The City of Batavia is set to transform a piece of its industrial history into a hub for modern innovation. The City Council has authorized a Redevelopment Agreement with Manhattan Real Estate Ventures, LLC, to convert the historic, 100-year-old factory at 190 S. Water Street into the new global headquarters for QT9, a successful software company currently based in Aurora.
This $12 million adaptive reuse project represents a significant victory for downtown revitalization, promising to bring high-paying jobs, increased tax revenue, and renewed vibrancy to the riverfront.
Breathing New Life into History
The project site, formerly home to the Pamarco Company, has sat as a “long-neglected” property in the downtown area. The redevelopment plan involves a substantial rehabilitation of the 40,000-square-foot structure, turning a dilapidated industrial building into a modern office space that complements the adjacent historic limestone architecture.
This transformation aligns with the city’s Downtown Plan, serving as a visual and economic catalyst for the area. By preserving the structure through adaptive reuse, the project maintains Batavia’s character while modernizing its utility.
Economic Impact and Financial Strategy
To make this ambitious $12 million renovation financially feasible, the City approved a Tax Increment Financing (TIF) incentive of approximately $1.87 million. Financial consultants determined that without this partnership, the project would not be viable due to the high costs associated with renovating an aged structure.
However, the return on investment for Batavia is projected to be substantial:
- Property Value Increase: The project is projected to add $7 million in Equalized Assessed Value (EAV) to the property.
- Tax Revenue: Over the life of the new TIF district (TIF 7), the project is expected to generate over $5 million in incremental tax revenue for the city and other taxing bodies.
- Protective Measures: The agreement includes “clawback” provisions, requiring the developer to repay the incentive if QT9 ceases operations at the site within six years of occupancy.
A Boost for Downtown Vitality
Beyond the bricks and mortar, the relocation of QT9 serves as a major economic driver for the local business community. The benefits extend well beyond the property lines:
- Job Creation: The project secures QT9’s current workforce of 65 employees and is projected to grow to 100 staff members, bringing high-paying technology jobs to Batavia.
- Local Business Support: The influx of employees will drive daily foot traffic to downtown restaurants, shops, and service businesses, creating a consistent customer base.
- Catalyst for Growth: City staff noted that this level of investment—unseen in this specific area for decades—signals confidence in the downtown market and may trigger future large-scale projects.
- Leveraging Batavia‘s Recent Emphasis on Renewal: With the recent proven commitment to new development and historical property renewal it’s hoped this project builds on that momentum and drives more investment in the community.
- Local Footprint: Several employees and management are based in Batavia and currently visit local businesses, this will help capture jobs for local residents.
- No Impact to Nearby Properties: Will not impact nearby buildings, but will increase local pedestrian traffic.
Looking Ahead
Construction is required to commence within six months of the agreement’s execution, with a completion deadline set for December 31, 2028. By anchoring a global software company in the heart of the city, Batavia positions itself as a competitive location for technology and innovation, enhancing its economic resilience for decades to come.
Local elections matter!
QT9 Software: https://qt9software.com/
Author: Jim Fahrenbach
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