Redevelopment of former St. Clare's Hospital gets $1.5 million state grant

A $1.5 million state grant will go toward converting the former St. Clare's Hospital in Schenectady into an apartment complex with about 236 units and a day care.

The office of Gov. Kathy Hochul announced the funding Thursday through the Restore NY program, which helps municipalities deal with blighted properties by offsetting redevelopment costs.

The former hospital, a four-story building at 600 McClellan St., will be converted into housing and a day care by real estate developer Jeff Buell, Chris Spraragen of Schenectady Hardware & Electric and Brooke Spraragen of Spraragen Partners.

The roughly $45 million project also received financial assistance last fall from the Schenectady Metroplex Development Authority in the form of a 14-year payment-in-lieu-of-taxes arrangement (PILOT) and sales tax exemptions on construction materials.

Last month, the Schenectady City Council approved zoning changes for the property, according to The Daily Gazette.

The next steps include seeking site plan approval from the city planning commission and buying the property from Ellis Medicine.

"This is an incredibly complicated building, sitting in the middle of the city," Buell wrote in a text message. "We are grateful that New York State and Governor Hochul recognize the importance of not letting it decay and moving quickly to invest in its potential."

Opened in 1949, the former hospital at the corner of McClellan and Bradley streets is in a residential neighborhood near Central Park and a Market 32 grocery store.

The building had most recently served as a nursing home. Ellis Medicine announced nearly a year ago it would close the nursing home due to continued financial losses at the facility.

Last August, Ellis Medicine's board of directors approved the sale of the 17-acre property to the development team. The price hasn't been disclosed.

The purchase doesn't include the Belanger School of Nursing, which Ellis Medicine will continue to operate, or two medical office buildings.

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