City September 24, 2009 5:32 PM

Ground Broken on Curtiss Building Restoration

Ground Broken on Curtiss Building Restoration
 There is certainly some important restoration taking place here in Buffalo these days. 

Today officially marks the beginning of another important piece of that restoration, when Mark Croce and friends broke ground on the Curtiss building at Huron and Franklin Streets. 

Upon completion late next year, the building will be a 57-room hotel complete with a day spa, full service three-meal restaurant, state-of-the-art HVAC (heating, ventilation, air conditioning), and will be built using sustainable and green technology as they look to the future.

Not long ago, Croce got wind that Mayor Brown was applying for a "Restore New York" grant when the state announced they would be making $100 million available.  Croce asked Brown to mention the Curtiss building restoration for a grant of $1.35 million.  They received it.  In total, Buffalo will be receiving $14.3 million from New York State, the largest Restore New York grant given. 

The Curtiss restoration is expected to cost $19 million.

State Senator Bill Stachowski was pleased with the project, emphasizing its importance as yet another example of dedication to the city of Buffalo. 

"Here's to hoping it's successful," he said.

Councilman Brian Davis also took to the podium relating a story about Mark from 10 years ago.  "Mark was then, and is today, working to make Buffalo a 24/7 city.  In the ten years I've known him, he's done exactly that."

As Mayor Brown said, "Mark Croce gets it done."

Top image by Joe Cascio.  Rendering below- Young + Wright Architectural

curtiss hotel.jpg

 
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Mark Croce is at it again.  One week after breaking ground on his largest development to date, the businessman purchased a half-acre, 73 space parking lot on Wednesday.  125 Scott Street, midway between the Canal Side development and the casi... Read More

Mark Croce's redevelopment of the vacant Curtiss Building into downtown Buffalo's largest boutique hotel is underway.  Interior asbestos removal and gutting is taking place, while a giant hole sits where the beloved Continental once stoo... Read More

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What work does this building need, and when is the expected completion date?

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on the news today i believe they said it should be open in fall of 2010

replied to NorPark
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This is a unique building, and it's great news that it's being restored. Keep it going.

It will be open for the national preservation conference in 2011, and I'm sure it will be filled with guests.

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They will be nice rooms with those big windows. Prolly means the Livery next door will get some love soon too.

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Great to see another long neglected building given its due. Downtown just keeps getting better. As more of these renovations are completed it will drive future developement into the adjoining neighborhoods where other interesting old buildings survive. Area's like Michigan Ave., The First Ward, and The Lower West Side all could benefit greatly as downtown becomes fully developed. Just one more reason to preserve Buffalo's great old building stock.

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your comment about DT getting better just made me think... how can downtown become more residenial? slowly residential buildings are being developed, or brought to light. affordable and good options though? and how viable is downtown living? everyday sustenance should be easily accessible, ie. groceries. i guess it's building blocks, but is that the answer? bits at a time, get the people there and the rest will come?

replied to Black Rock Lifer
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good question. i always felt that with some infill, franklin st. could be a great residential strip (with row-house style structures).

replied to LouisTully
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I live about two blocks from here and I can tell you downtown living is very viable. It's actually more convenient than you might think. However, it's not for everyone, it's much noisier than say allentown or elmwood area. I find getting groceries and daily neccesities to be very easy since there's a Top's and a corner store within walking distance. It's actually more convenient than living in the Elmwood area since it's close proximity to the 190 and 33 if I need to go anywhere else. I think this is an awesome project regardless of funding sources. A lot of folks complain about it but in this current economy (especially Buffalo's) how do you think these high profile / high risk projects will get done? You can't have your cake and get it too, besides this funding is available to anyone in NY State so it may as well be used here.

replied to LouisTully
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Once again serving as unpaid copy editor: how about including the address of this building? Once I saw the lower picture, I realized it was the NW corner of Franklin & Huron, but not everyone can be expected to know such a long-vacant building by name and not everyone will recognize the intersection from the picture.

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Thank you and seconded. Links to Google maps for any of this type of article would be greatly appreciated, as would clickable images that show a closer zoom on any renderings. ATTENTION EDITORS!

replied to Shoestring Budget
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Wonderful...now if only the Court Street Tower could be restored to 10+ stories and actually built.

