The Erie County Industrial Development Agency (ECIDA) does not offer assistance to condo development like the IDA in Rochester, but it is now providing incentives for market-rate housing projects. A new Adapative Reuse Policy adopted by the agency in December provides tax incentives to developers committed to renovating and transforming old, vacant buildings for commercial and residential use. It is expected to spur the redevelopment of obsolete buildings in the city and elsewhere.
State law does not prohibit the IDA from undertaking market-rate housing projects as long as the project qualifies as a “commercial” project. Under the ECIDA program, a building must have been vacant for over three years and built at least twenty years ago. The Adaptive Reuse incentives can save developers as much as 20 percent on construction costs and will help leverage private-sector investment. The program is expected to piggyback on existing federal and potential state tax credits available for historic preservation projects.
Mayor Brown at the December IDA Board meeting spoke in favor of the Adaptive Reuse Policy noting that it represents an important economic development tool to facilitate the reuse of obsolete buildings in the city. It also provides a mechanism to bridge the financing gap that exists for many projects involving obsolete buildings he says.
The first project approved under the policy was Signature Development’s $11 million proposal to convert the AM&A’s warehouses at Eagle and Washington streets (photo above) into a mix of 15,000 sq.ft. of commercial space and 48 lofts. Phillips & Burns has agreed to lease the office space, moving from 5,000 sq.ft. in Signature’s Ellicott Commons project and adding 50 jobs.
Kissling Interests is also seeking assistance under the program to complete the renovation of the former National Casket Co. building at 430 Virginia Street. Ten live-work lofts are planned for the four-story Allentown property which has been slow getting out of the starting gate. Iskalo Development is utilizing the program to renovate a shuttered car dealership in Kenmore for commercial uses.
Amherst Supervisor Satish Mohan was the only ECIDA board member to vote against the new policy. According to Mohan, the Agency which should be focusing its efforts on providing incentives to industry and not on housing. Mohan stated that “new housing is not needed because the region is losing population,” according to ECIDA Board meeting minutes.