Developer Ditch Plans for Luther’s Forest Project


MALTA — Scannell Properties is backing down from its attempt to develop land on the Luther Forest Technology Campus in Saratoga County, which was considered a potential location for an Amazon warehouse.

Scannell’s plan ran into significant hurdles as the Indiana-based company needed the city to change zoning regulations governing the tech park, which houses the headquarters of chipmaker GlobalFoundries and its Fab 8 factory.

Although GlobalFoundries is the only company to locate in the 1,400-acre Luther Forest Technology Park, the city has been reluctant to rezone Luther Forest at a time when GlobalFoundries seeks to expand with a second factory. Other chip companies have also expressed interest in building new manufacturing sites in upstate New York.

Luther Forest received tens of millions of dollars in infrastructure support from the state to build the campus as a semiconductor-focused property that would eventually house multiple chip factories, potentially built by multiple companies.

Scannell had hoped that some of the land might have been set aside for other types of industries, although he never revealed his plans. The company is well known in the capital region and elsewhere for developing sites for Amazon, including an Amazon warehouse built in Schodack. Scannell has an option agreement to buy Stadium Golf Club, which straddles Schenectady and Rotterdam. The company says it has no firm plans for the land, but residents of the mainly residential area have raised concerns about the traffic a major project could bring.

Scannell has generally been very cautious about his projects, especially those for Amazon due to the online retailer’s desire for secrecy.

Scannell had the option of buying nearly 250 acres in Luther Forest, but decided to walk away recently due to existing zoning in Luther Forest, which requires park businesses to make certain disclosures to the city if they find there.

Peter Struzzi, broker and executive managing director of Pyramid Brokerage Co., the company that marketed the site for Scannell, said none of the companies he spoke to were comfortable with the zoning of Luther Forest, which establishes strict controls on tractors. traffic and demands “economic and environmental audits” of tenants by the towns of Malta and Stillwater where the park is located.

“No company we worked with would submit to scrutiny of their internal business operations by local politicians,” Struzzi said.

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