Oswego village officials to break ground for second building at Hudson Crossing apartment complex

Oswego village officials at 5 p.m. Monday will help break ground for the second building at Shodeen Group’s Reserve of Hudson Crossing luxury apartment building in downtown Oswego.

“We want to thank the village of Oswego for partnering with Shodeen to make the completion of Hudson Crossing a reality,“ Shodeen Group President Dave Patzelt said in a news release. ”They have been great to work with. The first building of 176 apartments is leased at 93%, making this a perfect time to start the Reserve at Hudson Crossing North building, which will add 104 units.”

The new building will feature two levels of parking and four levels of studio, one and two-bedroom apartments. It is expected to be done in the fall of 2026.

The first building at The Reserve at Hudson Crossing opened in February 2021. It is a six-story building that has 176 apartment units on the upper floors along with 10,000 square feet of commercial space for restaurants and shops on the building’s ground level that fronts Washington Street.

Construction on the second building, or north building, had been expected to begin in February 2023, with substantial completion by August 2024.

The delay on the second building was caused by various factors, including the COVID-19 pandemic, sharp increases to the price of construction materials and labor and rising interest rates.

“We appreciate Shodeen’s continued commitment to the Village of Oswego and look forward to the completion of Hudson Crossing North,” Oswego Village President Ryan Kauffman said. “Projects such as The Reserve at Hudson Crossing provide housing options and fuel economic growth for the village as a whole.”

During the Jan. 21 Oswego Village Board meeting, the majority of village trustees approved a fourth amendment to the redevelopment agreement between the village and Reserve at Hudson Crossing LLC.

The agreement stipulates that construction of the 104-unit building on a vacant lot at the northwest corner of Adams and Jackson streets will begin no later than June 1, with completion around September 2026. In addition, financing agreements must be in place by May 15.

“Staff believes there are numerous benefits to this project,” Oswego Village Administrator Dan Di Santo told village trustees. “$28.4 million is the cost to construct this building. We believe to have that much investment in downtown Oswego is a great benefit to the downtown. It’s going to create numerous construction jobs. It’ll add 104 residential units.”

The second building is expected to generate $500,000 annually in tax increment financing that will be used to pay the debt service on the net $3 million bond issuance to fund the second parking garage and other TIF eligible improvements, Di Santo said.

When a municipality creates a TIF district, its property assessment is frozen and new or increased taxes generated by improvements are used to pay for improvements or other development incentives.

By the end of the TIF in 2040, the north building is expected to generate $600,000 in excess TIF increment that would be split 50/50 between Shodeen and the village, according to the terms of the redevelopment agreement. The north building will also be eligible for $321,694 in village grant dollars (the remaining amount from the original $900,000 grant).