Real Estate October 19, 2010 1:30 PM

Amherst Firm Moving to Delaware Avenue

Amherst Firm Moving to Delaware Avenue

An Amherst financial services firm received a $24,000 incentive package from the Erie County Industrial Development Agency to relocate its headquarters to 600 Delaware Avenue. 

Alliance Advisory Group, Inc. and 600 Delaware, LLC are investing $2.7 million to purchase and rework vacant space which was formerly home to Rural Metro Ambulance.  The 21,300 sq.ft., two-story building was built in 1962 and is currently owned by DANFB Associates, LLC, an affiliate of Benderson Development. 

From The Buffalo News:

This is an adaptive reuse project on a building that has been vacant for eight years," said Karen M. Fiala, the IDA's assistant treasurer.

Because the project involves incentives for a company moving from one local community to another, IDA officials contacted Amherst representatives about the project, but no objections were raised, said John C. Cappellino, the IDA's executive vice president.

The project is expected to create 15 jobs within two years, boosting Alliance's employment from the 35 people it employs at its current office at 350 Essjay Road to 50.

"This is a great project," said Buffalo Mayor Byron W. Brown.

Alliance Advisory Group is a financial services firm headquartered in Amherst with additional offices in Rochester, Syracuse and Jamestown.  It is one of the top 100 private companies and one of the largest independently-owned financial services firms in Western New York according to their website.

DSC01678.JPGPhotos by Dylan Marsh

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BUFFALO - 1
AMHERST - 0

We need to see more of this type of migration back to the city more often. It is time the suburbanites realized that Buffalo is the city that made their precious suburbs possible.

Score: 1 ( 25 votes ) Vote up Vote down Report this comment

I gather your scorecard was just started today :)

replied to Peter_Parkdale
Score: 10 ( 24 votes ) Vote up Vote down Report this comment

Yeah.. it's a huge victory when the City and the Suburbs are competing with each other for jobs and not with other cities outside of the region. People who look their nose down on suburbanites are no different than suburbanites who look down on city dwellers... as in they're immature and we need far less of them.

Time to accept that both the cities and suburbs are dependent on one another for the time being so lets stop this grade-school pissing match. Time to focus on bringing jobs into the region as a whole.

Score: 18 ( 28 votes ) Vote up Vote down Report this comment

Dont worry, every year we have far less and less of them...
VOTE OUT ALL LIBERAL DEMOCRATS WHO HAVE RAVAGED OUR WNY AREA FOR THE LAST 30 YEARS! WE NEED CHANGE NOW. VOTE NOV 2

replied to jumpingbuffalo
Score: -10 ( 36 votes ) Vote up Vote down Report this comment

Well said.

replied to jumpingbuffalo
Score: -5 ( 17 votes ) Vote up Vote down Report this comment

one company i'd love to see move from amherst back into the city is Buffalo Spree. I know they cover events/businesses/homes in the suburbs too, but come on now, the city's name is right in the title!

Score: 18 ( 24 votes ) Vote up Vote down Report this comment


So when Amherst 'steals' a company from Buffalo using IDA breaks...it is bad.

However, when Buffalo 'steals' a company from Amherst using IDA breaks...it is good.

Got it. I guess this solves the issue of IDA breaks.

Score: 6 ( 16 votes ) Vote up Vote down Report this comment

In a region of shrinking population, doesn't it make more sense to invest in contracting into existing infrastructure in the regional core?

Never mind, this discussion has been had on Buffalo Rising a thousand times already and I don't think anyone's going to change their mind about the subject with one more go around.

replied to longgone
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Exactly. There is a net benefit in contracting to all and a net negative to all in expanding outward in a shrinking region

replied to JSmith
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Amherst is a wealthy community with the taxpayer funded cash cow of UB yet still they felt a need to pirate business from Buffalo for the past 40 years, that's the dfference.

replied to longgone
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Blackrocklifer> Amherst is a wealthy community [snip]

Not any more. Been down Sweet Home Road lately? In reality there are now two Amhersts; an increasingly lower-middle class, increasingly black Amherst west of Millersport Highway, and a more ethnically diverse middle- to upper-middle class Amherst east of Millersport. Millersport Highway in Amherst has become the equivalent of Main Street in Buffalo as a dividing line between rich and poor, black and white, renters and owners, Section 8 and market rate, blue-collar and white-collar, declining neighborhoods and desirable districts.

