More About Galloway's Offer to the Library

Since Thursday morning, Gossips has learned more about the deal that Eric Galloway and Galvan Partners/Foundation are offering the Hudson Area Library. It seems the part of the Armory that Galloway/Galvan intends to lease to the library is the first floor rear section, which apparently is 10,000 square feet of self-contained space. We're not exactly sure what part of the building this is, but "rear section" doesn't sound like the magnificent soaring main area of the building previously used as the Armory Art & Antique Gallery. 

Before getting into the details of the Galloway/Galvan offer, let's review the "broad strokes" of the agreement Theresa Parsons and Mark Orton thought they had discussed with Eric Galloway and Henry van Ameringen, as reported by Gossips on September 15:  

• The library will determine its functional and operational requirements, which Parsons referred to as a "wish list," to determine the scope of what needs to be designed.
• Galvan Partners will carry out the "technical implementation," which presumably involves both the design and construction, at its own expense.
• The library will then occupy the space created for it as a tenant with a thirty-year lease, paying the utilities for its portion of the building and a dollar a month in rent.

A huge consideration for the library board in moving from 400 State Street is creating a suitable alternative space for a "21st-century library." It seemed at first blush that Galloway was offering to do that for them, but it turns out not to be the case. According to the terms being offered by Galvan, it's up to the library to hire the architects, the consultants, and other professionals needed to design a suitable space within the Armory for a 21st-century library and to pay all the costs associated with designing and constructing the space and equipping and furnishing it.  

Then there's the lease. A lease for a dollar a month for thirty years seems too good to be true, and it turns out it is. Although the amount is only $12 annually, the lease being offered is a triple net lease. Wikipedia defines a triple net lease as "a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance on the property. In such a lease, the tenant or lessee is responsible for all costs associated with the repair and maintenance of any common area." This sounds like all the financial burden for the library of owning 400 State Street with none of the benefits--chief among them being exemption from property taxes.

And there's one more thing. The library is expected to pay the costs associated with ensuring that the space meets all the code requirements for use as a public library, which could include lead and asbestos abatement and installing a sprinkler system.

One library board member is reported to have said that the terms of the final agreement are still to be negotiated, but what's been outlined here seems to be what Galloway is offering, and the library board, having sold the library's building to him, is hardly negotiating from a position of strength.