GUILDERLAND — As Pyramid spearheads a campaign to receive millions in tax breaks from the town of Guilderland for a planned Costco Wholesale, Pyramid’s default on hundreds of millions in Crossgates loans could lead to the mall having a new owner. 

After receiving a year-long extension to pay off its nearly $244 million mortgage, Crossgates Mall was unable to secure new financing and defaulted on the loans, which led to it having to auction off the mortgage, Bloomberg News reported on June 8.

Securities and Exchange Commission filings associated with the three commercial mortgage-backed securities holding Crossgates $243.7 million in debt state that Pyramid filed a notice of default the week of May 8 and that a draft appraisal of the mall had been received. 

In July 2020, Crossgates’ appraised value was lowered from $470 million to $281 million. Pyramid is currently suing the town of Guilderland in an attempt to lower the mall’s assessed value from about $234 million to approximately $109 million. A win would save Pyramid millions in annual property taxes. 

Meanwhile, Pyramid is attempting to gain public support for its $2.2 million tax-break request to the town of Guilderland Industrial Development Agency for the planned Costco Wholesale on Western Avenue, which recently had a fourth lawsuit filed against it. 

Pyramid, through its local limited-liability company, Crossgates Releaseco, is planning to build a 160,000-square-foot Costco store on 16 acres at the corner of Western Avenue and Crossgates Mall Road. The site would also include an 18-pump gas station, enough parking for 770 vehicles, and eight electric-vehicle charging stations.

The overall project cost has gone from $39,900,100, according to Pyramid’s March application, to $41,400,100, according to an amended application submitted on May 16, with machinery and equipment costs accounting for the entirety of the increase, from $8 million to $9.5 million. In its amended application, Pyramid increased the amount of requested exemptions, from sales and use taxes, from $5 million to $26.55 million. 

On May 31, the IDA held a public hearing on the company’s requests for $2.2 million in tax exemptions — $2,123,600 (up from the original ask of $400,000) in sales-tax relief and a $75,000 break on the state’s mortgage-recording tax — and for the IDA to use its power of eminent domain to help it “acquire and extinguish any interest” Guilderland has with roadways on the project site.

Pyramid had secretly bought up houses in a neighborhood adjacent to the mall property where it now plans to build the Costco and wants to acquire the roads there for free. The town roads and rights-of-way comprise 13.75 percent, or 2.27 acres, of the 16.5 acres where Pyramid plans to build the Costco, according to the recently filed lawsuit.

At that same May 31 meeting, the company said it wouldn’t build the Costco if the IDA didn’t meet its requests.

Company representatives did not immediately respond to Enterprise requests for comment. 

Pyramid is now asking Crossgates shoppers to reach out to the IDA and “green light” Costco, which received approval to be built in May. 

The company is making the dubious request on digital signage located inside the mall. “Help green light the $40M Costco project! Let your voice be heard!” the digital ad states. “Scan this code and send your support to the Town of Guilderland IDA.” The QR code sends the user to an email contact page for Donald Csaposs, the IDA’s chief executive officer.