City May 20, 2009 9:10 AM

What's Next On The List?

What’s Next On The List?
"You can't save everything." I hear that quote a lot whenever the subject of preservation comes up. And I agree with the statement. I wasn't heartbroken to see Freddy's Donuts come down. I always thought that it would be cool to see a retro eatery open there, but losing the building (to me) wasn't such a big deal. My concern is that the shovel-ready site does not become a parking lot.

Now that we have that out of the way, I would like to make a plea to The City to try to save some of the more important building stock by becoming more proactive rather than retroactive. The hardest to save buildings are the ones that have suffered demolition by neglect tactics at the hands of uncaring owners. I often wonder why one would ever want to own a beautiful historic building if he or she is just going to let it rot until one day The City makes the person tear it down.

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It breaks my heart to see so much of our urban fabric subjected to the ill will of unscrupulous property owners. Time and time again we have seen the horrific outcome when owners are not held accountable for their disregard for the community. We all know that once a roof suffers water damage and exposes the rest of the structure to the elements, it's hard to reverse the action - especially when the utilities are turned off and a winter sets in. McBride's, Falcon, Summit, White's Livery, Saint Mary's... do any of these ring a bell? They should. These are not faded memories, they are recent scars. But what about the structures that are in the process of suffering similar fates? What are the telltale signs? Who is safeguarding our building stock?

When we look out of our office building in the Cobblestone District, we see roofs with marshes growing on them (near the corner of South Park and Illinois). And yes, even sapling trees. We also see activity in and around the buildings and wonder if anyone really knows what is going on... what they are doing... or not doing, as the case may be. Here we have a district on the rise, yet much of the potential was razed already. That means that we're stuck with way too many parking lots. Does that mean that we need more? By the time The City gets to many of these buildings, it's too late and we are left scratching our heads while the terms 'shovel-ready' and 'therapeutic demolition' are bandied about.

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People have often asked why we are not enforcing property codes the way we enforce parking tickets. Probably because it can be too time consuming and costly to go after the building owners. It's easy to boot a car that racks up too many tickets - how do you boot an absentee owner? Unfortunately, many of the buildings that are in jeopardy don't have the one precious thing that they need... time. While The City has expressed an interest in updating the outdated codes, we are left with deteriorating structures that are irreplaceable. Some people call our Cobblestone District the Distillery District (Toronto) of Buffalo. Now that we have millions and millions of dollars being pumped into the Inner Harbor, we can't just sit around and watch even one more building deteriorate. At a time when Sam Savarino and Roger Trettel are investing, we must help to protect their investments by holding building owners responsible for shoring up the building stock that will one day make the district a district, not just one street.

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This is just one of the rebounding districts that we must start paying attention to. It's also the first in a series of key districts that will be covered in coming weeks. And yes, this is the second part of the series 'Trees Grow In The Darndest of Places'.
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I'd love to put new roofs on some of my buildings. The roof for Main and Ferry will be about $60k. The roofs at Main and Balcom will be about $500,000. Half a mil. Real money. (All need tear-off replacements, 50,000 square feet+/- x $10/s.f. for an insulated--as per code--rubber roof). If I could afford the roofs, I'd do it. Want to lend me the money? New roofs would allow me to get many more tenants. I'm willing. How do I sign up?


If the city is to truly take a hard nosed approach to enforcing building code violations for roofs, which I'm not saying is a bad idea, then the city should simultaneously step up to the plate and offer owners financing to purchase new roofs. I think this would be a valuable service to both the taxpayer and property owner. Good roofs protect building stock until better days. Make it doable. Don't just try to get blood from a stone by hounding building owners (and as we've seen when owners simply walk away, the City is no better as property owner). Roofs are big money. The primary reason so many buildings fall into such disrepair is that there is no money to fix them. Develop a revolving loan fund for roof replacement at low interest. Set criteria, make it fair, and then threaten the stick--after displaying the carrot.

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If you can't afford to maintain a building, you do NOT desrve to own it. If it needs a roof, refinance and put one on or sell it. Your statement was silly.

replied to biniszkiewicz
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Top of my list for now: Greystone
I wish we had a group to be the proactive voice to put pressure on the city to enforce the codes. I have emailed and called city hall many times but have NEVER received a response.

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Bini,


Your revolving loan idea is a good one but please spare us the sob story. In many cases the buildings in question generate no money is because of the owner's systematic lack of investment in the property. Don't buy the building is you can't manage them properly.

