Buffalo Rising Online

Pity, not suprising but a pity. as i said a few blogs back, seems like as fast as some of these projects are announced, others are pulling back. Maybe before they announce these idea's they should get all their ducks lined up first before joining the bandwagon and tooting their horns about a development! How long before the Statler falls through? Seems like the Dulski building, UB and the Larkin people are the few who thought out their plans first.

BBR- Signature did not purchase the properties but has/had them under option. Some options are expiring, owners are wisely seeing if others are interested.

Darn. Visually speaking...I felt that the project was the most important and exciting thing for Buffalo. With the Hyatt across the street, so many out-of-towners see that block, and feel that Buffalo is a bombed out craphole. Let's hope someone/something can save this project.

I hope this becomes un-paused soon

Removing this blight from Main St. would really go a long way to improving the overall health of downtown. Some projects have a total effect greater than just that of the scope of the development. This block and the Genessee Block are two that would be more to the city than just more apartments. Because of their visibility they would be beacons of a turnaround. It is too bad that this project is getting caught up in either the credit crunch, softening demand or both. ( I've just put my hand to my ear to listen for the BR rallying cry of tear em down and build a 40 floor tower...)

If Iskalo was really that interested in these properties and soooo disappointed that he didnt get the opportunity to develop them, then now is the time to step up to the plate.

Living across the streets from these dumps on Washington, I am all too familiar with waking up and looking out my window at buildings falling apart. I actually saw people working on them last week for the first time in 3 years. Mainly they blocked traffic on Washington for over a week with a huge crane and did some repairs that they were forced to do because the building was falling apart. Nothing was done cosmetically or internally to "spruce" them up. They are still dumps, with less debris falling down. Joke's on us again.

Yeah this is a shame. I hope the developer can pull this project through because it really would bring a whole new look to downtown or at least to main street. This is pretty much the last block that is rundown from Theatre to HSBC.

I would love to know what a visitor's impression of Buffalo is staying at the Hyatt looking across at this totally depressed pile of garbage. This to me is actually more important than fixing up the non-existant waterfront although that is a close second. This to most outsiders is their first impression. No wonder no NHL players ever want to get traded to Buffalo.....they usually stay at the Hyatt and this is surely their idea of what Buffalo is all about.... like Hamilton except their smokestacks still make money

Main St is a complete abomination and clearly needs desperate help from the state and the federal govermnet to revitalize.

Private developement will never turn this street around. Like Ice cream says, you can not have the "Main st" in any "major" city loooking this way, it gives off the totally wrong impression.

It is shameful becuase this is really a nice street with the trolly.

It is absolutely necessary at this point to bring traffic back to Main St - too much talk about this, nothing gets done. I just don;t see why it is that difficult, you can drine on behind the trains now.

It really needs to be a priority,

Chris, do you any info on what the problems with the HP credits may be? I checked and the proposed historic district has not been listed in the National Register yet which is a problem. Otherwise if you know what's going on with the credit I would be greatly interested. Clients I've worked with have not had problems selling the credits, and we may be able to help Signature in the process.

With reagrds to this project, Buffalo is finally seeing a decrease in demand for new loft apartments.

Many of the lofts built are very expensive, and people are not re-newing their leases. There is a limited pool to draw from for these tenants.

At some ponint, supply would exceed demand.

Question is, where do we go from here.

As far as statler goes, I would not count on that project ever being finished.

Shocker. Buffalo sucks...it always will. Someone keep a tally of the number of "project proposals" posted on this site the never take place. In 5 years the "Century City Lofts" will be the "Century City F@%kin Parking Lot" I will be 30 and Gaustad will be Mayor.

I thought those buildings on Washington owned by E Square Capital were being renovated separately, and had nothing to do with Termini's purchase?

Ron R - points well taken!

RonR - Is it possible there's a workable middle ground somewhere between between the $8 and $23+ for such projects, that could work financially but not depend on dangerous corner cutting such as those formally accused on the Statler job? Perhaps using non-union but reputable contractors?

