BUFFALO | Development Thread

[westcoastperspective]

Its been really quiet on the development announcement front- maybe its good to have a pause so some of these announcements can move into the construction phase- 2007 is going to be a big year for number of residential projects and units underway downtown; here's what is UC or is likely to be underway this year:

Ellicott Commons (UC)
Webb (UC)
Greystone
Kissling on Virginia St.
Cobblestone Lofts
Warehouse Lofts (Seneca Paper) (UC)
504 Washington (UC)
Lofts @ Elk Terminal (final units) (UC)
and Ellicott in Waterfront Village

That's nine projects and there are a few that could join them with construction this year (Statler?, Genesee Block?, 32 North?, Baker Shoes?)

[westcoastperspective]

A coffee house is typically no big deal, but when it is downtown and opening east of Main Street- I think it's a big deal! Buehl Block just leased their ground floor space to a coffee house and roastery. The operator is planning to keep evening hours and use the space for art exhibits, open mic nights, etc. I have a post coming on Buffalo Rising.

Slowly, some semblance of a neighborhood sprouting (Washington Market, Old Editions, new restaurant at Ellicott Commons, big plans for Genesee Block) and more residences coming nearby (Ellicott Commons, Genesee Block, 112 Genesee, 504 Washington, and Warehouse Lofts/Seneca Paper).

[chevy064]

http://www.buffalonews.com/editorial...21/1043245.asp

OK - so this isn't in the city of Buffalo - but it is great news for the metro area.



Citigroup unit to create 650 jobs here

Operations center will occupy a large building in the CrossPoint Business Park in Amherst

By JONATHAN D. EPSTEIN
News Business Reporter
2/21/2007
Banking giant Citigroup will be the sole tenant for a second large building in Amherst's CrossPoint Business Park, choosing Western New York over other sites in the United States and Canada for a coveted operations center, sources confirmed Tuesday.

Gov. Eliot Spitzer and bank officials will be on hand today at 3:30 p.m. to formally announce the project. It's expected to bring more than 650 additional jobs to Western New York from four to six business units of Citi's corporate and investment bank, sources familiar with the plans said.

The bank will occupy a proposed new 156,000-square-foot, three-story building, to be built next door to a 109,000-square-foot back-office facility that Citigroup began occupying late last year in the Uniland Development Co. park. The two buildings would be connected with a pedestrian walkway, as well as an electronics conduit underneath the roadway, to create a campus, the sources said.

The planned new building could house up to 1,000 workers, although sources say the total is likely to fall a little short of that. It would also include a cafeteria, and possibly a fitness center and outdoor area or courtyard.

A tentative rendition will be displayed at the press conference, although details could still change, as the project is not yet finalized with a signed agreement, the sources said. The final project value also has not yet been determined.

Still, sources said the deal is unlikely to fall through at this point. They said construction could begin within a couple of months, and is expected to take about a year.

Bank officials and a spokesman for Spitzer declined to comment.

This is the second major expansion in Western New York for Citigroup, which previously had a smaller, flat building on Ridge Lea Road with about 475 workers.

The bank, which has operated in Western New York for about 30 years, decided to expand that facility to take advantage of the work force, lower operating costs and quality of life in the Buffalo area, officials said in November. It also disperses some of its operations away from New York City, to ensure better backups and recovery in case a disaster strikes New York.

Besides moving to Cross-
Point, the bank also said at the time that it would add 175 jobs, mostly in operations and finance, but said nothing about a second location. The first building can house 805 employees.

Talk of the bank considering a second building first emerged last year after plans for the first were unveiled. Sources said bank officials were pleased with the area and liked the idea of "co-locating" other related business units to be more cost-efficient and effective. Discussions between the bank, Uniland and economic development officials including Buffalo Niagara Enterprise started about nine months ago.

However, Western New York also competed with Chicago and Toronto, among other areas, to land the facility, which involves a heavy investment in technology for the bank. So the state got involved with a package of incentives, including tax breaks through an extension of Buffalo's Empire Zone and possible cash payments or work force development grants.

