Ellicott Station

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

Finally, the two-word answer has been provided, via a flyer and related state information posted online.

Ellicott Station is open only to “low-income” eligible tenants.

Last month The Batavian asked the city’s Batavia Development Corporation director, and a staff member at Savarino Companies, who referred us to Assets Manager Wanda Wilson, about the new complex’s income qualifications. The first two didn't know, and Wilson did not return calls and emails for comment.

Jim Krencik of Genesee County Economic Development Center didn’t really give a classification label but said that 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.

No one who The Batavian spoke to would commit to saying that the project at 50 Ellicott St. would be for low-income folks. Or that rent could be supplemented with Federal housing vouchers.

They also didn't correct statements made at the groundbreaking for Ellicott Station that the project would be "workforce" housing for people earning $18 to $20 an hour.

As it turns out, a single person living alone making $18 an hour is making too much to qualify for an apartment at Ellicott Station, though that same person with two or three dependents, meaning no additional income, would qualify. 

Whereas 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).

At the infant stage, the project was considered for market-rate apartments to draw a higher-salaried tenant to not only live downtown but invest in it as consumers of retail shops and restaurants. That evaporated into categories of workforce and affordable, described by company owner Sam Savarino as a way to attract people earning about $20 an hour or below in need of quality, affordable housing.

“The idea being that nobody should be expected to pay more than a third of their income for occupancy that includes rent, or a mortgage, and their utilities,” he said during groundbreaking last year. “Part of the idea was if you’re creating jobs here, you want to have safe, modern quality housing for those workers that they can afford.”

He requested 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. He received $425,000 of the city’s Downtown Revitalization Initiative grant money, and $5.7 million of low-income housing tax credits for the Ellicott Station project, which he cited as the key to moving the project forward. The DRI is "a comprehensive approach to boosting local economies by transforming communities into vibrant neighborhoods where the next generation of New Yorkers will want to live, work and raise a family," the website states.

In 2017 and 2018, the city also gave him two grants: one from Empire State Development called the Restore New York grant for $500,000 to rehab the old electric building that’s on the site, and a $250,000 National Grid grant to enhance the Ellicott Trail on the property area right behind the Savarino campus. The trail will be enhanced with lighting, benches, and there will be parking areas for people to utilize the trail starting in that area, City Manager Rachael Tabelski had said during a prior City Council meeting.

“The hope is that they will also use the restaurant and brewhouse that will be on that site,” she said, adding that the resolution recognizes the city as the applicant “but the work will be done by Savarino Companies.”

Krencik has waxed optimistic about the city and county trying to provide varying types of housing to accommodate the needs of people at all stages of their lives.  Based on the application, Ellicott Station seems focused on financial need.  Questions include whether you require Section 8 rental assistance, alternate housing assistance, and whether you’re a full-time student.

To see the flyer or obtain an application, go to Applications at Ellicott Station. Applications are being taken and are due by 5 p.m. April 18. There is no mention of minimum income requirements or if applicants will be vetted before the lottery. The state's website states prospective tenants must pass a credit check and criminal background check.

Tenants will be selected by a lottery method noon on May 2 — not in Batavia, but at 500 Seneca St., Buffalo.  For more information, also visit the Ellicott Station page at NYHousingSearch.com.

2023 File Photo of Ellicott Station by Howard Owens.

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.

If you’re in the market for an apartment later this year, but can’t afford a market rate, Ellicott Station may be the answer.

The Ellicott Street apartment complex has been taking names, Batavia Development Corporation Director Tammy Hathaway says.

A project that began last fall on the south side of Batavia, the 55-unit complex is expected to be ready for occupants by summer of this year, she said.

“There is an income qualification,” Hathaway said Tuesday. “People can go to ellicottstation.com and sign up.”

When the time comes that apartments are finalized, Savarino’s management will review the list and contact potential tenants, Hathaway said.

Once thoought to be more upper scale market rate rentals, the 55 units are considered “affordable housing,” 52 of which come with a balcony and nine with Americans with Disabilities Act mobility units. Units also are equipped with laundry amenities, and the complex has an elevator, community room, bicycle storage, covered off-street parking, and a playground, according to the website.

During the time of groundbreaking later last year, CEO Sam Savarino of Savarino Companies said that “It’s difficult for people to afford housing, and then there’s a shortage of quality, affordable housing.”

“In any event, the market study showed that there was a top end of the market that people could afford to pay in this area, otherwise, it wouldn’t be successful,” he said.