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I'm going to pretend I didn't see this post...so the "small" guy as most people of this site root for isn't allowed to purchase a building because most of the time he would have nowhere to turn to fix it up...please tell me that is what you are saying or else correct yourself...

replied to STEEL
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I Never said anything about who or who could not buy a building. What I said, very clearly, is that if you do not invest in your building it will soon enough become unrentable and will produce no income. That is not anyone's fault but the person who did not invest in the property. There are multiple examples in every part of the city were maintained highly productive buildings sit next to buildings that have been neglected and are now unproductive buildings.

replied to galaxyjay
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In Buffalo the best strategy as a small investor is to stay clear of commercial real estate. The market is volatile and unpredictable and best left to the pros. A few friends have invested in buildings based on emotion and dreams, only to realize that they are in way over their heads with no option of escape. They cannot keep up the property, they cannot sell it, and they do not have the financial resources to invest in maintenance and repairs. Add to that the costs of damage from vandals, looters, and weather, and you are talking about a losing proposition for most would be investors. There are too few people in Buffalo with the financial backing to mitigate the risk of investing in these buildings, so I am sure we will see more of them decay to the point of collapse before we see more of them bought out by the white knight investor.

replied to STEEL
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The small guy can buy anything he likes, but make sure your finances are in order and you can maintain them, commen sense.

replied to galaxyjay
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Population growth is necessary, otherwise its either unmaintained overgrown garbage strewn lots or parking lots. You need market demand to fill in demo spaces and it does not exist to the level where infill will be very noticeable. The city will be pock marked and continue to have either derelict structures, maintained structures with high vacancy, or big open empty lots blowing holes in the urban fabric. You will never see a comprehensive turnaround until that city population gets back into the 400K range or higher.

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I couldn't agree more with Bini about roofs -- keeping a watertight roof on a building is so often the single most important thing that can keep a building vertical until someone can get to it with resources and a reuse plan. Back in RaChaCha, one of the most visible successes of the Susan B. Anthony Neighborhood Collaborative was getting the City (a member of the collaborative) to invest in a new roof for this vacant West Main Street commercial building on the corner of Madison Street (where the Susan B. Anthony House is located):
http://www.landmarksociety.org/events/events.html?CA=19&EID=506


This is a challenging building to reuse due to configuration and parking issues, but thanks to its new roof and a good job buttoning it up, folks have had the time to work together to market it for reuse. Best of all, some of its most significant interior archiectural features (gorgeous wainscotting and wooden transom windows on the top floor) have been spared damage and add so greatly to the building's charm and value. And by keeping the interior solid, potential buyers can be brought through the entire building without safety concerns. This approach WORKS, and should be more widespread.


What about stimulus funding for endangered buildings that need intervention NOW--? The stimulus funding request from City Hall a few months ago included a line item for "Top 10 endangered buildings." The problem is that repeated inquiries to City officials have not been able to determine the status of that funding, or which buildings are included on the list (or if there even is a list yet). Why won't anyone talk--?!


Speaking of funding, a notice of this new funding program just came from Assemblyman Sam Hoyt:


Upstate Regional Blueprint Fund -- $120 Million available!


This fund will create significant investment in Upstate and will help grow our economy. Funds will be allocated to eligible applicants by ESDC through a competitive process in the form of Subsidized Loans, Convertible Loans and Grants. I fought hard to get this fund created, and as the state's economic crisis grew, had to fight again to get the funds released.


Funds will be available for the following activities:

* Business Investment
* Infrastructure Investment
* Downtown Redevelopment


A wide range of entities are eligible to apply for assistance, including but not limited to: for-profit businesses, not-for-profit corporations, business improvement districts, local development corporations, public benefit corporations (including industrial development agencies), economic development organizations, research and academic institutions, incubators, technology parks, municipalities, counties, regional planning councils, tourist attractions and community facilities.


To review the eligibility guidelines and to download an application visit:
http://www.empire.state.ny.us/UpstateDownstateFund/default.asp


How about some of this funding going to an innovative "Buffalo Re-Roof" program to help keep buildings with significant re-use potential vertical--?

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I have to agree with Steel re:Bini's dilemma. So, Bini bought a property that he cannot afford to maintain and he wants the city to bail him out?! This is not the way it works, fellas. I don't care if the property is an owner's sole residence or income property- if you can't afford to live there (which includes maintenance) then do not buy it! Will the city bail me out if the roof on my home needs a replacement? And if not, why should the city help out someone who buys homes for income purposes only! Isn't this a form of corporate welfare that people love to bash so much?
PS- Anyone else notice that Binimay have inadvertently outed himself as a slum-landlord.

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Well, I'm not looking for the city to bail me out, only to give me a legitimate means to comply if the city insists on forcing me to re-roof the buildings. The predicament I am in holds true for very many property owners: the buildings can not be financed without a solid income stream (very long term leases from credit tenants). I don't want the city to buy me a new roof. I just want them to lend (not give) me the money if they insist on forcing me to buy one myself. Otherwise, it's my property and f**k off. There is no realistic way to pay for it otherwise in many cases , not just mine. Yes, Paladino could swing one. But not everyone can.