Details of the building itself first emerged last month, when the Amherst Industrial Development Agency approved $5.3 million in sales, property and mortgage tax breaks for the $29 million project. At the time, it was described as a multitenant building, and Citigroup was never officially named as a likely occupant, though it was widely rumored.

The tax breaks were approved in the form of a 10-year payment-in-lieu-of-taxes (PILOT), but that could be extended to a 15-year PILOT since only one tenant will be in the building. The Town of Amherst, Erie County and the Williamsville School District are expected to receive part of the PILOT, with the City of Buffalo getting the rest to use to reclaim and clean up brownfields sites.


e-mail: jepstein@buffnews.com

[westcoastperspective]

This is great news for the area. CrossPoint is about 75 percent full I'm guessing. Time to start planning another business park that can accomodate these type of firms. If Ciminelli ever gets the OK for their Muir Woods project, that would be a natural.

I think the City kinda missed an opportunity along the Union Ship Canal. It should have been more 'upscale' like Uniland's project at the 190 and 290 (masonry) and could have possibly been in the running for the project (OK, would have been a long-shot). Instead, they went with pure industrial users that so far have put up metal buildings.

[Downtown Bolivar]

^^^I think the development around the Union ship canal reflects the overall problem that Buffalo has. The city still thinks of itself as an industrial blue collar town which is precisely the image that people outside of WNY think of as declining and backward. There's definitely a certain sense in which the area "deserves" its reputation.

[chevy064]

http://http://www.buffalonews.com/ed...22/1068170.asp


Citigroup says quality of life was key

Expansion of back-office operations in Amherst will double its local jobs

By JONATHAN D. EPSTEIN
News Business Reporter
2/22/2007

Citigroup officials said Wednesday the banking giant chose to expand in the Buffalo area over dozens of locations globally because of the quality of life and dedication of the work force - not $15 million in government incentives.

And Gov. Eliot Spitzer said the doubling of the bank's operations here could lead other companies to take another look at Western New York.

The $1.8 trillion-dollar bank formally announced it will build a second back-office facility in Amherst's Cross-
Point Business Park, with 156,000 square feet of added space next to its current building that opened in November.

Plans currently call for hiring as many as 700 employees over the next three years for various behind-the-scenes tasks - doubling the bank's Western New York workforce of 750, according to the bank and Empire State Development Corp.

But the new building, estimated to cost more than $50 million when completed, could ultimately house up to 1,000, marking a significant investment for Citigroup.

Speaking at a press conference with more than 200 employees and dignitaries, Hans Morris, head of operations and technology for Citi's Global Markets and Banking division, said the bank could have set up shop anywhere, since it operates in 102 countries.

But it chose Amherst because of the bank's 30 years of experience working here. The bank opened its local operation in 1976 with 10 employees and now has 650 after moving from an older site on Ridge Lea Road and adding 200 jobs. It also has 100 employees in Smith Barney offices and had 21 branches in Buffalo and Rochester before selling them to M&T Bank Corp. last year.

"Citi chose Buffalo because of the character of the people here," said Morris, who is also chief financial officer of the division within Citigroup's Corporate and Investment Bank. "I love this city. I love our staff here. Back at [our headquarters], I am called Mr. Buffalo because I love this place so much."

But the bank is also getting significant financial benefits.

It has been tentatively approved for the Empire Zone program as a "regionally significant project," expected to bring $13 million in tax credits over 10 years. And it accepted a $1.75 million economic development package from Empire State Development's Jobs NOW program, with $1.5 million for the construction of the new facility and the creation of 500 jobs, and another $250,000 if it adds 150 more jobs by January 2012.

It will also receive an energy discount of about 2 cents to 3 cents per kilowatt for five years from the New York Power Authority, through National Grid.

That's worth it, Spitzer said. "These are the jobs that we want to draw here," he said.

And he said Citigroup's decision could create a domino effect, as businesses see that outsourcing no longer makes sense compared to hiring at home.