Abatement, demolition of two dilapidated buildings, land remediation, reconstruction of public storm drainage infrastructure, and construction of a 55-unit apartment building was — and still is — on the way toward a summer 2023 completion. The $22.5 million project site is to also offer adaptive reuse of the building to be used as a brewery, restaurant and/or events facility, plus improvements made to a public ‘Rails to Trails’ walking trail.

Workers have been busy constructing the four-story apartment complex, and it has been exciting to see the progress, Hathaway said.

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

The total apartment project cost is $20.7 million for 74,000 gross square feet, four stories, 55 units, 52 balcony units, nine units meeting Americans with Disabilities Act requirements, 37 garage parking spaces and 44 surface parking spaces.

Defined as “workforce housing,” with one and two-bedroom units, the Ellicott Street complex will most likely attract people earning about $20 an hour or below, otherwise deemed as affordable housing.

The project is part of Batavia’s Downtown Revitalization initiative and is located within a state-designated Brownfield Opportunity Area, which requires abatements and remediation from prior use of toxic materials on the property.

Top Photo of the current Ellicott Station project in Batavia, by Howard Owens; and file photo of the groundbreaking by Howard Owens. Bottom two photos also from today of construction by Howard Owens.

Press Release

The bike path located at endpoints of Evans and Jackson streets, South of Route 63, Ellicott Street and North of Salvation Army Family Store in Batavia will be closed to pedestrian and bike traffic for ground and civil construction activities from approximately Oct. 3, 2022 to May 31, 2023.

Traffic will be detoured around the area for the scheduled duration of the project. Local access to businesses will be maintained. Please see the attached reference map for more information.

All construction areas will be marked by barricades and road closure signs. Please abide by all signage and follow designated traffic routes. This scope of work is scheduled to start on Oct. 3 and will be completed by May 31, 2023. The typical hours of construction will be 7 a.m. to 3:30 p.m.

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.

Workers were still framing atop the third floor of the Ellicott Station apartment complex in Batavia early this evening.

The apartments are part of a $22.5 million project that includes a brewery/restaurant and office suites.

The four-story apartment building will contain 55 units, including 52 with balconies, and nine units meeting Americans with Disabilities Act requirements. There will be 37 garage parking spaces and 44 surface parking spaces, a laundry room, an elevator, a community room, bicycle storage, and an enclosed ADA playground.

The developer is Savarino Companies, a firm in Buffalo that specializes in rehabilitating brownfield properties and old industrial buildings. 

The apartments are expected to house workforce residents with $30,000 to $40,000 in annual earnings.

For previous coverage of Ellicott Station, click here.

With construction season in full swing, progress on the Ellicott Station development is more visible.

Crews have begun framing apartments in the four-story complex that is part of the $25 million project. 

Besides the apartments, other buildings on the property -- a combination of the former Della Penna building and the Santy Tire location -- will include office space and a restaurant/brewery.

The four-story apartment building will contain 55 units, including 52 with balconies, and nine units meeting Americans with Disabilities Act requirements. There will be 37 garage parking spaces and 44 surface parking spaces, a laundry room, an elevator, a community room, bicycle storage, and an enclosed ADA playground.

The developer is Savarino Companies, a firm in Buffalo that specializes in rehabilitating brownfield properties and old industrial buildings. 

The apartments are expected to house workforce residents with $30,000 to $40,000 in annual earnings.

Photo by Mike Pettinella.

Switching gears from the fast track to market-rate housing, businessman Sam Savarino now believes that Batavia — more specifically Ellicott Station — is more about being affordable.

“It’s difficult for people to afford housing, and then there’s a shortage of quality, affordable housing,” Savarino said to The Batavian after the ceremonial groundbreaking of Ellicott Station Tuesday. “In any event, the market study showed that there was a top end of the market that people could afford to pay in this area, otherwise, it wouldn’t be successful.”

Savarino, of Savarino Companies, was joined by City of Batavia and Genesee County leaders to pitch some dirt as a symbolic gesture for the beginning phase of a 3.31-acre mixed-use redevelopment project of vacant and abandoned industrial brownfield land downtown.

Abatement, demolition of two dilapidated buildings, land remediation, reconstruction of public storm drainage infrastructure, and construction of a 55-unit apartment building is on the way toward a summer 2023 completion. The site is to also offer adaptive reuse of the building to be used as a brewery, restaurant and/or events facility, plus improvements made to a public ‘Rails to Trails’ walking trail.

