A few days ago, I wrote about how lovely it would be to have some retail options in downtown Buffalo. It’s the holidays and I was resenting the schlepp to the burbs for certain items not available to us city dwellers. I specifically sited the Main Place Mall of which I’m a great fan! What a great existing modern designed mall just screaming for someone to provide it with a little “love” and get it rockin’. I said that I felt a great part of MPM’s problems could be a result of management’s lack of vision or interest in providing downtown Buffalo with what could be a very nice shopping venue.
Many BROnline readers checked in with interesting and insightful comments. One comment from Momo specifically stuck out; I can’t shake it. Here it is:
“Hotung (Main Place Mall’s owner) doent (sic) need or want the money, he has so many profitable investments in NYC and other progressive cities that he needs the writeoffs the MPM provides to offset his income on those other properties. we attempted to purchase MPM three years ago and populate it with Old Navy as an anchor...he shot us down and told us why off the record.”
Another comment from Momo pursued the same thread:
“We cant just take his property or force him out. As a property owner he has a bundle of rights, which include use for enjoyment...NYS Law Real Estate Division. If he wants to leave the building empty forever he can, as long as he is in compliance with the law. Unfortunately it is his right as deedholder and property interest holder. This happens all over the US. Kansas City was once a run down little city not too disimilar from Buffalo. The mob used it as a shell for tax writeoffs several decades ago. However, the property market in the US has gotten so hot in some cities(Tampa, Miami, Atlanta, Phoenix, SanDiego, San Fran, LA,NYC) that large developers really truly need the writeoffs to offset their gains, whether it be on paper or realized gains. Otherwise they are shelling out millions in tax dollars to the Govt. and theyll (as would I) be damned if theyre going to give the Govt these large sums. A simple business tactic used since the early 1900's”
Voila! There seemed to always be a missing puzzle piece as to WHY Buffalo has continuously been so unsuccessful in any downtown retail development. This may be it. Can this be true?
Buffalo; the cheap REAL ESTATE WRITE OFF capital for realtors who make LOTS of money in other progressive cities!
If I understand the issue that Momo raises; the city of Buffalo is being deprived of thriving downtown development, because of out-of-town realtors/developers, to whom we give city & county tax advantages AND Empire Zone money, so they can sit on these buildings for years, impede progress, and get tax write offs?
And “use for enjoyment”? What about OUR enjoyment?
Am I missing something? I know that the Hotel Lafayette is owned by someone from NYC. Is it the same situation as MPM? Is the Hotel Lafayette another Empire Zone TAX WRITE OFF? What about the Hotel Chippewa?
Is this true? Is downtown’s dirty little secret FINALLY out? If it is true... HOW CAN THIS BE ALLOWED? What does the LAW say about NOT using Empire Zone money for the intended purpose of the community’s growth? Who ARE these people that are undermining Buffalo’s economic progress and getting away with it? Just because something is LEGAL doesn’t make it RIGHT!
It seems to me that the RIGHT thing would be to take a New Buffalo approach. Go for greatness! Main Place Mall has such wonderful potential, as does the Lafayette Hotel. I can envision a situation where everyone would benefit. MPM could act as a catalyst for vibrant downtown economic and retail development. If this does not interest them, there are many other struggling cities that they can buy up and destroy. Tax credits and Empire Zone funding could be used for their intended purpose of financing Buffalo’s aspiring entrepreneurs. It would ALL be good; WIN/ WIN!
New Buffalo wants their city back. What’s going on here?