Albany

A commercial dead zone of parking lots, decrepit buildings and the former Adirondack Trailways bus station in downtown Albany is inching closer to redevelopment, possibly into a mix of residential, entertainment and retail projects.

Capitalize Albany Corp. is looking to take charge of redeveloping the 51-parcel Liberty Park swath, named after one of the city's oldest known public spaces. The Albany Convention Center Authority wants to sell the property to the city's economic development nonprofit for $1.

"This is a critical area in downtown Albany," said Capitalize Albany president Sarah Reginelli. "There is so much potential for this site. It isn't very often that there's an area like this in a large city."

A convention center and hotel complex was once envisioned for the land sandwiched between Broadway and Hudson Street and the South Mall Expressway, but the $79 million Albany Capital Center was later built on Eagle Street and opened last year.

A report released by Empire State Development last year envisioned a 1 million-square-foot mix of residential, retail and entertainment projects, possibly accompanied by a hotel. The city and state had previously put out a request for proposals for the site from private developers, but no one came forward.

The study was helpful in assessing the marketability of the site and what it can support and providing an engineering review, Reginelli said. Demand is strong for multifamily housing, especially in and around downtown Albany, she said. Parking facilities would need to take into account new residents in the case of added density.

"People want to live in a walkable, urban core," she said.

The site "really lends itself to a live, work and play space," said Albany Mayor Kathy Sheehan. She envisions a mix of residential, retail and commercial space and said she would like plans for the properties to incorporate 48 Hudson Ave., the 1728 Van Ostrande-Radliff House, and Liberty Park. The site's proximity to the Times Union Center and the Albany Capital Center add to its appeal.

Sheehan said she has also discussed the possibility of a multi-modal transportation center at the nearby Greyhound bus building with Carm Basile, CEO of the Capital District Transportation Authority. Basile couldn't be reached for comment.

"I would prefer to have a more attractive welcome for people coming into the city and departing," she said.

Capitalize Albany conducted preliminary environmental and engineering assessments during a due diligence period and is now working to get state grants and other financial aid to redevelop the property. The group's sales contract with the convention center authority has a closing date of May 15 but can be extended depending on whether they are able to get financial assistance, Reginelli said. The final deadline is Dec. 31.

The land is "an incredibly challenging site" for several reasons, she said. The convention center authority owns 29 of the 51 parcels and leases another 22, which Capitalize Albany is trying to buy at a reasonable price. The structural state of vacant buildings on the property needs to be assessed, and considering the historical and urban context of the land is a key part of thinking about redevelopment possibilities, she said.

Kim Alvarez, the Historic Albany Foundation's acting board president, said the site has great potential and cited the mix of entertainment and residential uses the ESD study proposed. The buildings on the property would lend themselves well to loft space and housing, "a mix of new and old," she said.

Several former E-comm structures — once envisioned as part of a high-tech interconnected office complex — would be eligible for the historic rehabilitation tax credit. That could help incentivize developers, she added. Redevelopment would also help the foundation's efforts to rehabilitate 48 Hudson Ave., a historic home they are working to stabilize, she said.

"It draws attention to the history of the area," Alvarez said. "We are really hopeful."

miszler@timesunion.com • 518-454-5018 • @madisoniszler