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how much will it cost to park in the continental parking lot?

but glad to see something happening on this block. even if 3/4th's of the burden is on the tax payers of NY state...

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It's not 3/4 public money. NY State is providing $1.3 million out of a total investment of $19 million. (The $14.3 million figure is the total amount of Restore NY funding going to Buffalo among all projects.)

replied to hoss
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and can somebody tag all the 'players' in this photo op since buffalo rising doesn't know
how to post a caption? and wtf are they gleefully shoveling? styrofoam peanuts? ironic symbolism????

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hoss, The grey haired guy is State Sen. Bill Stachowski. The bald guy is Croce. In between him and the mayor is Council Member Brian Davis. I don't know who the other shovelers are.

replied to hoss
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Seconded. Who the he-ll are these people and why do they seem to have brand new shovels?

replied to hoss
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anyone got any history on this building? and how come the preservationists aren't up in arms about the continental? hopefully their definition of restoration renders an historically accurate product.

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Congratulations to Mark Croce on this cool project! I hope its success spawns many more...right next door!

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http://www.buffalonews.com/home/story/516746.html

"Buffalo's strategy of giving handouts to hotels questioned

Red ink has flowed for decades, yet city is pushing incentives for 3 new downtown sites
By James Heaney December 08, 2008

For nearly 30 years, politicians have poured more than $65 million into downtown Buffalo hotels — an average of more than $50,000 per room. The strategy produced five hotels — and a lot of red ink.

Some of downtown’s largest hotel operators say the last thing they need is more competition, especially subsidized competitors. But that’s exactly the course City Hall is pursuing.

One heavily subsidized hotel is under construction, and development agencies in the last month have approved two others that would involve significant tax breaks. The new projects would increase the inventory of downtown hotel rooms by 22 percent.

“I don’t see where the business is coming from; I just don’t,” said Rudi Rainer, general manager of Adam’s Mark, downtown’s biggest hotel. “The industry as a whole is not doing well, certainly not when everyone is looking for government handouts.”

At play is a disconnect between those in the trenches of the hospitality industry and the politicians dangling the subsidies, along with the developers who would benefit from them. ..."

Read the whole thing at the link above. Lots of details about govt subsidies to, and financial struggles of, the existing hotels.

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If i'm not mistaken, the adams mark was originally built as a hilton and it was heavily subsidized. the more compitition the better as far as i'm concerned. for years the adams mark and hayatt have been in an embarrassing condition. finally with some new players in town they started sprucing up their places (with tax payer dollars) so they have no room to complain. downtown finally will have some quality hotel rooms for our out of town guests.

replied to whatever
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Andrew>"adams mark was originally built as a hilton and it was heavily subsidized"

The Bflo News article I linked above says the Hilton (now Adams Mark) received a govt loan which they repaid in full, and later some special tax breaks:
"...the Buffalo Hilton on Church Street - now Adam’s Mark -repaid its $4M loan. It later received about $3.7M in tax breaks through the Empire Zone program. Nevertheless, the property is losing value. The original owner invested about $33M in the hotel and sold it earlier this year for $18.6M..."

I'd oppose those handouts to them too of course, but it's even worse to give outright taxpayer grants like Croce is receiving and the Hyatt did for refurbishing, in addition to their past political gifts:
"...The News calculated that public assistance for the Hyatt over the years comes to about $70,000 a room. ..."

$70,000 public assistance per each ROOM in the Hyatt! That's well over double the 2008 median taxpayer's annual household income in Buffalo ($29,706).

It's crazy. Why should our taxes be used for hotel rooms? Again, the linked article lists the many hotel corporate welfare examples and the new ones for which our politicians are planning to continue using our money to reward hotel owners and developers. The Buffalo area's hotel occupancy rates are usually in the 60% range which means around 30% to 40% of rooms are empty most days of the year.

In Buffalo there are many smarter ways in which that money could be used which would greater benefit average residents who live here. Let the hotel owners and their uspcale customers pay their full costs. That will result in competition occurring naturally.

