Real Estate November 28, 2009 12:00 PM

Mix of Uses Key to AM&A's Plan

Mix of Uses Key to AM&A’s Plan

Reusing a squat, 350,000 sq.ft. former department store, five historic buildings that were combined over time, has been a conundrum for a line of developers that have eyed AM&A's and walked away.  Rocco Termini and architecture and design firm Carmina Wood Morris think they have a winning formula.  Their plan is to go mixed-use with an atrium and a light well to help bring light into the center of the building and break up the large floor plates. 

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An atrium is planned for the south half of the building (visible in second floor windows above), skylit above and extending down to the ground floor where the hotel lobby, bar/lounge, and dining facilities will be located. 117 hotel rooms will occupy floors 2-7, most facing Eagle or Main streets, and some overlooking the atrium.  Above the hotel are three floors of "penthouse apartments," 15 to 18 in all, with separate elevator access.

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In the north half of the building, meeting room space and the pool/fitness center are located on the Main Street side of the second floor.  The balance of the second floor and the entire third floor will be commercial office space, totaling about 25,000 sq.ft.  

In the middle of the building's north half, a three-story light well is planned to provide exterior wall exposure for apartments, 14 per floor, with floors four and five as independent living units and sixth floor market-rate.  The light well will be a roof garden courtyard into which six apartments on each floor will overlook.  The remainder of the units face either Washington or Main streets.

The hotel reception, porte-cochere and a ramp into underground parking is planned for the south side of the building along Eagle Street.  Acquisition of the Eagle Street right-of-way needs to be negotiated for with the City.  When auto traffic returns to this section of the pedestrian mall, a one-way lane could be installed to connect Washington to Main Street. 

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Luv the details. Let's make this happen.

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Any plans for retail?

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Retail would be a great addition. And as far as the foodcourt goes, I hope it's NOT another cluster of fast food crap. Can we get some healthy restaurants that serve salads, sushi, non-greasy foods. We have enough fatty restaurants all over this city including the foodcourt right across the street in the once Main Place Mall.

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I'm guessing the food court will be related to the ECC culinary school, kind of like the Emerson school on Chippewa. Love that place for lunch.

replied to Lego1981
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Do we have proof of this? Is it mentioned anywhere?

replied to townline
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Build it up, break it down. The building blocks of use are being broken down and adapted, as they should be in a healthy city.

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This is great. I am nervous about the hotel part though. Seems like every new building in the CBD is part hotel. It is nice, but is there really enough demand? Are we going to end up with an empty Hyatt building when it goes out of business?

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No one worries when a new hotel goes up in Amherst. If the old hotels cannot compete with the new hotels they will go under. Competition is good. If these new projects get governmental aid that too is ok because all of the existing downtown hotels also got governmental aid. So in this case a subsidy to a new hotel is not an unfair advantage it is just helping the new guys have a level playing field with those such as the Hyatt that came before them.

occupancy wise the rate for downtown Buffalo is about 10-15% better than the US National average 70% ytd downtown compared to 64% national average. If downtown added 200 rooms and did not rent a single one of them it's occupancy rate would then equal the national average.

replied to qwerty98765
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Sally is absolutely spot on!

Plus Buffalo Hotels have a distinct advantage over hotels in other cities. Most of the new downtown hotels are relatively small by national and local standards, except the Hyatt, they are ranging from Boutique to 200 rooms. This makes it very easy in changing market conditions to remove rooms back into offices or permanent residential.

I applaud and welcome the new hotels but perhaps we need to start thinking of the big projects that would support the viability of even more hotel rooms:
-a new 450k convention and conference center
-and of course the airport light rail extension
Each would cause a boom in the Central Terminal, Larkin and Downtown Business Districts because of the added events and added patrons.

replied to Sally
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Interesting comment but The Whitney Hotel, now The Whitney Condominiums is located in a residential district that would not allow for office space without a zoning variance.

replied to Christine
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All of the existing competition to downtown hotels did NOT receive governmental aid. The Whitney has corporate rentals in direct competition with the other downtown rentals, including the Hyatt, and did not receive any aid whatsoever.

replied to Sally
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Why isn't the skybridge shown on the plan?

