Former IBM site could be out of play for proposed Rochester sports complex
ROCHESTER — One of three sites being considered for Rochester's planned regional sports and recreation complex appears to be pushing budget limits.
"The negotiations have proven to be cost prohibitive at this point," Assistant City Administrator Ryan Yetzer told the Rochester City Council on Tuesday.
He said potential costs related to acquiring 107 acres on the former IBM campus, now known as the Rochester Technology Campus, in northwest Rochester have risen beyond the nearly $5.4 million approved as part of a purchase agreement in August.
The agreement with Los Angeles-based Industrial Realty Group, which bought the former IBM site for $33.9 million in 2018 , was one of three purchase agreements approved by the City Council, and it calls for negotiating added expenses in connection with the city purchase.
"They have been asking the city to contribute upwards of three times what we understood the asking price to be," Yetzer said of the property owners. "The added costs seem to be focused on the development of the property at large, rather than the area that the city would need to have a sports complex."
Industrial Realty Group is proposing developing up to 200 undeveloped acres on the 490-acre property , with plans for housing and commercial space, as well as the potential for including the sports and recreation complex.
The developer submitted potential site plans for environmental review that included options with and without the planned city facility.
Yetzer said the city's $65 million budget for the sports and recreation complex, which is being provided through a voter-approved sales tax extension, creates a cap for what can be spent on acquiring land for the complex.
Council members cited disappointment in the potential for losing an option, but voiced a desire to move forward.
"It's good that we went with three options," council member Patrick Keane said. "We still have two other viable options, and I think it's important that we not overspend on the space and have a less valuable offering with what we have to spend."
Yetzer said the other potential purchase agreements – nearly $2.7 million for 116 acres near the intersection of Valleyhigh Road and 60th Avenue Northwest and nearly $6.4 million for 150 acres east of the Shoppes on Main commercial development – remain in place and both sites offer nearby potential for added development.
An October closed council session is planned to discuss potential purchases, with the expectation that a final decision will be made at the council's Dec. 9 meeting.
Keane questioned whether a decision must be made by the end of the year, but Yetzer said land and construction costs are likely to increase if a purchase is delayed, since the existing purchase agreements expire in December.
"I feel like every year you wait, the costs will go up," he said, adding that staff continue to study the full costs of each option.
Deputy City Administrator Aaron Parrish said projections point toward a potential 10% increase in construction costs on an annual basis.
"Every year, the potential for your program goes down $6.5 million," he said.
