Real Estate December 23, 2010 12:20 AM

Community Christmas Present: Genesee Gateway

Mike Puma 42

Genesee Gateway is nearing completion with renovations expected to wrap-up in the first quarter of 2011. Buffalo Rising recently toured the property under the guidance of Hunt Commercial Real Estate brokers' Chris Fetter and Heidi Nuessele and documented the exciting progress.

On October 18th the United States Department of State Passport Office officially opened and is the first tenant to occupy the newly renovated Genesee Gateway. "The new passport facility is a long-term investment in our community and will enable Western New Yorkers to more easily conduct cross-border commerce," said Congressman Chris Lee.

This office provides a much needed amenity to downtown Buffalo by shortening the passport process from weeks to days and acting as a destination retail stop for Western New York, Northeast Ohio and Northern PA.

The project's architect, Flynn Battaglia Architects, created reuse plans for the block that are now becoming reality and have illustrated their expertise with this challenging row of historic buildings. This project is a positive example of how reuse and rehabilitation of historic structures can breathe new life into abandoned neighborhoods. The entire row of buildings has undergone complete reconstruction and now provides common lobbies and collaborative space, vertical access and leasable space for retail or commercial custom design and build out. Spaces throughout the project have many exciting design options including rooftop patios and/or outdoor space.

Tenant parking will be provided at the corner parking lot of W. Chippewa and Ellicott Streets directly across from the project which includes Eddie Brady's restaurant. Spring of 2011 will bring a new park and an improved streetscape along Genesee Street between Elm and Washington streets.

Chris and I stopped in the project block's restaurant, Eddie Brady's, for some great food. Chris praises Eddie for his enthusiastic support of the project, "Eddie has been a great local spokesman for the Genesee Gateway project and deserves some recognition for all the years he stuck it out as the only occupied building on this block." Eddie has been in his current location for 21 years and purchased the bar as a turn-key operation.

Eddie explained, "There was no competition at the time and it was a great deal, I am excited the passport office folks are here and looking forward to even more businesses, both retail and commercial next year."

Completion of the Genesee Gateway is just around the corner. This block will once again be a destination address and beautiful gateway to downtown Buffalo.

Get Connected: Heidi Nuessle and Chris Fetter, Hunt Commercial, 716.880.1923

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Comments

42 Comments Leave a comment

Sally

December 23, 2010 12:34 AM

Wowsers, what a terrific project. A real image game changer.

[ Reply ]

Score: 7 ( 13 votes )

buffalo soldier

December 23, 2010 12:41 AM

I love the changes...I just want to hear if there are any tenants other than the passport that have signed on

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Score: 3 ( 5 votes )

john.darnell

December 23, 2010 11:33 AM

It would be a total shame if a restaurant wasn't put at the corner. They could have some tables set up outside, a nice long bar inside.. etc.

PLEASE somebody step up to the plate!

[ Reply ]

replied to buffalo soldier

Score: 1 ( 1 votes )

slowrollin99

December 23, 2010 1:28 AM

Flynn Battaglia knows whats up. Nice work.

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Score: 6 ( 6 votes )

buffaluv

December 23, 2010 1:29 AM

I drove by the other day and it looks great at night too.

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Score: 4 ( 4 votes )

quesaisje2

December 23, 2010 5:23 AM

Fantastic. Another piece in the puzzle...

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Score: 3 ( 3 votes )

Sean Brodfuehrer

December 23, 2010 6:26 AM

This project is really going to help improve the feel and image of downtown from outsiders. Instead of coming into buffalo (from the 33) and driving past block after block of unused worn-out buildings you now have the IS lofts and Rocco's other projects, these buildings, further down you hit a slew of other newly renovated buildings. Really different than just 10 years ago.

It is also worth noting that the city (I think) is spearheading the the streetscape improvements planned for around this building. Once completed this area will look, hopefully a lot more pedestrian friendly and therefore city like. Right now all the roads around there are overly wide creating a confusing series of unmarked, unlined, intersections and crosswalks. It carries over the old rust belt feel. I haven't seen the proposed changes but the city should be given a little credit for trying to piggyback public infrastructure with private development to really recreate a whole area.

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Score: 4 ( 4 votes )

Dagner

December 23, 2010 7:15 AM

They've added more life to the streetscape by erecting four lighted Christmas trees on top. Another tree sparkles through the waterfall window. Thanks for the view.

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Score: 3 ( 3 votes )

grad94

December 23, 2010 7:19 AM

yahoooooooooo!

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Score: 3 ( 3 votes )

sho'nuff

December 23, 2010 7:37 AM

It is always great to see progress. What a tremendous improvement to the corner, I wish it had been done 30 years ago.

