

Collins said renovations are already underway, with a completion date targeted for Aug. 15.

Xerox, before its split with Conduent, had set aside roughly 26,000 square feet in Webster for its call center operations, once a large part of its growth strategy to enter the business services market.

However, several quarters of declining revenues had Xerox rethinking its operations to double-down on its core copier and printing business and move away from call center, mass transit and developing management systems for health care and Medicaid.

The $4.3 million call center was expected to bring 400 new jobs to Webster.

Xerox spokesman Bill McKee said Conduent had a lease with Xerox through Dec. 31, 2019, but decided to exercise its option to terminate to deal two years early.

"Conduent exercised their option today," McKee said in an email. "We plan to explore options to reuse the space either for internal or external."

Webster Supervisor Ron Nesbitt said in an email that Xerox had received millions in state aid and aid from the County of Monroe Industrial Development Agency, or COMIDA, for the call center. U.S. Sen. Charles Schumer, D-N.Y., wrote a letter in support.

"What happens to all this money that was promised and given to them is a question Monroe County taxpayers should be asking, especially COMIDA money," Nesbitt said in the email.

Empire State Development, the county and Schumer's office did not immediately provide comment on the issue.

Meanwhile, Irondequoit Supervisor David Seeley applauded the move of Conduent to his town, which was viewed as more accessible by public transportation and closer to restaurants, retailers and other amenities, Flaum said.

"I hope this to be the first of many positive announcements in the near future for the former Mall property, and through our business corridor," Seeley said in a statement. "(It) is a clear sign that better days are ahead …"

Wilmorite opened the $80 million, 110-store mall in 1990, but sold the property about 11 years later. Various tenants — both big and small — slowly began to abandon the property

Macy's left for good in 2014. Sears, the last remaining tenant, closed its store last year.

Flaum Management bought the former Macy's site in 2015, flirting with a number of potential tenants but unable to land a deal until Conduent employees recently toured the two-story, 125,000-square-foot building.

"There was a lot of interest," Flaum said of the building. "We were very patient to find the right use of this project. We wanted to make a project that was going to be beneficial to a lot of people in Rochester.

Financials of Conduent's deal with Flaum, along with the term of the lease signed, were not provided. Flaum did describe the deal as "a long-term commitment."

"We wanted a long-term partner and I think Conduent is that long-term partner for us," Flaum said. "They want to make this the cornerstone for the revitalization of the whole property."

The mall has seen different owners over the years and was eventually put up for auction after foreclosure proceedings were filed against former owner Scott Congel and Bersin Properties.

The mall, which is owned separately from the old Macy's building, was purchased by former Irondequoit Dodge co-owner Angelo Ingrassia for $100,000 at the auction. He has yet to publicly reveal plans for the property.

"We are totally supportive of any development that they do," Flaum added. "I remember walking through Macy's as a young kid here and I am excited to see it coming back to life. We are very committed to that."

TCLAUSEN@Gannett.com

MCDERMOT@Gannett.com