BY JIMMY LAWTONNorth Country This Week

OGDENSBURG — After decades of work, the city has officially approved the sale of a portion of the former Diamond National site as part of a plan to build a shipyard on the property.

The Ogdensburg City Council unanimously approved the sale of a parcel at the former Diamond National property Tuesday, Oct. 13, to J.E. Sheehan Contracting Corp. for $175,000. The Potsdam company plans to build a boat repair and storage facility on the waterfront.

Council offered appreciation to the developer for investing in the city and remained hopeful that the investment would help attract other interested parties to take a chance on the city which has struggled to find growth in recent years.

The company plans to develop the property as the Ogdensburg Shipyard. The project would include a boat repair and storage building, a mobile boat lift and boat fuel sales. The agreement requires at least $3 million in development costs, which the company would fund.

The city received five proposals for the property through its request for proposals process. The proposals have not been made public. J.E. Sheehan Contracting Corp. was selected as the preferred developer.

The property at 1 Madison Ave. is part of the roughly 15.4-acre Diamond Site. The city will retain the adjacent parcel at 2 Madison Ave. for possible future use or sale.

Tax revenue and investment

City officials estimate the sale will bring in $175,000. They also project the completed project will generate about $64,800 in property taxes each year. The city would receive about $25,000, with the rest going to the school district and county.

Officials estimate the project could generate $118,000 in sales tax revenue each year, including about $59,000 for the city.

Some members of the public questioned whether the city should issue a new request for proposals. They said other parties had expressed interest in the property but did not submit proposals within the original deadline.

City officials said the project would leave other parts of the Diamond Site available for future development. The property is next to the Shade Roller site, where the city expects to seek proposals at a later date.

J.E. Sheehan Contracting Corp. would pay for the project and required infrastructure work. City officials said this would allow the development to move forward without the city paying its construction costs.

The company employs more than 50 people in St. Lawrence County and plans to use its own staff to build the facility.

Plans for the Ogdensburg Shipyard

The first phase would include a roughly 10,000-square-foot building for boat repair and storage, reconstruction of the existing pier, a 150-ton mobile boat lift and facilities for boat fuel sales.

The project also would require new water and sewer connections, stormwater work and access improvements. The company would pay for that work.

Jim Sheehan estimated the completed project would have an assessed value of about $1.5 million. Under the agreement, the company could not seek to lower the assessment below $1.2 million for five years after completion without city approval, subject to the agreement's terms.

The agreement also provides for public access along part of the riverfront through a pedestrian easement. The city and developer would agree on the location. The path could close temporarily when needed for safety during marine operations.

Requirements for the developer

The agreement sets a deadline for construction. If substantial completion does not occur within 24 months after closing, subject to certain extensions, the city could seek to take the property back under the agreement's terms.

J.E. Sheehan Contracting Corp. also would have to create and maintain at least 10 full-time-equivalent jobs within 12 months of completing the project. The company would report to the city each year and provide information to help officials track sales and use tax revenue from the facility.

The property would have to remain in water-dependent use for at least 10 years after completion. Permitted uses could include boat repair, storage and marina operations.

The agreement also requires proof of financing, insurance and environmental and other government approvals, as applicable.