By Paul Wolf:
The Center for the Study of Art, Architecture, History and Nature sponsored a talk at the Buffalo & Erie County Public Library featuring Buffalo developer Rocco Termini. As a developer Termini has renovated several vacant downtown buildings into apartments and office space.
Termini gave an interesting talk which highlighted his vision of how to turn around downtown Buffalo. Key points:
Real Estate Tsunami - In the next 18 months there will be a real estate tsunami in downtown Buffalo caused by HSBC bank moving out of their current location, where they occupy 800,000 square feet of Class A space. Termini predicts that HSBC Tower will be sold through bankruptcy proceedings, resulting in $10 per square foot office space hitting the market. This available and cheap Class A office space will likely cause tenants occupying Class B and C space to relocate to HSBC towers.
Old Buildings Are Worth Saving - The mentality of many in Buffalo is to tear down old buildings. The old buildings in downtown Buffalo are architectural masterpieces worth saving. However from an economic perspective old downtown buildings cannot be renovated and reused without government financial assistance. There is often a financing gap that needs to be filled through historic tax credits or other incentives. The recently passed state historic tax credit legislation according to Termini, needs amendments to be more effective.
Create A Downtown Buffalo Development Fund - Parking managed by the Buffalo Civic Auto Ramps (BCAR) and the NFTA is not subject to any sales tax, while parking managed by private sector enterprises is subject to sales tax. Termini proposed creating a development fund by eliminating sales tax for parking and instead assessing a 10% development fee for all parking, including BCAR and the NFTA. Termini estimates that this fee would generate $4 to $5 million per year, which could be used to assist development projects in the Buffalo's central business district. To create an even bigger pot of money, Termini suggests that the $4 to $5 million revenue can turn into a $30 million fund by collateralizing and borrowing against the money similar to what local governments did with tobacco funds.Schenectady NY, has successfully created a fund through state legislation, whereby all parking sales tax including the state's share are utilized for development projects.
Make Downtown Buffalo A Sales Tax Free Zone - Creating a downtown that is sales tax free will draw large numbers of shoppers from Canada. Retail, in Termini's opinion, will only work downtown if the sales tax is eliminated. Look at any outlet mall or shopping mall; the Canadian license plates are impossible to ignore. Eliminate the sales tax and Canadian shoppers will be spending money in downtown Buffalo.
Stop Repeating The Same Mistakes - Tearing down Frank Lloyd Wright buildings and other architecturally significant buildings as we have done in the past were mistakes. Tearing down buildings like the Statler, according to Termini, will also be a mistake. Erie Community College is currently seeking to build a medical complex on Wherle Drive in Amherst. With land available downtown and a growing medical corridor why repeat the mistake of building college buildings in the suburbs?
In order to make Termini's ideas a reality state legislation will be required to with regard to the sales tax items.
What do you think about Rocco Termini's ideas?
Photos: Todd Galucki
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The Center for the Study of Art, Architecture, History and Nature sponsored a talk at the Buffalo & Erie County Public Library featuring Buffalo developer Rocco Termini. As a developer Termini has renovated several vacant downtown buildings into apartments and office space.
Termini gave an interesting talk which highlighted his vision of how to turn around downtown Buffalo. Key points:
Real Estate Tsunami - In the next 18 months there will be a real estate tsunami in downtown Buffalo caused by HSBC bank moving out of their current location, where they occupy 800,000 square feet of Class A space. Termini predicts that HSBC Tower will be sold through bankruptcy proceedings, resulting in $10 per square foot office space hitting the market. This available and cheap Class A office space will likely cause tenants occupying Class B and C space to relocate to HSBC towers.
Old Buildings Are Worth Saving - The mentality of many in Buffalo is to tear down old buildings. The old buildings in downtown Buffalo are architectural masterpieces worth saving. However from an economic perspective old downtown buildings cannot be renovated and reused without government financial assistance. There is often a financing gap that needs to be filled through historic tax credits or other incentives. The recently passed state historic tax credit legislation according to Termini, needs amendments to be more effective.
Create A Downtown Buffalo Development Fund - Parking managed by the Buffalo Civic Auto Ramps (BCAR) and the NFTA is not subject to any sales tax, while parking managed by private sector enterprises is subject to sales tax. Termini proposed creating a development fund by eliminating sales tax for parking and instead assessing a 10% development fee for all parking, including BCAR and the NFTA. Termini estimates that this fee would generate $4 to $5 million per year, which could be used to assist development projects in the Buffalo's central business district. To create an even bigger pot of money, Termini suggests that the $4 to $5 million revenue can turn into a $30 million fund by collateralizing and borrowing against the money similar to what local governments did with tobacco funds.Schenectady NY, has successfully created a fund through state legislation, whereby all parking sales tax including the state's share are utilized for development projects.Make Downtown Buffalo A Sales Tax Free Zone - Creating a downtown that is sales tax free will draw large numbers of shoppers from Canada. Retail, in Termini's opinion, will only work downtown if the sales tax is eliminated. Look at any outlet mall or shopping mall; the Canadian license plates are impossible to ignore. Eliminate the sales tax and Canadian shoppers will be spending money in downtown Buffalo.
