savarino companies

Tuesday’s lottery drawing was the next step in the process of filling Ellicott Station with tenants, the new housing complex in downtown Batavia.

The drawing happened in Savarino Companies’ Buffalo office, and The Batavian followed up with company President/CEO Sam Savarino for details about how it went.

More specifically, we asked how many people were chosen, and how many were singles and families, the income levels and if they were all employed, as Savarino had expressed they would be during a prior interview.

He was not sure what information would be “proper to divulge” about the 55 tenants chosen by lottery and on a waitlist, Savarino said Friday.

“So I have to politely decline your request at this time. It was announced at the event that there would be follow-up for qualifying/vetting pursuant to guidelines,” he said. “It was evident that nearly all 55 identified currently reside in Batavia or (in the) immediate environment.”

The lottery was part of an application and selection process for the new one- and two-bedroom housing complex on Ellicott Street. 

According to the application guidelines, income qualifications meet very low levels that, in some cases, are too high for minimum wage earners, making it seem likely that at least some applicants will fall within Section 8 parameters.

City of Batavia management and City Council members sent a letter to Housing and Community Renewal for reconsideration of current income levels set for Ellicott Station, so that higher salary earners (per the median area income) could be eligible to apply for apartments.

Both sides have talked, Council President Eugene Jankowski Jr. said, but no other details have been disclosed. City Manager Rachael Tabelski has not responded to requests for updates related to the issue.

File Photo of Ellicott Station in an earlier phase of construction, by Howard Owens.

All eight City Council members signed a letter Monday night requesting that state Homes and Community Renewal officials work with the city to bump up a portion of the current Area Median Income levels at Ellicott Station.

“The city of Batavia is requesting that HCR work with us to present a better mix of incomes on the property with apartments that rent for 80 percent and 120 percent AMI,” the letter states. “We feel that this will encapsulate the workforce housing that we were promised, better align with the city’s vision of the DRI strategy, and still provide affordable housing for residents.”

Earlier Monday, during council’s business meeting, City Manager Rachael Tabelski referred to a letter that she had provided for council members to review. Apparently, they reviewed and revised the letter after the meeting. The Batavian has asked for additional details about that process and will update this article once responses are received.

Since the first application went in for Ellicott Station, local folks were excited about the prospects of longtime vacant and toxic property along the south side street getting cleaned up, renovated and repurposed. But since its inception in 2016, as City Manager Rachael Tabelski has described it, the project became fairly fluid.

“Ellicott Station has been a moving target over the last several years as the developer made various and multiple overtures to funding entities with regards to making the project financially viable. In 2019, the City supported the project’s housing component as being mixed-income that would provide housing for residents that were employed in local manufacturing in an application submitted to New York State Homes and Community Renewal from the developer,” Tabelski had said. “Furthermore, in 2020, it was confirmed that people living at Ellicott Station must be employed and not receiving government assistance."

City leaders had expressed disappointment about the apartment project’s income levels after The Batavian’s exclusive coverage published on Feb. 18. Application materials made available at Ellicott Station’s website outlined the qualifications for one- and two-bedroom units, many of which had maximum annual salaries at or below minimum wage and seemingly requiring Section 8 assistance.

One example is that two people each earning minimum wage, $14.20 an hour, are not eligible for a two-bedroom apartment at Ellicott Station because they would be earning too much (the maximum household income for two people in a two-bedroom apartment is $34,600, and two people working full-time at $14.20 would gross $59,072).

Developer Sam Savarino has said, in a follow-up interview with The Batavian, that he expects the housing complex to be filled with gainfully employed people, though he had no thorough rationale for the low maximum income levels. He said that the numbers were set a couple of years ago and can be reset once everything is up and operational at Ellicott Station if current salaries have increased.

Here in Batavia, “we would like to be known for innovative housing that has a mix of incomes to preserve our most vulnerable neighborhoods, help citizens, and provide for housing for entry-level manufacturing, service workers, and students,” the city’s letter states. “The City of Batavia, New York State, Brownfield Opportunity Area, and the Downtown Revitalization Initiative (DRI) strategy both define the need for downtown housing, including infill construction, upper floor apartments, and a demand for higher income housing, including market-rate housing.”

“When Ellicott Station Project was proposed by Savarino Companies, it was originally a market-rate housing project, however, through several financing iterations, Savarino Companies worked with HCR to finance the project. The city discovered that at the time of application, Savarino Companies applied to HCR for a mixed-income housing model but was directed by local HCR representatives to only allow residents with 50 percent to 60 percent AMI,” the letter states. “While workforce housing is the goal for the Ellicott StationSavarino Development, that is not the type of tenants that this housing will attract.”

The letter further lays out the compounding issues of the capped 50 to 60 percent Area Median Income and  inflationary wage increases that will not allow working citizens to qualify to live at Ellicott Station, and “only vouchered Section 8 residents will now be able to access this property.”

“This is a fundamental change from the goals for the Ellicott Station project and does not match the BOA or DRI strategies for development of our downtown,” it states.

As a result of this fundamental change, city leaders said they are concerned that:

• Drastically increased wages for entry-level manufacturing and service jobs pay more than what would qualify for this housing complex;
• The project no longer aligns with the City’s DRI and BOA strategies, and it won’t fulfill the City’s need for market rate and workforce housing as determined from various studies;
• Low and very low-income housing — versus mixed-income housing — could set the project up for potential issues contrary to community objectives, including drug, gang, and criminal activity, per proven studies;
• Other DRI communities across the state have received HCR tax credits and rents were allowed to be 80 to 120 percent AMI in some cases — so why not here?

Photo of Ellicott Station in progress at 50 Ellicott St., Batavia, by Howard Owens. 

While city officials have expressed surprise and disappointment about the details of Ellicott Station, developer Samuel Savarino and Steve Hyde, CEO of the county’s Economic Development Center, remain enthusiastic about the possibilities to come along with the 55-unit, low-income apartment complex in Batavia.

During an interview with The Batavian, Savarino was steadfast about tenants being employed and able to pay their rents at the 50 Ellicott St. site.

“Our project is one- and two-bedroom, which I think could be said fits the profile of young workers or working couples,” he said.

The Batavian asked about the maximum income qualifications, per the Ellicott Station application, which in some cases means people making minimum wage wouldn’t qualify for a two-person apartment. Savarino said that those numbers were fixed in 2019, per 50 to 60 percent of the area median income at the time. And they’re not set in stone.

“When things change every year, the income restrictions are reset, just as there are changes in the area median income and what people earn. So, you know, that changes over time. But, I think it really does set at some are 50 and the majority are 60 percent of AMI, right? And that's back in 2019 numbers,” he said. “And the project has to be up and operating before it gets reset. So if wages have gone up in that time, then the income restrictions will go up, and if they’re going down, the income restrictions will go down.”

He isn’t sure why city officials are upset about the low-income qualifications and Section 8 availability, he said, since the project has been geared toward what’s affordable for the Batavia area per a market study from the project's inception. It is true, he said, that Home and Community Renewal’s involvement — which happened when the state entity granted him more than $5 million in tax credits to get the project going — also meant a market study review and conclusion about what would be considered affordable.

“I think we had a market study which looked at … I mean, everybody can maybe look around things and draw their own conclusions. And, you know, a market study is a little more detailed … it's a little more refined, and more scientific with determining what the achievable rents would be and whether there would be people to rent at certain levels. Any market study will do that,” he said. “And if you looked at the application that went in to the unified funding application to Home and Community Renewal, which provides the tax credits, which an investor purchases, and then they provide some financing for the projects, that it was workforce housing, affordable workforce housing.

“And that's consistent with what everybody was saying. It can be reset, but that's what we need to follow … at the suggestion of HCR after they examined the market study. My recollection was that they said, that's where the market was. And that was where the need was.

