BY JIMMY LAWTONNorth Country This Week

OGDENSBURG — The City of Ogdensburg is moving ahead with a plan to sell part of the former Diamond National property to a Potsdam contractor that wants to build a boat repair and storage facility along the waterfront.

The city is set to  sell 1 Madison Ave. to J.E. Sheehan Contracting Corp. for $175,000 which was named the preferred project from the city’s request for proposal process.

The city received five proposals for the property. These proposals have not been made public.

To finalize the sale the  council is scheduled to hold a public hearing at 6 p.m. Oct. 13. 

The property is part of the roughly 15.4-acre Diamond Site. Under the proposed agreement, the city would sell the 1 Madison Avenue parcel and keep the 2 Madison Avenue parcel for possible future use or sale.

The benefit

According to city officials the sale will generate $175,000 up front and $64,800 per year in taxes. The city itself will receive about $25,000 of that with the remainder going to the school and county. 

Finally the city estimates the project to generate $118,000 in sales tax per year with $59,000 benefitting the city directly. Some members of the public expressed concerns about the project and questioned if the city should consider reissuing the RFP project as interest had been expressed by parties that failed to submit a plan during the timeframe available.

City officials pointed out that this project leaves some of the Diamond Site available for future use and is adjacent to the Shade Roller site. They expected RFP’s will be issued for those sites at a later date. They also pointed out the Sheenhan would be self-funding the project, allowing the city to gain an investment without risk and allowing the project to proceed on a much faster timeline.

Sheenhan has a proven track record in the county employing more than 50 people and will be able to build the project using its own staff.

The project

Sheehan is proposing to develop the site as 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, sewer, stormwater and access improvements. The developer would pay for those improvements.

The agreement calls for at least $3 million in development costs.

City officials say the project would return the property to the tax roll while supporting the city’s waterfront plans. 

Jim Sheehan, who spoke at the meeting Monday,  estimates the completed project would have an assessed value of about $1.5 million. The proposed agreement would prevent the developer from seeking to lower the assessment below $1.2 million for five years after the project is completed without the city’s approval, subject to the terms of the agreement.

Public access to the waterfront also is included. The developer would grant the city a pedestrian easement along an agreed portion of the riverfront. The agreement allows for temporary closures when needed for safety during marine operations.

City protections

The city also would have protections if the proposed development is not completed. 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 terms of the agreement.

The project also includes a job requirement. Sheehan would have to create and maintain at least 10 full-time-equivalent jobs within 12 months of completing the project and report annually to the city.

The company also would provide information allowing the city to track sales and use tax revenue generated by the project.

The agreement would require the property to remain in water-dependent use for at least 10 years after completion. That could include boat repair, storage or marina operations.

The proposed sale remains subject to several conditions, including proof that the developer has financing for the project, required insurance, environmental and other government approvals, and final City Council approval.

The council’s Oct. 13 public hearing will be the next step in the proposed sale.