Real Estate March 17, 2011 4:15 PM

Lots of Space in Buffalo New York; the City Saves One of Its Most Historic

Lots of Space in Buffalo New York; the City Saves One of Its Most Historic

Downstate, Buffalo had just been referred to as a place you would not want to go, but upstate, the city steeped in architectural history was celebrating a new era for one of its most historic structures. In a ceremony Wednesday afternoon, Statler City LLC, led by developer Mark Croce, officially took ownership of the Statler building. 

"For only having decided to put on a deed-signing event two days ago, there was a tremendous turn-out. So many people have taken an interest in the building. We were standing room only, it was incredible," remarked Croce on the event's turnout. In addition to the over 100 guests, the County Clerk Kathy Hochul was on hand to ensure the transfer went smoothly as well as County Executive Chris Collins, Buffalo Mayor Byron Brown, and Ellicott District Councilmember Darius Pridgen all of whom spoke briefly on the building's bright future.

County Executive Collins deemed the sale a "proper collaboration" between the private developer and the city and state governments, both of which are viewed as potential sources for the millions of dollars that will be needed to stabilize the ailing structure. 

"There are immediate issues to address on the outside," said Croce.  "Ice dams have formed on the roof due to the lack of heat in the building causing a serious water problem.  I have had crews up there the past few days to temporarily fix the problem. Water has seeped into the ballroom. Once spring comes we'll get the roof redone."

Thumbnail image for StatlerCollage.jpg"Mark has a great plan," said Mayor Brown. "We're not just opening the checkbook and turning over money. We believe anytime we spend money in the City of Buffalo, we have to do it with taxpayers in mind, because it is not my money, it's your money." 
 
The bankruptcy trustee for the Statler also spoke on the long arduous process of finding a new owner for the structure. "Many people doubted that this day would ever come. There were a lot of naysayers in the community who told me you're never going to sell it, no one's ever going to buy it. Well, they were wrong," said Morris Horwitz. 
 
"This is the grand dame of Buffalo sitting on two acres fronting Niagara Square, near City Hall and between the State and Federal courthouses," said Croce.  "When I'm done, it will be the center of the city again."
 
Get Connected: StatlerCity.com 
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I realize the two have little relation, but I really dislike the timing of Bloomberg's comment, and the next day Verizon saying they have no interest in Somerset. Do you think Ms. Rizzo has any idea how much 4 Billion is?

As for the Statler... let's hope he pulls it off.

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ben, yes Verizon would have invested $4B if they built the data center here but that's specific to their business model.

And yes this area needs jobs, but should it be a blank check?
Over $600M in public subsidies from NY state in return for 200 jobs?
Over $3M public subsidy per job? Sensible?

http://www.buffalonews.com/business/article252227.ece
"Few, if any, companies doing business in Western New York spend more money to influence state and local politicians than Verizon Communications. And none has come close to the $614 million in subsidies -- at $3.1 million per job -- that the company is poised to receive in exchange for building a proposed data center in Niagara County."

replied to benfranklin
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Its more than just jobs. It is the utility payments they make to NYSEG, it is the taxes they will pay to NY. It is the jobs that it would create that will not come to WNY without the subsidy paid by NY. Bloomberg is dead on with his assessment that we have free space that no one wants.

replied to whatever
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I remember reading the facility was to draw employees from the Rochester and Buffalo jobs markets. This would have required employees to commute an hour each way or move. This would likely have spurred demand for subdivisions in northeastern Niagara County adding to the problem of sprawl in the area. Why should we subsidize this project on open space along Lake Ontario when there are likely brownfield locations between Buffalo, Lockport and Niagara Falls that would have contributed to the metro region as a whole. Even these locations are roughly the same travel time to Rochester, so the facility would still be able to pull workers from there.

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What you are saying is that nothing should be built outside the city because it might create more sprawl. You need to open your eyes and broaden your horizons. These are good jobs that won't be in the area. This is a major missed opportunity for WNY. Remember this when you cry about the brain drain again.

replied to jon
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Bloomberg said we have space no one wants it, well maybe if we were not roped into the same crazy laws NYC has we could adjust them and people would be able to set up shop here. I feel like he missed his own point.

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Saying this is a "missed opportunity" for WNY is like saying Bass Pro was a missed opportunity.