The total project cost is $20.7 million for 74,000 gross square feet, four stories, 55 units, 52 balcony units, nine units meeting Americans with Disabilities Act requirements, 37 garage parking spaces and 44 surface parking spaces, built-in laundry facility, an elevator, community room, bicycle storage and an enclosed ADA playground.

Another portion has a $4.2 million price tag and includes 11,285 square feet, 5,000 of which are for an outdoor landscaped beer garden, 25 dedicated surface parking spaces and rear access with loading dock and storage areas.

Savarino wants to build housing for people that can and will use it. And the state will help out “to close the gap” by providing housing tax credits and financing for such housing projects, he said.

“So, in return, they’re going to expect you to make sure that those rents are — remain — at that affordable rate if you don’t take advantage of what they offer,” he said.

Otherwise defined as “workforce housing,” with one and two-bedroom units, the Ellicott Street complex will most likely attract people earning about $20 an hour or below, he said. Ellicott Station should be affordable to them, he said.

“The idea being that nobody should be expected to pay more than a third of their income for occupancy that includes rent, or a mortgage, and their utilities,” he said. Part of the idea was if you’re creating jobs here, you want to have safe, modern quality housing for those workers that they can afford.”

The project is part of Batavia’s Downtown Revitalization initiative and is located within a state-designated Brownfield Opportunity Area, which requires abatements and remediation from prior use of toxic materials on the property.

Top photo: Local government leaders literally pitch in to celebrate the groundbreaking of Ellicott Station with project owner Sam Savarino, shown in second photo; and Genesee County Economic Development Center Executive Director Steve Hyde and above, Batavia City Council President Eugene Jankowski say a few words in praise of the development. Photos by Howard Owens. Renderings courtesy Savarino Construction.

The former Santy's Tires building on Ellicott Street, which along with the former Soccio & Della Penna building, is part of a redevelopment effort downtown known as Ellicott Station, is nearly gone as construction on the $22 million project continues.

The brownfield redevelopment site has been vacant for many years and has been a challenge to redevelop because of environmental contamination.  Grants and tax abatements, about 15 percent of the project's funding, help offset the cost of environmental clean-up.

Savarino Companies of Buffalo is the project developer. It will include 55 apartments, office space, and a restaurant.

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.

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.

Although the date is a bit late in the construction season, Buffalo developer Sam Savarino nonetheless is relieved that the New York State Office of Homes and Community Renewal finally has scheduled the financial closing for the Ellicott Station project.

Ellicott Station, part of the City of Batavia's $10 million Downtown Revitalization Initiative program, is the name given for the redevelopment of the former Soccio & Della Penna and Santy’s Tire Sales properties on Ellicott Street.

“On Thursday, the HCR board met and approved the closing date for October 15^th,” Savarino said this morning.

When asked if he was hoping for a summer date, he said yes, but quickly pivoted to a “here’s what comes next” mode.

“We’re making our plans to get going, so the day we close, we’re out there working,” he said. “I’m hoping that we get our remediation done in the fall, which is a big step for us. We’re planning to do that right now.”

The closing with HCR involves filing of the documents pertaining to the low-income housing tax credits and additional subsidies awarded to the project.

Savarino said the state agency is providing $1.2 million per year for 10 years in low-income housing tax credits – incentives that are tied to the developer securing an investor or investors to back the project.

As previously reported, the apartments are geared toward a mixed-use workforce with a $30,000 to $40,000 salary range for tenants.

HCR also has granted subsidies of around $5 million.

“We make what’s called a unified funding application with the state. The state assesses your request and they grant it,” he said. “You’re asking for the low-income housing tax credit (based on a formula) and you’re asking for additional subsidies that the state has to approve to aid those projects because the low-income housing tax credits are not enough. When you get the award, you get both of those.”

Savarino said he would like to get on the site prior to the closing date to start some of the abatement in anticipation of the demolition work, but that is subject to HCR approval.

He also confirmed a July 21^st closing date with the Genesee County Economic Development Center to finalize the tax exemption and Payment in Lieu of Taxes agreements.

The GCEDC Board of Directors approved nearly $3.7 million in benefits for the $22.4 million DRI project, which calls for renovation and construction of more than 72,000 square feet on 3.3 acres in the Brownfield Opportunity Area.

Plans include the development of 55 apartments as well as office, retail and entertainment space, leading to the creation of an estimated 30 full-time equivalent jobs.