I've said it before: the "Amherst is a wealthy WASP-y community" meme on BR is a myth. Sure, compared to Buffalo and other suburbs in the region, Amherst may seem well-off. However, compared to the 'burbs of Rochester, Detroit, Cleveland, Columbus, Chicago, and so on, Amherst is surprisingly average.

replied to Black Rock Lifer
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In actuality and according to the US Census Bureau the suburbs of Buffalo are slightly wealthier than those of Rochester

replied to Dan
Score: 3 ( 7 votes ) Vote up Vote down Report this comment

What is your love affair with the Rochester suburbs all about?

replied to Dan
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Dan, you're right. Amherst has been invaded with crime by the blacks and gangs that go along with them. It's sad...but very similar to South Buffalo, which has become a war zone with blacks and puerto ricans invading the area...
If we keep knocking down homes in the East Side, they all move out to the nicer cleaner areas...it's sad

replied to Dan
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longgone> So when Amherst 'steals' a company from Buffalo using IDA breaks...it is bad.

Nobody benefits when cities, towns and villages poach businesses and jobs off of each other, with no new jobs created as a result. From a regional standpoint, economic development is pointless if it's just a zero sum game.

replied to longgone
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This is the absolute truth, and it shows the short-sightedness of so many commenter here. This isn't a cause to celebrate! It creates NO NEW JOBS for anyone. It's a lateral move. Not advancement. Not improvement. We, as a region, gain nothing from this move. Zero-sum indeed.

replied to Dan
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When a company moves to a location where it is more accessible to non-auto transportation networks and concentrations of poverty, it is a huge gain for the region. Less carbon, less infrastructure, and more opportunity.

replied to Tempest56
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"increasingly black"

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When the first round of counts comes in from the 2010 Census, expect to see surprised public officials in Amherst and Cheektowaga. Also, a lot of shocked homers, who can no longer harbor outrage about the racist lily-white suburbs.

For decades, black suburbanization has been reality throughout the country. Buffalo is just late to the party, thanks to geography and a much smaller black middle class that would otherwise be "pioneers". Like the outward migration of Cleveland's African-American population took a geographic split around Cleveland Heights and Shaker Heights, the Amherst neighborhoods of Snyder and Eggertsville is a "wedge" splitting the growing suburban black community. There's now two separate paths of outward migration; east through Cheektowaga in Cleveland Hill and Pine Ridge, and north through Amherst following Sweet Home Road.

Anyhow, this is all an aside. Amherst isn't rich. Let's compare the 2000 MHI of Amherst with an entire county outside of Detroit or Cleveland ...

Amherst, NY $55,427
Oakland County, MI $61,907
Geauga County, OH $60,200

replied to Mark Hitchcock
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It's funny how these mid-20th-century buildings, which I used to have nothing but contempt for, have become appealing to me.

Score: 4 ( 6 votes ) Vote up Vote down Report this comment

How pathetic that this "discussion" becomes yet another "Amherst is evil" session. You city-lovers need to get over yourselves.

Also pathetic: How a relocation and investment for 2,700,000 is all of a sudden made possible by a benevolent government giveaway of 24,000.

You idiots mean to tell me that a company will uproot itself entirely and move to somewhere it'd allegedly NEVER consider going because they were bribed with less than 1% of the overall investment?

GIVE ME A BREAK.

This company wanted to move, was ready to invest a couple million. Buffalo giving them the equivalent of a few cases of Blue is a joke - their executive team can join their favorite CC for a couple years.

It's VERY telling that the Buffalo Rising More-Government-Is-Good-Government crowd would lead this post with the IDA's pennies as if it was the only way this deal was possible, and ignores the usual problem of multiple IDA's passing money around to poach from each others' territory.