“I’m not quite sure if there's an Oxford dictionary definition of what is affordable as opposed to workforce, as opposed to low income. You know, it depends. And it may mean different things in different communities,” he said. 

Those terms are used interchangeably, he said. Above all, he envisions working singles and couples, or perhaps seniors on a fixed income, living at Ellicott Station. Given the low-income levels, what’s the chance that many would also require government assistance to make the rent if they qualified for those income levels? Savarino wasn’t familiar with how Section 8 works, he said, but it does work the same as with any other rental. It's illegal to discriminate against a tenant with Section 8 requirements, he said.

His management will be screening applicants to ensure they have a job and can pay rent, he said. Furthermore, he believes they will be “good tenants” living in a good, quality residence with plenty of security cameras, and secured access to the building. The Batavian asked him why the playground was built and promoted if he didn’t think the apartments had the space for children — which he had said during the interview — and it is a mandated requirement, he said.

As for the meanings of workforce, affordable and low income, The Batavian had previously published an article citing the definitions, per the Housing and Urban Development site. Though, in talking to various people regarding this project, those words did seem a bit murkier. Savarino disputed a statement in a prior Batavian article that he had quoted specific, ideal wages of $18 to $20, and also $20 and below. He didn’t recall having said that, though it was captured on a recorder. None of the maximum incomes allow for those wages or even $14 in some cases.

The calculations worked out to take 30 percent of one’s salary for rent and utilities, he said, and leave the remaining 70 percent for other expenses. That means tenants could potentially have disposable income to dine at downtown restaurants or do some shopping, which was one of the original goals of the project, he said.     

The other goals were to include commercial and retail projects at the site, and, due to the lengthy time it took to get going, Resurgence Brewing “timed out” and completed a project in its own neighborhood, Savarino said. He has some interested prospects and is committed to following through with a brewery/restaurant with either an outside company or Savarino Companies itself.

Steve Hyde, president and CEO of Genesee County's Economic Development Center, focused on another aspect of the project — the longstanding and dilapidated defunct buildings at 30-50 Ellicott St. Ellicott Station was designed initially “and continues to contribute to helping achieve the goals of the Batavia Brownfield Opportunity Area (BOA) and the Downtown Revitalization Initiative (DRI),” he said.

He pulled an excerpt from the DRI application for the Build Ellicott Station Project:

“The DRI program will be a comprehensive approach to boost Batavia’s economy by transforming the downtown into a vibrant neighborhood where the next generation will want to live, work and raise a family.  A key component of the DRI program is to advance strategic private and public investments that will provide catalytic impacts to facilitate downtown revitalization.”

“I believe the Ellicott Station Project, in its current form, continues on this path by making public/private investments, revitalizing a blighted parcel which is helping to transform our downtown into a vibrant neighborhood that offers opportunities for our young adults in the community to live, work, play and raise a family in a significantly upgraded area of downtown Batavia,” Hyde said. “We continue to work closely with Developer Sam Savarino and his team to deliver upon his commitment to construct new, modern, and affordable workforce housing for working residents who have modest incomes across our community.  This is a critical element to downtown revitalization efforts because not only does Ellicott Station renovate a blighted parcel in our downtown but it is building workforce housing units for working residents in the heart of our downtown many of whom would have the opportunity to work at our area businesses which are sorely needed.”

Hyde and Savarino also pointed to the benefit of having nearby housing for employees that businesses are seeking. Without local residents, it has been difficult at times for employers to fill vacancies, Savarino said. It also equips downtown with tenants within walking distance, Hyde said.

“This further strengthens the opportunity for greater success for our Main Street businesses and our local economy.  I confirmed with Developer Sam Savarino last week that his commitment to deliver workforce housing for working residents is priority #1.  The incentives provided by GCEDC to support the comprehensive re-development of this mixed use project did comprehend the 60 percent or less AMI and associated range of incomes contemplated for the workforce housing facility as reflected in our public hearing minutes, the board memoranda and final resolution from our March 2020 Board meeting,” he said. “The net of this is: The GCEDC Board of Directors trusted in Sam Savarino to deliver workforce housing for working residents in an effort to incentivize considerable investment and improvements to transform the biggest eyesore in our downtown into a new mixed-use development.  They continue steadfast in their expectation of Mr. Savarino to honor his commitment to provide high-quality workforce housing for working residents across our community.

He and Savarino look forward to the project’s completion, and neither seems to believe that the income qualifications are too low to bring prosperity to the city of Batavia, per questions asked by The Batavian and the focused answers.

“I personally continue to look forward to the positive benefits provided by the Ellicott Station project which includes offering new apartments to our working residents priced in an affordable fashion that would allow them to live, work and play downtown,” Hyde said. “This will, in my view, help to elevate the staffing availability and success of our area businesses – our Main Street businesses in particular.  That is the promise we continue to expect and the main premise why GCEDC has participated actively in this project over the course of the last eight years.”

Photo: File photo of Sam Savarino at the Ellicott Station groundbreaking by Howard Owens

Since the first application went in for Ellicott Station, local folks were excited about the prospects of longtime vacant and toxic property along the south side street getting cleaned up, renovated and repurposed.

Funding snags delayed the process from 2016 until it finally —literally — began to get off the ground in 2022. A 55-unit “workforce” apartment complex, alongside mixed-use properties of office, restaurant and brewery space, began to take shape at the site of the former electric and Soccio Della Penna buildings at 30-50 Ellicott St., Batavia.

As the apartments are coming to fruition, a bomb was dropped Friday with an online posting of the application, income requirements and related rents for one- and two-bedroom apartments for up to four people. What once was touted as workforce or affordable rentals were now low-income and Section 8.

City Council President Eugene Jankowski Jr. refrained from saying much about the issue before he obtained more information. But he wasn’t pleased by the news.

“I’m very disappointed,” he said.

Councilman Bob Bialkowski said that he had a feeling this would be the outcome about a month ago, and isn’t happy that he was right.

“I’m disappointed that all the things that were promised didn’t come to fruition,” he said. “The DRI money would have been worth spending if it was built as promised.”

To clarify about that DRI (Downtown Revitalization Initiative) grant money. New York State doled out the grant money for several initiatives, including $425,000 to Sam Savarino of Savarino Companies, the contractor for Ellicott Station. The state granted a total of $10 million of DRI monies within the city of Batavia, but only a portion of that directly to the city, and the remainder of it directly to specific projects, including Ellicott Station.

During the groundbreaking ceremony last year, Savarino talked about the project at 50 Ellicott St. being for workforce people earning in the range of $18 to $20 an hour, and looking for quality housing at an affordable price.

Part of the Ellicott Station project is to include a restaurant and brewery, which Bialkowski doubts will ever get off the ground.  There haven’t been any takers yet, and Savarino has been advertising the opportunity on the Ellicott Station website.

One upside the Councilman-at-large does see with this new complex is that the old Della Penna site has been renovated and will be back on the tax rolls, he said.

They were the only council members to respond to requests for comment.

The project was “billed as mixed-income” and not strictly a low-income complex, City Manager Rachael Tabelski said.

“Ellicott Station has been a moving target over the last several years as the developer made various and multiple overtures to funding entities with regards to making the project financially viable. In 2019, the City supported the project’s housing component as being mixed-income that would provide housing for residents that were employed in local manufacturing in an application submitted to New York State Homes and Community Renewal from the developer,” Tabelski said Tuesday. “Furthermore, in 2020, it was confirmed that people living at Ellicott Station must be employed and not receiving government assistance." 

Tabelski referred to a letter sent to HCR in 2019 by former City Manager Martin Moore, in which he confirms the city’s intent for what type of housing they expected Ellicott Station to provide.

