At the end of March, Erie County's Legislature approved a program that allows private developers to compete for a pool of federal financing provided by selling Recovery Zone Facility Bonds (RZFB).
The City of Buffalo is receiving $7.2 Million in facility bonds while Erie County has an allocation of $17.1 million.
Recovery Zone Facility Bonds are a tool for encouraging private investment in economic development and job growth. RZFB are a new type of qualified private activity bonds. RZFB create the ability to use tax-exempt borrowing for a wide range of business development.
Representatives from Erie County and the City of Buffalo will be reviewing applications and selecting projects for funding. To help ensure maximum economic benefit, there was a $3 million minimum funding request.
The deadline to apply for the tax exempt financing was May 10. According to Business First, eleven applicants are seeking a total of $113 million in funding for a range of new (and old) projects:
• Seneca Exchange/Larkin Partners are seeking $12.4 million for a pair of renovation projects at 701 Seneca St. and 635 Seneca St. (right) -- two new, mixed-use potential anchors for the Larkin area being championed by developer Howard Zemsky.
• Galvstar LLC has filed an application seeking $18.8 million for its plans to convert a former American Axle plant into a galvanized steel operation.
• Riverwright LLC is hoping for an $8 million allocation for its proposed ethanol plant in Buffalo.
• Developer Sam Savarino filed an application, seeking $4.5 million for his restoration and renovation of a historic warehouse at 500 Seneca Street into a mixed-use project. The property is also in the middle of the Larkin area footprint.
• Iskalo Development is seeking $4.6 million to aid with the renovation of the former Kane-Doyle Jeep dealership property on Delaware Avenue in Kenmore.
• Multisorb Technologies filed an application seeking $20 million for renovations and expansion of its plants in Cheektowaga and West Seneca.
• Developer Gerry Buchheit, through his Queen City Landing LLC company, is seeking $24.2 million for his plans to renovate the vacant, former Freezer Queen warehouse and manufacturing plant on Fuhrmann Boulevard into a mixed-use project anchored by upscale condominiums.
• Mark Croce, under the guise of his Baha Beach Club corporate entity, filed an application for $6 million to convert the former Curtiss Building on Franklin Street into a 56-room boutique hotel (rendering right).
• 107 Delaware Holdings LLC is seeking $8 million for its efforts to restore the mothballed Statler Towers into a mixed-use development, anchored by a 235-room hotel.
• Retractable Syringe LLC is seeking $6.5 million to create a start-up medical incubator at a location to be determined later.
Projects will be evaluated based on their return on investment to the community, financial capability and ability to close the Recovery Zone bond by December 31, 2010. Decisions are expected next month.
A few of these projects were previously unknown. Mixed-use redevelopment of 701 and 635 Seneca Street would continue work in The Hydraulics neighborhood in a big way. The mammoth Seneca Industrial Center at 701 Seneca and four-story building at 635 Seneca are adjacent to tje highly-successful Larkin at Exchange building.
Galvstar is a Canadian firm that wants to open a galvanized steel operation in a portion of the former American Axle facility on East Delevan Avenue. The firm would create 50 jobs that would pay an average of $68,000 a year.
Savarino is seeking assistance for a mixed-use redevelopment of a former factory at 500 Seneca Street (rendering right). Mark Croce is seeking additional funding to rehab the historic Curtiss Building at 204 Franklin Street downtown.
Interestingly, 107 Delaware Holdings LLC is seeking $8 million for restoration of the Statler building. The development group is believed to be the partnership headed by William Koessler, the high bidder at the Statler auction that failed to complete the purchase.
Personally, I favor projects that create jobs like Galvstar or Retractable Syringes' start-up medical incubator, or the synergy that could be added to the Larkin District's by the three projects proposed along Seneca Street.
JS> " Personally, I favor projects that create jobs like Galvstar..."
Agree. All of these projects appear to have merit but I think the A.A. site venture has the most upside as far as job creation and economic development.
Retractable Syringe LLC? Wasn't that the name of one of those fictitious companies in the movie Boiler Room?