Stop the madness folks. Think of the other great things that money could be used for, like renovating the Statler and creating jobs in the city (where the unemployment rate is the highest).

It makes no sense to subsidize suburban sprawl. Especially with gas prices are headed to $4/gallon and more.

Most people aound here don't even know where Somerset is.

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The Verizon gig was a bad deal and whatever is right that they love to buy influence, but Hamp can you please shut up, you sound like they live in la la land. Are you 20? If so I can understand and go with it, but if not...

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I'd like to see the local government try and draw high school graduation ceremonies to this location. As a for profit renovation effort.

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If by "the city saved one its most historic" you mean the politicians in office I think you ought to say it clearly. The money the politicians are using for this "save" came from a small segment of this city that had their assessments rise and therefore their taxes so Byron and the council could take the surplus and give it to a private developer. By the end of this development the city, county and state will invest millions of dollars in a private real estate scheme and then they will relocate government offices into the "historic " building , paying high rents. The taxpayer will have his taxes uses to renovate and then to sustain this renovation and afterward the developer will go to the media and declare that through his business acumen he has saved a "historic " structure. No one will look to see how much it is costing the taxpayer. Public expense and private gain.

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It's funny no one mentions the huge amount of tax breaks Uniland got for the Avant. After everything said and done they basically ended up with a building asbestos free and ready for build-out at zero cost essentially from the Federal Gov't. That's not even a historic building and it's being used for 100% private use. So why are people so up in arms about $5.3 mill to stabilize the Statler?

I think people need to step back and look at the big picture here. Imagine for a second that no one stepped up and bought the Statler. At some point the city would have to step in to either address the safety issues and/or possibly demolish the building. I assure you the cost to demolish the Statler is much higher than $5.3 mill and every year that goes by the stabilization costs will rise as well. Please don't argue that the other developers who showed interest should have been able to buy it. If they were serious they should have bought it through one of the two public sales when they had the chance, period.

The way I see it is that ultimately the Statler is an asset to the community at large and deserves some public money to save it. A relatively small investment by the city will go a long way in saving a mammoth architectural gem that can serve as a beacon of renaissance for Buffalo. We could certainly use the enthusiasm and positive public image that we are progressing and not collapsing like so many people view this City. That alone to me is worth the money.

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Some people certainly have mentioned the public subsidy for Avant. I myself am a little uncomfortable with that use of significant public funds. It is somewhat ameliorated by the fact that public money would have to be used to remove the asbestos and demolish the Dulski building even if nothing was done with it. If you're going to have to spend that amount anyway, why not spend it to restore the building into something that contributes to the city?

The same logic applies to the Statler. I don't have a problem with spending city money on stabilizing the building when several times more would have to be spent to demolish it.

replied to brownteeth
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Exactly my point. The problem won't go away without public investment used either for demo or reno.

replied to JSmith
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I concur. The money spent on the Statler is relatively small in governmental terms and it staves off an architectural & financial disaster for Buffalo. When the family car gets rusty, you spend some money on paint, you don't pay your neighbor to haul it away.

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So, what exactly is the plans for this building? I luv what he did to the Curtiss Building on Huron @ Franklin and the other building he owns on Pearl Street near Shea's. Both have never seen any work done. Of course, Croce got it, he's a local boy. The city does'nt like outsiders with experience on such large projects to take over anything here.

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Any money spent by the city of Buffalo for the Statler renovation is money down the drain. There is no way that beast can be brought back to life. It's a mammoth architectural monstrousity! The sooner it's torn down the better. I'm sure that time will prove me correct. Isn't there some way Ms. Rizzo can get involved in the Statler project? Also, concerning the killed Verizon project: anyone who is worried about Verizon using up too much open land is crazy. Have you ever driven from Lockport to Rochester? How much opened land do you need? Maybe that individual needs to move to Wyoming or Montana or Canada or someplace like that.

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I am going to assume that the commentors here who are aghast at the public funds that are going to be- as they put it, "wasted" on this project do not work in government.
If they did have a government job, they would be aware that there are plenty of ways more acessive than this - that government is wasting money.
I used to work for the county and I can verify that there were more than just a few high ranking upper level administrators who used to spend most of the day playing computer solitaire and or they were time stealing.
At least in this situation we end up with a building to show for our money - with all the other "slacker worker" money wasting - we have nothing to show for it.

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