It states, in part:

I am writing to express support for the Ellicott Station housing project in Batavia, which provides mixed-income/affordable living quarters, and cleans up a blighted site in the heart of the City. The Ellicott Station project phases include construction for 55 mixed-income/affordable housing units, and construction of commercial buildings. The housing project phase provides high quality, well maintained residential units within walking distance of employers, shopping, medical facilities, public transportation, and other amenities. We look forward to the brownfield remediation, and dilapidated building demolition that will occur prior to new construction. 

The Ellicott Station portion of the DRI grant was awarded as a high priority project to address housing and economic development needs. City planning documents also recognize the site as a major component of brownfield cleanup, increased workforce housing availability, and commercial revitalization. 

We request that the Division of Housing and Community Renewal approve the funding for the Ellicott Station housing project. The project aligns with your mission to build and support affordable housing, and supports our goals to increase housing availability and promote economic growth in Batavia. 

Tabelski believes that additional talks have shifted the tenor of the project’s income qualifications, and is pursuing further communication about the issue.

“Unfortunately, the City has not been included in various discussions since then as it pertains to the housing component of the project and is surprised to learn only recently about the (annual median income) and lack of mixed-income housing,” she said. “The City is requesting that the developer work with HCR and economic development agencies to raise the AMI to reflect current manufacturing wages in a good faith effort to remain true to the intent of the project that was originally proposed and subsequently supported by the City.”

She is not certain where exactly the city will go from here, but "we owe it to ourselves and our citizens" to try something and not just let it go. 

Savarino has announced that applications are being taken, and a lottery will be conducted on May 2 in Buffalo to select tenants for the apartment complex. For more information, go to Ellicott Station. 

See also: OPINION: Ellicott Station is not looking like a 'Pathway to Prosperity

Housing projects have various classifications, such as workforce, affordable and low income, all of which have certain definitions and income levels, and The Batavian wanted to clarify which words and parameters fit the Ellicott Station project in downtown Batavia.

First, a little housing definitions lesson:

Affordable Housing is generally defined as housing on which the occupant is paying no more than 30 percent of gross income for housing costs, including utilities.

Market Rate Housing is the prevailing monthly cost for rental housing. It is set by the landlord without restrictions.

Housing Authority Housing authorities are public corporations with boards appointed by the local government. Their mission is to provide affordable housing to low- and moderate-income people. In addition to public housing, housing authorities also provide other types of subsidized housing.

Subsidized Housing is a generic term covering all federal, state or local government programs that reduce the cost of housing for low- and moderate-income residents. Housing can be subsidized in numerous ways—giving tenants a rent voucher, helping homebuyers with downpayment assistance, reducing the interest on a mortgage, providing deferred loans to help developers acquire and develop property, giving tax credits to encourage investment in low- and moderate-income housing, authorizing tax-exempt bond authority to finance the housing, providing ongoing assistance to reduce the operating costs of housing and others. Public housing, project-based Section 8, Section 8 vouchers, tax credits, the State Housing Trust Fund, and Seattle Housing Levy programs are all examples of subsidized housing. Subsidized housing can range from apartments for families to senior housing high-rises. Subsidized simply means that rents are reduced because of a particular government program. It has nothing to do with the quality, location or type of housing. In fact, a number of Seattle's subsidized housing developments have received local and national design awards.

Workforce Housing is the industry standard definition for affordable housing that serves families that are at or below 60 percent of the median income.

When talking to local economic and project development folks, semantics seemed to really matter. Workforce was not much different than affordable, according to one person, and the term low income was freely bandied about until The Batavian tried to confirm that the housing was subsidized, and the comment was retracted. And nobody wanted to be quoted out of uncertainty.

The assets manager for Savarino Companies has not yet replied to email inquiries after The Batavian was referred to her last week.

At last, an answer came from Jim Krencik of the county’s Economic Development Center. Krencik confirmed that the buck stopped with him, per the last known income qualifications that EDC was aware of for the Ellicott Station project.

To back up a bit, why was this a question to begin with? Because, several years ago, in the infant stage of this project, there was talk of market-rate apartments to provide up-scale prices and amenities to feed the appetites of higher-paid workers and help to grow the city’s economy with an influx of well-to-do consumers.

That bubble was burst last year when Sam Savarino, owner of Savarino Companies, announced that it was a workforce apartment project going up on Ellicott Street. It was going to be for entry-level workers making around $20 an hour or less.

But then rumblings and murmurs took to the streets, combined with questions and fear and lack of details, and the possibility of this being a mixed project of affordable and low income, or subsidized only, emerged. So The Batavian tried to get an answer from economic and project development folks — to no avail.

So now, onto the answer. Krencik didn’t really give a classification label, but just an answer. Of the total of 55 units, 25 of them will go to tenants with 50 percent of the county’s current available median income, and 30 units will go to those with 60 percent of the median income.

As an example of what that could be, the latest median yearly income data from 2017 to 2021 was $63,734, 50 percent of that is $31,867 and 60 percent is $38,240. Krencik emphasized that if someone was approved based on that starting salary and then was promoted and earned a raise, he or she wouldn’t lose the apartment because of that increased figure.

The idea is to provide quality housing to people who may have just graduated from college and are starting out with a new job and career, and want to live in a decent place that they can also afford, he said.

What about all of those parents stating that their kids can’t find jobs to keep them here? Do you really think there will be enough entry level people to fill this complex?
Krencik was glad to get the question. He could then volley back information about a new program called Cornell Food Processing Bootcamp, which is specifically for 2023 graduates. Students can earn a free food processing certificate from Cornell University at Genesee Valley BOCES and connect with local food manufacturers that are hiring with average starting wages of $20/hour, according to a GCEDC flyer.

After doing some hard-hitting promotion of the program, there are 26 students signed up so far, Krencik said, all of whom could be viable candidates for Ellicott Station. While the housing complex won’t be for everyone, it can fill many needs, he said.

“A lot of folks in that cohort are saying, hey, you know, I want to live where I have a supermarket, that's a 20-second walk away, and there's restaurants a 30-second walk away,” he said. “And there's musical performances, of all the concerts that happen in that area, that is attracted to that group. And right now, we've been really marketing that program hard for about three days now.

“And we're hoping to address, with a lot of activity that's been happening, if there wasn't enough quality apartments or single-family homes, and having projects that are taking those on to help people out at all phases of their life when they're starting off in a career or ready to, you know, have that big single family home for their growing family, or they're on the other side of that, and they're looking for the type of housing where they don't need a big house anymore, having all those available is really the key to having viability in our housing market,” he said. “So I guess a single project doesn't doesn't solve it for every one of those scenarios, but it's a piece of solving it with many others.”

Savarino Companies has been taking names of interested tenants for the complex, which is to open this summer. For more information, go to ellicottstation.com.

File Photo of Ellicott Station's progress in January 2023, by Howard Owens.

Even though the end of summer is now upon us, construction marches on for as long as the weather permits.

Batavia Development Corporation Director Tammy Hathaway recently reviewed a list of projects — from completed and in progress to still in the design phase — throughout downtown.

Hunt Real Estate’s new home at 97 Main St. is set for its debut with a ribbon-cutting ceremony on Tuesday while architectural and design firms are working out details for a revamped Batavia City Centre and Jackson Square.

Ellicott Station — the $22.5 million project of 55 units within an apartment complex, office suites and a restaurant/brewery is coming along, Hathaway said, sharing that she and City Manager Rachael Tabelski had taken a tour of the south side construction zone.

Standing just outside of the four-story, naked wood complex, one can hear power tools and occasionally see workers on the top floor. Peeking through the window and door cut-outs, one can see traffic along Ellicott Street and businesses on the opposite side of the street.