Look: I'm not crying the blues. I bought my properties with my eyes wide open. Just so you know, I bought the dilapidated buildings at Main and Balcom with the sale proceeds of the apartment building I owned on Allen at Mariner. I fixed that building up (new roof, kitchens, furnaces, baths, blah blah blah). I sold it to buy the fixer uppers on Main, knowing full well that the roofs were shot. If you looked at my Mariner/Allen apartment building when I bought it, you'd infer that I was a slumlord. It certainly wasn't in that class when I sold it.


Actually, my first motivation in purchasing Main/Balcom (50k' on 1.77 acres) was to knock it all down for a post office; the post office was looking a couple years ago to relocate the station across from Delta Sonic on Main. This was the perfect site, but the relo process got put on hold.


I had to close the sale or lose the deal before the post office issue was decided and I decided to take the plunge anyway. I'm not unhappy I did. We're gutting the buildings I have what I believe to be a workable plan for their re-use. But the reason we have to gut most everything is because despite good solid money being invested prior to my purchase (sprinkler system in 2003, new banquet hall at that time, for example), the previous tenants and landlords never fixed the roofs. Everything inside was a moldy mess. Again, I knew this before purchase and I'm willing to invest over the long haul to rehabilitate. Meanwhile, I'm focusing on Main/Ferry and soon Johnson Park. At Main/Ferry we're working on more new facades for the stores as we speak. In a few weeks the front will be done up to El Waseem's. And that roof, though it has three layers of built up asbestos infused gravel, the last of which is probably 40-50 years old, is still able to be nursed along. I'll replace it before renovating the upper floors.


The roof on Sherwin Williams is very good. My slate roof on Fillmore is very good. The roof at Johnson Park gets finished this year. AdArt's roof is good. Not every roof I own needs replacement. But the Main/Balcom complex (former New Pink, Earl's Best Paint, former Palace, etc.) does need roofs and decks--lots of them. Again, I'm okay hitting it at my own pace. I'm carrying the buildings, paying the taxes, etc. It's my investment and my neck on the line. But if you want me to buy a new roof for a building you don't own, give me a means to comply.

replied to nick
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Hmm, didn't know there could be two nicks. Looks like I'm going to have to go the way of "the Real SBROF."

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In a perfect world, every building owner has enough resources to tackle anything that comes their way. With all of the older, poorly maintained structures in Buffalo and the fact that guys like Bini are out there buying and having to maintain them, not big investors like Beacon Hill, or Equity office, is it any surprise that building owners encounter nasty problems with roofs and load bearing walls that put them in a squeeze? How many regular homeowners put off repairs and cross their fingers hoping that they can get through another winter? Everybody does that at some time. The worst owners are absentee landlords that don't live in the area and just do nothing for their properties as they wait for a sucker to come along and buy it. The City needs to work with landlords who are actively running their properties so they can schedule improvements reasonably. But the City needs to get proactive and seize properties from the negligent absentee landlords that aren't doing anything with their buildings.

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I like bini's idea of a revolving loan fund but I don't think that investing simply for return is best for the cities building stock. Old buildings also need a little heart and soul invested to be successful.
I have worked in the building trades for the past 30 years and presently work in facility plannning. I also completed an award winning restoration of one of the oldest and most dilipated houses in the city. Simply put unless you have the skills to do much of the work yourself or the ability to properly manage the contractors you better have deep, deep pockets. Old building require the ability to recognize and adapt to the never ending problems that are sure to arise. Standard contingency of 10% doesn't come close to covering the costs associated with the proper renovation of old structures and 50% is probably more realistic.
Historic buildings require commitment, perseverance, and the ability to see past short term gain. Investors need to know this before jumping in or they, the building, and the city will all suffer as a result.

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I don't think these issues are ever black & white and I give credit to Biniszkiewicz for his willingness to share detailed information regarding his properties on this website. Every property has challenges and I've dealt with national landlords who were often much more negligent than anyone would suspect. The key to resolving these issues is communication and planning. Biniszkiewicz seems quite adept at both.

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Isn't this topic suppose to be about the care of history, not rental units?! But since a renter snuck in here, I'd like to say this about that:
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All of the subject matter in this topic points out the very first dilemma...the roofs.

In the past fifty years, codes and inspections were NOT concerned about roofs. Roofs were never suppose to become an issue--all a perspective owner needed to do was simply don't look up...
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Patch it up, rent it out, don't look up...
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So no one looked up and now we have the days of reckoning.
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Now that they are falling in, roofs are the FIRST issue...
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Very many parts of Buffalo and WNY including all the towns, villages, hamlets and even the 1960s subdivisions are OLD now...
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I a'reckon it's safest that taxpayers and government not get even more deeply involved.
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Crying poor houseowners, the public is on to you. (Especially when you post yourselves so wrecklessly in so many online places!) Get a bank loan against what you actually do live in to take care of what you absentee-own but would not subject your own family to. You CAN get such a loan; you know you can!
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If you want/need to keep profiting, (especially if you are over-extended where you actually DO live), then you need to keep the profits coming in from where you do not actually want to live. You have to take care of what "investments" you have cause, hey, look up and notice that the once endless supply is after all infinite; dem ol houses is fast coming down...