One last quote from that article re. yet another ongoing hotel subsidy here for which a city loan wasn't repaid at promised:
"...In the late 1990s, the city lent $8.9 million to the developers of what is now the Doubletree Club near the Buffalo Niagara Medical Campus. The developer failed to make payments on its loans, prompting the city to restructure the deal. The hotel owner is again in arrears. ..."

replied to Andrew
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Great argument. Agreed.

replied to whatever
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Id love to see this type of thing built on its own with no handout but with the way subsidies are being given out to just about everybody with a building permit I dont blame Crocce for requesting assistance. Take comfort in the fact that public money went into rehabing an existing building saving us a good deal on a demo down the road.

As far as the other hotel operators, if I said anything of that sort to my boss back when I worked in the hospitality biz I would be ridiculed for making excuses. Fair or not these guys ought to re-examine their operation and do what it takes to make it work rather than cry about it. They will have no problem asking for handouts when it comes time to remodel or expand.

"I don’t see where the business is coming from; I just don’t,” said Rudi Rainer

How about doing some marketing to get some of the thousands of folks who visit the Falls to stay at the AM? Botique hotels like the Avant, Mansion and now the Curtis building are going to give people a reason to stay in Buffalo when they visit the falls or our own cultural attractions. The big boys ought to suck it up and go after this business instead of griping about what is fair.

replied to whatever
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If the new guy down the block gets subsidies to run his operation (whether that's another hotel or another sporting goods store), how are you to compete in the real world marketplace without it? If the newer players get unfair tax advantages compared to you, then you can't afford to renovate your rooms.

The Hyatt has no excuse, except maybe we aren't the only fools. Other cities keep making the same mistake. The Hyatt was seen as a necessity for the convention center. City after city across America has built a big new convention center in the past decade, lured by rosy scenarios painted by the same band of consultants. The cities sink all their available block grant money into these projects to 'jump start' their downtown development only to see their behemoth convention centers hemorrhage red ink. Promised business never materializes. So to salvage their initial investment, the cities back hotels near the convention center to get that new asset working. But the hotels hemorrhage even more red ink. Read a fascinating article I've referenced before: Brookings Intitute, Space Available: The Realities of Convention Centers as Economic Development Stategy http://www.brookings.edu/~/media/Files/rc/reports/2005/01cities_sanders/20050117/conventioncenters.pdf

Anyway, we're not alone in drinking this Kool-Aid. Doesn't mean we should continue to drink it.

Very glad the Curtiss building is getting done, and I think the use is ideal. I think it should be able to stand on its own merits without subsidy targeted to hotel use. Don't mind some subsidy to fix historic structures, regardless of use. If we as a society say: this building is too important to lose, then I can countenance helping out on the restoration a bit, not tied to a particular industry.

replied to The Kettle
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Since time immemorial, convention centers have been 'loss leaders' developed to drive tourism and spinoff business for cities. Where it all went wrong is when fully enclosed, self-sufficient mega-developments essentially walled the conventioneers off from the cities whose businesses they were supposed to boost. Any city that builds those is destined for some serious bad results. What Buffalo needs is a convention center that's fully integrated with the street and not some walled-off fort. That could potentially support several small to midsize hotels instead of one gigantic subsidized behemoth. Convention planners could still be guaranteed blocks of rooms through shared reservation systems and hoteliers could compete to upgrade their guests and make more money, instead of the usual watered-down crap. Win win.

replied to biniszkiewicz
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Try making a reservation at one of the more convieniently located hotels on short notice and you will find that it is very difficult. The Mansion is next to impossible, and the hampton, if you cand get a room on short notice,pushes the 200/night mark. The Reason the Adams Mark is having difficulty is, the hotel and its location suck. It is isolated, surrounded by ramps, and the rooms look like caves. You can even see the joints of the prefab panels that were put together to construct the hotel. No One wants to be stuck there if they are in Buffalo for any length of time. Maybe the manager should use a little immagination and provide regular shuttle service to chippewa, allentown, and Elmwood, might make the hotel a better option.

replied to whatever
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If you think my complaint is on behalf of the other hotel owners (most of whom received some corp welfare here too with rare exceptions), then you're missing my point or maybe I didn't express it well. Their quotes in the article help make the point that past subsidies haven't resulted in ongoing success, yet the pols pretend that continuing the same strategy will be any different.