The project is moving along swiftly, Hathaway said during the BDC meeting at City Hall.

“It’s a gorgeous building,” she said of the defunct Della Penna site that’s part of the project.

Theater 56 will be going into the next phase of construction at its new location in Batavia City Centre, she said. BDC member Pierluigi Cipollone asked if the project was still on course for year-end completion. “As far as I know,” Tabelski said.

Other projects are underway from 99 to 216 Main Street, including a $5.25 million "Carr's Reborn" renovation, and focus has been placed on 60 Evans St., known as Creek Park LLC, Hathaway said. The LLC company is a subdivision of Batavia Development Corporation: "BDC will take ownership of  Creek Park LLC for land development," she said. "To make the unknowns known."

For example, Savarino Companies went through Creek Park LLC for its Ellicott Station project, she said. There is also a piece of property called Creek Park that sits behind the ice arena on Evans Street.

“We’re working on getting that into Brownfield development,” she said.

Brownfields are identified for potentially needing remediation to remove toxic materials from those sites. There has been some interest in the site, so far, Hathaway said, and it's unknown right now whether remediation will be required, so that will need to be explored.

“It’s been extremely exciting lately,” she said. “I have a major crush on this job.”

Three different blocks of projects have so far tallied estimated investments of $2.4 million, $66 million, and $1.14 million, she said, for all of the above sites, plus the Healthy Living campus, which is also under construction, and Ellicott Place, which has been completed on top of the Save-A-Lot building at Ellicott and Jackson streets.

A majority of the $69.4 million investment has been from private developers, with the Downtown Revitalization Initiative, and New York Main Street grants providing about $10.8 million toward the cost.

“I would say to pack your hard hat and work boots because so much is going on with tours,” she said to the BDC members.

Top Photo: Creek Park on Evans Street, Batavia, has been identified as potential development property; Ellicott Station developer Savarino Companies continues to progress toward a 55-unit apartment complex with 52 balconies, nine units dedicated to meet Americans with Disabilities Act requirements, 37 garage parking spots and 44 surface parking spaces, a laundry room, elevator, community room, bicycle storage and an enclosed ADA playground on Ellicott Street. Photos by Joanne Beck.

Sessler Environmental Services of Rochester will be at the Ellicott Station project site for the next few weeks to tear down the former Soccio & Della Penna and Santy's Tire Sales buildings on Ellicott Street in the City of Batavia.

“This building (Soccio & Della Penna, photos at top) knockdown should take about a week to knock it down and load it out," John Christman said today. "And the Santy’s Tires will be probably another two weeks from today.”

Christman is Sessler's project manager for the Santy's portion of the demolition.

He said the demo of the Santy’s building won't start for a couple weeks – not until the Soccio & Della Penna structure comes down. The garage on the property has been razed.

The photo at the bottom shows a building that will remain -- earmarked for renovation as part of the $22.5 million Downtown Revitalization Initiative mixed-use venture being developed by Savarino Companies of Buffalo.

Plans call for construction of a five-story apartment building with 55 new, modern workforce housing units, as well as a brewery, restaurant/beer garden and potential further development on 3.31 acres. It is expected to create 20 jobs in the city’s downtown area.

Photos by Mike Pettinella.

 

Batavia City Council members and city management tonight exhibited varying degrees of trust in the Buffalo development company charged with turning the eyesore on Ellicott Street into the multi-million dollar Downtown Revitalization Initiative project known as Ellicott Station.

Council, during its Conference and Special Business Meetings at the City Hall Council Board Room, had the task of considering two resolutions in connection with the mixed-use endeavor on property that once was the home of Soccio & Della Penna Inc. construction and Santy’s Tire Sales:

• Whether to take receipt of a $500,000 Restore New Grant that would support Savarino Companies in its demolition, rehabilitation and adaptive re-use of the former National Grid electric building;

• Whether to approve a resolution requiring the developer to enter into an “undertaking agreement” that would protect the city by transferring all or a portion of the obligations of the grant to Savarino Companies.

Although City Manager Rachael Tabelski emphasized that if Savarino doesn’t perform the work, it won’t get the grant, some Council members were skeptical to the point of believing that the project will never get off the ground.

Rose Mary Christian called the Brownfield Opportunity Area in its current blighted condition as “disgusting and deplorable.”

“I don’t have any faith in this company,” she said, while voting “no” to both measures.

Fellow Council member Robert Bialkowski said he had “great concerns” as he voted yes, while Council President Eugene Jankowski agreed, but feared that squashing the grant proposal could jeopardize the start of demolition.

“It’s my opinion that there’s a lot of small, complicated parts to this project of that magnitude,” he said following the meeting. “You have a large project that’s a brownfield, and on top of it you’re trying to put together all of the funding for it. It’s not an easy task.”

Jankowski admitted that he “got his hopes up” early on when the project was submitted, but understands that outside factors such as working with New York State, COVID and cost overruns likely contributed to the delay.

“At this point, we need to give them the opportunity to start construction in November like they said, and I am going to be optimistic that that’s exactly what’s going to happen.”

During the meeting, Tabelski said that Sam Savarino, company president, told her that the final closing with the New York State Office of Community Renewal, which has jurisdiction over the project, is scheduled for the first week of November.

The Batavian received that same information when talking to Savarino prior to environmental testing that was conducted on the property last week.

“I have no doubt that when they start, they will finish (the project),” she said, noting that Savarino Companies has paid the Batavia Development Corp. for the transaction of creating a Limited Liability Company and paid the city for permit fees and extension fees. “The developer does projects all over the state and he doesn’t want to lose the trust of the OCR.”

Unfortunately, after five and a half years since the announcement of the Ellicott Station residential/commercial/entertainment venture, the same can’t be said for some of those serving on City Council.

For the record, Council did vote 7-1 to pass both resolutions related to the grant.

Also, tonight, the board approved a resolution to accept a $7,500 STOP-DWI grant from Genesee County to combat impaired driving through the utilization of specified high-visibility engagement campaigns.

The introduction of new computer software means that it’s time to say good-bye to an old -- and outdated -- permitting and licensing fee schedule for the City of Batavia, according to a memo from City Manager Rachael Tabelski dated Oct. 25 and sent out ahead of Monday’s City Council Conference Meeting.

Council will convene at 7 p.m. for the Conference Meeting, which features a full slate of agenda items. A Special Business Meeting set up to vote on three of those items will follow.

In the memo, Tabelski promotes Energov software, a program that creates digital files for permits and licensing that will make life easier for Inspection Bureau staff. However, some of the current fees are not articulated clearly enough to jive with that software.

Additionally, she reports that a review of the city’s current processes and procedures – along with permit fees – was conducted.

Noting that the fee schedule hasn’t been updated in at least 15 years and has resulted in varying, inaccurate cost calculations, she is proposing a new fee schedule – a revised list of charges for certain projects that was approved by the Inspections Bureau, Plumbing Board and Bureau of Maintenance.

“In order to ensure that permit fees can be calculated in Energov and to create a permit fee schedule that is fair to all, a new fee schedule is proposed,” Tabelski wrote. “Many permits are proposed to be a flat fee. Permits that are not a flat fee have been structured for easy calculation by staff, the public and will easily compute in Energov.”

The memo indicates that work performed by the property owner will be calculated by square foot. If the project is not included on the list of flat fee permits – such as a porch rebuild or removal of a load-bearing wall – then the value of the cost of the project would be multiplied by 1.2 percent to determine the fee. Also, the fee will triple if work is done without a permit.

If approved by Council, changes would take effect on Jan. 1, 2022.

Tabelski put together a chart showing items up for revision and compared the proposed new cost to fees in Canandaigua, Lockport, Rome and Glens Falls.

