Real Estate November 10, 2010 9:00 AM

Rudnick the Wrecker: "Difficult to Justify" Saving the Statler

Rudnick the Wrecker: “Difficult to Justify” Saving the Statler

Andrew J. Rudnick is at it again.  The president of the Buffalo Niagara Partnership has again gone on record saying that investing in the Statler is unwise.  Curious talk from the head of an organization "working for improved business competitiveness and expanded economic activity in the region" and advocates for "policies and resources to increase private sector investment and jobs."

Rudnick is interviewed by YNN's Ryan Burgess:

"It's an enormous building in a state of significant disrepair that requires investment that the market won't support," said Rudnick.

"It's thinking with your heart or thinking with your head. With your heart you want to preserve it. With your head, you find it very difficult to be able to justify it," said Rudnick.

A group headed by developer Mark Croce has a November 15 deadline to close on their winning bid for the building.  Andrew Rudnick fears the $100 million it could take to restore the Statler might merely shuffle the deck of downtown real estate.

"That won't create one job. It will likely just make it more attractive for people to move from yet another office building downtown into that office building. Or another set of apartments to that one," said Rudnick.

A Google search didn't find Rudnick rallying against suburban office buildings, green field subdivisions, hotels being built, new office construction downtown or the numerous residential conversion projects completed in recent years.  Each had the potential to pull tenants from existing buildings.  Shouldn't the head of an organization "working together for growth in our region" be recruiting new businesses to the area to fill both new and existing space?

It makes you wonder why Rudnick is so vocal in support of demolition of the Statler and the creation of a two-acre parking lot shovel-ready site on Niagara Square.

Get Connected: Buffalo Niagara Partnership: 716.852.7100; Rudnick email.

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TOOOOOOOOOOOOOOOOOOOOOOOL! what a joke Rudnick is? Who's greasing your palm Andy? Who you hoping will get this site? Why don't you stick to your knitting you imbecile--and do NOTHING for Buffalo.

Score: 13 ( 21 votes ) Vote up Vote down Report this comment

I wish they would knock it down. It's a hazard to the public and not a very handsome building anyway.

Score: -35 ( 51 votes ) Vote up Vote down Report this comment

This building is too critical to be destroyed. From all the reports and articles I've read recently it appears that the downtown housing market (apartments and condominiums)still has more demand than the market can supply and there is constantly a complaint that there is not enough class A office space downtown. Problems solved. A $100 million investment now would mean this building lasting well over 100 more years. We can't be short sighted with this gem in the heart of our downtown core when we're finally getting international recognition for our preservation and architecture.

Score: 8 ( 16 votes ) Vote up Vote down Report this comment

What a crying shame it would be if the city was to loose the Statler. I had the pleasure of doing a few weddings there during my stint in Buffalo and every time I walked in the building a feeling of awe would wash over me. The place reeks of history and holds a memory of some sort for just about every single person that has lived in Buffalo.
Even though the economic climate is more stable in Buffalo than in many other parts of the country due to it's own downturn being years ago, this is the wrong time for any developer to take on such a massive project. Even in larger city's projects of this scale are not happening or are on hold. I truly hope a remedy can be found.

Score: 7 ( 11 votes ) Vote up Vote down Report this comment

This is disappointing coming from a person that is supposed to be thinking in a more innovative way to promote business in WNY. Did he really say that a renovated Statler would only be shuffling the deck? Really? Isn't it his job to fill the Statler with new businesses from other places? Do we have a defeatist running the organization that is supposed to be winning the game for us?

His thoughts on the Statler are extremely short sighted. Parking on Niagara Square? Really? That is the best BNE can come up with? This is very disappointing.

Score: 14 ( 24 votes ) Vote up Vote down Report this comment

WOW biased slant much? Sounds to me like he would like to save the building (with his heart) but can't justify pouring millions of dollars we don't have into keeping it (with his head). No where do I actually see him SUPPORTING the demo. He just can't see how we can afford to save it.

