GLOVERSVILLE - After a lengthy renegotiation process, the Gloversville Economic Development Corp. closed on its purchase of Memorial Hall, also known as the Schine building.
The GEDC initially won the 29,000- square-foot structure, which spans from 26 to 40 N. Main St., with a high bid of $48,000 at auction in November. The closing was stuck in the negotiation process for months after heat was shut off to a portion of the building and the pipes froze and burst, causing extensive water damage, including to the former Open Window business space.
After renegotiating the price, the final cost was $26,983.
The Gloversville Economic Development Corp. has purchased the Schine building in Gloversville, shown above.
The Leader-Herald/Bill Trojan
According to a news release issued today by the GEDC, $21,950 of that covers back taxes and recording fees.
Assessed at $212,700, the taxes were about $10,600 per year.
City Assessor Joni Dennie said on March 1 she agreed to lower the assessed value of the building considerably after the water damage.
The taxes starting in September 2011 will be $1,500 per year, she said.
She said the assessed value of the building will go back up once it's repaired.
"We never anticipated that it would take this long or the setbacks would occur," GEDC board President Patricia Beck said in the news release. "From the beginning of this process, it has been the board's goal to protect its investment in the building and to secure a significantly prominent building in downtown Gloversville, and now we can start moving forward."
Beck, also The Leader-Herald's publisher, said the GEDC will bring in several contractors to review the damage and offer estimates to repair it.
"One of the first things we're going to make sure we take care of is the [three] tenants," Beck said. "They've been extremely patient and they'll be our number one concern."
The three tenants are Double Eagle Coins, D'Errico & Farhart Insurance and Daniel Storto Gloves.
Beck said the GEDC will continue to market the space to prospective tenants as it repairs damage.
"This is going to be a slow but steady process," she said, adding that as repairs are made, renovations to the seven storefronts can be made to suit tenants' needs.
Erected by glove manufacturer and Broadalbin native A. J. Kasson at a cost of $70,000, the structure was first opened to the public on Feb. 1, 1881, as the Kasson Opera House and Memorial Hall.
The Kasson Opera House was constructed to provide commercial space on the first floor and have an opera house on the second floor that could seat 1,200.
The building was willed to the Gloversville Free Library upon the death of Kasson's wife in 1902.
The Schine brothers purchased the block in the 1920s, and in the 1930s, they converted the theater into two floors and remodeled the space to include offices where they set up Schine Enterprises and ran their 150-theater chain.
Amanda Whistle can be reached at email@example.com