Items on the list for revision, followed by the current fee, proposed fee (in bold), and fees in the four cities listed above in order:

• Re-roof all 1-family dwelling (2,200 sq ft - $13,000) -- $52, $65, $100, $59, $75, $50.
• Re-roof porch only (350 sq ft - $1,800) -- $40, $35, $100, $51, $75, $50.
• Re-roof commercial (1,200 sq ft - $26,000) -- $113, $312, $100, $150, $200, $150.
• Six-foot vinyl fence ($15,000) -- $65, $65, $50, $20, $75, $25.
• Six-foot wood fence ($7,000) -- $43, $65, $50, $20, $75, $25.
• Entire house vinyl siding (1,600 sq ft - $14,000) -- $53.50, $65, $480, $47, $75, $400.
• 1-family (375 sq ft - $22,000) -- $115.50, $264, $300, $150, $100, $200.
• Commercial addition (1,400 sq ft-$105,000) -- $550, $1,260, $500, $350, $200, $350.

Other Conference Meeting agenda items are as follows:

• Agreements with the Town of Batavia for city personnel to repair and maintain 31 street lights the town is putting up on Park Road in the area of Batavia Downs Gaming and a traffic control device the town is installing at the intersection of Route 98 and Federal Drive, north of the city.

In both cases, the city would invoice the town for labor and material costs.

Currently, city employees maintain the traffic light for the town at Veterans Memorial Drive and the Towne Center.

• Acceptance of a $500,000 Restore New York Grant that was awarded to the city in 2017 to assist Savarino Companies for demolition, rehabilitation and adaptive re-use of the existing former National Grid electric building in connection with the Ellicott Station project.

As a condition of disbursing the funds to Savarino, the Buffalo developer is required to enter into an “Undertaking Agreement” with the city to assume a portion or all of the obligations of the city under the grant.

• Mid-fiscal year transfers due to expenses incurred in excess of budgeted amounts set in April.

These include $30,000 from the contingency fund into the legal services budget for increased litigation costs, $12,000 from contingency into the information technology budget for an increase in the number of monitored computer servers, and $25,000 from the public works administrative salary account to the DPW engineering account for expenses owed to LaBella Associates in light of the city’s ongoing search for a DPW director.

Pre-construction work and environmental testing is taking place today on the grounds of the former Soccio & Della Penna Construction Co. and Santy's Tire Sales locations on Ellicott Street in the city -- the future home of the Ellicott Station project that is part of Batavia's $10 million Downtown Revitalization Initiative program.

Two employees of Savarino Companies of Buffalo, the company that is behind the mixed-use development (apartments, office, retail and entertainment space), were on site. Indications are that demolition of the buildings will start in November. Photos by Mike Pettinella.

Ellicott Station.

The concept was born five years ago when Julie Pacatte, coordinator of the Batavia Development Corp. at the time, introduced Samuel Savarino, chief executive officer of Savarino Cos. of Buffalo, to an excited group of municipal leaders who gathered at the site of the former Santy’s Tire Sales and Soccio & Della Penna construction company on Ellicott Street.

Savarino proceeded to announce that his firm was selected to repurpose the 3-acre parcel in the City of Batavia’s Brownfield Opportunity Area into a development featuring office, retail, residential and entertainment space.

Fast forward to today and one would assume that not much has happened since that March 2016 press conference. To passersby, the location looks the same -- run-down buildings with broken and boarded up windows; an eyesore, to say the least.

Behind the scenes, though, much has taken place. And Savarino, in a telephone interview today with The Batavian, said that the proverbial “light at the end of the tunnel” is in clear view.

Closing Could Happen in May

“I expect there will be a date in May when there will be a closing,” Savarino said.

What that statement means is Savarino believes that New York State Homes and Community Renewal, which is allocating around $5 million in low-income housing tax credits to the project, may be at a point where lawyers can sit down, pull together all of the financial pieces and set the stage for demolition and construction.

“The closing with HCR (is the next step). The day after that we will be out there working; maybe a little bit before that, actually,” he said.

Savarino said the parameters of the venture have not changed.

The $22.5 million project calls for construction of a five-story apartment building with 55 new, modern workforce housing units, as well as a brewery, restaurant/beer garden and potential further development on 3.31 acres. It is expected to create 20 jobs in the city’s downtown area.

Resurgence Not Part of the Brew

He did report, however, that Resurgence, a Buffalo-based brewery, is no longer part of the plan.

“They sort of timed out,” he said. “We’ve got another plan in there for a brewery, and we’ll probably have a hand in operating it.”

Savarino acknowledged that he has heard the grumblings from city officials and others about the time that has elapsed since the initial announcement, but he said he let people know from the beginning that “we had our work cut out for us.”

“I said that it would take quite a while because we had, by our initial calculations, between a $5 million and $8 million gap in funding to make the thing work. There was a lot of work that had to be done to close that,” he said.

“We had one path we were going on with new market tax credits and after a year and a half or two years of heading down a path toward closing, and we were informed by the state that that wouldn’t work.”

Housing Tax Credit a Big Factor

He said his company was able to pursue a different strategy involving the acquisition of low-income housing tax credits.

“We identified the funds and brought them in, and closed the gap and have done what we said -- that we would work hard to do (this) from the beginning. I know that it has taken a lot of time to do it, but we’re on the cusp of beginning construction over there and overcoming the challenges that we had.”

In September of last year, HCR announced an award of $5.7 million in low-income housing tax credits for the project, but since then, that amount has been reduced, Savarino said.

“Part of the delay beside COVID and HCR is that the market had changed. One of the things we needed to have is an investor for the low-income housing tax credits that we have. But because of COVID and other things, the market kind of fell out for things like that,” he advised.

He said the market has recovered to a certain extent – and he has lined up the necessary backing from financial institutions. But that $5.7 million figure is now closer to $5 million.

“We did not get as much in the sale of the credits as we had anticipated, so it’s costing us some money out of our pocket,” he said. “But we made the calculation that even though it is costing us many hundreds of thousands of dollars more, to delay this any further would cost us more still, and that we would be disappointing a lot of people by losing the season and we don’t want to wait any longer.”

Several Funding Sources

The Ellicott Station project will be getting $425,000 from Batavia’s $10 million Downtown Revitalization Initiative award and has been approved for $3.6 million in tax abatements from the Genesee County Economic Development Center. Back in December 2016, it was awarded a $1.9 million Consolidated Application Grant through the Finger Lakes Regional Development Council.

Savarino said that the entire deal closes at the same time.

“There’s funding coming in, there’s private financing that comes into it. So, there’s a lot of moving parts, but it all comes together at a project close. After that, you can start (construction),” he said.

He said that his company has done everything it could to prepare for the financial closing, including required remedial work connected to the Brownfield applications.

“There are literally hundreds of matters that have to be attended to … prior to the closing. The good thing is that we have been at this so long that a lot of those things have been taken care of,” he noted.

But as far as shovels in the ground, nothing yet.

“When we have been notified of any issues, we have done our best to attend to them over there,” he said. “And I think we boarded up some windows and secured the fence a couple of times. I will tell you that I know some people are impatient for some activity on that site.”

Savarino said he hopes to learn the actual closing date with HCR, but realizes that the agency is dealing with many other projects across the state.

“Although we have to seek the permission of HCR to do this, I have said to people in the city that once we know we have a closing date, we can do things like let contracts out for the work and actually have equipment on the site on the day of the closing,” he said.

HCR to Decide When Things Advance

He said his company may be allowed to demolish the old garage and the Santy’s building ahead of or right after closing, but emphasized that HCR is calling the shots.

