The Hudson Development Corporation just issued the following press release. Unfortunately, for those of us eager to know the identity of the buyer, that information is not contained herein.
The Hudson Development Corporation (HDC) called a special meeting at noon today to review offers to purchase its 4.5 acre parcel on Montgomery Street, often referred to as the Kaz Warehouse. It was announced that the board voted unanimously to accept a letter of intent to sell the property.
“A portfolio of real estate holdings doesn’t fit with our mission,” said Robert Rasner, President of the HDC. “Our mission is to grow business and support the economic growth of the city of Hudson. Real estate sitting idle just doesn’t do that.”
The HDC began divesting itself of real estate assets last year with the sale of a building lot on Mill Street and the pending sale of 3.3 acres on Mt. Merino. An immediate benefit to the city, even before construction begins, is the property will go back on the tax rolls. It has been off the tax rolls since 1985. “This will contribute significantly to the city fund balance and to the school budget,” said HDC Executive Director Branda Maholtz. “The site’s tax contribution as it develops will only provide increasing revenues to the city for the years to come.”
The Montgomery Street property was recently assessed at $2.3 million and listed for sale at $2 million. Numerous parties expressed interest, and of that, two parties submitted offers. The two prospective buyers were very similar in the monies offered, their conceptual use for the site, and each was committed to using DRI monies. On Monday, May 31st, for unexplained reasons, one of the parties withdrew their letter of intent taking them out of consideration.
The special meeting went on as planned with Rasner explaining the situation asking the board if they were prepared to consider only the one offer, the board went into executive session to review and discuss the financial merits and terms of the remaining offer. After less than an hour in executive session, the board returned to a public session and took a vote. The vote was unanimous to accept the offer.
Those members of the public present when the votes were taken were not privy to the amount of the offer or the name of the buyer. “The specifics of the agreement can’t be made public until the sale is completed and the deed is filed with the County Clerk,” said Rasner. “However, the sale price has far exceeded our expectations and the buyer’s mixed-use plans for the site are in sync with the HDC mission. What we can share,” said Rasner, “is that this will go down as one of the largest real estate transfers in recent years in City of Hudson.” The actual sale is expected to occur within 90-days.
Once the sale occurs, the HDC will pay off a $200,000 loan to the Columbia Economic Development Corporation (CEDC) that was used to purchase an adjoining CSX parcel. The HDC board is preparing for the management of the remaining proceeds from the sale.
“With these substantial funds, the HDC is fully back on track with its mission and the HDC board is stronger than ever,” says Rasner. “The collective makeup of the board includes talent and experiences in the fields of Law, Real Estate, Hospitality, Manufacturing, Public Relations & Marketing, Business Management, Transportation Planner and Not-for-Profit Administration. With inclusion of the Mayor and Common Council President, they are all personally invested in the City of Hudson and only have the best interest of the city at heart.
“Business is the life-line of the City and if business and economic development is strong, the entire City of Hudson benefits,” said Rasner. “The HDC is poised and capable, now more than ever, to help make it happen."