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NY State agrees to buy all of RiverBend site
by chocieniIn an effort to fast track the development of the RiverBend property, the Buffalo Urban Development Corp. agreed to sell the entire property — all 188 acres — to the state agency credited with forming Albany's successful and highly touted nanoscience and research complex.
BUDC directors, Tuesday
afternoon, agreed to sell slightly more than 96 acres of reclaimed, former
brownfield land at the Buffalo Hi-Tech Manufacturing Innovation Hub at
RiverBend to the Fort Schuyler Management Corp. for $2.8 million, or $29,043
per acre. That price is about $1,000 more per acre than Fort Schuyler paid BUDC
for 88 acres at RiverBend. That deal closed last week.
Presumably most — if not
all —- of the 96 acres will be devoted to the massive SolarCity plant and
research center that's being eyed for RiverBend. SolarCity is expected to
employ more than 1,000 people as it produces and does research on cutting-edge
solar-based technology.
The project is being
developed in companion with Soraa, a Cailfornia-based LED specialist. Together
the two projects will anchor the RiverBend property.
"This is a great, great
deal for this community," said Buffalo Mayor Byron Brown, BUDC chairman. "The terms were
very favorable to the city, state and the public."
The deal comes a few months
after Elon Musk's Solar City acquired Silevo this spring. Silevo, which is also
based in California, and Soraa were announced last fall, with great fanfare.
New York has offered almost $225 million in incentives, mostly through the
Buffalo Billion allocation made by Gov. Andrew Cuomo for
the projects.
While the incentives are
pricey, the pay off is Buffalo serving as western New York state high-tech,
green-energy hub and the promise of more than 1,300 jobs being created
initially.
"It's bigger, so it's going
to be more everything," Cuomo said Monday during a Buffalo visit. "More
funding. Bigger footprint. It's an evolution from the agreement we had. It's
still ongoing, but it is on a positive track."
The 96 acres Fort Schuyler
is acquiring will handle Solar City's immediate needs. The exact amount of
square footage and scope of the project is still being determined, but state
officials expect construction to start this fall.
Fort Schuyler will be
closing on the deal this summer. The land is located in South Buffalo off South
Park Avenue, at the former home of Republic Steel Corp.
Under the terms of the
pact, Fort Schuyler will own both the Solar City and Silevo complexes but the
respective companies will be responsible for creating the new innovation hub in
Buffalo.
"This deal was contemplated
right after the initial purchase," Brown said.
Besides creating the new
jobs and private sector investment, which could top $1.5 billion, Brown
received assurances that an emphasis will be made on hiring minority and
women-owned businesses during the construction phase and that mostly local
residents, those within a 75-mile range of Buffalo, are hired and they are paid
a prevailing wage. Minority and women hiring for both companies will also be
emphasized, Brown added.
"The community benefits go
beyond just Buffalo," he said. "They benefit the entire region."
Even with the Solar City
and Soraa deals, there may be some available acreage at RiverBend. If not,
there is land available at the neighboring Buffalo Lakeside Commerce Park off
Tifft Street.
"People want to be located
near this now," said Brendan Mehaffy, Buffalo's economic
development chief.
From a development
perspective, the transformation of RiverBend from an industrial wasteland to a
thriving, shovel-ready destination bodes well, said Dottie Gallagher-Cohen, Buffalo Niagara
Partnership president and CEO.
"It keeps the momentum
moving forward in a very aggressive way," Gallagher-Cohen said.