“We don’t what to get ahead of the state in this – HCR – by announcing when we’re going to start and things like that,” he offered. “Every time we do, we hear from them. We have dealt with them on several other projects. We have done our part to reach the closing, and it’s just a matter of scheduling it.”

Locally, the Batavia Development Corp. continues to be a player in the project, and Andrew Maguire has been the director of economic development for the city-supported agency since November 2019.

“The BDC continues to work with the developer of Ellicott Station -- Savarino Companies,” Maguire said. “The proposed project aligns with Batavia DRI investment strategy and the Batavia Opportunity Area plan to advance redevelopment of strategic sites in the city. Ellicott Station is one of the key sites identified.”

File photo: Sam Savarino addresses City Council, November 2016.

Batavia City Council members are so hungry for news that the Ellicott Station project is moving forward that even budget amendments pertaining to a couple of grants approved two and three years ago are cause for celebration.

At tonight’s Conference Meeting at the City Centre Council Board Room, Interim City Manager Rachael Tabelski introduced a draft resolution amending the budget to reflect a National Grid Urban Corridor grant of $250,000 on behalf of Savarino Companies LLC of Buffalo. That's the developer of the $22.5 million mixed-use brownfield project on the site of the former Soccio & Della Penna construction company and Santy’s Tire Sales on Ellicott Street.

Ellicott Station is one of several city ventures that have been awarded funds from the state’s $10 million Downtown Revitalization Initiative program. Plans for the project were first announced more than four years ago.

Tabelski said the National Grid grant that was approved in 2018 along with a Restore New York grant for $500,000 approved in 2017 are “pass through” items that the City facilitates for the developer.

She said it was an oversight that the grants previously weren’t put into a resolution form and given expenditure and revenue account designations, and “will not affect our bottom line in any way.”

“The Ellicott Station project, which everyone has heard about for many years, was awarded two grants back in 2017 and 2018 – one from Empire State Development called the Restore New York grant and that is a $500,000 grant to rehab the old electric building that’s on that site,” she said following the meeting. “That will be rehabilitated to house a microbrewery business, and the city has had success with Restore New York grants in the past. That will come to Council at the next Conference meeting next month.”

She said tonight’s National Grid resolution recognizes the city as the applicant “but the work will be done by Savarino Companies.”

“The grant is for $250,000 to enhance the Ellicott Trail on the property area right behind the Savarino campus,” she said. “The trail will be enhanced with lighting, benches, (and) there will be parking areas there as well for people to utilize the trail starting in that area. The hope is that they will also use the restaurant and brewhouse that will be on that site.”

Tabelski said the grant funds won’t be turned over to Savarino Companies until the specific projects are completed.

Council Member Rose Mary Christian expressed that her patience (and apparently that of her colleagues) has been wearing a bit thin, waiting for some activity on the large parcel that is plagued by unsightly buildings with broken windows.

“We’re still up in the air (on this),” Christian said. “I just want to be sure it’s going to go through.”

Tabelski said that Samuel Savarino, the company’s chief executive officer, is looking to close on the entire project in November and December and will be required to have all of his ducks in a row at the closing.

On Sept. 16, The Batavian broke the story that Savarino Companies received nearly $5.7 million in low-income housing tax credits from New York State Homes and Community Renewal.

Savarino called the HCR award “a critical component, which all the other commitments of the project which are in place have been waiting for.”

He said he hoped to start construction “anywhere between the fourth quarter of this year and the first quarter of next year.”

Savarino’s plan is to construct a five-story apartment building with 55 new, modern workforce housing units, as well as a brewery, restaurant/beer garden and potential further development on 3.31 acres. It is expected to create 20 jobs in the city’s downtown area.

Cost Adjustment Necessary

Council also moved to its Nov. 9 Business Meeting a resolution approving a contract increase of $26,013 for the creation of Ellicott Trail, a 9.7-mile bike and walking route that snakes through the city and down from Williams Park to Seven Springs Road.

The $1.7 million project was mostly paid by state Department of Transportation funds, with the City of Batavia and Town of Batavia sharing about 10 percent of the cost.

A complete analysis of the final expense indicate that the city owes $196,763 -- $26,013 more than the budgeted amount. The resolution authorizes the city to use some of its Consolidated Local Street and Highway Improvement Program funding to make up the difference.

Public Works Director Matt Worth said the city has a large enough CHIPs balance to absorb the additional cost without affecting future scheduled projects. He also said that maintenance of the trail should be minimal – mostly labor to periodically regroom the trail (adding stone dust when necessary).

Council Member John Canale commented that Ellicott Trail is becoming “the gem of the community,” adding that its popularity has proved the “naysayers” wrong.

Other Items Move Forward

The board also advanced resolutions pertaining to the Jackson Square DRI project, Carolwood Drive Extension, natural gas commodity contract, amending the municipal code to include public garages in I-1 (Industrial) zones with a special use permit, acceptance of a STOP-DWI “crackdown” award and Rotary Club grant for kayaking activities at DeWitt Recreation Area on Cedar Street.

Watch for details on those projects on Tuesday on The Batavian.

Previous story: City Council set to receive update on Jackson Square project consultant selection process

Update: 1:30 p.m. with comments from Steve Hyde, president and chief executive officer of the Genesee County Economic Development Center:

"Through the support of New York State Governor Andrew Cuomo and the Downtown Revitalization Initiative, more than $60 million is being invested in Batavia through brownfield redevelopment, historic building renovation, and new construction.

"In this instance, we deeply appreciate the funding support by the New York State Homes and Community Renewal for Ellicott Station. The agency is a tremendous partner in helping to revitalize our community. HCR's support for transformational projects like the redevelopment of Ellicott Station is another significant step forward for our community's continued growth."

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Buffalo developer Samuel Savarino this morning said the allocation of nearly $5.7 million of low-income housing tax credits for the Ellicott Station project is the key to moving the project forward.

“This is the critical component and major milestone,” said Savarino, chief executive officer of the Savarino Companies of Buffalo.

Savarino said that the commitment from New York State Homes and Community Renewal will enable his company to “get the investment in for the tax credits, which we are working on right now.”

“Closing and commencement of construction could occur anywhere between fourth quarter of this year and the first quarter of next year,” he said. “That depends on a number of factors, including New York State being ready to close. We’re not the only transaction they have.”

The $22.5 million mixed-use brownfield development project on the site of the former Soccio & Della Penna construction company and Santy’s Tire Sales on Ellicott Street in the City of Batavia has attracted other funding streams and tax incentives since being announced more than four years ago.

Savarino said the HCR award -- reported first on The Batavian -- is a “critical component which all the other commitments of the project which are in place have been waiting for.”

“We’re very pleased to have gotten the award. There are an awful lot of projects and an awful lot of communities competing for these awards, so I think it speaks well (for) not only the project but (also) the efforts of everybody in Batavia. It certainly is good news,” he said.

It is anticipated that construction could last for up to a year and a half.

Andrew Maguire, director of economic development for the Batavia Development Corporation, expressed his thanks to HCR and the Housing Trust Fund Corporation for their continued support and investment into the City of Batavia and its downtown.

“HCR has also provided the city several New York Main Street grant programs in the past that were executed successfully,” he said. “Most recently, the City of Batavia was successful in obtaining an award for another round of New York Main Street grant funding in the tune of $300,000.”

Maguire said state funding sources “will continue to help building owners complete rehabilitation projects with a focus on additional residentials units, which is an identified need in our city and county.”

“As we continue to see increased economic development in our city with catalytic projects like Ellicott Station, and many other projects coming to fruition, HCR, Gov. Andrew Cuomo’s Downtown Revitalization Initiative, and many other state agency programs have been an integral part of that process,” he noted.