I don't know if you saw this Buffalo News article a few days ago regarding your point that labor is 3 times the cost of non-union labor. Using the Statler project as an example. Instead of paying $8hr for manual no skill labor, the union wants 3x that amount plus benefits

Whole thing here: http://www.buffalonews.com/cityregion/story/258494.html

Safety, labor issues cloud multimillion-dollar plans of Statler developer By Sharon Linstedt 01/23/08 ... Meanwhile, Issa’s company faces U.S. investigations by the National Labor Relations Board and the Department of Labor’s Occupational Safety and Health Administration for practices tied to the $118 million Statler renovation. ...In Buffalo, Issa’s BSC Development Buffalo LLC is accused of trying to block union organizing efforts and of bargaining in bad faith. Workers also allege they were ordered to remove asbestos and lead paint without proper safety gear.

The OSHA investigations target Connex Construction LLC, the construction arm of BSC Development, and C. Tabbi & Co., a local firm hired as a drywall and painting subcontractor. OSHA documents obtained by The News include seven citations filed against Connex on Dec. 21, most of them in connection with lead paint exposure during remodeling of the 85-year-old building. Connex was cited for violations ranging from failure to test laborers for lead exposure to failure to provide required protective gear and rooms for changing clothing.

OSHA, which had threatened fines of $15,750 for the violations, confirmed that it reached a settlement with Connex on some of the charges as of Frida y. Terms of the settlement were not disclosed.

Sworn statements by demolition and construction laborers filed with the NLRB also allege serious safety lapses. The workers’ affidavits contend that they were ordered to remove sections of walls and ceilings, exposing asbestos, without the benefit of protective suits and breathing apparatus, or abatement training.

A group of 28 Statler laborers began their organizing efforts last summer, aiming to boost pay from $8 an hour and gain benefits such as health insurance. The NLRB granted approval for union elections in mid-September, and the workers selected Laborers Local 210 as their union affiliation.

Over the last few months, BSC/Connex trimmed its employee roster to about a dozen. Complaints filed with the NLRB allege that BSC Group retaliated against union activity by firing about 20 workers and discriminating against others. Two workers said they were dismissed for attending an OSHA seminar on asbestos removal.

Issa said the changing work force numbers have nothing to do with the union vote and contract talks. But he acknowledged that he is frustrated with union calls to boost wages up to $23 an hour plus benefit costs. “That would be like paying doctor’s rates for laborer’s jobs. It doesn’t make sense,” he said.

If the sworn accusations are true, $8/hr without benefits sounds pretty bad for what those inexperienced workers allegedly were told to do with asbestos and lead paint, etc. without protective suits and without training. Again - allegedly at this point. Unskilled is one thing, but untrained, unequipped, and without competent supervision for safety, all seems way over the line doesn't it?

Issa's inexperience and ignorance has been revealed in several of his projects. He is able to execute the most elementary tasks.

He has a group of unskilled workers on this project, which is ridiculous for a project of this magnitude.

He is trying to nickle and dime this project with the hope of making some quick money. It can not be done this way; he needs to pay a general contractor and have skilled labor.

Basha raised hopes in the city and now is demoralizing everyone.

Perhaps we would have been better off if Issa never showed up. There is a real possibility that this building will stay vacant for a long time to come.

Where {EDIT} is the mayor and the county executive regarding these matters? Isn't it their job to facilitate negotiations and move things along?

Sounds to me that the the credit crunch has caught up to Buffalo as well! Issa should have been more organized and professional from the start.

I'm not sure Issa is "ignorant," rather more taking a global view. From my prospective he is spreading his risk around the globe. As in any market, there is a learning curve, but he hedges himself from the cyclicality from being in only one market. Therefore he wins in some and loses in others. In his mind along with his creditors, as long as he wins more than he loses he is ok.

He's good at marketing and reading people, he puts on a good show. The politicians aren't responsible, he came to town and asked for nothing.

Gaustad,

The Statler is not vacant. It is presently occupied with tenants. I see special events and weddings being held in the remodeled ballrooms frequently. Infact, after the events, dressed up and drunk, they stagger down The Avenue to their cars, just like the old days! Its a beautiful thing. Many weekends they block one lane of Delaware to facilitate the Statler valet parking.

