Study urges Center for Business, Industry to seek roof grant

The Watertown Center for Business and Industry will need financial help to install a new roof.

A study completed by the Council for International Trade, Technology Education and Communication, Potsdam, showed that the center could do better than break even but will need a grant of $500,000 to $600,000 toward the roof to remain economically viable.

Thomas A. Plastino, chief executive officer of the council, talked to the board of the Watertown Industrial Center Local Development Corp. about the study at the board's meeting Tuesday morning.

"This place conclusively can be self-sustaining on the long haul, once the roofs are taken care of," he said.

The roof on Building A is an immediate need — it is failing and springing new leaks. Replacement of the 1997 roof that covers 82,000 square feet would cost about $1.1 million.

If the center had a $500,000 to $600,000 grant for Building A's roof, it might be able to cover the cost of roofs for Buildings B, C and D from rental fees and reserves in 2015-16.

But without grants contributing to the Building A cost, that building would not be sound enough to be rented.

"You could demolish the whole facility and probably have enough money to do the demolition," Mr. Plastino said. "But you don't have the money to build another building if you demolish the facility."

That would end the mission of a business incubator in Jefferson County. Or the board could demolish Building A, Mr. Plastino said, which would require a substantial amount from reserves.

"You could limp along with B, C and D and eventually fix the roofs on B, C and D, but that would be a fallback position," he said.

He advised the board to raise rents as possible based on lease terms. Non-office rental space averages a base rent cost of $2.79 per square foot, which in the market easily could be raised to $4.50 and still be on the low end, the report said.

Office space averages $5.74 per square foot at the center, compared to local low-end commercial space rentals of at least $8 per square foot. The report suggested raising office space rent to $8 per square foot. The two increases would raise about $200,000 per year in additional revenue.

The center should be marketed more specifically to Fort Drum-related businesses, Mr. Plastino said, both in the region and in any grant applications, especially to the federal government.

"The key is having a serious, targeted marketing effort to helping businesses in the defense and homeland security industry," he said.

Site manager William J. Soluri said the center has six businesses that work directly with Fort Drum.

He encouraged the board to seek grant money, possibly in earmarks.

"I think things are pretty optimistic," Mr. Plastino said. "You have a real asset here."

Board members spoke positively about the center's position and future.

"We're still here and that's great, because this facility has afforded hundreds of people jobs here," said Carolyn D. Fitzpatrick, who also is a Jefferson County legislator.

J. Paul Morgan, who also is president of New York Air Brake Co., agreed.

"We started with nothing and built it more or less into something that is self-sustaining," he said. "If you stay looking at it today compared to 1996, there is a lot more hope and promise."

The board approved a rent moratorium for two months for Pine Camp Contracting while the construction company waits for payment on a new contract on Fort Drum. The contractor increased its number of employees to 29, causing a cash pinch. The board agreed to the moratorium as long as the contractor exercises its option to remain there through 2010.

"I don't have a problem with it, because they've been proactive with this instead of waiting until they're 30 to 60 days behind," said Donald W. Rutherford, president of the board.

New tenants at the center include Escovee, a group of entrepreneurs using 240 square feet, and Upstate Construction Inc., which is using 1,980 square feet in warehouse space.

In other business, the board approved a $3,171 replacement of an awning by Northern Awning & Sign Co. Inc., 345 Engine St., and a snow removal contract with SWBG Wholesale Inc. for $12,000 annually for the next seven years.