Previously: BREAKING: NYS Homes and Community Renewal approves $5,691,573 award for Ellicott Station​

The New York State Homes and Community Renewal agency has approved an award of $5,691,573 for Ellicott Station, a mixed-use brownfield development project to be built on the site of the former Soccio & Della Penna construction company and Santy’s Tire Sales on Ellicott Street in the City of Batavia.

Minutes from a July 14^th teleconference meeting of HCR’s Housing Trust Fund Corporation, a subsidiary public benefit corporation of the NYS Housing Finance Agency, reveal that Savarino Companies of Buffalo, project developer, was one of 19 initiatives receiving assistance.

The minutes also indicate that the committee members "hereby provide that this authorization will lapse after 360 days if a closing on all sources of construction financing sufficient to complete the project has not occurred."

The plan for Ellicott Station, with a price tag of $22.5 million, is to construct a five-story apartment building with 55 new, modern workforce housing units, as well as a brewery, restaurant/beer garden and potential further development on 3.31 acres. It is expected to create 20 jobs in the city’s downtown area.

The venture has received funding ($425,000) from Batavia’s $10 million Downtown Revitalization Initiative award and has been approved for $3.6 million in tax abatements from the Genesee County Economic Development Center.

In December 2016, the project was awarded a $1.9 million Consolidated Application Grant through the Finger Lakes Regional Development Council. It was introduced to the public by Batavia Development Corporation officials at a press conference nine months earlier.

A telephone call and text message to Chief Executive Officer Samuel Savarino have yet to be returned.

Batavia's Acting City Manager Rachael Tabelski said that Savarino Companies have paid all of the building permit fees to the city, a sign that activity could be underway in the near future.

According to its website, the HTFC’s mission is to further community development through the construction, development, revitalization and preservation of low-income housing, the development and preservation of businesses, the creation of job opportunities, and the development of public infrastructures and facilities.

Financing resources include agency-issued tax-exempt, taxable, and 501(c)(3) bonds, Low Income Housing Tax Credits, and subsidy loans.

The HTFC also authorized a $4 million award to Home Leasing LLC of Rochester for its Liberty Square project, a 55-unit, four-story apartment building that is under construction on a parcel of land that had been the site of homes at 552, 554 and 556 E. Main St., Batavia.

Twenty-eight of the apartments will be set aside for homeless veterans with the remainder designated as affordable for lower-income residents.

The total cost of that development is expected to exceed $12 million.

Press release:

The Genesee County Economic Development Center (GCEDC) Board of Directors will consider accepting an application for assistance for the proposed $22.5 million Ellicott Station project in the City of Batavia at the GCEDC’s Jan. 9 meeting.

The Ellicott Station project is a mixed-use brownfield redevelopment project including adaptive reuse and new construction of a blighted property in a key gateway entrance site to Downtown Batavia. Considerable brownfield remediation, site improvements, and construction are proposed by project developer Savarino Companies.

“With Genesee County, the City of Batavia, and the Batavia City School District, we are working collectively to revitalize the city,” said Steve Hyde, president and CEO of the GCEDC. “The cleanup and redevelopment of the Ellicott Station site is a critical component of achieving our collective vision for Batavia’s Pathway to Prosperity.”

If the application is accepted, a public hearing on the proposed incentives will be scheduled in the City of Batavia.

The Ellicott Station project has been updated from a previous application that was approved by the GCEDC board in November 2018. The project proposes a five-story apartment building with 55 new modern workforce housing units, along with a brewery, restaurant/beer garden, and the preparation of an additional development site on the 3.31-acre campus.

The proposed project supports the Genesee County’s EDGE economic development strategy of creating housing for entry-level workers at Genesee County’s growing businesses.

Ellicott Station is requesting approximately $3.6 million in economic incentives, with a $2,105,792 property tax exemption, a $790,512 sales tax exemption, and a $180,792 mortgage tax exemption.

The proposed incentives are aligned with a request for financial support from the New York State Office of Homes and Community Renewal (HCR).

“We believe that the proposed project can be economically viable as the market-rate housing component checks a number of boxes that support the state’s interest in funding these types of developments,” Hyde said.

“The fact that there are a growing number of employment opportunities in the surrounding area to attract workforce talent to our region is certainly another factor we hope the state will consider in its decision.”

Savarino Companies of Buffalo, developer of the mixed-use Ellicott Station project that has been in the works for three and a half years, reportedly will be filing an application for residential funding with the New York State Homes and Community Renewal agency on Friday.

“The application deadline is Friday and we’ve been told that one will be filed for the 55 units,” Pier Cipollone, president of the Batavia Development Corporation, said at this morning’s BDC meeting. “They (apartments) are geared toward a mixed-use workforce with a $30,000 to $40,000 salary range for tenants.”

Cipollone said that a decision by HCR on the funding hopefully will come in April or May of next year.

The total cost of the residential part of the project is expected to be around $18 million, Cipollone said, but he noted that the BDC is "not privy to how much Savarino will be asking for in the HCR application."

Cost of the complete Ellicott Station project, which includes apartments, commercial office space and the Resurgence Brewing Company business, is estimated at $22.7 million.

“We’ve been waiting a long time to get a shovel in the ground,” Cipollone said. “We’ve asked Sam (Savarino) to knock down a garage on the (former Santy’s Tire Sales and Soccio & Della Penna property on Ellicott Street) to start the process.”

Cipollone said once the garage is down, officials can proceed with rezoning the property into three lots -- separating the residential from the commercial per HCR requirements.

He noted that Savarino bought the property from the BDC for $60,000, and still owes all but a $5,000 down payment.

Cipollone also announced that he will be stepping down as president at year’s end due to commitments as an IT consultant. He said he will be speaking with Vice President Wesley Bedford about the pending vacancy.

In other developments:

-- Batavia City Manager Martin Moore said that Theatre 56 has signed a lease with the City, setting the stage for the design phase of the Downtown Revitalization Initiative project and necessary construction.

-- BDC Executive Director Andrew Maguire reviewed the 2020-21 budget that shows revenues of $110,000 (from the City) and $5,721 (referral fee from Genesee County Economic Development Center) and primary expenses of $65,000 (salary), $35,000 (professional services contracts) and $4,000 (marketing and public relations).

-- The board approved the 2020 meeting schedule, which sets the meeting time and date at 8:30 a.m. on the fourth Thursday of the month at City Hall second floor.

Acting on Interim City Manager Matt Worth’s analogy that the City will benefit from “a thinner piece of a larger pie,” the Batavia City Council on Monday night agreed to set a special business meeting to vote on a new sales tax agreement with Genesee County.

A revised sales tax arrangement with the county is necessary since the current 10-year pact – which gives the City 16 percent of the county’s 50 percent share of the 8 percent sales tax -- expires at the end of this year.

County legislators, looking at future big ticket items such as bridge replacements and a new county jail, balked at extending the existing agreement, setting the stage for negotiations between the two entities.

The proposed deal calls for the City to receive its current 16 percent of the county’s share through this year, with provisions for that amount to grow in future years by a maximum of 2 percent per year.

“This allows the City to increase in growth by up to 2 percent a year until the City’s portion of the pie becomes 14 percent,” Worth said. “So we go from 16 percent to 14 percent as that pie gets larger and larger.

At that point, once that floor of 14 percent hits, all the restrictions go off and there’s no more restriction of 2 percent growth. So if the sales tax goes up by 5 percent, and we’re at 14 percent, the City gets a 5-percent increase as well.”

In any event, the City’s share will be no less than 14 percent for the remainder of the 40-year contract, Worth said.

“The 14-percent floor is an additional safety net for the City to share in good years above 2 percent, once that threshold is reached,” he said, noting that historically sales tax goes up by 2.5 percent annually.