As a postscript, 35 whole employees gets you on some "top 100 in WNY" list? Ye gods.

Score: 3 ( 13 votes ) Vote up Vote down Report this comment

Actually I think most people on BRO would like to see less government. Lets start with having one School District like they do in the county Charlotte NC is in. That would be ONE instead of the TWENTY NINE that Erie County has.

replied to Jesse
Score: 2 ( 8 votes ) Vote up Vote down Report this comment

I'm sure it does streamline things, but even in Charlotte they have separate zones within the single district and they end up with "bad schools" and "good schools" based on the wealth of the zone the school is in.

replied to STEEL
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You pointed out an interesting duality in the "mad as hell crowd". They constantly rail on government, as long as they perceive it benefiting others, yet they go as far as pinning their identity, and in some cases, their own false sense of superiority, to government entities and services that they benefit from.

19th century style federal government, gigantic local government=good while a single, efficient school district, metro government= socialism.

replied to STEEL
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Have you read anything recently about the state of Charlotte's school system? They are about to race riot down there because of the school system. Not necessarily something I would like to emulate.

replied to STEEL
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A recent study by the UB Regional Institute showed that the savings associated with school district consolidation was not as great as one would think. Only 5.4% of school district expenses are related to administration, that includes Principals, Assistant Principals, Superintendents, Curriculum developers, etc. Most of those jobs will still be required after consolidation, in fact only .5% of the total administrative costs could be saved through consolidation. This totals about $800,000 per year in savings.

That $800,000 per year would be great, if we didn't have to factor in the increased costs of transportation, new buildings, leveling of salaries, consolidation of benefits, etc. At best it would be a wash for the first few years, at worst it would increase cost, lower services, and ultimately lower property values in many of the more affluent areas of WNY. Lower property values means lower tax assessment which means less money for the county each year. This is highlighted in another study by the Regional Institute.

http://regional-institute.buffalo.edu/research/series.cfm?ID=63&Series=19

replied to STEEL
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So then we do want big government? Interesting.

replied to sho'nuff
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Uh, no! There are a millions shades of grey in between your black and white extremes.

replied to STEEL
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I agree this firm most likely needed little incentive to move downtown. Before moving the office out to Amherst, Alliance Advisory was located downtown on Niagara Square.
It will be of little consequence to Benderson Development on Essjay. 35 employees might take up a floor. It's not as if an entire building will be vacant.

replied to Jesse
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This is a definite win for the city and that strip of Delaware; however, this is not a win for the region, which Buffalo and the suburban and rural towns of Erie County are a part of. No new jobs were created as a result of this move (as mentioned numerous times before) and now there is an empty building in Amherst that has the potential to promote the same kind of blight/decline that the city has been abused with for the last half-century.

I am all for the region realigning its goals of expansion to one of filling the gaps in its core, but I call into question the mentality that allows us to celebrate at the expense of another empty building. There needs to be a regional plan (which includes all of Erie and Niagara County) drawing a line in the sand as to where and how new and existing businesses operate, expand, or move and promotes less car depended more walkable/public transportation design. There needs to be a promotion of policy that encourages businesses to start, move, or expand into WNY. There needs to be a more prominent Urban Homesteaders program that encourages people that may build new in the suburbs to gamble on saving an old home in the city, reducing the need for expanded infrastructure and helping to stabilize communities in peril. I know this is a fool’s dream since it is quite evident, based on the postings on BRO and other sites and the discussions I hear here and there, that very few people can let go of the bitterness and self-victimization this region seems to breed.

I am often astounded at some of the things posted that smack of such absurd provincialism and hypocrisy by people that I have come to respect over the years of regularly visiting this site. There is no great conspiracy to steal business from the city by the suburbs and in reverse, I do not recall armies of city dwellers descending upon the suburbs to spread the disease of crime and violence. These gross generalizations and outright fallacies must stop in order for us to realize any forward progress. Like it or not, neither the city nor the suburbs are self-sufficient and rely on one another for their continued existence. We need to stop fighting with one another and reveling when misfortune descends upon our neighbors. Let’s start fighting the real battles which exist between the citizenry of WNY and the elected officials and captains of industry on the local, state, and national level that keep us neutered and impotent.