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Score: 3 ( 7 votes )

Travelrrr

December 23, 2010 8:21 AM

Damn! They should have torn down those eyesores when they had the chance. "No one is EVER going to do anything with that blight."

Sound familiar? And these buildings weren't even mothballed.

Congrats to the Wendt, Flynn & Battaglia, Doug Swift et al. This is a tremendous contribution to downtown. Now for my FULL fantasy: this does become a pedestrian, brick laid street with boutique retailers, cafes, open air market, etc. Then, we coerce M&T to bury their surface parking lots, and those become green space. Then, we re-build the above ground market which was demolished.

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Score: 6 ( 14 votes )

bobbycat

December 23, 2010 11:28 AM

No they weren't mothballed. They were left open and vacant for decades with a sign that said "The last one to leave Buffalo please turn out the lights". I guess it is better to leave something like that alone for years until it is either so far gone that it needs to be demolished under protest or someone throws our tax money at it to get someone to renovate it. It is too bad that we don't have a real demand for this block or the blocks around this one. The same is true for the grain elevators. We don't have a plan but we just want everything to be saved until we the taxpayers can afford to make them look nicer on the outside.

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replied to Travelrrr

Score: -9 ( 19 votes )

Travelrrr

December 23, 2010 11:32 AM

You have stooped to a new low, Bobbycurl; it was PRIVATELY funded (ie not from your precious tax dollars), but now it will be PUBLICLY enjoyed. Take a pill and get over being such a negatron.

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replied to bobbycat

Score: 3 ( 13 votes )

bobbycat

December 23, 2010 12:18 PM

$700,000 dollars in federal funding must have come directly from Brian Higgins pockets. The $1.1 million dollars from the city came directly from Byron Brown. The rest coming from the Wendt Foundation was a sketchy use of money that could have gone to support non profit groups.

Why is the Wendt Foundation spending so much money on private enterprises and their political agenda? Hmmmmm?

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replied to Travelrrr

Score: -2 ( 10 votes )

Armchair MBA

December 23, 2010 3:10 PM

bobbycat> "Why is the Wendt Foundation spending so much money on private enterprises and their political agenda? Hmmmmm?"

Civic responsibility. Why would that be a bad thing? Who are you to tell a private foundation how they can spend their money?

You are right that a portion of this project was publicly funded but I would argue using money to encourage reinvestment downtown is a wise investment. Besides, can you point to any major development in city or burbs that is not assisted by some direct or indirect subsidy?

[ Reply ]

replied to bobbycat

Score: 3 ( 9 votes )

pampiniform

December 23, 2010 3:57 PM

MBA>Civic responsibility. Why would that be a bad thing? Who are you to tell a private foundation how they can spend their money?

I agree with you totally there. They can do whatever they want with their money.

MBA>You are right that a portion of this project was publicly funded but I would argue using money to encourage reinvestment downtown is a wise investment. Besides, can you point to any major development in city or burbs that is not assisted by some direct or indirect subsidy?

I also agree with this. This thing is like Burch and I have argued. A practical reuse for an old structure. The thing was largely carried by private funding, addressing a need that a private company saw there. There was some public funding, but it was relatively minimal, and I think that the return of the money invested in the form of taxes will probably easily compensate for it. This is a good situation for everyone.

[ Reply ]

replied to Armchair MBA

Score: 3 ( 5 votes )

Travelrrr

December 23, 2010 4:05 PM

so, you would be supportive of using public funds to stabilize at risk structures so that private investors can assume the properties?

We may have a detente here....that, at least, would be a step in the right direction. Currently, the public sector (ie our city govt) assumes very little responsibility to prevent continued neglect of our architectural stock....dis-incentivizing investors from stepping in.

[ Reply ]

replied to pampiniform

Score: 2 ( 4 votes )

pampiniform

December 23, 2010 4:38 PM

Travelrrr> so, you would be supportive of using public funds to stabilize at risk structures so that private investors can assume the properties?

I think if a reasonable case could be made for a structure being reused, and the cost weren't prohibitive, that that may be a tool the city could use. I assume by this you're referring to the Statler. I think that the city taking the title to the thing is probably at this time the best thing we can do for it. I know that if this deal falls through the city might get stuck with another building they can't afford to maintain or do anything with, but there's not a lot of other options currently. I know you might see a dichotomy in me thinking that, but I assure you that I think there is a good chance the Statler can be reused in the near future. And besides, I'd hate to see the Statler reduced to a parking lot as much as any of you.

Travelrrr> We may have a detente here....that, at least, would be a step in the right direction. Currently, the public sector (ie our city govt) assumes very little responsibility to prevent continued neglect of our architectural stock....dis-incentivizing investors from stepping in.

I don't disagree with that. The only problem I see here is that preventing neglect costs money. The city may have a surplus again this year, but it's not a huge windfall. There's a finite amount of resources at the city's disposal. I think if the city's supposed to be the one maintaining our architectural history, they're going to have to make some hard choices about what it can and cannot afford to save.