The County Legislature is expected to vote on the matter on Wednesday of this week, while City Council scheduled a business meeting to address the agreement in conjunction with its conference meeting on Sept. 24. From there, it goes to the state comptroller’s office for approval. If approved, it would go into effect on Jan. 1.

The new agreement, unlike the current one, does not include wording about allocations to Genesee County towns and villages because, according to Worth, the towns have no taxing authority and are not a “sign-on” to the contract.

“It is my understanding that the comptroller was not comfortable with the towns being referenced in the agreement, and that the county will have separate agreements with the towns and villages,” he said.

Responding to questions from Council Member Adam Tabelski and Interim City Manager Worth, Council President Eugene Jankowski said the new agreement should be a “stabilizing” factor in annual budget preparation.

“We’ve been in a holding pattern for the last couple years, not knowing if the agreement would go through,” Jankowski said. “We’re in a better position now.”

In other action, Council:

-- Voted to send a resolution calling for the rezoning of the St. Anthony’s Church area on Liberty Street from residential to commercial to the City Planning & Development Committee.

City Church, which purchased the former Catholic church in 2016, filed a petition to reclassify the campus to allow for some activities (dance school, art school, community education classes, etc.) that could be considered a business activity and a non-conforming use in an R-3 district.

Should the planning board approve, a public hearing will be scheduled.

-- Approved the placement of 10 bicycle racks and six trash cans in downtown locations per a request from the Batavia Business Improvement District.

-- Voted in favor of two resolutions pertaining to the Ellicott Station project coordinated by Savarino Companies of Buffalo.

One grants a stormwater easement due to the fact that a major city storm sewer lies within the boundary of the project; and the other distributes a National Grid Urban Center/Commercial District Revitalization Grant in the amount of $250,000 to enhance the Ellicott Trail Project, which will run along the southern boundary of the Ellicott Station site.

-- Voted to submit an application for Transportation Improvement Program funds for the rehabilitation of four city streets – Harvester Avenue, Jackson Street, Bank Street and Richmond Avenue – that qualify under federal guidelines.

The Batavia City Council on Monday night voted to move several resolutions forward, including measures to rezone the St. Anthony’s Church area on Liberty Street from residential to commercial and to install bicycle racks and trash receptacles in several locations within the Downtown Business Improvement District.

A memo from Interim City Manager Matt Worth suggests that seven parcels on Liberty Street and Central Avenue surrounding the St. Anthony’s Church campus – which was purchased by City Church in 2016 – should be reclassified from R-3 to C-3 to allow for some “ancillary activities (dance school, art school, community education classes, etc.) that could be considered a business activity and a non-conforming use in an R-3 district.”

City Church, on July 19, filed a petition to rezone this campus of parcels that would annex the property into the adjacent C-3 district, thus bring the property into conformance with zoning regulations, Worth wrote.

Council’s action moves the resolution into the hands of the Genesee County Planning Board for a recommendation and then to the City Planning and Development Committee for review and to schedule a public hearing in accordance with zoning laws.

In late July, the BID sent a request to the City to install 10 bicycle racks and six trash cans at downtown locations.

A memo from Ray Tourt, superintendent of maintenance, listed the sites as follows:

Bicycle racks – Tim Hortons, Save-A-Lot, Court Street (near the former Coffee Culture); outside JCPenney/Batavia Showtime; near the Christmas Tree between the Bank of America and Tompkins Insurance; in front of Game On on Main Street; in front of Southside Deli on Ellicott Street; in front of Pok-A-Dot on Ellicott Street; in front of Bourbon & Burger Co. on Jackson Street; and in front of Glass Roots on Center Street.

The BID has four more bicycle racks that can be used as replacements when needed.

Trash receptacles – Two on East Main Street and four on Ellicott Street from Court Street to Goade Park.

Tourt said the bicycle racks are of a hoop design marked with a feet motif to go with the BID’s “Feet on the Street” promotion. The trash cans are similar to ones installed by the city in 2004.

Council also agreed to consider a pair of resolutions dealing with the Ellicott Station project coordinated by Savarino Companies of Buffalo.

One is the granting of a stormwater easement due to the fact that a major city storm sewer lies within the boundary of the project.

Worth wrote that this is a requirement of the site approval issued by the City Planning and Development Committee, and would serve as an “important legal document giving the City access for maintenance of this storm sewer in the future.”

The other focuses on the distribution of a National Grid Urban Center/Commercial District Revitalization Grant in the amount of $250,000 that has been awarded to the City to enhance the Ellicott Trail Project, which will run along the southern boundary of the Ellicott Station site.

Based on preliminary construction estimates, Savarino Companies has identified $183,477 worth of improvements (landscaping, lighting, seating, etc.) that would be reimbursed by the grant. An agreement with the City would allow Savarino to access up to the full amount of the funds provided by National Grid.

Council is expected to vote on the BID and Savarino resolutions at its Business Meeting on Sept. 10.

Press release:

The Genesee County Economic Development Center will hold a public hearing at 4 this afternoon to consider financial incentives for the Savarino Companies for the redevelopment of Ellicott Station in downtown Batavia. The public hearing will take place at City Hall.

The approximate 64,000-square foot development will be a mix use of residential, office and retail spaces; a brewery; small beverage warehouse and hops processing facility; entertainment and event area; outside seating; and integration of the new Ellicott Trail pedestrian pathway.

The $17.6 million project is estimated to create up to 60 good paying full-time jobs.

The proposed incentives include $897,293 in sales tax savings, $128,232 mortgage tax savings and $537,398 in property tax savings. 

The project is being done through the “Batavia Pathway to Prosperity” (BP2) program which was created through an inter-municipal agreement between the City of Batavia, Genesee County, the Batavia City School District, the Batavia Development Corporation and the GCEDC.

BP2 was conceived to pool resources in order to invest in distressed areas in the City of Batavia. The BP2 program will be implemented though PILOT increment financing (PIF), referred to as the “BP2 fund,” which is the first of its kind in New York State where all local taxing jurisdictions are participating. 

Supported by the redirection of 50% of new project PILOT payments, the BP2 fund will play a critical role in generating development within the Batavia Brownfield Opportunity Area (BOA), a 366-acre area within the City of Batavia containing five strategic redevelopment sites. 

Press release:

The Genesee County Economic Development Center (GCEDC) accepted an application for assistance from the Savarino Companies for the redevelopment of Ellicott Station in Downtown Batavia at the agency’s June 1 board meeting.

The approximate 64,000-square-foot development will be a mix use of residential, office and retail spaces; a brewery; small beverage warehouse and hops processing facility; entertainment and event area; outside seating; and integration of the new Ellicott Trail pedestrian pathway.

The $17.6 million project is estimated to create up to 60 good-paying full-time jobs. For every dollar of public sector investment there is an anticipated private sector investment of approximately $25.

The project is being done through the “Batavia Pathway to Prosperity” (BP2) program which was created through an inter-municipal agreement between the City of Batavia, Genesee County, the Batavia City School District, the Batavia Development Corporation and the GCEDC. 

BP2 was conceived to pool resources in order to invest in distressed areas in the City of Batavia. The BP2 program will be implemented though PILOT increment financing (PIF), referred to as the “BP2 fund,” which is the first of its kind in New York State where all local taxing jurisdictions are participating.

Supported by the redirection of 50% of new project PILOT payments, the BP2 fund will play a critical role in generating development within the Batavia Brownfield Opportunity Area (BOA), a 366-acre area within the City of Batavia containing five strategic redevelopment sites.  

”The collaboration among various government jurisdictions is simply smart economic development,” said Paul Battaglia, GCEDC Board chairman. “The BP2 program is an opportunity to attract development and jobs to the urban core of Genesee County and just as important, create vibrant neighborhoods in economically disadvantaged areas of the city.”