Score: 7 ( 19 votes ) Vote up Vote down Report this comment

I don't understand the uproar. Everything that Mr. Rudnick said is true. He is a proponent for the business community. Redoing the Statler is not good business decision for all the reasons that he stated.

HOWEVER that doesn't mean that it should be torn down. Business thrives on security and what is known. Unknown isn't good for business. A new office building or something that floods the market will produce a large unknown. It could produce deflation in the market or it could produce an opportunity to rework downtown with new jobs attracted by our dramatically low cost of living and educated workforce.

Rose colored glasses, yes, but at least we won't have to travel to the Chicago Hilton to tell our kids and grandkids what once was in Buffalo.

Score: 3 ( 15 votes ) Vote up Vote down Report this comment

UB should be stepping up here...what a way to demonstrate a commitment to downtown.

Score: -6 ( 22 votes ) Vote up Vote down Report this comment

We can't expect UB to fix all of the regions ills. It would be nice, but we shouldn't expect it.

replied to MJ
Score: 15 ( 17 votes ) Vote up Vote down Report this comment

How many of the region's ills were started/accelerated/exacerbated by UB moving to Amherst?

replied to Chris
Score: 1 ( 19 votes ) Vote up Vote down Report this comment

Sure can't. But as MJ states, too bad UB contributed to those ills in the 60's by moving out to Amherst. What a dumb decision that was. I avoid that campus at all costs, it's a nightmare.

replied to Chris
Score: -4 ( 12 votes ) Vote up Vote down Report this comment

It is UB's fault that Buffalo is a mess? Are you serious? If UB had built in the city we'd have a whole different set of complaints and concerns. UB is where it is, it has been there for nearly 50 years. We've lost the steel mills, Trico factories, auto manufacturing, and nearly half of our population since UB was built in Amherst. Do you blame all of this on UB too? I think the exodus of residents to other cities probably has a much bigger impact on the city of Buffalo than any suburban development, including UB.

Let's get real and focus on the issue at hand. There is no practical reuse for the Statler in the foreseeable future. No buyers, no interested companies, no municipal usage, little state or government backing, etc. What are we going to do with it?

Part of the funding for the hotels in Detroit came from the need for hotel rooms for the Superbowl and other events they've been able to attract. Our circumstances are different, but they could change.

So I am asking the question, what do we do with the Statler? Who has realistic and tangible ideas that we could build from?

replied to LouisTully
Score: 9 ( 15 votes ) Vote up Vote down Report this comment

Well, as I stated in my comment by agreeing with Chris, I am not blaming UB for all the ills. On a tangent, I am taking a poke at UB North Campus. Locating to Amherst certainly didn't help anything. Go Bandits.

replied to sho'nuff
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What happened to his Mustache ?

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

it got a better job in charlotte, nc.

replied to forest
Score: 3 ( 5 votes ) Vote up Vote down Report this comment

I don't think every old building should be saved. However, that being said, it would cost about 100million to restore this building, but at least 350million to build a new 800,000 sq ft building. Einstien ought to get his facts straight. Left up to his 'head', The region would be bankrupt in no time.

Score: 6 ( 12 votes ) Vote up Vote down Report this comment

In Green Bay the community owns the Packers. Maybe everyone in WNY could chip in $5 and we could all buy the Statler & turn it into an aquarium or even a mixed use/lofts building.

Score: 0 ( 10 votes ) Vote up Vote down Report this comment

They don't make 'em like this anymore and there is probably a good reason that they don't. Can anyone tell me why architects don't design buildings like this anymore? Can you tell me why they don't build them like this anymore? Why does it make more sense to build new?

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

I keep reading about how Buffalo needs better leadership and how Buffalo has had terrible, horrible, failed leadership forever. "Oh! If only we had better leadership! Our leaders have failed us!"