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replied to Travelrrr

Score: 0 ( 2 votes )

bobbycat

December 23, 2010 4:20 PM

Plexus> There is a difference between private funding and funding from a foundation. The Margaret L Wendt Foundation is a 501(c)3 charity with somewhere in the neighborhood of $125 million in assets.

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replied to pampiniform

Score: 2 ( 2 votes )

sho'nuff

December 23, 2010 4:31 PM

A Section 501(C)(3) organization is allowed to distribute funds to organizations that are not charities, registered not for profits, and for profit enterprises. The exempt organization must ensure that the use of funds goes towards permitted purposes, namely specific projects that fall in line with the purpose and mission of the organization. The exempt organization needs to retain control and discretion of the use of funds and must ensure that there are no insider conflicts of interest in the distribution of funds. They must also maintain records regarding the use of the funds and must report the transaction to the IRS.

You can probably find information on when and where these funds were distributed by checking out the IRS website.

It appears that the Wendt Foundation is acting appropriately and within their rights, unless there is an insider relationship between Wendt and one of the stakeholders in the redevelopment.

I hope this clears things up for you.

[ Reply ]

replied to bobbycat

Score: 7 ( 9 votes )

MRodgers

December 24, 2010 11:34 AM

As well, the Wendt Foundation is also preservation-centric. Therefore, the preservation of this row falls within their scope.

[ Reply ]

replied to sho'nuff

Score: 0 ( 2 votes )

bobbycat

December 23, 2010 4:15 PM

The IRS has something to say about private foundations:

In addition, there are several restrictions and requirements on private foundations, including:

1. restrictions on self-dealing between private foundations and their substantial contributors and other disqualified persons;

2.requirements that the foundation annually distribute income for charitable purposes;

3. limits on their holdings in private businesses;

4. provisions that investments must not jeopardize the carrying out of exempt purposes; and

5. provisions to assure that expenditures further exempt purposes.

If the contribution to civic good is the measure of worthiness for a project then we should not ever complain about our subsidies for private businesses, road extensions, or professional sports teams. They can all be spun in such a way that they benefit the public good as much or more than the remodeling of a building in the city.

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replied to Armchair MBA

Score: 0 ( 6 votes )

BurchJP

December 23, 2010 12:33 PM

Keep trying to tie your comments in the grain silo article. These building have a reuse, they have a location in the city, they present an ROI that is feasible. Let it rest.

[ Reply ]

replied to Travelrrr

Score: 4 ( 10 votes )

PeytonsCorner

December 23, 2010 8:33 AM

Wow!

Flynn Battaglia, Doug, Bill and Joe, really beautiful!

Another small project that is BIG for Buffalo. Keep up the great work!

[ Reply ]

Score: 3 ( 3 votes )

leahmacvie

December 23, 2010 8:40 AM

I love that open area in :42 in the video. I used to live around the corner and this corner was pretty shabby. I've passed by it a few times over the past year- and the progress is amazing!! It was in such rough shape and now it looks amazing! Great job and thank you for helping to beautify our city.

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Score: 1 ( 3 votes )

Joe

December 23, 2010 9:57 AM

This piece of property used to be one of the most embarrassing things about the city. You're with visitors heading downtown via 33, you get off, and the first they see when they arrive is blight. Very nice job doing this the right way.

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Score: 3 ( 3 votes )

Chris

December 23, 2010 10:06 AM

I'll be coming in from the Airport today. Looking forward to seeing the finished product!!!

Other than the passport center has there been any other tenants annouced?

[ Reply ]

Score: 3 ( 3 votes )

derby98

December 23, 2010 10:13 AM

Hopefully this project along with new street scape in Spring 2011 will help to kick start the north side of Genesee. It has some great buildings and infill opportunities.
A warn thank-you and well done to all involved.

[ Reply ]

Score: 3 ( 3 votes )

December 23, 2010 11:35 AM

Add me as another pleasantly surprised (understated, I know)

Can't wait to see it filled with people.

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Score: 2 ( 2 votes )

BurchJP

December 23, 2010 11:42 AM

Wow this is super cool, I remember driving into the city on the 33 about five years ago and thinking, "that would be a great place to redevelop". To bad I had no money to do it with. I look forward to seeing the infill of business that is placed in these building. Hopefully some of the older structures in the surrounding areas become redeveloped and we see an infill of residential east of Michigan. I dont think this project along with the new medical campus gets enough public support. This area has a ton of residential potential. What we need are the first 10-20 families to move into this are and start remodeling old houses and creating a safe and walkable neighborhood.