He's moving slow but he's moving. The building has a certificate of occupancy from the city and he is spending his own money - can't a guy do his project as his own pace?

If he ever loses interest in the project, then he can pass the baton to the next guy. I really don't see any reason to panic about this project. One way or the other it’s going to be a downtown jewel.

BuffBolivator - I stand correected if there are tenant still in this building. However, if there are then they are inhaling asbestos.

I will stay hopeful for now, but I do believe his credit ran dry........and that will be a serious problem for any developer.

Having said that, someone should clarify his intentions....milestone dates. Hasn;t he admitted taht the project will be hard to finish.

Thanks Gaustad. Points well taken.

The fact of the matter is that unless we own some shares of stock in his project (or happen to be married to him), we really aren't entitled to any assurances about intentions or time lines. He has been extremely public and has solicited our enthusiasm for the project. Some businessmen have more public personality than others do. He is very public and I know that he has made many of us feel as though we have a personal stake in the project. His enthusiasm is infectious, and I think most of us enjoy being brought along on the adventure. Here’s hoping it continues well.

BuffBolivator - thats not entireley accurate. Alhtough, I understand what you mean, he still has a moral responsibility to the citizens ot this city and the politicians that have supported him.

In addition, if in fact he is found guilty by OSHA for any wrong doing ( and it sounds like he is at fault) then he must be questioned by the city as to his intentions; as of right now his ignorance is spewing asbestos in and around this building.....

The guyis a thrid rate developer with a good sales pitch, nothing more....and I have said it all along. He should cut his losses asap and get out.

Don't be so easy on him, he needs to explains himslef.

Gaustad - To put bloviator's explanation in slightly more rude terms,What makes you think Issa has to answer to us? If he bails to cut his losses all that does is leave us with a partially finished building. Oh yeah, it gives you the right to crow "I told you so". This is part of the false sense of entitlement many have around here. Private enterprise does not necessarily answer to the people. Politicians? Well, that's another matter. Now how about we get back on topic.

Gaustad,

I think you’re making a good point in that when a person puts his own name and face on a project, he feels the highest level of personal responsibility and personal urgency to succeed. I think we all do a better job when our name is on the finished product. Keep in mind that it takes a certain amount of nerve to put your self out there the way he has. Most would prefer to work more privately and not leave themselves that personally vulnerable. He really didn’t have to ask the community for its support the way he has. I’m not aware that he has actually asked for anything more from the public than a little moral support.

If OSHA determines that violations existed, then appropriate remedies will be handed down and that information will become public. If individuals have been harmed in any way they will then have the opportunity to be made whole. Heck, Cellino and Barnes main offices are right inside the Statler! Injured parties would certainly not be lacking attentive representation. I’m willing to wait for the process to release its official conclusions. I think we can all afford to be fair-minded and let this be properly sorted out

Pauldub - let me put this in more rude terms. Issa doesn't have to explain himself to anyone but me, becuase I think he is a lying sack of sh!t that intended on stabilizing and flipping this property from the get go.

In addition to using Buffalo to maximize his own personal gain, he also needs to explain to me why he royally screwed up this building while putting others in harms way.

Last, he needs to expalin to me why one of Buffalo's most historic buildings will sit unused and rotting for years because Daddy won't give him the money to finish the project and the building is too far gone for anyone to assume.

Perhaps, some people in this town should grow some balls, including yourself. It is people like Issa that put Buffalo in this mess. He defrauded the people here; mark my words, this building will sit in its current condition for years,while we drive by it and shake our heads.

Bloviator - Sure, Issa deserves due process before anyone accepts as fact OSHA charges and related sworn statements to the NLRB, but aren't they at least as worthy of discussion as the public arguments and public accusations that Issa himself is personally making via last week's Buffalo Rising and this week's Buffalo News article?

hamp - Most of what you listed as examples to RonR are public sector projects not relevant to the point RonR was making. It's a lot easier for a project to be cost feasible when government is paying for the whole thing with tax money such as the fed courthouse and most of the others you listed.