Then again, I am a dreamer and a fool . . .

Score: 1 ( 3 votes ) Vote up Vote down Report this comment

According to the article, this move is allowing them to expand from 35 to 50 positions.

I agree that this may not be the best news for Amherst (although I am sure the multi-tenant office park that this company is moving away from will be just fine). But I firmly believe that reducing sprawl is a positive thing for the entire region. In the long term it reduces costs, taxes, and increases quality of life for everyone.

We are a region of declining population. There are going to be buildings left empty and slated for demolition until that changes. I would rather see that happen on the fringes, hopefully returning former farmlands and forests to their original uses, rather than in downtown Buffalo, hollowing out the city center while the region continues to sprawl outwards in concentric rings of abandonment.

replied to armyof100clowns
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JSmith - I couldn’t agree more. The act of infill is better than the current unsustainable outward expansion and the destruction of the surrounding rural environment (something I frequently lament on this site); however, the trend here (and elsewhere) of adopting the “better them than us” position only promotes division and ill will, perpetuating the ridiculous infighting that prevents us from focusing on making this region a better, more stable place.

But . . . with that said, I would rather see a building constructed with care and craftsmanship (not that 600 Delaware really fits that profile) saved over one built on the cheap and at the expense of the environment.

Oh - and thanks for the correction about the jobs - I should have read with a little more care.

Score: 2 ( 2 votes ) Vote up Vote down Report this comment

@ Dan - To your comment -

"Nobody benefits when cities, towns and villages poach businesses and jobs off of each other, with no new jobs created as a result. From a regional standpoint, economic development is pointless if it's just a zero sum game."

I have to disagree. The benefit is actually keeping the business in WNY v. moving to another region. THAT is the regional benefit.

We are not playing SimCity. You can not force businesses to move to an area because it fits better into some armchair plan for redevelopment. In an idea world, there would not be the need for IDA breaks simply because WNY is so vibrant and growing, businesses would want to stay or move to the region just to be a part of it.

Lost in all of the comments about IDA breaks is the net benefit, regardless of if it is Amherst or Buffalo. This group is getting $24K in exchanged for investing $2.7M or for every $1 of tax breaks, this company is going to spend $112.50.

But the idea that Buffalo owns the right to all growth, simply because it needs it the most, is downright stupid. It is that arrogance that makes most of Erie County not care about the city.

What a lot of people fail to recognize is that every healthy metro area has urban office space and suburban office space. These two options go hand in hand. The narrow view that Steel has of "a net benefit in contracting to all and a net negative to all in expanding outward in a shrinking region" is naive.

Right now, WNY is on the verge of great opportunity. It is also on the verge of sinking further into a black hole. The way I see it, the COB should focus on the BIG FISH. Instead of looking to 'steal one from Amherst', they should use every break possible to ensure that First Niagara, M&T and HSBC stay in the downtown core. They should use every break possible to attract out of region options to expand the medical campus and lastly they should focus on technology. With the recent news that Verizon wants to build a $4B data center, that market should grown.

In a healthy region, the city lands the BIG FISH and the suburbs collect the spin off. In WNY, Buffalo is trying to compete with Amherst instead of trying to compete with other cities. THIS is the zero sum game. The reason is Buffalo and Amherst are two different flavors. They need to work together to make WNY a better option than other metro regions. But in order for this to happen, Buffalo needs to stop crying about what Amherst does and just focus on what it should be doing.

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Great post!

replied to longgone
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One of my biggest internets pet peeves is on magnificent display in this thread! Multiple people have done this, not just you, but I'm replying to your comment because you took it over the top with, "But the idea that Buffalo owns the right to all growth, simply because it needs it the most, is downright stupid. It is that arrogance that makes most of Erie County not care about the city."

