What’s Going On?
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?
Vacancy is a violation under the housing code ordinances. It won't help for underutilized properties like the MPM, but a new, enlightened administration could use existing laws (zoning, housing code, occupancy, etc.) to promote better use of it's properties. The city also has the right to revoke certificates of occupancy for almost any reason without housing court.
Let's all hope (demand) for a more tax payer-friendly adminsistration.
Harvey
Perhaps Stefan Mychajliw of Channel 2 news could do one of his "gotcha" pieces on the owner of MPM.
Seems to me that if what Momo says is true, then only a constant high profile nagging from media and Citizens could do something about it. If the owner is truly operating within the law what more can be done aside from the constant provision of unwanted attention?
Sounds alot like what the NFTA has done with its waterfront property as well (dragging it's feet all these years.)
Shouldn't the local media advocate for these transformations more? What are they afraid of?
I guess if we as citizens of Buffalo don't get up and start making some noise about things, the media feels as though it isn't important enough to us and so they run to cover stories about the Bills or other "filler" material.
I think the Media should get involved just like with the Budget Crises and crooked Politions Dirty Secrets got out last year. Maby this will creat the uproar needed fo get RETAIL BACK and other developments back Downtown.
Sounds like Hotung and Paladino have the same accountants....for every occupied building Carl has, there's another ready to cave in upon itself.
Buffalo has not had visionaries or very many intelligent leaders to address this. As I see it, the real answer is not to get Stephan from Channel 2 news to do an "expose" on these very legal business practices. The answer is to work hard to get the community to realize that there is power in numbers and solidarity. By galvanizing our thinking and our actions to form a cohesive and unified urban center , demanding our elected leaders address this issue, we can make our inner city properties very desirable so they will be developed, rather than taken for a loss against some other glitzy and profit-generating properties in NYC and elsewhere. Until the city is populated, the obstructionists are stopped and re-educated (note latest ridiculous, pathetic and go-nowhere lawsuit filed against Seneca's Casino in Cobblestone district), and our leaders stop being concerned about which developers will line their pockets we will always have this situation. Let's not blame people like Hotung who are actually taking advantage of our own insular stupidity to their benefit. And everybody talks about how the Seneca's are going to suck all the money out of Buffalo. I think not. Case in point: Nobody has stepped up to develop Cobblestone ( one smart developer sold his property to the Seneca's for their project) but the Seneca's will turn a sow's ear into a silk purse as soon as the courts eliminate this latest group (the Wendt foundation indeed, wasting their money like that is shameful) of myopic, pathetic, transparent (notice me, please) obstructionist out of the way. This is just on example of how this city persists in shooting itself in the foot. Maybe some intelligent life, or the appearance of same, which is due to occupy city hall today can make a difference. I'm tired of this helpless, huddled masses longing for change in Buffalo while the saavy, would-be developers are laughing all the way to their banks scene. Give me a break. This city needs to go into therapy to get rid of its "learned-helplessness" persona.
I agree bman. Time for a major change here in the way we run and do business here and our thinking.
All of this name calling is hardly visionary. It seems to me that the only way the pro-casino contingent can make its case (at least on this blog) is by trashing the anti- casino movement with petty insults. Which leads me to believe there is no real substance or merit behind their position.
I challenge the people who believe the Seneca casino is going to help Buffalo to explain their position intelligently and respectfully.
And I challenge you to please direct us to a robust, well-executed scientific study that says a casino will negatively impact the region, Mr. Bartolomei. I cannot recall any study that can specifically state negative consequences for this region and it is quite unscientific to generalize the results of a study from one region to another. The only thing I ever hear from the anti-casino camp is highly opinionated, unscientific rehtoric like "massive negative economic consequences", "a casino will drain Buffalo dry", "a casino will cause a significant increase in gamblers", "our social services doesn't have any budget to address the swells of those entering into poverty as a result of gambling", "mom and dad will spend all of Juniors college fund" and my personal favorite, steeped in unjustified arrogance and dotting select lawns of greater Buffalo, "WE SAID, NO CASINO!" (gag me). And I ask what the secular contingent is doing in this matter? Let me tell you what two things will happen. The casino will be built and certain parties will unfortunately not receive funding from the Margaret L. Wendt Foundation because of the wasted funds devoted to legal activities in this fruitless, latest wave of opposition that has me, the Seneca's and many others quite amused at the arrogance of it all. I suggest we all meet at the Cobblestone Casino (catchy, don't ya think?) next year for drinks and consider this to be water under the bridge. I also suggest (again) that we stop with the anti and put some of our energy into working with the Seneca's to make sure that they select an architectual firm that is sensitive to the cobblestone district when the casino is inevitably built. Contrary to popular (propagated) belief, the Seneca's are very interested in what people have to say about their developments. They would be unwise not to be. In my estimation the seneca's exhibit unbiased and intelligent development strategy and they're not in anybody's pocket which is, delightfully, driving some people in this community literally to distraction. I can't think of any developers in this area that can make that claim. Happy New Year.