And here it is. When failed leadership stares us in the face, we blink. "He's just telling the truth!" FAIL. I guess we get what we deserve. Does Buffalo deserve better than a vacant lot on Niagara Square? Apparently not. I wish it weren't so, but when the so-called "leaders" of the region come to us with these terrible ideas, people fall in line very quickly. For instance, Bass Pro. Or, demolishing the Statler. Look in a mirror, people. We do this to ourselves. Nobody does it "to" us. I don't blame Rudnick for being out-of-touch and useless. I do blame people for listening to him.

Score: 8 ( 20 votes ) Vote up Vote down Report this comment

Wow.

Let's say it actually does cost $100M to redo the Statler.

So what?

What would it cost to build a new 16-20 storey building on that spot, with the same amount of space. Maybe less than $100M but maybe not. How much will it cost to demo it ($15M), and prepare a new "shovel ready" site, then fight through the courts with the obstructionists to actually DO the demo and then actually build anything new.

No, it's cheaper to keep it and fix it.

I also can't figure out where the hell his contention that it won't create one job comes from. Where will the $100M reconstruction money go? In a toilet? Are they going to bring in slaves who work for free?

Score: 4 ( 18 votes ) Vote up Vote down Report this comment

To give you an idea of the cost of a new 18 story building on that sight just look across the street. The new Federal Courthouse is around $100 million. Keep in mind that that's a public job so figure more for labor than a private job. I still do not know why everyone thinks that the $100 million is needed all at once or where that figure is even derived from? Take it in phases as the market dictates. Get a few tenants in there to cover operating costs, then slowly take the building on one floor at a time. I know the building well and can tell you it is not in bad shape at all. $5 million would go a long way in freshening up some of the office space to attract some tenants.

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

On the lighter side, it's amusing that this website is still up and running... http://thestatler.com/

Did someone forget to tell Bashar we took his building back?

Score: 5 ( 5 votes ) Vote up Vote down Report this comment


If it can be done in Detroit, with an abandoned hotel in much worse shape, then it can certainly be done in Buffalo.

Andrew Rudnick needs to find another job, if this is what he thinks of Buffalo's future.

Score: 6 ( 14 votes ) Vote up Vote down Report this comment

Rudnick is refreshingly honest here; it will be difficult to save this building. That said, we need leaders who can accomplish difficult things.

On a related note, it should be pointed out that the demolition of buildings is just a symptom of a greater malaise in New York state. These buildings need economic activity to remain useful and New Yorkers are way too suspicious of industry for the economy to flourish.

Want buildings like this to be occupied? Welcome and nurture companies.

Score: -1 ( 11 votes ) Vote up Vote down Report this comment

How many millions did NYS just give to Yahoo? And more will be going to Verizon.

replied to Buffalogni
Score: 0 ( 10 votes ) Vote up Vote down Report this comment

Exactly. For a couple jobs out in middle of nowhere. This is a building in the main area of Buffalo. Plus the rehab DOES create CONSTRUCTION jobs!

replied to hamp
Score: -2 ( 4 votes ) Vote up Vote down Report this comment

You can't base this entire discussion on the cost. You also have to discuss it based on where the funding will come from. There is so much risk associated with a redevelopment project like this that it's likely IF it were to happen it would be almost completely government subsidized. Which, as Rudnick said, it's hard to justify spending taxpayers' money on a building that's falling down (and continues to get worse) when there are many, many other priorities we have in this region. A clean slate on the property is much more attractive to a private developer, so despite the fact that it would cost more to build a new building, the likelihood of it happening is far greater.

Score: 0 ( 8 votes ) Vote up Vote down Report this comment

There is a plethora of "clean slate" land in the city of Buffalo that has NOT proven attractive to developers. The shovel ready site myth and been a proven fantasy for decades. Anyone promoting "shovel ready" as a business development strategy is living in that fantasy land.

If the building is demolished it will be on the government dole to the tune of $15 mill or more. Spending 1/3 that amount to stabilize the building and make it "developer Ready" is a no brainer

replied to Hugh
Score: 4 ( 10 votes ) Vote up Vote down Report this comment

Where's this "clean slate" land in the City of Buffalo that isn't attractive to developers? Don't you think that if all it took was $5M to stabilize the building so that hungry developers would come in and put the rest of it together, it would've happened already instead of the building being allowed to literally fall to pieces?