It's politically-driven manipulation of the marketplace and it diverts funding from greater more general needs in Buffalo.

My reply to Andrew might make my view a little clearer, although I realize most comments here probably will agree with Brown, Stachowski, Davis, Peoples, Masiello, and so on about all this and not with me.

replied to johnnywalker
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You really have to consider the competition Buffalo is up against. Here is a sample of public bonds, issued or proposed, for the construction of a single major convention hotel in the following cities. St.Louis(200million), Broward County Fl i.e. Ft. Lauderdale (415 million), Denver(354million), Houston(300million). 1.3million seems like a bargin by comparison.

replied to whatever
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The better operations run with very low occupency, the crappy ones sit around and wonder where all the business is coming from. My guess is this one will run with little vacancy.

Not many details in this piece by BR, and very limited view of the project.

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The players from left to right are some lady ?, Sen Bill Stachowski, Gov. Pattersons WNY Regional Rep Janique Curry, Mayor Byron Brown, Councilman Brian Davis, Marc Croce and Assemblywoman Crystal Peoples.

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Another photo opp for the Mayor - yippie! I thought that Brian Davis - our (and soon to be my) excellent Ellicott District councilmen - was not coming to work. If that was the case shouldn't he be fired? Also, a correction to the downtownjunkie comment above - I received some literature from Mrs. Peoples and it had her name printed as Crystal Peoples-Stokes? Does she really think this will help her image?

Anyhow, I'm only focusing in on the negative. Mark, good luck. This corner - really - needs some TLC and you're the right guy to do it!

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I was wondering the same think about Davis, but then realized that he was prob just down the street at SOHO or another Chippewa bar have drinks and flashing wads of cash around, so the photo OP wasnt to much of a hassle for him.

replied to Joshua
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Other than the fact that this story was soiled by Brian Davis this a great news. This building deserves it!

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I'm truly excited to see this happen. I remember walking by that corner at night.. and it was by far one of the creepiest spots downtown. There was always someone lurking in the shadows, hah. Though it's sad to see the Continental go for good, I'll always remember the fun nights there. Looks like it's going to be gorgeous. :)

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This is wonderful news!

Of course, it will be sad to lose an important part of Buffalo musical history as represented in the faded Continental, but I do believe Mark will see the enormous potential in the ground-floor spaces for retail and nightlife options accessible from the street, following the model of the Hampton Inn on Chippewa Street.

Having stayed in a glorious Kimpton hotel in Chicago recently, I would sure love to see a cocktail lounge and coffee house in these spaces as public amenities that would be available to the general public.

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Isn't the Kimpton in Chicago such a cool hotel.

replied to chris_hawley
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You might want to check out the retro-cool modern Ace Hotel in Seattle. Fabulous in a minimalist way.

replied to NorPark
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Looks great.. and this is exciting. I've always thought that this is one of the creepiest corners downtown. This will help tremendously. I do hope that they will soften the concrete/curb look and plant some new trees outside, much like they have done w/the Embassy Suites and 250 Delaware. They look so classy light up at night.

Here's also hoping that this will, somehow, lead to development across the street at that UGLY UGLY UGLY SURFACE lot. I think I'd rather still have that parking garage there that they tore down a few years ago. At least it gave some density to that corner. That surface lot there now, in the heart of dowtown, looks like something straight out of the 'burbs. Someone build on it.. please!

And perhaps it's time for another article on the current, rather sad state of Chippewa. What's going on there? It looks so dirty and uninviting. Dead trees or no trees at all, crumbling sidewalks, no uniformity. Someone really needs to take the lead here and clean these few blocks up. Clifton Hill is 10 times as busy but perhaps follow their examples... trees with small protective fences, decorative lighting and fun signs/street banners. All of this would really take Chippewa to the next level in the eyes of visitors.

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Christina Orsi on left I think? Last i knew she was with the BNE but i'm not certain about nowadays.

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Industry standard is that hotels start making a profit above 50% occupancy.

Please, no dark windows.