Roscoe, This is exactly what the NFTA has done over the last 30 years on the waterfront property. However, it is wasteful for Mychilujeq(whatever) to even try, it is a legal biz practice. Massiello and BBrown owns investment properies too ya know..some good some awful. As far as the casino stuff...we'll have to wait and see, i think itll bring some economic growth to the area but it wont be the big bang theory some are claiming and it wont be the economic drain some are claiming either.
How did this get digress to casinos? BMAN, please go to Niagara Falls and report back on all the spin-off that casino has created after two years (or is it three now?). We'll be waiting for your lengthy list of private sector investment that is flooding NF, NY. The glass box hotel with lights in NF isn't high design. Ripping out the sunken ice rink to create parking isn't city-friendly. Working with Buffalo and the community on a design in Cobblestone isn't in the cards. See their statements previously about opening dialogue. "We won't and we don't have to" was the response. Since you seem to be a Seneca spokesperson, maybe you can set the record straight.
CASINO PEOPLE!!!!
The casino post is 2 down if you scroll past this MPM post or here's the direct link:
http://www.buffalorising.com/city/archives/2005/12/developing_grou.php
Go crazy!
I work right next to the casino in NF, and I'll tell you one thing -- there's not a single new storefront or restaurant anywhere near that casino. It has not and does not spin off new business. I'm kinda mad about that because I really want some new places to go to lunch. The entire economy of downtown NF is either completely the same or possibly worse with the addition of the casino. Well, ok, that's not entirely true -- the splash park did reopen this past summer. Ohh, maybe we can hope for a splash park in downtown Buffalo too! That'd be just dandy.
No retail downtown because properties are a tax write off? Though intriguing, what about the countless other retail businesses that have left over the years? I miss George and Company being downtown. I miss Bon Ton (AM&A's) downtown. I work downtown and kills me when a visitor from out of town asks me where they can shop downtown and the only place I can send them to is the Main Place Mall. Instead of looking at conspiracy theories as to why retail on a large scale doesn't exist downtown, we need to look at ways to have a big retailer take a chance on Main Street. I think downtown is primed to have this happen. Though I can't guarantee anything I have a gut feeling if a department store moved in it would take off. Why? Because there is a sense of excitement building downtown with residential development, new builds (Blue Cross) and general enthusiasm. I think if the Bass Pro deal gets done that may be what pushes downtown over the hump for other retailers moving in.
I'm sorry shopitall, king proprietor of buffalo rising web site, and director of where we should go (complete with exclamation point).
I guess I shouldn't be supporting any initiative that will destroy the beautiful HO Oats/Cobblestone area. Its an urban paradise and a real hot bed of development activity over there, isn't it?. I retract my statement and I acknowledge the lines of people who are waiting to develop the waterfront area with all of their hundreds of millions of private dollars. I also acknowledge the religious right's assertion that gambling isn't nice, because they say so. And while I'm waiting for all of those definitive scientific studies that prove, beyond a doubt, that gambling isn't good for our economy rather than be bored to tears with the BS rhetoric and uninformed opinions of others, I'll head over to Niagara Falls, NY and see how the casino has caused all of that hot bed of activity to come to a grinding halt because we all know how beautifully developed that town is and how the big bad Seneca's took that extremely profitable, solidly-booked, beautiful convention center and that beautiful parking lot behind it and turned it into an ugly 26 story hotel that looks like an Indian feather that can be seen all the way from Buffalo (Buffalo, mind you!!) and that employs a mere 1000 people. I'll ask why the Seneca's aren't more like private developer genuises that Buffalo is so replete with that has made this a fabulously developed community never thinking about their own bottom line. I'm sorry. I'm really out to lunch on this one, aren't I? I apologize for my short-sightednes and clouded vision of our progressive community.
I was uninformed, therefore Pro-Casino until Joel Rose showed me some links to educate me, and I immediately became anti-casino.
Even tribal newspapers are against any new Casinos because of the way tribal members are "locked out" of the profits, and the way the tribe spends its money.
The whole compact between the state and the tribe stinks. If there is any profit to be given to the area where there is a casino, it has to be funneled thru Albany?
Anyone who, of course believes differently--go to Niagara Falls and take a walk around near the casino. Looks like East Berlin.
Right on BMAN, A Tour de Force and 2 thumbs up! The anti-casinistas have been changing their rationale as to why a casino is bad for Buffalo,faster than the politicians in washington have been changing thier rationale as to why/how we ended up in IRAQ.
That being said, Let me digress to my fondest memory of mainplace mall . Standing in front of AM&A/s while The Transit Mall was still under construction. Suddenly ...someone Kicks their way out of the mall thru one of the plate glass display windows....A Purse snatching Buffalo style. A chase ensues, around many of the uncompleted OBJECT D'ART which now litter what was once Main Sreet.....
The Transit Mall may have worked well if they left in the cars,and completed the spectacular Laser Display which was promised. However, Obstructionist put a stop to that. They were concerned it would be dangerous. Mabe they thought they might be vaporized by an errant Laser beam. But that was OLD Buffalo, and this is NEW Buffalo where a group of obstructionist is .....