Submission by Timothy Horner:
If the Statler is to remain viable, and be restored, something unique is going to need to happen. It seems that most Buffalo developers lack either the money, or the desire to rehabilitate the Statler.
So, with that, here is a concept for the Statler:
The City of Buffalo "buys" the building, therefore forgiving all back taxes owed, and removing that debt. Under its ownership, The City files with the State Attorney General's office to subdivide the building, making each floor of the building its own individual space, similar to a condominium arrangement. Each floor owner will own the space within their floor, as well as be a common owner to the building. 18 floors, and a maximum of 18 potential owners. Each floor owner owns 1/18 of the Statler and its common areas. There would be no restriction on how many floors an individual owner can own.
Under this structure, the City of Buffalo can invest the $5.3 million to stabilize the building, and be the "owner" of each of the 18 floors. From here, The City can sell each individual floor to others who have assets to develop each floor, but not an entire building. Croce can buy his 2 floors, and begin development. If a Wyndham, or other hotelier wants to put rooms in, they can purchase 3, 4, 5, or whatever floors, and do their thing. A condo or apartment developer wants to develop livable spaces... they buy a floor, and construct.
At a cost as low as $500,000 per floor, selling 18 floors would net the city $9 million dollars, an almost $4 million dollar premium over $5.3 million invested. In spending $1 million for 2 floors, Croce still has $2 million of the original $3 million he had planned to invest in upgrading the space. That's a lot! Monthly/Annual assessments would be rendered for building upkeep.
Could it work?
View image
If the Statler is to remain viable, and be restored, something unique is going to need to happen. It seems that most Buffalo developers lack either the money, or the desire to rehabilitate the Statler.
So, with that, here is a concept for the Statler:
The City of Buffalo "buys" the building, therefore forgiving all back taxes owed, and removing that debt. Under its ownership, The City files with the State Attorney General's office to subdivide the building, making each floor of the building its own individual space, similar to a condominium arrangement. Each floor owner will own the space within their floor, as well as be a common owner to the building. 18 floors, and a maximum of 18 potential owners. Each floor owner owns 1/18 of the Statler and its common areas. There would be no restriction on how many floors an individual owner can own.
Under this structure, the City of Buffalo can invest the $5.3 million to stabilize the building, and be the "owner" of each of the 18 floors. From here, The City can sell each individual floor to others who have assets to develop each floor, but not an entire building. Croce can buy his 2 floors, and begin development. If a Wyndham, or other hotelier wants to put rooms in, they can purchase 3, 4, 5, or whatever floors, and do their thing. A condo or apartment developer wants to develop livable spaces... they buy a floor, and construct.
At a cost as low as $500,000 per floor, selling 18 floors would net the city $9 million dollars, an almost $4 million dollar premium over $5.3 million invested. In spending $1 million for 2 floors, Croce still has $2 million of the original $3 million he had planned to invest in upgrading the space. That's a lot! Monthly/Annual assessments would be rendered for building upkeep.
Could it work?
![Selling [ Off ] Buffalo](http://www.buffalorising.com/assets_c/2011/02/Central-Art-deco-Buffalo-NY-thumb-145x145-18060.jpg "Selling [ Off ] Buffalo")
It would be a nightmare of legal paperwork, but it could be possible. My biggest concern would be getting something like this accomplished without interference from the usual gang of idiots in Buffalo politics.
Yes can we dream an alternative with less paperwork involved. That just seems exhausting. If we get to 300 pages, it'd probably be easier to tear it down...
Seriously - interesting concept. How would you deal with mechanicals and common spaces like entrances? Would hallways on each floor be owned by the owner of that particular floor? Or would their be a condominium association that would own all common spaces?
The mall in downtown Batavia has been a case study in the disastrous results of commercial condominium ownership. Overall improvements to the structure, its concourses and exterior facades have been completely hamstrung because there are too many people with a piece of the pie.
maybe a facade easement to a responsible party would protect its external appearance?
First, it's not a "lot of paperwork". It would be a "condominium" - commercial and/or residential. Millions of properties in just this country alone are organized as such. These projects are done all the time.
To answer your second question, the common areas would be just that - owned in "common" by all and not by any one individual. This would be as extensive or limiting as the developers choose. It would entail the ground floor entrances, elevators, exterior and physical plant at a minimum and could, if so desired, include the lobbies on each floor - or not, depending how much of the total project each owner would pay for or want.
It's not difficult at all, and can even be changed over time as the will of the owners decides.
You can even hae a "fee simple" or "lease hold" type of ownership as they do in Hawaii, where you can own just your space in the building determined by the walls and floors without any "ownership" of the land (lease hold) or you can own a portion of the entire project, including land and your "space" (fee simple) - which is the most common form of ownership in Buffalo.