TROY - Former city engineer Andrew J. Donovan pleaded not guilty Wednesday to felony corruption charges in connection with the purchase of a property from the city at a cut-rate price that he later tried to sell for a large profit.

An indictment unsealed in Rensselaer County Court charged Donovan, 55, with second-degree grand larceny as a public corruption crime; corrupting the government in the second-degree; defrauding the government; falsifying business records; offering a false instrument for filing and official misconduct. The counts are all felonies with the exception of the official misconduct charge.

The top charge carries up to 25 years upon conviction.

The indictment against Donovan, who now lives in Hawaii, was handed up last week but remained under seal until he could get to Rensselaer County Court. Judge Jennifer Sober released him on his own recognizance.

Donovan is the second person to face charges in connection with the state Attorney General's investigation. Code enforcement officer James E. Lance III was indicted last week on five counts.

Lance, who worked in Donovan's office at the time the crimes allegedly occurred, pleaded not guilty on Tuesday to charges of first-degree tampering with public records; offering a false instrument for filing; falsifying business records, fourth-degree criminal facilitation and official misconduct.

The case arose out of documents filed with the city of Troy on Sept. 28, 2015, which led to the release of Troy's hold on the title – known as a reverter clause — of 226 Cemetery Road in Lansingburgh.

Donovan had bought the property for $3,500 while Mayor Lou Rosamilia was in office, then put it up for sale for $65,000 after obtaining the clear title to the lot.

The official misconduct allegation indicates Lance and Donovan used their city positions to "obtain clear title" to the property.

Documents filed in City Court allege Lance was asked by his direct supervisor — who was not named in the court documents — to write a letter for Donovan that would put the property in compliance with the reverter clause. Lance wrote it on Sept. 28, 2015.

Lance faces up to seven years in prison if convicted on the top count.

Two years ago, current Mayor Patrick Madden signed off on the cancellation of the reverter clause that required Donovan to improve the property in return for the city agreeing to sell the land to him for $3,500. After the reverter clause was canceled, Donovan listed the land for sale.