Developer seeks tax abatements for 55-plus apartment project

Developers of a proposed Henrietta apartment community for active older adults and seniors are seeking just shy of $3.2 million in tax abatements, saying the incentives are necessary to move the project forward and keep rents competitive.

2695 Commercial LLC intends to build a four-story, 106,376-square-foot apartment building with 86 units at 105 Fair Ave., adjacent to another of its development communities (Fairview at Town Center Apartment Homes) and the Dome Arena property.

The $24.5 million Fair Ground Apartment project will include 41 one-bedroom units, 34 two-bedroom apartments and 11 three-bedroom homes.

In an application to the County of Monroe Industrial Development Agency (COMIDA), the developers say rising construction costs make tax incentives necessary to ensure rents are competitive (expected to be between $1,500 and $2,500).

The development group is comprised of Michael Spoleta, David Spoleta, the Lacy Morgan Katz Trust and the Robyn K. Morgan Trust.

“While the demand for quality rental housing in the area remains strong, rental rates must remain competitive and affordable within the local market, limiting the ability to recover escalating development costs through rents alone,” the application says.

The group is asking COMIDA to approve a 13-year PILOT agreement worth $1,970,045, a sales tax exemption of $1,086,720 and a mortgage recording tax exemption of $137,812. An analysis by MRB Group shows a projected benefit-to-cost ratio of 10:1.

A public hearing is scheduled for 11 a.m. on Wednesday at Henrietta Town Hall. The COMIDA board is expected to vote on the application at the July 21 board meeting.

The project will target retirees, empty-nesters and homeowners looking to downsize into a maintenance-free property. The property will accommodate a variety of household sizes and allow residents to host family members and, if necessary, caregivers.

The Spoletas originally proposed a dual-brand hotel for the property before the COVID-19 pandemic but, at the urging of town officials and residents, shifted to the multifamily proposal. The Henrietta Planning Board has already approved plans.

Construction is expected to begin Sept. 1 with project completion around Dec. 31, 2027, according to the application.

Another multifamily housing project — affordable for seniors and families — is in development by Rochester’s Cornerstone Group on the neighboring Dome Arena property. That is contingent upon the town securing financing to buy the 23-acre Dome Arena site.

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