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I meant rental property owner, not renter.

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Cool pics, Newell - I saw the same buildings today -same perspective ;) and couldn't believe the disrepair those buildings were in - the roof was literally falling off in large segments. I love the touch of the old telephone polls, it was really a sight to see today! It made for a very interesting perspective...perhaps get a pic of that corner there in black and white for effect...pretty neat!

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flyguy said it well. Supply and demand.

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Is there a list?

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About some of the comments above, actually there are a fair number of programs designed to help homeowners put new roofs on their houses (and perform other repairs) -- I've seen programs which involved low-interest loans, and some involving outright grants, and some mixed. Some programs depend on the income level of the owner, and some on whether the neighborhood as a whole is "distressed" and in need of re-investment. Some programs are entirely government funded, and some involve a mix of public/private (with the public investment priming the pump for the private).


These things are done all the time, because they can leverage other investment, and either help revitalize communities or help slow (and hopefully reverse) the downward disinvestment spiral in some neighborhoods which can contribute to all kinds of negative socio-economic results.


I'll say again that I think that a "Re-Roof" fund for loans and some grants makes a great deal of sense and could produce great results compared to the amount invested. Most of the recent preservation crises involve roof issues to some degree: St. Mary's, the Livery, the Webb Building, the Summit/Bosch Building, the Greystone (I think?), the buildings pictured above in the Cobblestone District, the old church on Breckenridge west of Niagara that's had BIA buzzing this week, Church of the Transfiguration, etc. (have I missed any?).

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What a great idea! I will immediately go out and buy a deteriorated historic building and not put any money into and blame the city for inaction while my building decays further. Because it is the city's responsibility to remedy my errors...right?

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If you can't afford to maintain a house or a building that you own than that is your problem, not the city's/taxpayers. The public sector is charged with maintaining public infrastructure and priming the economic climate for investment. It is not a welfare agency for those who make foolish decisions.

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"The public sector is charged with maintaining public infrastructure and priming the economic climate for investment. It is not a welfare agency for those who make foolish decisions."


That sounds great!

(By the way, what city are you writing about that has such a smart public sector? Buffalo's public sector acts as welfare agency for way-too-many-to-count foolish decisions.)

replied to Nate Neuman
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I agree with Nate. I'm a homeowner and would have loved to have acquired additional property to rehabilitate, but realized that once my signature was on the contract, I was RESPONSIBLE for all costs.


There are many multiple property owners in our city that, for whatever reason, do not maintain them. Some take years, even decades, to do what is required to just keep the property stable, much less up to code.


Like the multiple property owner that has a house across the street from me. I moved here in 1994 and he or anyone else has yet to live there. There was a Housing Court warrant for him and he finally showed up in court, promising the world. That was a year ago and now the grass is over a foot high, more of his mail is starting to recreate the mountain that had previously taken over his front hall, he has yet to paint the building by it's due date (a week ago) yet still owns other properties that have been left to decay throughout the city. And someone wants MY TAX DOLLARS TO HELP HIM? Uh-uh - no freakin' way!


Then we have the Greystone. The owner has had plenty of time and has proven himself to have plenty of funds (see the new waterfront condos) but has done nothing, zip, zilch, nada to remediate the roof. I saw it from the top of the Avant this past Spring - still an ever-widening hole.


So, tell me, where are the preservation masses? We here at the West Village have tried as we might to get the Greystone into some type of repair - NOT A PRESERVATIONIST IN SIGHT TO ASSIST IN COURT.


Am I pissed? Yeah. So, Ra-Cha-Cha, although I love ya, Babe - no way do I want my tax dollars going for remediation of properties owned by individuals or developers that make a helluva lot more cash than I do.


Like Nate said - "If you can't afford to maintain a house or a building that you own than that is your problem, not the city's/taxpayers... It is not a welfare agency for those who make foolish decisions."


Sell off some of your other properties to raise the cash. Or, here's a better idea - DONATE some of your properties to a housng organization that has the wherewithall to repair and return the property to the tax base through proper housing programs for low- to moderate families that take the courses and do the math.

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One more thing - if a developer or multi-property owner has plans for additional acquisition - stop them until the properties they own are remediated.

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Great comments here, but, there is NO comparison WHATSOEVER between persistance in preserving historical structures-- whether the owners are lax or not--and helping the deliberately HouseMilking REI owners of rental properties.

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