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Della Penna Building

November 25, 2019 - 4:27pm
posted by Howard B. Owens in Ellicott Station, business, batavia, Della Penna Building, notify.

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Developer Sam Savarino heads into the holiday season optimistic that once the weather clears in the spring he will finally be able to begin construction on Ellicott Station -- the restaurant/brewery, apartment, and office complex on the former Della Penna and Santy properties on Ellicott Street in the City of Batavia.

Savarino said within days, once the application window is open, Savarino Companies will submit an application for funding assistance to the state's Home and Community Renewal agency and he expects a determination to be reached in January sometime.

It was good news last week, he said, when he learned that the Department of Environmental Conservation had opened public comment period for expedited remediation of environmental contamination at the sites.

Work will begin with cleanup of contamination followed by demolition of a portion of the main Della Penna building (the front part) and the rest of the buildings on the two sites. Then construction of the restaurant and brewery for Resurgence Brewing Company in Buffalo will begin.

If all goes according to schedule, the total project -- including office space and 55 apartments -- will be completed in October 2021.

There's a significant change in the funding plan. Savarino initially intended to finance the $19 million project (now $1.4 million more than the earlier estimates) using a federal program known as the New Market Tax Credit, where investors could get a tax break for backing the project.

Savarino said the timing of the project no longer favors using the New Market Tax Credit program.

He said, "a lot more of my money" is going into the construction of the multi-use complex to ensure the project is fully financed.

January 24, 2018 - 12:56pm
posted by Howard B. Owens in Ellicott Station, Della Penna Building, batavia, news, business.

savarinobrickelevation_ellicottstation.jpg

Financing for developer Savarino Companies on the Ellicott Station project should close by mid-to-late March, according to Economic Development Coordinator Julie Pacatte.

Pacatte reported progress on the project to the Batavia Development Corporation board of directors this morning. 

The complicated financing deal to pay for the $18 million development, which includes a restaurant/brewery, apartments, and office space, includes some of Savarino's own money (about $3.5 million), grants, tax credits, and private investment (about $10 million) through a program called a New Market Tax Credit.

Empire State Development has promised $1.9 million for the project and has agreed to release the funding in stages to help pay for the project as it proceeds. ESD will get back 1 percent of the grant money as a "commitment fee."

That grant is administered by the BDC.

There is also a $500,000 grant from the state administered by the City as part of the Restore NY program.

The project will also receive tax abatement through Genesee County Economic Development Center.

There is also one brownfield tax credit already granted through the state because of the environmental cleanup needed at the former Della Penna property.

There is an application pending for the former Santy Tires property.  

Pacatte said the DEC requested more information on the possible environmental contamination on the property, indicating not enough evidence has been presented yet that the property has enough contamination to warrant the tax credit.

None of the environmental tests on the property done so far were taken inside the old repair bays.

"It was a repair shop for 50 years, so there really is no worry that it's dirty," Pacatte said. "The DEC just asked for more documentation."

Last month, Savarino acquired Ellicott Station LLC, the corporation set up by the BDC to take title to the two parcels on Ellicott Street, and when the financing closes, will pay the remaining $55,000 of the $60,000 purchase price to the BDC.

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