Troy’s relocation of city hall grows more controversial as costs potentially climb.
While Troy city leaders have proposed a $10.5 million project to relocate city hall to the former Proctor's Theater, a move made this week could signal the relocation costing an additional $2 million.
Troy’s Local Development Corporation, which will be purchasing the former Proctor’s Theater, approved a resolution allowing the issuance of tax-exempt revenue bonds for up to $12.5 million. The bonds are to finance the acquisition and redevelopment of the Fourth Street building, which includes pre-existing multi-story commercial space.
First-term Mayor Carmella Mantello says the extra $2 million serves a buffer for unexpected costs.
“Just like you know, any construction project, even the next poll, you know, we estimate to be like $6.5 million. Well, you have to budget for seven,” Mantello said. “And in case you know something goes awry, the drainage, whatever. So, it's up to $12.5 million.
Mantello, a Republican, announced the relocation in June. City hall is currently housed in rental space in the Hedley Park Place building on River Street, about half a mile north of the proposed location.
Mantello contends that costs will skyrocket at the Hedley Park site and argues that the city acquiring the former theater through the LDC will save taxpayers roughly $100,000 a month in the long run.
Mantello says the city currently pays roughly $761,000 in monthly rent, fees, and utilities, with a 3 percent annual increase. She says proposed costs at the Proctor's site are estimated to be $650,000, including maintenance. The lease with the city’s Local Development Corporation, would extend 20 years. Deputy Mayor Seamus Donnelly is executive director of the corporation. Donnelly says he sees no conflict of interest as he is an appointed official and not an elected one.
But the city's Democratic leaders, including City Council President Sue Steele, have long been concerned about the city’s finances. Since Mantello took office, only one quarterly financial report has been delivered outside of budget documentation. The latest quarterly report was due this week.
Steele says Republicans are rushing through the city hall proposal while they have a 4-3 majority on the council.
“It’s another example of how they are rushing this proposal through without even any interest in providing the public with enough notice so that they can comment on it,” Steele said. “I don't understand the need to ram this through. The numbers are not transparent. We don't know at this point what this project is going to cost. It looks to us like we're getting less office space for more money on the long term, and we're really just trading one lease for another.”
The city’s current city hall agreement with landlord First Columbia, which expires in 2029, states that if the city wanted to terminate its lease, the administration needed to decide before June 1, 2025, with a new home approved by the city council. The administration announced a termination of its lease in May before the council received any legislation. According to First Columbia LLC, the city is violating its lease by terminating it without the council having voted on a new home for city hall. The city's Republican leaders dispute this and say they will “allow the legal process to play out." The city has also not paid more than $1.6 million in Common Area Maintenance fees, with leaders maintaining the city pays for its own maintenance.
