Benderson Development today detailed plans to completely reinvent the former Donovan State Office Building as a mixed-use, LEED certified complex, with Buffalo law firm Phillips Lytle LLP, as the anchor tenant of new Class-A office space.
This morning Benderson Development was unanimously awarded the development rights for the critical Donovan Block of the Canal Side project by the Erie Canal Harbor Development Corporation (EDHDC). The developer plans a $30 million investment in the site including the makeover of the 49-year-old structure that will mark the first private investment in the Canal Side project.
"We are extremely proud to be selected as the developer of the Donovan Block for a project that will be an absolute game changer for downtown Buffalo and Canal Side," said Benderson Development Managing Director Randy Benderson.
"Canal Side has already seen great success through the wonderful physical improvements that are drawing record numbers of people to the Erie Canal Harbor for seasonal evening and weekend events, now we're going to take it to the next level by creating year-round density, in addition to making a significant addition to the property tax base," Mr. Benderson said.
Phillips Lytle LLP will be the building's anchor tenant, occupying 85,000 square feet of space, on the top four floors of the eight story, 160,000-square-foot structure.
"We studied and weighed multiple location options as we considered our firm's long-term future space needs, and none of them were more appealing to our Partners and staff than being part of Canal Side," said David J. McNamara, Managing Partner, Phillips Lytle.
"The Donovan site will not only provide us with a blank canvas to create a 21st Century law office environment, it gives us the opportunity to invest in Buffalo's dream of a thriving waterfront. Our firm has grown and prospered on lower Main Street for the last 176 years and we look forward to continued success in Canal Side," Mr. McNamara added.
Congressman Brian Higgins also noted the development rights award as a milestone in waterfront redevelopment efforts.
"In recent months we have made significant progress transforming public infrastructure along the inner and outer harbors to make the area attractive for economic development that will support jobs in Western New York.," Rep. Higgins said. "With this agreement we bring new life to the Donovan site which has sat vacant for years and see millions of dollars in private investment at that location as well as an additional $4 million dollars for additional waterfront progress in the surrounding area over the next 15 years."
"The selection of the Benderson team to redevelop the Donovan Building, with Phillips Lytle as anchor tenant, is a huge win for our City and Canal Side. Not only will it take an older building and give it new life, but this project alone will bring hundreds of people to our redeveloped waterfront every single day of the week," said ECHDC Chairman Jordan Levy.
Work on the vacant Donovan Building will begin in December with 'de-skinning' which will see the structure stripped down to its structural steel. The project is slated for completion in December 2013, with Phillips Lytle and other tenants taking up residence in 2014.
"As this vacant building prepares to be brought back to life, we have another sign of progress for the city of Buffalo," said Senator Timothy Kennedy," This private-sector investment will lead to serious job creation and economic development along the waterfront - which is critical to our efforts to revitalize our city starting at the water's edge."
In addition to adding approximately 150,000-square-feet of 'market rate', Class-A office space, the building will offer lobby-level retail and restaurant components, a conference center and a two-story, 130-vehicle parking garage. The garage will be directly attached to the east and north sides of the existing building.
Clark Construction Group, LLC, the nation's largest privately-held construction company, will serve as general contractor. The Bethesda, MD-based firm, whose resume includes significant experience in LEED-certified projects, will follow guidelines to achieve LEED "Silver" certification for the Canal Side building.
Benderson Development has also directed Clark to utilize local subcontractors, trades people and laborers, and adhere to the Canal Side district's guidelines for inclusion of minority- and women-owned businesses.
Orchard Park-based Fontanese Folts Aubrecht Ernst Architects, P.C. will serve as the project architect.
Founded in 1834, Phillips Lytle has grown in size, expertise and reputation to become one of the region's best-known law firms, which has over 170 attorneys with offices located across New York State in Buffalo, Albany, Chautauqua, New York City and Garden City. Phillips Lytle currently employs over 300 lawyers and support staff in its downtown Buffalo office.
Great, more musical chairs the results in a vacancy at the end of the chain. And I assume the additional $4M that Higgins mentions if in the form of taxpayer funded improvements. The new tax revenues from this project will likely be undercut but lost assessment in the building vacated to fill this one. Let's talk about the long-term off-site impacts too or once.
Socialized debt for privatized profit. Great model.
Free Lunch.
Can someone delete this guys account?
have to say i agree with buffalofalling.
this is moving a tenant from one building to another subsidized by a $7 mil public investment. it's not a net positive for downtown. it's not bringing a new tenant in from outside buffalo. As proposed, the benefit of this project is we don't have to stare at this "piece of garbage". It ignores an adopted plan and design guidlines from ECHDC to create a vibrant neighborhood. This is not a spark for more private investment. As proposed it's a dead end...a sinkhole for taxpayer money.
class A office vacancy in downtown buffalo is 3.94% as of january 2011. that's a shortage. http://www.bizjournals.com/buffalo/news/2011/01/21/buffalo-class-a-vacancy-rate-dips.html