RonR - Your generalizations sound extreme. There have been some successful private sector projects downtown. The new $15M eight-story office building next door to Channel 2 on Delaware is one example, built by Uniland with non-union workers. There was some picketing, quickly ordered stopped by a judge in May 2006. Otherwise no problems or controversies in that construction, AFAIK.

http://buffalo.bizjournals.com/buffalo/stories/2006/05/29/daily12.html

And there's other examples too. Non-union Concept Construction is building the waterfront condo tower. Maybe Uniland and Concept are already paying something near the $14/hr figure you mentioned and manage their projects with more attention to safety and other aspects of decent labor relations?

I looked at 510 Washington Street in early 2004 and they were asking either $275,000 or $350,000 at the time. Less than four years later it is on the market for $495.000. So, a lot is going on with the 500 blocks of Main and Washington. The buildings have been appreciating. That in itself is substantial progress. I am convinced that the 500 block of Main Street is going to finally hit, and soon. That section near Genesee is going to be arguably the most exciting in the city. People will look back and want to shoot themselves for not hitting that slow moving target.

That section of Main has original civil war era facades. They are directly across from the Hyatt's glassed section. The other neighbors are the "Electric Building" which was I believe was built as a tribute to the Electric Tower at the Pan Am. It is gorgeous and is already the center of our universe, at least on New Years Eve. It is the location of the annual New Year's ball drop. The other neighbor is the M&T Fountain Plaza bank. The only surviving vintage bank and it has a genuine gold domed roof. The place is a palace! Go inside and look. Both of those buildings are stunning. Across the street is the old Howard Shoes location, which was originally an Apple cafeteria, and it still has the original logo and masonry tile on the facade. The Electric Building has recently purchased it so that they can select their own restaurant tenant. There is a courtyard with a statue, formed by the angled intersection of Genesee and Main. The Berger's building across Main is full of high-end residential tenants. It even has a train. It looks like a big toy set. I love it! Somebody print this out and hold me to this prediction. That block is going to be one of the hottest blocks in Buffalo -even if we never open Main Street to traffic, which we will.

BuffCityGirl,

Brava!

Heh. BCG tells anyone who doesn't see things the way she does to "shut up!", and BB chimes in with "Brava!". Hooray for self-appointed censorship czars.

AtwaterLouse,

No slight intended. I very much value all of the comments on any issue. Commenting on community issues is in its self, contributing.

My spontaneous cheer to BuffaloCityGirl’s rousing bloviation was meant to thank her for applauding my previous comment, and also to express my thanks for inspiring me with her enthusiasm and single mindedness of purpose toward her own goals.

I interpreted the particular part of her speech that I believe you may be taking issue with as meaning figuratively, "contribute, or get out of the way” rather than that she is shaping sharia law in her own image.

Perhaps we can call upon BuffaloCityGirl to please clarify for us which of our two interpretations may be closer to her intended meaning.

Bloviator - I hear ya and I wasn't personally slighted. Doubt the 'shut up' was directed at me anyhow. This site seems to draw a lot of holier-than-thou b.s. like that. Buffalo's blend of political correctness. No big deal, no offense taken, just felt like calling it out.

RonR - Yeah 'there should be many many more projects underway', but that's a much broader topic. Never mind union construction rates for a moment. You do agree nobody is forced to choose a unionized contractor for a Buffalo project if they don't want to, right? You wrote earlier that $14/hour should work. How do we know that's not close to what reputable competent non-union contractors are already paying? If so, they're already doing what you said should work and yet now you still say it's too much? What are you saying now - $13, $12?

Isn't lack of end user demand for the projects a simpler reason for why there's not many more underway? It's a pretty fast shrinking city, right? 2nd-poorest in nation, NYS with near-worst business environment, brain drain, among lowest rates of new population moving here, etc. etc. Considering those factors, and that Spitzer/Silver/Bruno say they plan to continue Pataki/Cuomo policies of decline and stagnation - why should anybody expect downtown Buffalo to have many projects just because a lot of other cities do?

I do think your explanation applies much more up in Niagara Falls where non-union projects are next to impossible for various reasons. And they have that on top of Buffalo's issues. No wonder it's even worse there.