Incentives from the industrial development agency include $850,000 in sales tax exemptions, $200,000 in mortgage tax exemptions, and $2,105,952 in property tax exemptions.

Additionally, the project will be receiving an estimated $529,492 in Batavia Pathway to Prosperity PILOT increment financing related to cleanup and site work investments on the targeted brownfield site.

GCEDC Marketing Director Jim Krencik said that the project will generate $6.10 for every $1 of public investment, including DRI funding.

Contacted this morning, Batavia City Council President Eugene Jankowski Jr. said, "Understanding the delays with COVID and various other funding delays, I'm glad to see that it's finally going to move forward. I think everybody in the community is glad to see that it finally is going to move forward."

Batavia Development Corp. President Lori Aratari could not be reached for comment.

Buffalo developer Sam Savarino, who has been working for years to close financing on Ellicott Station (former Soccio & Della Penna and Santy's Tire properties), met via Zoom this morning with the Batavia Development Corp. Board of Directors and gave the members an update on the progress of the project, which should start with site cleanup soon.

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.

If you’re looking to see the value in the Batavia Development Corporation, look no further than what was accomplished through the Eli Fish Brewing Company and Newberry Lofts project that rejuvenated the former JJ Newberry building at 109-111 Main St.

That’s was the centerpiece of a PowerPoint presentation by Andrew Maguire, director of economic development for the city-supported agency, during Monday night’s City Council Conference meeting.

Maguire said his mission was to highlight the BDC’s “history of success through various programs and the economic impact they carry, current projects the BDC is working on in the city and future goals and continued economic development.”

Regarding the Eli Fish venture, Maguire called it a “transformative” project and outlined the ways the BDC played a part in its success:

• Built in 1881, it was the original home of JJ Newberry’s store for more than 60 years. Its assessed value in 2015 was $250,000;
• Vacant for several years, it needed substantial rehabilitation;
• It was purchased in 2015 with the goal to rehabilitate the building and create a brewery, restaurant and seven market-rate residential apartments on the upper floors;
• The BDC secured a $500,000 NY Main Street Anchor Grant for the proposed project and sought other funding sources, including a $100,000 National Grid grant and then secured a $67,835 USDA Rural Business Development Grant for a project inside of this project.

“It was a first of its kind in our area – two restaurant incubators inside of brewery, coined FreshLabs, which offered cooking competition to entrepreneurs and the two winners receiving a grant, loan and incubator space inside the Eli Fish brewery to help them start their business,” Maguire said.

He reported that the project – which turned out costing more than $2 million – began in 2016 after all of the funding was secured, and that the BDC played a “critical role in project setup, capital stack (funding), and project and grant administration to see the project through to completion.”

As a result, the project was completed in 2018 and features a brewery, three restaurants and four market-rate apartments created in the vacant, historic building.

Maguire said the proof of the project’s worth is in the increase of the assessed value to $987,000, while sales tax has increased, tourism has been generated and more than 30 jobs have been created.

The Eli Fish project is one of several being facilitated by the BDC through the NY Main Street Grant, Downtown Revitalization Initiative Building Improvement Fund and Downtown Revitalization Grant, Maguire said.

He revealed a chart showing 28 projects received $11.3 million in grants but generated $54.4 million in private investment. Included are 103 residential units and 96 commercial units.

Maguire said the BDC continues to pursue other grants, such as the revolving loan fund grant, National Grid grants and USDA Rural Development Block grants, and also have attracted NYS Empire State Development Restore New York and Brownfield Opportunity Area Study grants.

These projects have increased the assessed value of the parcels by $5.79 million, Maguire reported, and noted that the Main Street Theater 56 project will generate more than $44,000 of annual rent revenue after moving into underutilized vacant parcels from the City of Batavia.

“These projects and programs create a vibrant city people want to work in, live in and play in,” he said. “… The results we have obtained and the future goals we shall obtain will carry a positive impact on our city’s quality of life for generations to come. It is critical that we do not lose sight of this and we continue to have boots on the ground to help these projects from the starting line to the finish line and continue this process for years to come.”

Afterward, Council Member Rose Mary Christian asked Maguire about the status of the Ellicott Station DRI project on the former Soccio & Della Penna and Santy’s Tire Sales property on Ellicott Street.

He said the developer, Savarino Companies, is “poised to close by the end of this quarter (March) … and plan on construction starting in early spring 2021.”

Christian praised V.J. Gautieri Constructors for their work on renovating the Save-A-Lot building across the street, but called the condition of Ellicott Station “deplorable.”

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.