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When I had people coming into town for a family reunion they could not find a room in the city. That was at the end of June. How can the city compete with other cities if they don't have accomodations for the people that want to come for a visit.

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Why continue building suburban hotels when the city could use more? I know when I travel to other cities, I WANT to be in the city, withen walking distance to everything. I don't want to be in the suburbs, how boring.

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Sally>"If the old hotels cannot compete with the new hotels they will go under. Competition is good."

Hahaha funny! Go under. Right, sure. In the city they'll just get more direct public handouts.

When Hyatt struggled to "compete", instead of "going uder" it just got a grant/gift of over $5 million from taxpayers.

Money from working family taxpayers is used to subsidize well-connected millionaires like Paul Snyder and Rocco Termini.

http://www.buffalonews.com/cityregion/buffaloerie/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.
...While downtown hotel operators are reluctant to discuss their bottom lines, most are struggling, said Hart, the largest hotel operator in Erie County. “The large business-and convention-oriented hotels that have been subsidized are significant failures,” he said. “They’re all money losers.”

... The Hyatt, located in what had been the historic Genesee Building, has never made money since opening in 1984.

It defaulted on $11.6 million in loans and has been paying reduced property taxes since opening. This year, its payment in lieu of taxes is $187,000 on what otherwise would have been an $800,000 bill.

Taxpayers continue to sink money into the hotel.

Earlier this year, the state gave the hotel a $5.1 million grant to help pay for $13.5 million in renovations.

...Earlier this year, it also recived approval for $1.1 million in tax breaks from the ECIDA.

The News calculated that public assistance for the Hyatt over the years comes to about $70,000 a room. ..."

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Whatever>" In the city they'll just get more direct public handouts."

How many times are you going to post that link on the Hyatt?


Hotel subsidies are not exclusive to the City of Buffalo. The Town of Amherst promotes their subsidy options for hotels on their website.

http://www.amherstida.com/incentives/tax-abatement-programs.html

You can also apply for county help like the operator of the new hotel @ Transit and Main st did.

http://www.erie.gov/clarence/pdfs/minutes/CIDA_minutes112008.pdf

Although both Amherst and the county IDAs restrict tax incentives to developers renovating existing buildings, the ECIDA gave assistance to this new build project.
http://www.buffalonews.com/businesstoday/businessfinance/story/702084.html
The project also recieved assistance from the Town of Clarence.

Not to be outdone, Russ Salvatore requested tax breaks from the Lancaster IDA for his second hotel. These hotels are located near a hotel cluster that depends on traffic from the interchange of the publicly built I 90 and the continuously widened, upgraded on the taxpayer dime, Transit Rd.

So no it isnt just the city that gives breaks to hotels. In fact when you take into account the cost of roads and other infrastructure that many suburban hotels depend on, the Hyatt subsidy is a relative bargain.

replied to whatever
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pitbull - Haha yes you make a good point about redundancy of my point about that issue, but this time you have to admit the quote and numbers were especially relevant in response to Sally.

I just thought her assertion that a politically-backed downtown hotel would go under if it can't compete in the free market was too ridiculous to ignore.

Lots of these arguments are the same over and over: hotel subsidies, casinos, fishing stores, how to stop population loss, city vs burbs, etc. Maybe I should find some new topics to have opinions about here and keep you more interested.

replied to Armchair MBA
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At this point I would have no problem with the City-County cutting off any $$ going to the Hyatt to call Snyders bluff. If it goes under, it goes under.

I think:
1. local government doesnt want to see the convention center without an on-site hotel.

2. They(taxpayers) have put so much into the place to date that govt wants to subsidize it more to prevent failure and have all of the effort considered a waste.

3. Snyder draws a lot of water in this town and has a strong influence over policy decisions.




replied to whatever
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Again, performance levels should be reviewed before additional incentives are provided. That, and we need a larger convention center in a different location.