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Score: 1 ( 7 votes )

BuffaloNiagaraPlanner

December 23, 2010 12:25 PM

This project is AMAZING. The Genesee Gateway/Flower District neighborhood is one of my favorite urban spaces in all of Western New York.

I'm curious - the article states, "This office provides a much needed amenity to downtown Buffalo by shortening the passport process from weeks to days and acting as a destination retail stop for Western New York, Northeast Ohio and Northern PA." How is the passport office a destination retail stop? Even if the complex of buildings was full of retail, I doubt it would be considered "destination" retail.

I'm anxious to see the space filled, though.

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Score: 0 ( 8 votes )

James

December 23, 2010 1:43 PM

Well my passport expires early next year so I'll be stopping by. Hardly a destination tho seeing as I live in the city.

However, Joe Schmoe from Erie, PA who just scored a plane ticket to Europe and needs a passport fast - he'll have to drive up to Buffalo if he doesn't have the time to wait having it done at his post office.

[ Reply ]

replied to BuffaloNiagaraPlanner

Score: 4 ( 4 votes )

suburban_hillbilly

December 23, 2010 1:23 PM

This is a slight improvement from what this stretch looked like 5 yrs ago.

[ Reply ]

Score: -8 ( 14 votes )

pampiniform

December 23, 2010 1:57 PM

Wow, they did a great job with that block. I remember driving past the place when they were just shells wondering if anyone was ever going to do something with it before it fell over. I like the way they mix the old buildings with modern improvements. I hope they can find a way to keep this going.

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Score: 0 ( 6 votes )

Armchair MBA

December 23, 2010 3:11 PM

Agreed.

[ Reply ]

replied to pampiniform

Score: -3 ( 5 votes )

C.K. Dexter Haven

December 23, 2010 11:27 PM

I hope this wasn't already answered as I couldn't bear to read the last few unproductive posts.

I'd like some info one of the featured buildings. An older one with an arched glass panel. Does anyone know the origin of that building? So unique.

Looked at google earth to get an older view and the improvements are awesome.

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Score: 0 ( 2 votes )

biniszkiewicz

December 24, 2010 6:48 AM

RE: 'these buildings weren't even mothballed':

yes, they were. There were no windows on many, nor wood protection, true. But they were mothballed, nonetheles: new roof and roof deck, complete interior gut (including all floors and wall structures), replaced with structural steel. They sat for thirty years, they looked like hell, but there was a great deal of structural work done by the previous owner (Bill Genrich) which was largely invisible from the street. He sat on them forever. But he did important and expensive, largely invisible, work which allowed the shells to be adapted later.

Happy to say I made a commission selling these to Doug Swift, et. al.

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Score: 3 ( 5 votes )

Armchair MBA

December 24, 2010 10:04 AM

Bini> "Happy to say I made a commission selling these to Doug Swift, et. al."

I think all of Buffalo is happy these places sold and put back to use. Thank you for for the role you played in the deal.

I have to wonder why the previous owner held on to these places for so long. He would have had to sell them for quite a bit to recover 30 years worth of paying taxes and receiving no revenue.

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replied to biniszkiewicz

Score: 0 ( 2 votes )

biniszkiewicz

December 24, 2010 4:03 PM

Genrich had good vision tempered by a lack of faith. He did great work early, then largely let the buildings languish for fear of failing to find tenants capable of repaying him his development costs. The necessity of lots of extra development money from the Wendt Foundation to make the project viable supports Genrich's concern.

He didn't want to sell, preferring to find tenants. But every time a potential tenant came along Genrich wanted wanted more guarantees than were practical. Imo, he could have financed many of the improvements but he was very wary of ultimately losing money in the deal and so chose not to sink more money into them.

Ultimately he sold the properties he owned (those now being finished) for around $700k, which could not represent much, if any, profit over the course of his ownership.

Curse him for the long ugly neglect, but without all the structural work Genrich did it is doubtful these could have been eventually rehabbed. With the work he did, the buildings could easily have stood another 20 or 30 years in the unrestored state we all remember them.

I agree with others that the rehab is outsized in its impact on downtown. Hard to imagine $12m spent another way doing more for downtown's image.

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replied to Armchair MBA

Score: 3 ( 3 votes )

kegler1

December 24, 2010 11:12 PM

{deleted- unsubstantiated}

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Score: -4 ( 8 votes )

Sevenonesix

December 29, 2010 1:30 AM

This makes me happy. I remember seeing the progress walking by every day when I was living in the IS lofts a couple years ago. Hopefully a true asset to the neighborhood.

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Score: 0 ( 0 votes )

DOC

January 4, 2011 11:32 AM

Mike Puma, thanks for the great story on these buildings. Sorry about some of the ngeative posts but we have to put up with ignorance too. there are some people who are never happy with anything anywhere. Thanks again for the story and the pics too.

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Score: 0 ( 0 votes )