It's nice to be here in anonymity posting on a message board criticizing the people who take an active role in the community. You don't have to be realistic when you're sitting in front of your computer in your PJs - you do, however, when you've got a microphone in your face and you're responsible for your answers.

replied to STEEL
Score: -5 ( 11 votes ) Vote up Vote down Report this comment

There is nothing anonymous about my posts and you must be kidding about asking where the shovel ready sites in Buffalo are.

replied to Hugh
Score: 5 ( 11 votes ) Vote up Vote down Report this comment

Good answer.

replied to STEEL
Score: -3 ( 5 votes ) Vote up Vote down Report this comment

50% of downtown is already shovel ready, yet those sites remain surface parking lots. Do we really need to start jumping through the demolish everything hoops to create more land that will just end up being either a much lesser building or a parking lot?

replied to Hugh
Score: 4 ( 4 votes ) Vote up Vote down Report this comment

That dude's bow-tie is clearly way too tight. His eyes are bulging out. Or, perhaps it isn't tight enough if all this diarrhea keeps pouring out of the hole in his face.

Score: 3 ( 9 votes ) Vote up Vote down Report this comment

Twenty-years ago I began to notice that the person in charge was often in the slot simply because he or she had a Bachelors or Master Degree – not in the career field they were managing but simply a degree in whatever; home economics.

So, with that being said, is it safe to assume that Mr. Rudnick has a degree or even some form of experience in building maintenance, engineering or design or is he just another goof placed into a position of authority.

I am under the impression that a great deal of renovation had been completed by the previous owner; granted, with perhaps much more needed. However, if Mr. Rudnick can present non-biased building integrity inspection reports, I suggest he keep his commentary to himself.

Score: -2 ( 6 votes ) Vote up Vote down Report this comment

Good thing the chief of police only has a high school diploma.

The Statler is in a horrible state of affairs. The previous owner only did demo.

Score: -2 ( 4 votes ) Vote up Vote down Report this comment

I wish the same people taking care of Central Terminal had enough resources to take on the Statler too. Central Terminal may not be coming back quickly, but at least the people who are involved in making it realistic are plugging away at it one brick at a time, holding regular events, and just getting exposure. The statler needs someone who can and is willing to do the same as is being done for Central Terminal.
Honestly, if we can't keep an enormous building in the center of downtown, what hope is there for places like Central terminal, all the Larkin Buildings, and the thousands of houses that need to be repaired..

Score: 12 ( 12 votes ) Vote up Vote down Report this comment

Great post! I agree with you completely.

I wonder if we need to turn-over the management of the Statler to the "Statler Towers Restoration Committee". It would be great if they could take this over before further damage occurs. I suggested gaining monetary backing for general upkeep and maintenance. Keep the ballroom open, return the stores to the first floor, etc. They don't have any less vision than they do for the Central Terminal, what could it hurt?

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

The building should be abandoned and put under the control of the Buffalo Urban Development Corporation to head the process of redevelopment. An RFP for redevelopment should be developed and the taxes should be wiped and the title made clear for the chosen developer.

People forget we're in the worst financial times since the Great Depression and this includes commercial real estate.

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

Rudnick is right. That Statler is a loss.

Score: -10 ( 20 votes ) Vote up Vote down Report this comment

You never fail to live up to your moniker.

Score: 0 ( 0 votes ) Vote up Vote down Report this comment

If they tear it down, whatever takes its place won't have half of the presence of the old Statler building. It'll likely be another parking lot, a low-rise office building, or some other use that doesn't take full advantage of this terrific site; it will be far from the highest and best use of the land.

Score: 6 ( 8 votes ) Vote up Vote down Report this comment

Andrew Rudnick makes $356,618 for comments like this sense???

We talk about architectural tourism and all the great buildings Buffalo has to offer and he thinks we should tear down the Statler?