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Bini, Whatever: Its not a perfect system. I too would much rather see this investment sprout up without a govt handout and the way things are going in the entertainment district I think it could. Is there one sector of the economy though that doesnt get some sort of handout in the form of a tax break, grant or hydro-power for projects of this scale or larger? This isnt just a WNY thing either. In many places more tourist oriented than Buffalo, hotel operators are given tax exempt status for upwards of 10 years to build a hotel! (some jackass is trying to get this deal in the Falls right now.) Handing out money for construction of a Hotel that will likely not compete directly with most of the ones downtown isnt the best case scenario but it could be much worse.

Think of the return we are getting on this investment as well. For the ammount being tossed around (1.3 mil) we get a deralict building on a high profile corner restored, a few new jobs, and another reason for tourists to stay in our downtown when they visit. To me thats a lot of bang for our buck. Think of how much more taxpayer money is spent on other politicaly-driven, marketplace manipulating projects that offer less upside and in some cases are clearly counterproductive. Ill take a 1.3 mil grant for a boutique hotel over Bass Pro, constructing-improving a road system that encourages settlement of farmland in a shrinking metro area, IDA pirating of business from one town to another, or ongoing handouts to the Bills.

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pitbull>"Bini, Whatever: Its not a perfect system."

Every new handout like this makes it more imperfect. Yes $1.3M is small compared to the Bass Pro subsidy and very small compared to govt budget sizes, but it's over 10 times the $110K given to One Sunset.

pitbull>"Is there one sector of the economy though that doesnt get some sort of handout in the form of a tax break, grant or hydro-power for projects of this scale or larger?"

Very few of the 1000's of businesses in Buffalo receive a taxpayer outright gift of $1.3M. And that's not all he's receiving. The Buffalo News says he'll have tax breaks too, as will his customers:
"...The project is located in an Empire Zone, so Croce will get sales tax credits on the materials for construction, as well as property tax, wage tax and sales tax breaks going forward - including for guests of the hotel. ..."
http://www.buffalonews.com/145/story/807030.html

So while most businesses and people pay full amounts of property, wage, and sales taxes, this guy won't.

pitbull>"I'll take a 1.3 mil grant for a boutique hotel over Bass Pro, constructing-improving a road system that encourages settlement of farmland in a shrinking metro area, IDA pirating of business from one town to another, or ongoing handouts to the Bills"

I've never understood agruments like 'Well, money is spent on A, so it's ok to spend on B since B isn't quite as bad as A.' Each should be judged on its merits. Gasoline taxes should fund road work and mostly they do. State income taxes on the Bills $130M payroll exceed their subsidy at this point. (That wouldn't be so for a new stadium.)

As with CP's waterfront condos, I don't see why Croce wouldn't do this project without corp welfare if really sees market demand. But if not, so what? The free market can determine how many hotels, spas, and lounges are here and how 'ultra' they are. At the very least, the money should be a secured loan to be repaid with interest from his profits and gains. (I wouldn't even like to see a loan for this, but it'd be better than a gift.)

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Whatever>"I've never understood agruments like 'Well, money is spent on A, so it's ok to spend on B since B isn't quite as bad as A."

Yes but it is hard to ignore a precedent. Although "1000s of businesses in Buffalo" do not recieve a gift the vast majority, if not all, who expand, relocate and are big enough to make for an interesting presser, do. Just to repeat and or clarify I am not crazy about the city just handing out money to these guys, I just think if they are going to be investing our money, best to do so on a venture that will produce results. Im also glad to see public money invested in our hospitality industry which is a no-brainer considering our wealth of cultural attractions and proximity to the falls. Seeing a historic building rehabed is a bonus. What I dont get is how you favor govt handing our over 100mill for a roadway with little to no economic benifit (IMO regressive effect considering the damage to the neighborhood) but are up in arms when 1.3 is invested in our hospitality portfolio.

Whatever>"but it's over 10 times the $110K given to One Sunset."

Big difference. The money obtained for this hotel is for all we know obtained legitimately through legal means. The 110k along with unpaid vendor bills, unpaid payroll, unpaid rent, equipment at One Sunset was stolen with the aid of some of the same people in the above pic.

replied to whatever
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