Capital District: A.G. Spanos Corp.

#1PercentProblems
Claim to Shame
A top developer from out-of-state took advantage of tax breaks to build some luxury apartments, but then realized it should have asked taxpayers for even more.
Loot
Empire Zone tax credits
Length
2010-2020
Jobs
N/A
Total Tax Break$11,237,700+

Living It Up. . .on our dime

A.G. Spanos completed the Alexander at Patroon Creek, a luxury housing complex in the city of Albany with the help of a 10-year Empire Zone tax break granted in 2010. Apartments at the complex rent for $2,300 a month rent, have amenities like a clubhouse, indoor and outdoor pools and a fitness center, and boast tenants like Lt. Gov. Robert Duffy. The California developer inaugurated its first project in the Northeast by building with non-union, out-of-state workers.

With the apartments mostly rented and the developer looking to sell, the developer recently challenged its property tax assessment to get an even bigger property tax break. When that failed, A.G. Spanos attempted to get IDA tax breaks likely worth over $9 million to reduce its tax levy, even though the project was complete and the corporation didn’t offer to create any new jobs in return.

A.G. Spanos will already see at least $11 million in tax savings through the Empire Zone program. One Albany Common Council Member estimated that granting A.G. Spanos a larger IDA subsidy would mean a 15% tax increase on city property owners, just to offset luxury housing tax break. The corporation pitched this deal as a short-term cash influx for the struggling city, but fortunately, the IDA board saw this as the subsidy swindle it was and took a walk on the deal.

Bio

Based in Stockton, California, A.G. Spanos Corp. is one of the nation’s largest apartment builders. It’s known as a merchant builder: It takes on the cost and risk of developing properties, and sells them after they are leased. The company was founded by Alex Spanos, owner of the NFL’s San Diego Chargers. The Spanos family was ranked among the 400 wealthiest by Forbes, with an estimated net worth of $1.1 billion in 2010. Even so, Spanos sought hefty public subsidies for a new sports stadium for the Chargers just last year.

Induction Ceremony Photos



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