The Albany IDA advanced a measure Thursday to end tax breaks for a $35 million apartment and retail space project planned near University at Albany.
The completed complex at the .92-acre plot on Western Avenue is meant to support the city’s need for housing, but the structure remains vacant and unfinished. The owners of 1211 Western Ave Property Associates LLC allegedly failed to comply with terms of its lease agreement with the IDA.
The IDA says it will now reconvey documents such as the termination of the lease, payment in lieu of taxes agreement, license agreement, and bill of sale.
At a meeting Thursday, representative of DMG Investments, the company behind the project, asked the IDA to not terminate its lease or revoke tax abatements.
Cian Hamill, the vice president of acquisitions and development of DMG, says work at the property is ongoing. He says weather has made work tough and they are waiting on materials to be delivered.
“Just want to reassure everyone that this is an active construction project that is progressing per plan. The reality is that, given the weather, there will not be a lot of bodies on site until that weather turns. The first major construction item that you will see is the removal of various facade components, as we've discussed in previous meetings, that activity cannot happen in the freezing weather, so that is projected to occur in April,” Hamill said.
The IDA says it sent a written notice to the company on May 29, 2025 about its failure to comply, in which the company did not remedy its non-compliance.
In August, a memorandum of understanding was signed between the IDA and the company, allowing extra time to resume work on the structure within 60 days after a building permit was issued.
IDA CEO Ashley Mohl says work on the property didn't meet expectations outlined in the memorandum of understanding signed by both parties last summer.
"To date, the construction monitor, the board and staff have not observed satisfactory construction activity at the state at the site based on the status of the overall state project, with no meaningful progress, the board does not have confidence that the project can be completed in the manner and the scope represented in the original application, since the agreed Upon conditions were not met in the event of a default has persisted, the board is advancing a resolution today authorizing the termination of the project's pilot agreement,” Mohl said. “With that action, the property will be returned to the tax laws. Additionally, the Board may also pursue recapture of previously authorized tax exemptions associated with the project, including over 600,000 in New York state sales tax exemptions and 320,000 in mortgage reporting tax exemptions. Last week, the agency delivered a default notice, which is essentially the last step before legal action is taken.”
DMG officials say work has been ongoing and visible construction will take place next month.
A website for the complex and DMG Investments has been suspended.