Stop Repeating The Same Mistakes - Tearing down Frank Lloyd Wright buildings and other architecturally significant buildings as we have done in the past were mistakes. Tearing down buildings like the Statler, according to Termini, will also be a mistake. Erie Community College is currently seeking to build a medical complex on Wherle Drive in Amherst. With land available downtown and a growing medical corridor why repeat the mistake of building college buildings in the suburbs?
In order to make Termini's ideas a reality state legislation will be required to with regard to the sales tax items.
What do you think about Rocco Termini's ideas?
Photos: Todd Galucki
I'll probably get slammed - and i don't know the dollars and cents of it - but if vacating the HSBC tower is going to have such a dramatic effect I would LOVE to see public dollars put towards tearing it down. Not only would it readjust the downtown real estate market, but it would greatly improve the design of downtown. HSBC Tower's design was a huge mistake - it completely severs the CBD from the inner harbor and arena district. Removing it would go a long way towards returning main street to a great urban promenade, coupled with the inner harbor development and returning cars to Main.
Short of removing it - seems like it could be prime candidate for Avant-type project with a mix of office and residential.
I'm with you - tear it down, especially if it's such a "problem." I'm surprised nobody floated that solution earlier, since it seems to be the only solution WNYers support when it comes to old buildings. Tear it down! Satisfy the bloodlust for demolition and maybe the demolitionists will take their eyes off of the Statler for a while.
I think it's clear that Buffalo is no longer a city that can support 37-story buildings. That's fine with me. We can be a fine city with smaller buildings and less parking lots.
On the other hand, I think sho'nuff's idea was equally valid - start selling our abundance of cheap, class-A office space to some other large companies who might consider relocating. Crisis creates opportunity.
Shrinking to greatness maybe? This could be a huge step......
townline -- I'm not attacking you, just responding to your comment... There are 3 reasons that came to me immediately--after reading your post--as to why it is a terrible idea to tear down HSBC center. First of all, it is incredibly expensive to tear down even an average-sized house, let alone the tallest building in downtown Buffalo; secondly, as Termini and others responding have commented, this could be an opportunity for many offices to relocate (possibly from the suburbs) into this building--if the price is right-- bringing business downtown; and finally, if the building were torn down the space would probably end up as a vacant lot or a parking lot, either of which is the last thing Buffalo needs.
no offense taken blm3 - it is, indeed, a bit of a radical idea, but I think its worth discussing. Responding to your thoughts...
Yeah - I imagine it would be incredibly expensive, especially considering that it would involve both the demo as well as the likely acquisition of the property, since this would probably have to be a public endeavor. As for bringing in business from the burbs - I think it would probably have minimal positive impact. Its not like there is a dirth of commercial space currently in the city that suburban employers couldn't already relocate to. But yes - it might have SOME impact. In response to it ending up as a parking lot - you're right. The precedent is there for exactly this to happen. But it could be avoided if we had any leaders with vision (I know I know...) that could develop a proactive development plan for the site - that should involved parceling the land, design guidelines and RFPs.
The long term (generational) benefits of removing HSBC Tower would be about the design of the city. In the long run - the marketplace and office space availability will have far less impact than the design of the city.
Demoing is probably not the most common sense point A to B plan for the site, but it could potentially hold the most visionary benefits. That said, its not the only course of action that should be considered - but, publicly, it should at least be considered.
We won't allow the demolition of long dead grain silos and a unused hotel. What makes you think that anyone would allow the demolition of the HSBC Tower?
"The great urban promenade"? Are you serious? This is the great urban ghost town along Main Street.
Right, moron. That's why I'm suggesting that something needs to change.
Tearing down the tower is going to fix things? What land are you living in?
Is there anything that you don't criticize and complain about?
places change, cities change. Some projects are way more ambitious than others. 5 years ago you would have said the idea of removing the entire skin of the Dulski building and essentially building a new tower on its frame was crazy. You also would have been the miserable whiner who would have criticized First Amherst for the Elk Terminal project.
This would not be about the removal of the tower. It would be about redesigning an extremely important nexus of downtown.
Would it be tough make anything like this happen in Buffalo - for sure... So I guess its better to just be miserable and criticize any idea outside of just letting Buffalo rot.
The only Moron here is someone who would think , even remotely, that demolishing office space that would cost 400million to replicate is, even remotely, a good idea.