People, we need to stop conflating a few comments on a blog with "The City of Buffalo." Just because STEEL or iluvpitbulls or blackrocklifer or I write comments in support of development in the City of Buffalo doesn't mean that the City itself is "worried about what Amherst did to it." And the City is certainly not "arrogant." People can be arrogant. Individual comments can be arrogant. But jebus, it's a city! It doesn't have feelings or emotions. And what a few people say on this website doesn't represent anything more than what a few people say on this website. There is no larger significance to it.

As for "most of Erie County not car[ing] about the city" - come on. That is just absurd. Some people in Erie County probably don't. But what of it? I would guess most people do care, whether they live in the city or not. Ever been to a Sabres game? Or watched on on TV? So have a lot of other people in Erie County. Did you notice how big a story the "Canal side" gong show became? That's because people care about it and are interested by it. People want to see good things happen - everywhere.

You must be from the generation of pathological urban loathing. Fine. That is your reality, but it isn't true for everyone. To make such ridiculous, unquantifiable generalizations only speaks to your own inherent interests and biases, nothing more. So learn to speak/type with that appreciation in the back of your mind.

Lose the attitude about "BRO people" and the "city vs. suburbs" talk, and you might have some interesting points to make. Everybody has an opinion. You may agree or disagree with them. But we all need to stop with this bullshit about "You see why nobody likes the city! Because of what you wrote on this blog!" That's a garbage conversation based on a false premise that only serves to confirm your existing opinion, and drives potentially interesting conversation into the gutter. If you think "most of Erie County doesn't care about the city," then engage in a substantive discussion about it. But you can't logically believe that to be true simply because you dislike what I'm typing right now - can you?

So, let me try to practice what I preach:

Why do you think "the City" cries too much about what Amherst does and doesn't focus enough on what it should be doing? What gives you that impression? What part of "the City" has been crying about Amherst?

replied to longgone
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The 'idea that Buffalo owns the right to all growth, simply because it needs it the most, is downright stupid. It is that arrogance that makes most of Erie County not care about the city" belong to the posters here. I was making no claim to speak for the city, I was speaking to the actual claims posted here.

As for most of Erie County not caring about the city...that is my opinion and one that is shared by almost every county resident I know. To make the connection that support for the Sabres = support for the COB is absurd. If you think the majority do, that is your opinion. To each their own.

As for making an assumption on my pathological urban loathing, you could not be farther from the truth. I am live in the urban core, prefer walking and public transportation, live in a 4th floor condo and the like. However, I am not ignorant to the other side of the conversation. I understand the wants for people to live in places with lower crime, better school, yards and the like.


As to your last question...

While I used Amherst, it really is a City v. County/Burbs issue IMO. For the last 50 years, the COB via elected representatives, have made countless mistakes. This mistakes have accelerated the decline of the region. The County/Burbs, while making mistakes on their own, have fared better over most metrics.

Migration, of both businesses and residents, inside the region is often viewed as abandonment but in reality it is more about political alignment. Businesses and residents moved to areas where they felt they had more power or voice, which they do. Everything from building codes to the schools are run differently and people and businesses made a choice to locate in an area where the process of these aligned with their views.

This brings us to today. Instead of fixing the issues that caused people and businesses to move in the first place, there is an overwhelming sense of entitlement. There is a sense that the city did no wrong. You hear this from politicians, pundits, preachers and protesters. On topics ranging UB North to the 33.

In fact, UB is a great example. For years there has been complaints about the lost opportunity of UB going to Amherst. Never mind that the desired campus for UB could have never been built in Buffalo. Never mind that it is never going to relocate. With these two facts being ignored, it is easier to talk about what could have been. Of course lost in all of this is the fact that the COB has Buffalo State, Canisius, D'Youville and Medaille, which have about 80% of the enrollment of UB - including the South Campus in the city. If Buffalo would have focused on what it had, instead of what it didn't, the region would have been much better off.

replied to reflip
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Good response - I appreciate it. I have one quibble though - I didn't say you loathe cities. I said you are "from the generation of pathological urban loathing." And everything you've said in your reply leads me to believe I am still correct about that. You might love cities personally, but you have been culturally conditioned to believe that the City of Buffalo is bad at everything.

