Major changes are coming to a key gateway into Schenectady that will bring additional affordable housing and childcare opportunities to the city.

The Schenectady Community Action Program (SCAP) is moving forward with plans to construct a $37 million campus at the corner of State Street and Brandywine Avenue — a move that officials say will not only bolster the nonprofits presence in the city, but also transform a key intersection and lead to future development in the area.

Plans for the long-vacant 2.58-acre site include a four-story building with 60-unit affordable apartments and a two-story building that will be home to a childcare and family support service center, with 72 childcare slots available, according to a news release.

The Schenectady Planning Commission approved the plan during its meeting this past week.

“We are thrilled the vision for SCAP Campus is coming to life,” Addy Haberbush, president of the nonprofit, said in a statement. “This project will strengthen the neighborhood and provide more families with access to affordable housing and quality childcare and education.”

SCAP has been working to combat poverty and provide support services for residents since its founding in 1965, and provides services to nearly 12,000 each year. The nonprofit will maintain its offices at 913 Albany St. and its childcare centers throughout the Electric City.

SCAP is partnering with DePaul Properties of Rochester on the project.

The company has previously built the Joseph Allen apartment complex on Albany Street and is in the process of constructing the Mosaic affordable housing complex on Crane Street in the city’s Mont Pleasant neighborhood.

SCAP and DePaul are planning to apply for tax credits through the state’s Homes and Community Renewal program to help cover the cost of the project. A local match is required for the state funding, which will be covered by funding from U.S. Rep. Paul Tonko, D-Amsterdam, Schenectady County, the Metroplex Development Authority and several charitable foundations, including the Wright Family Foundation, Schenectady Foundation and the Little Foundation.

Metroplex and the Capital Region Land Bank will demolish two vacant buildings at 1113 and 1115 State St. and begin preparing the site for construction, which is expected to commence in early next year.

The project marks the redevelopment of a key entryway into the city that officials hope will spark other development in the area. The project site at the corner of State Street and Brandywine Avenue is highly visible and sits along a major corridor into the city from Interstate 890.

“This new campus will transform a key site on State Street and bring SCAP’s well respected programs that help families to a new level,” Mayor Gary McCarthy said in a statement.

The development is across from the recently opened Hometown Health Center dental clinic, a $6 million project that transformed a vacant pharmacy into one of the only dental facilities that accepts Medicaid in the Capital Region. The project was supported by Schenectady County, which used federal coronavirus-relief funds towards the redevelopment.

Gary Hughes, chair of the Schenectady County Legislature, said county lawmakers were hopeful that investment in the dental clinic would lead to further development.

“The new $37 million campus will continue the transformation of this corridor into a vibrant and welcoming gateway to the neighborhood and the city of Schenectady,” he said. “We are proud to support this project and thank our unified economic development team for working with SCAP to prepare the site for construction.”

Contact reporter Chad Arnold at: carnold@dailygazette.net or by calling 518-410-5117.