Great detail WCP. thanks. i just hope people don't confuse this federal tax CREDIT with local public funds assistance or local tax incentives. I never understood why he wouldn't consider the HTC, you should always do your due diligence into any assistance that is available to someone looking to make such a large investment to offset costs. Very noble of Issa to try on his own, but never seemed like the smartest way to go to me.
I actually stayed at Hotel Galvez (big wyndham hotel on the left) in Galveston, TX and the hotel and service was unreal and top-notch. To give you an understanding about the hotel, Hotel Galvez functions as any regular hotel would, however they pay a special close attention to the history of the building, from old pictures on the walls, to historical fixtures and furniture, to the staff all being knowlegable of the hotel and its history.
I can only imagine that if the Statler was given the same attention it would be a destination hotel in Buffalo, a can't miss, and considering its history and all the stories and famous people who have walk through that hotel, far superior that Hotel Galvez and possibly many of the best hotels nationwide. I've not be a real believer in Issa, but after reading this post I can assure you he is on the right track with this hotel proposal.
This would be a major coup for the Statler, Buffalo, and the region.
Securing the tax credit, securing the banner, then securing the construction loans. Maybe it can work out after all. It just couldn't have been timed worse and Issa's ass-backward approach to this project will make it a tough sell. Will it happen? Will Bashar Issa be the ditzy, flawed midwife to Buffalo's renaissance?
The Statler would make for a beautiful hotel and would most certainly attract people to Buffalo for a visit. I would rather stay in a rehabbed, historic hotel like this vs. the Hampton Inn.
Issa appears, as though, he is slowly learning the business; I believe he really needs a guide here locally to help him on his way. He is not familiar enough with the US, NYS, or Federal Tax Credits.
Although, I commend him on his efforts....this is a critical project for our city that needs to be completed in a timely fashion.
At least he is not walking away and putting the property up for sale; that is what I figured he would do.
You would think a seasoned developer would have gotten the ball rolling on these credits so there would be no down time during the construction. Mr. Issa needs to have a chat with Rocco Termini, the master of the downtown eyesore to apartment/business conversions.
Wonderful news; too bad this didn't start like this but... Well, heres an idea, he can take the office space on the lower floors and shift them to a shorter (20) story tower and make those spots condo space. We all know how many people want condos downtown and it would help move a smaller tower plan ahead. You know, I don't understand why the Buffalo news didn't look over all the facts before their article....this is why I read BRO for local and the BBC for international news!!!
Before Issa can get a penny of HTC he has to spend a penny. He doesn't have it. If you listen carefullly you'll hear the sound of BSC Group unraveliing....from Manchester to Bflo.
bufflow,
The way Historic Tax Credits generally work is you get qualified for them, then sell the rights to them to people who actually need the credits to reduce their tax burden. Because there is some risk to these people (inasmuch as you may not finish the project) the credits generally sell for some fraction of their face value. In this way, Issa actually doesn't have to spend the anything before he received a large infusion of cash to do the actual project.
Charger,
Its pretty rare that investors will provide cash pre-development and if they do the return on the tax credit is lowered due to the increased risk. More often investors will provide phased payment or payment upon certification of the completed project.
Congrats to all who put this together. To all that criticized Mr. Issa before and continue to point out that this should have been done sooner - Sit Down. Mr. Issa never made himself out to be "Silver Bullet" or "Saviour" of Buffalo. He has always maintained that he wanted to do a project in the USA and chose Buffalo, mainly because for the Statler. And given the warm welcome he has received in-lite of his few missteps, I could not blame him for doing his next project somewhere else.
This effort and solution is worth community support, politicians and the general public should be advised to get on board, it appears to cost nothing and could have big benefits to the community.
Wyndham is really working hard on developing their historic hotel collection... its a new trend in the industry... I would be more than happy to have them here
Definitely hear ya on a hand holder for the subsidies.... Rocco where are you.. make some money as a consultant
Good plan B, I hope Issa pulls through with this project, especially if he lands the Wyndham Hotel chain. This will be big for our city! Lets cross our fingers for the Wyndham deal, were behind you Issa!
Hospitable, let Rocco stay developing properties, we consultants need the work! Our firm specifically guides developers through the historic tax credit process.
Jay, how can service be unreal and at the same time top-notch? Compared to what?
Chris thank you for posting an update to Issa's work. Nick thanks for some of the great detail for this article!
don't get your hopes up ppl on this project - if Bashar needs to bank the project's existence on the government, god help us
The Statler has more than enough history and age to easily quality for national historic landmark status that I have no doubt that he will get them. After that he does seem to have the will and plan to get the credits. So hopefully these move forward and therefore so will the project. Great news I think.
Statler brought the hotel industry to the modern era offering private bathrooms and many other amenities for the very first time. If Wyndam really wants to grow their historic hotels this is probably the second best choice in the country, the first best was demolished over for Dunn Tire park, that was Statler's first hotel in Buffalo... This was his flagship though.
I also heard that Statler coined "The customer is always right" not sure how accurate that might be but adds to the flavor and history of the project if it is.
Hospitable,
I'm looking to work in Buffalo, just haven't gotten the call yet..tell all your developer friends!
Tony,
Many historic rehabs viability is based on getting the tax credit and it would not be worth the investment without it. The credit is a "but-for" incentive, but for the tax credit, this project wouldn't get done.
See. Told you so! But, just a comment in fun. Please save your slings and arrows for future entries.
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