As a child growing up in Queens and then Long Island in the 1980's, I was never culturally conditioned to hate New York City. My father took me to the AMNH, the Met, and Central Park when I was a kid. As a teenager, I learned how to explore Greenwich and Brooklyn on my own (with my friends, that is). Is Buffalo like NYC? Of course not. But since I live in Buffalo now, I appreciate it for what it is. This notion of "having a voice" in the suburbs but not the city is absolutely foreign to me. I know my council member, I vote, and I don't know what else you could possibly want out of a government other than the ability to participate.

Now, I believe that this concept meant/means a lot to you and your generation. And I concede that I don't "get it." But all I am asking from you is for you to admit that your attitudes are nothing more than cultural conditioning, just like mine. I wasn't taught to hate Buffalo. Someone taught you how to think the way you do. Someone taught you how to hate the City of Buffalo. I am unburdened by that, since I'm only 30 and I didn't grow up here. UB is where it is. Businesses are where they are. If they move to the city, I assume it's because they want to be there. Every business that moves anywhere in NYS gets some kind of tax incentive to do so. That's how the game works. You seem to know that, and yet, you seem to think that businesses moved to the 'burbs of their own volition because of values, but they are moving back to the city not because of "values" but because they're being bribed by IDA's. I'm going to have to disagree with you on that. I think the "values" are shifting back towards the urban core. In 1980, suburbanization was a "value" to businesses. In 2010, urbanization is a business value - to some. That's just how it goes.

So, Buffalo may have committed various sins in the '70's, '80's, or '90's, but I don't care. If what the City does TODAY fails to live up to my values, I'll surely move back to Brooklyn. But until then, my family and I will enjoy our lives in Buffalo. And when we hear about a company moving into a building on Delaware that's been vacant for 8 years, we'll just think that's good for them because they've picked a really nice location.

replied to longgone
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I do not hate the COB. I dislike elements of the city, but overall I am like a disappointed friend who has a screw up that just can not get things right.

I dislike the politicians and the fact that regardless of how bad they perform they win by landslides. I dislike the unions who have the city by the balls. But mostly the Buffalo resident who simply can not admit the possibility that the status of the city and their plot in life has something to do with their actions.

But this frustration is just that. Frustration not hate. It's also has nothing to do with cultural conditioning and I think you are crossing the line in your assumptions. You come off a rather pompous FWIW.

You are simply living up to my expectation of how a 'Buffalo resident" thinks. Instead of saying..this person made observations on a day to day basis and his observation is not flattering, you try and pass off the views of many as some conditioning. A load of arrogant BS if you ask me.

For the last time, please stop trying to put words into my mouth and make assumptions. I never said anything that would resemble:

"seem to think that businesses moved to the 'burbs of their own volition because of values, but they are moving back to the city not because of "values" but because they're being bribed by IDA's."

I am happy the company is moving back into the city and think it has more to do with alignment than the IDA breaks. It is only $24,000 for Christ's Sake.


So since you are Today guy...

How do you feel about the work the COB is doing to keep HSBC?
What about First Niagara? Or M&T? What is the COB doing to piggyback off the $4B, yes BILLION, plus in data center development? How is the use of HUD funds going? How about those demolitions? What is your opinion on how City Hall is really controlled by the preachers/grassroots on the east side?
Think Byron Brown is doing a good job? How did that Karl Thomas situation play out? Just who is Steve Casey and what does he do?


If you are too smug or too stupid to not see the fail all around you or your standards are so low that you do not see fail at all...well then you are essentially the part of the problem.

By the way, I am just 4 years older than you and we are in the same generation.

Thanks for coming out kid.

replied to reflip
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I think its terrific that another company is moving into the city. I've been looking for a job for months (presently employed and looking to make a change)and the city is as far North as I really want to go, as it takes me an hour to drive that far. Most of the opportunities in my field (legal) are in the Northtowns.

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