"You're going to see this city become a financial center and thrive," he said. "We think there is a tipping point, where people see that this is a place to site these sorts of jobs."

Already, the area has thousands of financial services employees at M&T, HSBC Bank USA, Geico Corp., Bank of America Corp. and Washington Mutual, in addition to Citi. Other financial companies also have looked at the area, said Thomas Kurcharski, president of Buffalo Niagara Enterprise.

"That's what we kind of envisioned we were going to be as a region," he said. "All the research we've done said we would be a very viable alternative for financial services."

The new positions - which Morris called "real knowledge jobs" - will range from entry-level to senior management, and will be in capital markets and banking operations, Global Transaction Services, fixed-income analytics, risk, compliance and finance. More than half of Citi's revenues come from abroad, and employees will support the bank globally, such as settling a foreign exchange deal. The average starting salary will be $45,000.


e-mail: jepstein@buffnews.com

[mjs]

once again, good economic news in Buffalo is ignored in albany, syracuse, NYC. If there were a murder, or they captured a rapist, or there was a big fire, or major closing, they would have it slapped on their headlines.
No wonder people outside of Buffalo, have such a negative image, the media in upstate ignores any positive news out of Buffalo.
MJS

[mjs]

thankyou westcoastperspective. I can't understand why people who hate bflo so much would want to write about it on a thread that is supported by people who care about, in some cases participate in Buffalo's boom.
well maybe it's not a boom, but I have been following development in Buffalo since the 70's and I can tell you it is no fiction that never has there been so much development going on in this town than in the last few years. FACT!

[Halovet]

Originally Posted by mjs

thankyou westcoastperspective. I can't understand why people who hate bflo so much would want to write about it on a thread that is supported by people who care about, in some cases participate in Buffalo's boom.
well maybe it's not a boom, but I have been following development in Buffalo since the 70's and I can tell you it is no fiction that never has there been so much development going on in this town than in the last few years. FACT!

I agree, Great news. I just wish it were headed to The Proposed Issa Tower though, but hey, we'll take it!

[westcoastperspective]

Anyone see the tidbit in Bflo Rising that the elevator repairs at Statler are almost done and a contract is out for window replacement- $1.4 million I think it is. The odd thing about this renovation is it is being done in phases and won't be very noticable until they start building the parking ramp on the back. T

hey still don't have their approvals for the project from the City- I don't know what the hold-up is, but I assume it may need to go to the Preservation Board and then the Planning Board can sign-off on it.

In the meantime, put up a bit of scaffolding to at least show it is underway.

[BUFFALOVE!!]

this is supposed to be about developments in buffalo not people argueing about wether the city is amazing or crap. if you think the city is crap then dont post here. and BTW fire dude read the article about M&T again because it says in more than one place for every job they outsource they have added more.

http://www.buffalonews.com/editorial...22/1053836.asp

"In all, M&T employs 5,200 in Western New York. That includes 2,500 in downtown Buffalo, with another 250 to 300 slated to move downtown once a new building on Delaware Avenue opens. Zabel said the bank added 539 jobs in Western New York just last year. "

Also Citigroup chose Buffalo because of the quality of life here and they are adding 750 jobs over 3 years not 500:
http://www.buffalonews.com/editorial...22/1068170.asp
"Citi chose Buffalo because of the character of the people here," said Morris, who is also chief financial officer of the division within Citigroup's Corporate and Investment Bank. "I love this city. I love our staff here. Back at [our headquarters], I am called Mr. Buffalo because I love this place so much."
so fire dude you just got served!

on a lighter side there is progress with The Buffalo City Tower:

http://www.buffalorising.com/story/l...e_in_the_tower

also in the FEB 2007 issue of "the downtowner" (buffalo) someone disclosed that Issa is working out a deal w/ a company form outside of NY that would take up 25% of the space.
oh and GO SABRES!

[westcoastperspective]

Originally Posted by BUFFALOVE!!

also in the FEB 2007 issue of "the downtowner" (buffalo) someone disclosed that Issa is working out a deal w/ a company form outside of NY that would take up 25% of the space.
oh and GO SABRES!