This is almost as dumb as a Walgreens at Gates Circle.

Help Mark Croce stabilize the property which would be a heck of a lot cheaper than raising that building and hoping the site will eventually be developed.

Score: 1 ( 11 votes ) Vote up Vote down Report this comment

Also, to put it into perspective, the $5,000,000 it would cost to secure and stabilize the building is the same cost as about eight or ten McMansions in Clarence. The Statler has the potential for providing hundreds of middle-end market rate housing units.

Score: 1 ( 7 votes ) Vote up Vote down Report this comment

A rehab like what was done to a much uglier and less historically significant building in what now is the Avant happened. Why can't something similar happen to Statler. I think it would be great to for Buffalo if Statler could become a mix use, less expensive version price wise than the Avant. NY & Buffalo need to figure out a way to make this happen. Federal funds too?

Score: 3 ( 9 votes ) Vote up Vote down Report this comment

Buffalo would have to be crazy to let the Statler go.

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

Yeah knock down the Statler! while we're at it, HSBC building is in pretty poor shape too with all that abestos, let's knock that down! City Hall isn't even fully occupied, knock it down! Rand building is looking a little dusty, down with it too! Stop this shuffle and lets put everyone in the Main Place building. We'll have the "shovel ready" Main Place Mall filled with tenants and have plenty of shovel ready sites ready for investors from outside Buffalo to build on! Like Bass Pro, right?? I mean if we knock out enough teeth in our skyline, then Main Place Tower standing by itself can symbolize the city of Buffalo giving the middle finger to all the nasty preservationists who wanted to keep us from being like every other american city!

;)

Score: 0 ( 12 votes ) Vote up Vote down Report this comment

What measure of success has led Rudnick to deserve to still be in charge of the Buffalo Niagara Partnership? Remember, this is a fancy way of naming our Chamber of Commerce. Shouldn't he be partially to blame for there not being enough demand for offices, retail or hotel rooms that could fill the Statler? Isn't it his job to keep that demand up and create more? And how long has he been in charge?

Score: 2 ( 12 votes ) Vote up Vote down Report this comment

we all agree the convention center is to small.Why not use the money it would take to demolish the statler and convert and connect the bottom 3 floors with the convention center.Make the new entrance the front of the statler,this will put the main entrance on Delaware and niagara sq and not in it's current hidden location.In the statler you could have the the grand ballroom ,shops, food court,and visitor center.The 3 towers could then be leased to different individuals one to be used as a hotel,one as offices and one for residential use.Pearl st from the the new addition to Niagara sq would now be closed to traffic,it could then be landscaped as a park.This would ad convention space,connect the convention center to Delaware ave and Niagara sq,and save a great building

Score: -2 ( 6 votes ) Vote up Vote down Report this comment

Maybe Rudnick could arrange for the Statler to be demolished during the National Trust for Historic Preservation national conference taking place in Buffalo next year.

Score: 5 ( 9 votes ) Vote up Vote down Report this comment

and after, handing out pieces of rubble for NPC Buffalo keepsakes

replied to hamp
Score: 3 ( 5 votes ) Vote up Vote down Report this comment

I think we have waited long enough, Why don't we start a group similar to the one that safeguards the central terminal?

If anyone on this board is seriously interested I would be willing to help out in anyway possible.

In the same fashion that the central terminal restoration corporation holds events, attempts to find grant money and raise community awareness for that project, we can do the same.

this would be especially feasible / needed if Croce backs out of the deal.

Score: 0 ( 4 votes ) Vote up Vote down Report this comment


The best thing that can happen is for Croce to give up control of the building. He does not have the money to do what is needed and the market does not call for investment. The CURRENT MARKET that is.

So if there is not a need for new hotel rooms, how about finding a way to take existing rooms off the grid? The Adam's Mark was just sold for $7.5M but has plans for a a massive face lift. Find a way to stop that. That is 480+ rooms plus meeting space. Right there is about half of the Statler.

