ITHACA, N.Y. — As the saying goes, the third time is the charm. City of Ithaca officials are hoping that’s true, as the No.2 Fire Station at 309 College Avenue in Collegetown is once again being placed up for sale.
The 57-year-old station was placed up for sale in 2018 and 2021, at which times the Request for Expressions of Interest published by the City of Ithaca involved consideration of a new fire station, either on-site or relocated to an appropriate location nearby.
The 2018 sale never proceeded, and the 2021 offering eventually yielded a proposal from local developers John Novarr and Phil Proujansky, where a pair of apartment houses at 403 Elmwood Avenue and 408 Dryden Road would be redeveloped for a new fire station. The old fire station site at 309 College Avenue would have been incorporated into the duo’s plans for a “Collegetown Innovation District.”
That 2021 proposal resulted in a $5.1 million deal for 309 College Avenue, as well as the acquisition of the land where the new No.2 Fire Station is being built. But the plans didn’t come to fruition.
“311 CA Associates, LLC [Novarr and Proujansky’s limited-liability company] was unable to perform its obligations under the agreement reached between it, the city, and the [Ithaca Urban Renewal Agency],” said Ithaca Urban Renewal Agency (IURA) Executive Director Nels Bohn.
“Under the terms of the contract, the city received the parcels at 403 Elmwood and 408 Dryden in build-ready condition as compensation for the default. The City paid approximately $895,000 to a mortgage-holder in order to clear title to the property in connection with that acquisition. The city retained the right to sell the existing fire station at 309 College Avenue, which has led to offering the property via the current sealed bid process. The funds from that sale will cover, among other things, the entire cost of paying off that mortgage,” added Bohn.
The minimum bid to be considered by the City of Ithaca is $4.75 million. As described by Bohn, the highest qualified bidder will be able to buy the property. Value comparisons to nearby property sales for re-development suggest something in the $6 million range is plausible.
Bids submitted for consideration will be sealed until the closing date of Dec. 19 at 2 p.m., and after that time they will be opened by staff from the City Controller’s Office. The bids will also be reviewed by the City Attorney’s Office to ensure bid procedures were followed and the winner meets all qualifications.
As a show of intent, the bidder needs to include a certified or cashier’s check for 10% of their bid offer, which if accepted by the city, can then be cashed as a down-payment of sorts. That means the city will receive a $475,000 deposit as the sales contract in the selected bid package is executed.
From there, the sale of the property is legally required to close within 60 days. The terms of the agreement will allow the Ithaca Fire Department to stay at the old fire station until June 30, 2025. The station will be officially decommissioned on July 1 and the new Ithaca Fire Station No. 2, which is expected to be completed and equipped by June, will be on-duty from that point forward.
Not everyone is thrilled with the city selling off property. The sentiment to turn a lagging development site into a public park or community space is frequently voiced in public meetings, especially so for discussions about city-owned property.
Nevertheless, Bohn affirmed the city’s belief that this property would be better back on the tax rolls. A 2022 estimate suggested that redevelopment of the site would generate combined city/county/school property taxes of over $300,000 per year, and the property isn’t eligible for the city’s density tax abatements.
“Sale of the parcel at 309 College was always intended to cover the costs of site acquisition and part of construction for the new East Hill Fire Station,” Bohn said. “Now that a site has been acquired, a competitive bidding process will ensure that the City receives as much money as it can for its surplus property, [and] thereby minimize borrowing costs for the construction of the new station.”
In terms of development potential, it’s about as good as a deep-pocketed developer could hope for in Ithaca. The site is a short jaunt from the Cornell University campus, and zoning on the property is MU-2, allowing for 100% lot coverage minus mandatory setbacks, six floors or 80 feet in height, and without a parking requirement.
In sum, the developable square footage of the site is about 47,000 square feet, a substantial amount of space. To put it in perspective, the new apartment building recently proposed at 325 College Avenue, which will have ground-level retail and about 53 units and 98 bedrooms, clocks in at 37,551 square feet.
This time around, prospective bidders don’t have to worry about relocating the city fire station, as that’s already been squared away with the new build underway on Elmwood Avenue. City officials selected local realtor Kyle Steele to represent them as the seller’s broker.
“With its unmatched potential, the City has entrusted me with the responsibility of marketing and facilitating the sale of this remarkable property,” Steele said. “As a broker with 17 years of experience, I am proud to collaborate with the City on this exciting endeavor.”
“The site benefits from versatile zoning, presenting a wealth of opportunities for a variety of visionary projects. From upscale apartment complexes and condominium developments to premium hospitality ventures, the possibilities are vast, making this a highly attractive investment for a diverse range of buyers. I am thrilled to be at the forefront of this opportunity, guiding interested parties toward realizing the site’s extraordinary promise,” Steele added.
For those big spenders out there with big dreams, the official Request for Bids can be found here. Per the official announcement, questions about the property can be addressed to Steele and City Attorney Victor Kessler. We’ll see as soon as December 19th who’s getting a choice re-development site in Collegetown for Christmas.