The State University of New York

Contract Reporter Exemption Request C002726

State University of New York (SUNY) is seeking a single source approval to purchase
property currently owned by the University of Albany Foundation. The property is
located at 423 State Street in the City of Albany.
Requirements for a Chancellors Residence
As the head of the largest comprehensive university system in the country, the Chancellor
of the State University of New York is a 24/7/365 position. As the face of the university
the Chancellor must engage many stakeholders through numerous types of events. These
events include gatherings of numerous campus constituents; campus presidents, council
members, administration, faculty, students, supporters and alumni. Traditionally many of
these events are centered at the residence of the Chancellor.
A chancellors residence requires a combination of private living space and a public
presence. Sufficient private space is needed for families of all sizes, including formal
living room, family room, dining room, multiple bedrooms, office, and library. In
addition to this private family space, a more public presence is needed for meetings,
symposia and other events. Ideally the public space will not include the private kitchen
space and catering would be handled separately. All together the ideal chancellors
residence is 6500 to 7500 gross square feet.
Additionally it would be a great enhancement for a Chancellors residence to include an
elevator. While an elevator is not traditionally considered in most residences, and not
necessary for the current Chancellor, having an elevator in the Chancellors residence
makes SUNY a more attractive employer for future chancellors, by providing for
mobility impairment. Most other mobility adjustments are easy compared to installation
of vertical transportation and can be made if needed for future chancellors.
The property at 423 State Street is uniquely suited to provide a residence for the
chancellor of the State University of New York meeting in particular the following three
important goals.
A Residence for the Chancellor
The property at 423 State Street will provide the Chancellor an ideal residence for several
reasons.
As mentioned the first floor layout is ideal for Chancellor public engagement with stake
holders, while the private areas of the residence, including the kitchen are located on the
upper floors apart from the public space. This property is located adjacent to and shares a
courtyard with 415 State Street, which is currently owned by SUNY. 415 State Street
currently houses the Rockefeller Institute for Government, and the building is frequently
used by SUNY for conferences and events. The combination of 423 State Street and the

current SUNY property at 415 State Street will allow for larger and more complex events
by incorporating the use of the shared courtyard and the first floor space of both
buildings. The purchase of 423 as the Chancellors residence will result in cost savings
by reducing the need to rent event space elsewhere.
Along with the adjacency to the SUNY space at 415 State, locating the Chancellors
residence near the center of the state government in close proximity to the capitol,
executive, legislature, and State Education Department is a valuable feature for the head
of the SUNY system that interacts with these entities on a regular basis.
From a practical standpoint, being located adjacent to 415 State Street allows for sharing
of existing operations staff for facilities maintenance thereby increasing staff and
equipment efficiencies, and reducing maintenance and operations costs versus a residence
located elsewhere.
Further, should a future Chancellor chose to live in a private residence rather than at 423
State Street, the property at 423 State can be easily used for offices while still providing
the event space. As office space the adjacency to 415 State is also ideal for the colocation of staff. No other building in downtown Albany provides these benefits.
All of these points add tremendous value to this property for this purpose.
The Chancellors Safety
Currently, the south tower of the SUNY Plaza facility is designed as optional residential
space available for use by the SUNY Chancellor. Chancellor Zimpher had not previously
taken advantage of this residential option until recently selling her private home. The
configuration of the SUNY Plaza facility and use of the south end as a residence presents
safety and security issues. Since 2010, the SUNY Plaza facility has not had round-theclock security. First responders have difficulty finding its location in the event of an
emergency without the assistance of on-site security staff. This makes the use of the
south tower as a residence undesirable.
SUNY Plazas Immediate need for Additional Space
Converting the SUNY Plaza south tower residential space to office space will assist in
alleviating the problem of insufficient space for all SUNY Plaza staff. Use of this space
for offices, rather than a residence, is a sound business practice for it enables SUNY to
locate some of its various departments under one roof in an orderly approach, thereby
increasing staff efficiencies.
Other Benefits
The building at 423 State Street at approximately 7000 square feet meets the needs for
the residential purposes as well as the event space needs. Other residences in the area are
generally smaller. No other facility can provide the adjacency and event synergy with 415

State Street that this building provides. The property also has an elevator which is an
additional benefit not typically found in other residential properties. Although not
required by code for residential, all spaces are sprinklered which provides additional
safety. This is not typically found in other residential properties.
SUNY is a big supporter of improvement plans for downtown Albany and having the
Chancellor reside in the city center helps promote the residential character of the city.
The close proximity to Washington Park makes for a very pleasant neighborhood.
Reasonableness of Cost
This property was originally acquired by the University at Albany Foundation in 1992. At
the time the appraised value of the property was $295,692. The Foundation invested
$711,035 in capital improvements to bring the facility up to code and functionality for
their use. One of the additional benefits of this property is the long history of the building
with a SUNY entity which helps SUNY by having a greater knowledge of the buildings
mechanical and structural integrity than can be assessed by mere inspection.
Currently the property has been appraised by two independent appraisers at $650,000 and
$450,000. A third independent appraiser reviewing the two appraisals has provided an
assessment that the $650,000 appraisal is not well substantiated but that the $450,000
appraisal is in line with the independent review which established a value of $430,000.
The true value of the building for SUNYs purposes is $430,000, and has been agreed to
by the seller. The appraisals are provided.