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agreed. but where? Cobblestone district behind the HSBC Atrium?

replied to MRodgers
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Well, not sure what else is planned there but it would enhance a visit as well as the waterfront development if it were aesthetically pleasing. Have a signature hotel attached that would afford the proper number of rooms and work a deal with them to operate and maintain the center. But, make sure there is no conflict of interest between parties and the hotel is marketed as convenience rather than the exclusive designation for convention goers. Just an idea...

replied to sin|ill
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The Hyatt had a purpose. Yes we lost the Victor Furniture Store which was a real gem for downtown but in 1984 the Hyatt had a real purpose in keeping downtown alive.

The problem is very simply, as downtown developed, the aid the the Hyatt should have ended...probably after 5 years (1989) and certainly after ten years (1994). After 5-10 years, the Hyatt fulfilled its purpose for downtown momentum building and this would have forced the business plan to be changed.

Even today, when the Hyatt got their $5million...the business plan for the Hyatt is completely wrong. The $5million in aid should have demanded the Hyatt follow the Dulki Business plan and convert a fraction of its hotel rooms to residences and a fraction of its hotel rooms to offices and of course demolish the Atrium so as to re-open Genessee Street as one of the few east side cross streets that connect to downtown and the waterfront. However, instead they just got their aid for a failed status quo.

Right again...MRogers!

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Wrong. Downtown needs a few larger hotels- conventions, the few booked into the convention center, want a HQs hotel. They don't want their delegates spread out in four to six boutique hotels. Downtown has two hotels with over 350 rooms. Kinda bush league!

replied to Christine
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Its bush league but Buffalo taxpayers are not going to give annual subsidies to a 350+ room hotel that never made a profit forever just to get that.

All the subsidies that a HQ hotel received could have built a new 450k sqft conference and convention center that in turn would have brought the conferences and the conventions of the size that are needed to support an HQ flagship hotel.

The Hyatt, plain and simple is to large for the current convention center and our current convention center really doesnt support anything more than boutique hotels.

If you feel that strongly then raise your voice and help get a new conference and convention center in the cobblestone district built.

There can be no expansion of the current convention center downtown. Period! Its obsolete. Further than can be no convention center anywhere downtown because people will not stand for any more demolishing of the remaining downtown city blocks and they will not stand for closing off any more of the street grid. There are a few areas like Buffalo Forge on the eastside, there is the Outer Harbor and the Inner Harbor and the Cobblestone District...

If the new conference and convention center is light rail accessible then the Hyatt is still viable. If they choose a location and do not extend the Light Rail to it then the Hyatt is finished and needs to go mixed use.

In any case...the subsidies need to go to a new convention and conference center...not a failed and mismanaged never made a profit 350+ room hotel that only exists because of taxpayers.

replied to Platt4
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Yep. I can't think of a city that has done a major convention center expansion or new build that didn't include a major full-service hotel. And since Downtown doesn't have that many rooms altogether, a c.c. hotel could be built with more rooms than usual to serve the typical needs of the area economy. Getting light rail out to the airport would help immensely by giving visitors an option besides renting a car and staying at a predictable roadside Ramada Inn.

replied to Platt4
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Is it not feasible to convert the Main Place Mall footpint into a massive convention hall on the second level if you floored it in? Seems the footprint is much larger than the existing convention center and you would have immediate access to the light rail line, a few major corporate offices and Lafayette Square. Seems Lafayette Square and nearby buildings including the AM&A's conversion project would benefit from something like that. Move the office tenants in the former mall up into the Main Place tower and reduce any vacancy there. While they're at it, figure a way to pop a hole through the first floor of the lengthy mall section between Main Place Tower and Liberty Bldg in order to reconnect Eagle Street. Heck, for Convention Center purposes add a covered pick-up, drop off at the ground level with the convention floor running the entire length of the existing footprint above on the second level. This would also allow for some covered first floor retail/ restaurant establishments.

For me I think its better to maintain a critical mass of intense uses within the core rather than to sprawl out downtown at this point into vacant lots on the downtown fringe. I cant see downtown as yet being dense and intense enough to justify expanding it. Downtown needs to infill first.

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you're right, density is the key. but you also have to think of something like a convention center as a chess piece- where in the city would it also enhance/strengthen a currently unrelated use (such as near canalside), or could it be used to make up for a previous mistake (possibly near a new stadium close to CBD). MPM is a good idea too, but how much of the first floor is already used as office space?

replied to flyguy
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A convention and conference center is the WRONG infill for the core central business district and core downtown.