Find a way to close the Adam's Mark and shift those rooms and resources to the Statler. It would be a much better hotel in the end. Not sure how this could happen but why not explore it.

Maybe give Visions Hotels LLC, who owns the Adam's Mark, enough breaks to make the numbers work and they could shift their focus to the Statler. After all, the Adam's Mark sitting empty is a much better result than the Statler.

Just throwing it out there.

Score: -3 ( 9 votes ) Vote up Vote down Report this comment

allow me to revise the headline for this article.

buffalo to rudnick: "difficult to justify" saving your job.

Score: 5 ( 5 votes ) Vote up Vote down Report this comment

I find it ironic that the above article on the most recent exploits of the statler situation followed another recent bro article(s) on the broadway-filmore-central terminal area. In that article and the proceeding comment section the talk was of the grassroots effort to revitalize the area surrounding the terminal and broadway market. There was a comment or two that brought up a point about how we need to look at which area's of the city to re-invest in/revitalize as for every downtrodden section in the city, there is a newer commercial/residential section elsewhere in the city/region that may suffer; the point being that with "suburban sprawl" in an area where the population is the same as it was 50-60 years ago (but an overall area "footprint" size that is more than double) we only have so many sections that can be successful.
The same theory goes for our buildings. As our area has spread out and more and more suburban office parks have and continue to be built and populated for and by a stagnant business/commercial sector, existing buildings/sections have/and continue to decline/suffer/disappear. The statler is a prime example of this. Despite what has been said about a lack of "class A" space downtown as well as severe lack of downtown living space. The space is there in plenty, it just sits and waits for a savior for each individual situation. However, investors will be hesitant as they see a plethora of options outside the downtown/city limits that businesses/people can turn too and thus this diminishes the urge to act.
If the statler is indeed saved, than which area will suffer from it.....crosspointe in amherst?, lancaster, wheatfield.....another part of downtown...(hsbc tower, the life-support main place?)
Just as the thought of saving the terminal/market area brings up visions of hurting the galleria district in cheektowaga, the thought of saving the statler brings up visions of vacancy elsewhere.

That being said....buffalo/wny needs to choose its battles, as our population, both people and business/industry cannot support our current and potential footprint.....the battle to save the statler needs to be at the top of our priority list as it sits in the spotlight of our region. By saving the heart of our region we will be setting ourselves in the right position to eventually save other areas and further set up a reason for the people/businesses/industry to increase and thus prevent us having to choose which areas take precedent over others.
However, if we fail to save the best our area has to offer, than why save the rest of it?

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

Right. And,saving the statler is also critical in that it helps us get back to our core--this shrinking area needs to create density again.

My question is: where do we go to help? I think Mark and PBN need to announce where and how people can help-I think they would in droves-from letter/call campaigns to investment $. Help us help you, Mark.

replied to BuffaloBeer
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i don't get the 'choose your battles' rhetoric. it always seems to mean: go home, don't choose this one. well, everyone who supports the survival has chosen this battle, so what is the point of the 'choose your battle' sermon?

replied to BuffaloBeer
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I am certainly no expert but the plan that Croce and Eagan put forward seems doable. 5M in public/foundation funds to secure and re-open the building plus private funds to renovate and develope the bottom few floors for banquets and retail. Now the lights are back on the building is safe and we have bought time to plan the total job.

It does not have to be $100M or demolish.

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

Brownteeth said it best. Divide and conquer.

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Brownteeth said it best. Divide and conquer.

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1. scope of work/cost for exterior.
2. estimate operating costs for bldg w/5 floors in service.
3. cost to complete first 2 floors for banquets/small retail.
4. cost to complete floors 3 - 5 for several state agencies.
5. meet with new Governor to get his commitment.
6. sign leases w/state; arrange construction financing.
7. bring to a boil, simmer, serve.

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

I'd demolish the Statler, if:

There was a FULLY FUNDED proposal ready to go when the site is cleared,

if that proposal was significant architecturally,

and if it was part of a larger plan to reopen Genesee.


-and that's a LOT of 'ifs'.

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