[Wigs]

a picture of the inner harbor coming along:


http://www.allthingsbuffalo.wnymedia.net/?p=474

[Rue B]

Paladino gets added time on city site
Business First of Buffalo - 2:01 PM EST Tuesday, February 27, 2007 by James Fink Business First

With pending legal action hanging over the prospect of downtown's newest, multi-tenant office building, city officials granted a one-year extension to the project's developer.

The Buffalo Planning Board, during its meeting Tuesday morning, approved a one-year extension to Carl Paladino, who wants to construct an 11-story, 300,000-square-foot Class A office building along Court Street. The building would be the largest, new multi-tenant office tower constructed in the central business district since the Key Center at Fountain Plaza twin towers were erected in 1990.

The project has been in the works for the past few years, but has been delayed due to legal action being brought against Paladino by the owners of the Main Place Tower-Liberty Building-Main Place Mall complex. Two separate legal actions filed by the ownership group against Paladino have been rejected by the courts, but a notice of appeal was filed against the rulings last week.

At issue is whether Paladino's project will harm the neighboring buildings, especially the Main Liberty Group, owners of the Main Place Tower-Liberty Building-Main Place Mall complex, had eyed one of the same parcels for a parking garage to better serve its own tenants.

Paladino acquired two Court Street parcels -- one owned by the Clement Chen family and the other by the City of Buffalo -- for the project. Both are being used as surface parking lots.

"I'm happy the planning board granted us an extension," Paladino said. "As for the appeal, in our opinion it is totally frivolous."

Officials from the Main Liberty Group could not be reached for comment.

http://buffalo.bizjournals.com/buffa...ml?jst=b_ln_hl

[believeinbflo]

oh boy. paladino's 999945856336262167 project to be delayed till seemingly the end of time.

[kznyc2k]

Construction Starts '07 With a Bang

Business First of Buffalo - 9:56 AM EST Tuesday, February 27, 2007

Western New York's construction industry began 2007 in grand style, according to a report issued Tuesday morning by McGraw-Hill Inc.

Contracts for future construction in Erie and Niagara counties soared 27 percent in January, totaling $66.1 million. That compared to $51.9 million in the same month a year ago.

Last year also started strongly for the local construction sector, with residential construction up 12 percent and nonresidential construction up 42 percent in the first three quarters of the year.

The final quarter saw a slowdown in activity, though total volume for the year did exceed $1 billion in the two-county region.

[Downtown Bolivar]

Let's hope that Issa can make 2008 even better!

Some interesting development news in the Buffalo snooze this morning.
Spitzer is already having a postive impact.
Can we get the state to show us some love? Pretty ugly picture...dear Mr. Spitzer.

Nice piece on redevelopment of a nice landmark.

Who says things aren't looking up?

[BUFFALOVE!!]

Originally Posted by Rue B

Paladino gets added time on city site
Business First of Buffalo - 2:01 PM EST Tuesday, February 27, 2007 by James Fink Business First

With pending legal action hanging over the prospect of downtown's newest, multi-tenant office building, city officials granted a one-year extension to the project's developer.

The Buffalo Planning Board, during its meeting Tuesday morning, approved a one-year extension to Carl Paladino, who wants to construct an 11-story, 300,000-square-foot Class A office building along Court Street. The building would be the largest, new multi-tenant office tower constructed in the central business district since the Key Center at Fountain Plaza twin towers were erected in 1990.

The project has been in the works for the past few years, but has been delayed due to legal action being brought against Paladino by the owners of the Main Place Tower-Liberty Building-Main Place Mall complex. Two separate legal actions filed by the ownership group against Paladino have been rejected by the courts, but a notice of appeal was filed against the rulings last week.

At issue is whether Paladino's project will harm the neighboring buildings, especially the Main Liberty Group, owners of the Main Place Tower-Liberty Building-Main Place Mall complex, had eyed one of the same parcels for a parking garage to better serve its own tenants.