Conventions and conferences need the following:
-large footprint city blocks for the facility
-available land surrounding it to expand
-light rail access
-highway access
-available land for open lot parking, parking garage etc
-somewhat near hotels, entertainment and tourist attractions

The reason you cannot use convention and conference space downtown:
-the grid for city blocks is to small
-neither the people, nor the preservationists nor the city want to close off anymore downtown streets
-core central business district and core downtown streets are too small for masses of large trucks required for conventions
-highway access is to far away, with traffic
-close parking is expensive, not close and the parking that is close is usually at capacity from conducting daily business
-any light rail will take care of access to hotels entertainment and tourist attractions.

The best location is a short extension of the light rail along South Park, my preference is to the Old Ohio Basin under Father Conway Park which historically was the end of the Erie Canal Warehouse District...a perfect bookend for the successful developments at canalside, large footprint city blocks, plenty of room to expand, I-190 is a few blocks away, wider streets for trucks, plenty of room for parking, parking garage and hotel...not to mention atleast 10-20 years of room to expand.

You can infill downtown with many things...but putting a convention and conference center into an areas that is to dense or growing so fast that it will be dense in a few years like canalside merely makes a multi-million dollar investment obsolete.

We cant merely relocate a 100k sqft convention center. Buffalo really needs and can support up to 450k in combined convention and conference facilities...and with Buffalo budget constraints it may need to be done in 150k sqft incremental stages.

One last thought...for those that dont take a new convention conference center seriously or downtown hotel rooms seriously. THE BUFFALO SENECA CREEK CASINO WILL NOT REMAIN POSTPONED FOREVER AND IT WILL BUILD ITS HOTEL ROOMS AND IT WILL BUILD ITS ENTERTAINMENT AND BUFFET AND BANQUET FACILITIES. LOOK AT THE SENECA NIAGARA CASINO!!!!

IF WE DONT HAVE EXISTING RESTAURANTS, ENTERTAINMENT, HOTEL ROOMS, CONVENTIONS AND CONFERENCE FACILITIES IN THE PRIVATE SECTOR THEN THE SENECAS WILL NOT NEED TO HONOR ANY NON-COMPETE AGREEMENTS WITH OUR BUSINESS COMMUNITY. THE SENECAS CAN OPEN ENOUGH HOTEL ROOMS TO CLOSE THE HYATT, ENOUGH BANQUET SPACE SO WE DONT NEED A NEW CONVENTION AND CONFERENCE FACILITIES AND ENOUGH ENTERTAINMENT TO MAKE SURE THAT OUR CURRENT RESTAURANT&ENTERTAINMENT NEVER GROWS BEYOND WHAT WE CAN SUPPORT TODAY.

THE CLOCK IS TICKING FOR MORE THAN JUST AM&As AND STATLER AND CONVENTION CENTER!

replied to flyguy
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I would do the pool and the bar at the seventh level terrace, but that's just me. The atrium is a great way to break up the floorplates and take some of the boxiness out of the AM&A's. I also think that penthouses at the 8th floor up with a gardened terrace would be great. Good luck Rocco!

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Since it is utilizing NY State funds shouldn't we all have a say in how it is developed. I mean we the people should have our voice heard in everything, from carpet design to blinds to where the bar is placed. For example, I think the building should be extended to the tracks, since there isn't a curb. I also think they should add on 6-7 more stories and build in an aquarium somewhere between the 4-6 floors.

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If they extended to the tracks, what will happen when they finally fix Main Street so traffic can drive and park on it again? Adding floors would be great or even extending the top floors out to make it an 'even' square building, like all glass/modern look on it's top. But, as far as the current project ideas are, I luv them, but would like to know what type of food court this will be? (fast food?, upscale? mixed? what?) and would like to see some space dedicated to retailer. Has any national retailer been contacted yet?

replied to KarlMalone
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Someone's sarcasm meter is off today...

replied to Lego1981
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Karl>"they should add on 6-7 more stories and build in an aquarium somewhere between the 4-6 floors"

You're doing your Christine/Queencity impression again - pretty good!

replied to KarlMalone
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