A key panel of the Erie County Industrial Development Agency approved a set of tax breaks totaling $8.42 million for Uniland Development Co.’s proposed 12-story office and hotel tower in downtown Buffalo on Monday morning, as praise for the project’s benefits to the community overcame criticism of the quality of some of the jobs.
The agency’s 13-member Policy Committee, meeting at the auditorium of the Buffalo & Erie County Public Library, sent the proposal to the ECIDA’s full board by an 11-2 vote, with only the committee’s two labor representatives dissenting. The board will take it up at its Dec. 18 meeting.
The overwhelming vote means Uniland has jumped a key hurdle in its effort to secure final approvals for the 472,320-square-foot complex, which would become the new corporate headquarters for Delaware North Companies. The project would also include a 119-room hotel that Delaware North would operate as a training facility, as well as conference space, four retail shops and a four-level parking ramp with 380 spots for Delaware North employees and hotel guests.
The developer has said the tax breaks are a critical part of making the $93 million project work, and that without the combination of sales, mortgage recording and property tax breaks, it could not meet Delaware North’s needs and offer a low-enough lease rate.
As a result, Uniland said, Delaware North would not sign a lease for 20 years as it has pledged to do, and Uniland would not proceed with the construction project at all. That raises fears among community and business leaders that the century-old Buffalo-born company would leave, as it had noted that it has options elsewhere.
ECIDA committee members appeared to heed those concerns, but also cited the significant financial benefit to the community. Specifically, deputy Erie County Executive Richard Tobe noted that, with an average annual payroll of $42 million, Delaware North would spend $850 million over 20 years on its local employees, plus about $100 million in charitable contributions locally, for a total of over $950 million.
But Uniland did not get everything it wanted. The committee approved sales and mortgage recording tax abatements of $1.817 million and $400,000, respectively, plus about $6.2 million in property tax abatements.
But while the much lower payment-in-lieu-of-taxes will apply for the full 10 years for the office space to be used by Delaware North, the parking ramp and unused office space will only get the benefit for seven years.
Uniland vice president Michael Montante said the company will try to meet further with ECIDA staff to argue for the full 10-year PILOT, but Tobe said he was confident in the agency staff’s calculations that justified only seven years.
“I’m confident that the scoring that the staff did is accurate. Uniland is facilitating Delaware North’s growth, but they’re not bringing the jobs to the table themselves,” Tobe said. “We welcome a discussion with them, but at this point in time, I don’t think it is going to change.”
Asked for a reaction, Uniland CEO Carl Montante Sr. brusquely refused to speak to a reporter after the meeting.
email: jepstein@buffnews.com
The agency’s 13-member Policy Committee, meeting at the auditorium of the Buffalo & Erie County Public Library, sent the proposal to the ECIDA’s full board by an 11-2 vote, with only the committee’s two labor representatives dissenting. The board will take it up at its Dec. 18 meeting.
The overwhelming vote means Uniland has jumped a key hurdle in its effort to secure final approvals for the 472,320-square-foot complex, which would become the new corporate headquarters for Delaware North Companies. The project would also include a 119-room hotel that Delaware North would operate as a training facility, as well as conference space, four retail shops and a four-level parking ramp with 380 spots for Delaware North employees and hotel guests.
The developer has said the tax breaks are a critical part of making the $93 million project work, and that without the combination of sales, mortgage recording and property tax breaks, it could not meet Delaware North’s needs and offer a low-enough lease rate.
As a result, Uniland said, Delaware North would not sign a lease for 20 years as it has pledged to do, and Uniland would not proceed with the construction project at all. That raises fears among community and business leaders that the century-old Buffalo-born company would leave, as it had noted that it has options elsewhere.
ECIDA committee members appeared to heed those concerns, but also cited the significant financial benefit to the community. Specifically, deputy Erie County Executive Richard Tobe noted that, with an average annual payroll of $42 million, Delaware North would spend $850 million over 20 years on its local employees, plus about $100 million in charitable contributions locally, for a total of over $950 million.
But Uniland did not get everything it wanted. The committee approved sales and mortgage recording tax abatements of $1.817 million and $400,000, respectively, plus about $6.2 million in property tax abatements.
But while the much lower payment-in-lieu-of-taxes will apply for the full 10 years for the office space to be used by Delaware North, the parking ramp and unused office space will only get the benefit for seven years.
Uniland vice president Michael Montante said the company will try to meet further with ECIDA staff to argue for the full 10-year PILOT, but Tobe said he was confident in the agency staff’s calculations that justified only seven years.
“I’m confident that the scoring that the staff did is accurate. Uniland is facilitating Delaware North’s growth, but they’re not bringing the jobs to the table themselves,” Tobe said. “We welcome a discussion with them, but at this point in time, I don’t think it is going to change.”
Asked for a reaction, Uniland CEO Carl Montante Sr. brusquely refused to speak to a reporter after the meeting.
email: jepstein@buffnews.com
