TROY – Public outcry over tax breaks for the $38.74 million apartment-commercial City Station North project failed to stop the Troy Industrial Development Authority from approving the deal Friday

The United Group of Companies will relocate its corporate operations to the 1.65-acre site at 141 Congress St. if it cannot find a tenant for the top-rated 50,000 square feet of Class-A office space it’s planning to build along with 87 market-rate apartments and onsite parking.

“United Group is strongly considering relocating their corporate office from 300 Jordan Road in Troy to City Station North, and occupying 20,000 square feet of office space. If a potential tenant requires more than the remaining 20,000 square feet of Class-A office space, the United Group would (comply) to their request, and remain at their current corporate office at 300 Jordan Road,” said Gregory Eaves, a spokesman for the development company.

City Station North, along Sixth Avenue between Congress and State streets would be the fourth piece of the City Station development. It would join the East, South and West buildings that are located along Sixth Avenue between Congress and Ferry streets. These three properties provide housing for mostly Rensselaer Polytechnic Institute graduate students.

Matthew Sekellick, a downtown resident and member of the Troy Branch of the Democratic Socialists of America, delivered a petition signed by 163 people opposing the tax breaks.

“The city of Troy created a path to redeveloping what had been publicly owned land, and was once public housing, into a vibrant pedestrian thoroughfare when it held a series of public meetings and spent money to commission a master plan for the Ferry and Congress Street Corridor,” Sekellick said to the IDA board.

“Although developers input was also taken into account to create the “Urban Core” zoning, none of United Group’s City Station buildings comply with it, and the city did not require City Station North to seek a variance,” he said.

Sekellick said the tax breaks for housing are contributing to rental costs increases downtown.

The IDA board saw the addition of 100 jobs in the new construction as a positive development.

The tax breaks include $1.5 million in sales tax, $305,100 in mortgage tax and a 20-year payment-in-lieu-of-taxes agreement that will reduce the $19.3 million in estimated tax payments to $8.17 million in property tax and host community payments.

The United Group plans to begin demolition of the 65,000-square foot building that once housed the former Bumstead Chevrolet dealership, later the Capital District Educational Opportunity Center, and the abatement of asbestos in May, Eves said. Construction would begin on the new apartment and commercial buildings once this phase of the project is completed.

Sekellick said his group will become more active in Troy. Addressing the IDA's decision Friday, Sekellick said, "We can't change an economic development model overnight.