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Paetec, state and city to spend millions on move

Paetec Holding Corp. plans to spend $100 million to $150 million to build its new headquarters at the Midtown Plaza site, officials said Thursday. The demolition of Midtown and city support for business relocation will cost an additional $68.5 million.
Meanwhile, Paetec chairman and CEO Arunas Chesonis said Providence, R.I.-based Gilbane Inc. has been selected as project developer. Founded in 1873, Gilbane is among the nation’s oldest builders.
Fourth-generation members of the Gilbane family today lead the company, which has annual revenues topping $2.5 billion and more than 25 offices nationwide.
Most of the funding for the demolition will come from the Empire State Development Corp., which is contributing $55 million for asbestos abatement and demolition.
The city of Rochester will invest $12.67 million, including $5.9 million to purchase the property, $5.5 million to help Midtown businesses relocate, $900,000 to manage, operate and maintain Midtown properties, and $300,000 for professional services and consulting, officials said.
The city closed on the purchase of the Midtown site May 28.
Midtown businesses are scheduled to leave the complex by July 31, when the plaza will close to the public. The underground parking garage will close Sept. 30.
The demolition is scheduled to begin in June 2009 and be completed by October 2009. Construction of Paetec headquarters is slated to begin in September 2010.
Paetec, a Perinton-based telecommunications firm, plans to build a 50,000-square-foot structure on the property and move some 600 employees downtown. The company expects to add 400 workers.
In addition to housing Paetec, the Midtown property will also include “mixed use urban space,” officials said.
Information on the development will be available online at www.MidtownRochesterRising.com.

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Paetec, state and city to spend millions on move

Paetec Holding Corp. plans to spend $100 million to $150 million to build its new headquarters at the Midtown Plaza site, officials said Thursday. The demolition of Midtown and city support for business relocation will cost an additional $68.5 million.

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