State AG's office moving to Main Place Tower
Many state agencies relocating offices to new downtown sites
By SHARON LINSTEDT
News Staff Reporter
11/3/2006
Buffalo News file photo
The state Attorney General will take about 40,000 square feet in Main Place Tower, shown here from the lobby of One M&T Plaza.
The state Attorney General's Buffalo region office will relocate to downtown's Main Place Tower next summer.
Patrick Hotung, general manager of Main Place-Liberty Group, declined to comment on the key new tenant, but sources confirmed the state office will leave the Statler Towers late next spring.
"We have been working aggressively to sign new tenants, but I'm not at liberty to talk about any pending deals or parties we're talking to," Hotung said.
The state Office of General Services announced in March that it was seeking nearly 40,000 square feet of space within a four-block radius of Niagara Square for the 95 state lawyers. The state required the new site to be handicapped-accessible and have a loading dock.
The state was seeking a 10-year lease. The state's current decade-long lease at the Statler expires on March 1, 2007, but the agency will extend its stay by several months to allow time for its new offices to be readied.
"We hate to lose them as a tenant, but we've agreed to let them continue operations here as long as necessary," said Statler leasing agency George Hamberger.
The decision to leave the Statler was made before the building was sold to British developer Bashar Issa, who plans an $80 million makeover of the former hotel to a mix of office, residential and hotel uses.
The attorney general's office has occupied nearly 25,000 square feet on the Statler's fourth floor since 1997, and also leases 3,400 square feet of storage space in the building.
The signing is a coup for Main Place-Liberty Group, which was competing with several other downtown landlords for the state agency. The 950,000-square-foot Main Street complex, which includes the Main Place Tower, Main Place Mall and Liberty Building, has a combined vacancy rate approaching 50 percent.
The attorney general's office is among more than a dozen state offices that will move into new quarters over the next year. The Office of General Services is in the process of clearing out the Donovan State Office building, located at the corner of Washington and Scott streets; it will be demolished to make room for redevelopment of Lower Main Street.
Donovan's largest tenant, the state Department of Transportation, will relocate its more than 400 staffers to nearly 80,000 square feet of office space at 100 Seneca St. this month. Ellicott Development, that building's owner, also has signed a lease to house the Department of Parole in the former Courtyard Mall at 460 Main St. in December.
Iskalo Development currently is developing 23,000 square feet of office space for six smaller agencies at the Electric Tower (the former Niagara Mohawk building) at 535 Washington St. That group, which includes the state Liquor Authority, Agriculture and Markets, Public Employment Relations Board and Governor's Office for Employee Relations, will move into the historic building by the end of the year.
No firm timetable has been set for interior demolition and razing of the Donovan Building, but physical review of the structure for environmental hazards is under way. A substantial asbestos-abatement effort will be a key first step.
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