Old D&H rail yard in Colonie being redeveloped

COLONIE — A development including warehouses and office space is taking shape at what years ago was a rail yard and a steel plant.

The first phase of the Luizzi Company’s redevelopment of the old Delaware & Hudson storage site and part of what was an AlTech steel plant is being transformed into warehouses and office space.

The second portion of the project on First Street, though, still needs approval from the state Department of Environmental Conservation. While located along the border of Watervliet, the 28-acre project lies within the town of Colonie, said Sean Maguire, Colonie’s director of planning and economic development. Representatives of Luizzi didn’t return calls for comment. For years, the Delaware & Hudson used the area for equipment storage.

The undeveloped site is undergoing a long-term cleanup overseen by the state Department of Environmental Conservation which has declared the area to be a brownfield due to metals and chemicals that were spilled in the area and seeped into the groundwater.

According to DEC, “The cleanup will address historical contamination at the site, including metals and semi-volatile organic compounds (SVOCs) in soil, and volatile organic compounds (VOCs) in groundwater.”

A Remedial Investigation (RI) Work Plan was approved for the site in June 2022.

A consultant for the developer, Luizzi’s Lincoln Avenue Development II LLC, is currently compiling sampling data and preparing a draft RI Report which should be completed in the fall.

The state Department of Health will then determine if more work needs to be done.