Paladino acquired two Court Street parcels -- one owned by the Clement Chen family and the other by the City of Buffalo -- for the project. Both are being used as surface parking lots.

"I'm happy the planning board granted us an extension," Paladino said. "As for the appeal, in our opinion it is totally frivolous."

Officials from the Main Liberty Group could not be reached for comment.

http://buffalo.bizjournals.com/buffa...ml?jst=b_ln_hl

WTF the last thing Buffalo needs is more parking. I was in Toronto just last night for the Sabres game and every surface lot I saw had a fence arround it, bulldozers in the middle and a picture of the highrise that was starting construction. we dont need a parking ramp there, we need a new building. at least the courts are throwing this bull crap out. hopefully the appeal is the end of this and the start of construction.
does this guy have any tennants lined up, or a rendering?

[mrussell83]

http://projectbuffalo.com/index.php?catid=1

[Rue B]

Building of new courthouse to start by Labor Day

$130 million Niagara Square facility is expected to be completed in 2010

By JERRY ZREMSKI
News Washington Bureau Chief
3/1/2007

Construction of Buffalo's new $130 million federal courthouse will begin by Labor Day and be completed in 2010, Rep. Brian Higgins said Wednesday.
Higgins, D-Buffalo, said officials of the General Services Administration which builds federal facilities informed the House Transportation and Infrastructure Committee of the agency's plans.

"This is great for Buffalo, and it's been a long time coming," said Higgins, a member of the committee.

The ultramodern courthouse, to be built on Niagara Square, will be the largest construction project in the heart of downtown Buffalo in several years.

U.S. District Judge William M. Skretny, who had been leading the judiciary's effort to get the new courthouse built, termed the news about the construction "absolutely fabulous."

"We really could not have hoped for anything more," Skretny added.

Higgins' announcement came a day before the Transportation and Infrastructure Committee is scheduled to give the project its last required rubber stamp.

The committee will direct the GSA to spend $120 million on the project. More than $10 million has already been spent to clear the site and design the new facility.

Planning for the new courthouse began in 1996. The courthouse has been the federal judiciary's top priority project for four years, but construction had been delayed because of a rent dispute between the judiciary and the GSA.

That dispute dissipated in recent months, and Skretny and his colleagues started seeing positive signs about the courthouse construction.

First, earlier this year, Congress approved a spending measure for the rest of fiscal 2007 that included $280.87 million in courthouse construction money.

The GSA refused to say, however, whether all or part of that money would be used on the Buffalo project.

Then President Bush, who left the courthouse out of his original budget proposal for 2007, included more than $40 million for the project in his spending plan for 2008.

Nevertheless, both Skretny and local members of Congress had said one key question remained unanswered: whether courthouse construction would begin this year or next.

Higgins said he got the answer to that question from GSA staffers, who spoke to committee staffers about the matter Wednesday.

He said the construction would begin no later than Labor Day and take 33 months to complete.

When the building is done, downtown Buffalo will have a courthouse that's designed to be an architectural marvel.

More importantly, Higgins said, the facility will be an economic development tool for the city.

"To the nation, this is just another courthouse," he said. "But for Buffalo, it creates a state-of-the-art building on a very important site that should stimulate investment around that site."

Meanwhile, Rep. Thomas M. Reynolds, R-Clarence, said: "We are finally getting closer to getting the funding we need for a courthouse thanks to hard work of the entire delegation. Soon GSA will issue a final ruling, and that judgment will mean a new courthouse and source of pride for our great city."

Skretny agreed that the entire congressional delegation, including Rep. Louise M. Slaughter, D-Fairport, and Sens. Charles E. Schumer and Hillary Rodham Clinton, deserved credit for the courthouse funding.

"I'm really grateful to everyone who's stayed with this project as long as they have," Skretny said. "If ever there was a team effort, this was it."

Local federal judges have long contended that they needed a new courthouse that provides more space and security. The city's current federal courthouse will continue to be used for judicial offices.

http://buffalonews.com/editorial/20070301/1061359.asp