Skip to main content

Ellicott Station

Developer hints at current, possible future involvement with Ellicott Station project

By Joanne Beck
Ellicott Station 2/9/24

When Samuel Savarino said he was closing his Savarino Companies and work halted at the Downtown Batavia Ellicott Station apartment complex in the summer of 2023, it seemed a given that the Buffalo-based developer was done with the project.

However, Savarino recently indicated, in responses to questions from The Batavian, that such a conclusion may have been premature. Work is being performed on the Ellicott Street property by “subcontractors of Savarino Companies LLC,” Savarino said Thursday. 

Contractor vehicles could clearly be seen at the site throughout the past several days, along with crews that apparently installed exterior siding and completed other construction tasks. 

The work is to both button up the property’s exterior to protect it from the wintry elements, and to further proceed with project construction, Savarino said.

He made an abrupt announcement in August 2023 that his company would be closing after a sticky financial situation involving the state Dormitory Authority and claims that not being paid for completed work created what Savarino said at the time was enough of a financial constraint, compounded by pandemic shutdowns, to keep some of his other projects afloat. 

After he backed off from Ellicott Station, city, county and state officials weighed in on the situation, proffering optimism that another developer would eventually step in and continue on. 

When asked if he had walked away completely from the project and if there was any possibility that he would work with another developer here, Savarino simply replied “No and Yes” to those two questions in that order. He did not wish to speak by phone and offered to answer questions by email. 

Savarino said that he’s been in communication with the city, Genesee County Economic Development Center, and the state Office of Homes and Community Renewal, with no elaboration or specifics as to when. City Manager Rachael Tabelski said on Thursday that she has “not had any communication on Ellicott Station from Savarino or the state.”

Savarino declined to answer further questions about the liens filed against his company by a handful of contractors that had already invested labor and materials into the project or whether he had any plans to file any type of financial protection, namely bankruptcy. 

When asked if he had any hindsight about what happened with the Ellicott project and if issues were about more than the Dormitory Authority, he did not reply. 

The project at 50-56 Ellicott St. became embroiled in a wrangle with city and county officials about how an initial market rate-turned-affordable workforce housing apartment complex became an unwelcome low to very low-income housing complex. 

Savarino qualified for state housing tax credits with a low-income strategy, but city and county leaders wanted to see the project accommodate higher salaried tenants to bring in more wealth and bump up the local economy and spending for what was being touted as “a pathway to prosperity.”

Much of it fell apart when GCEDC gained access to tenant demographics and discovered that Savarino was using a lottery method to select tenants and that income levels were much lower than anticipated. However, Savarino had also missed two October 2023 payment in lieu of taxes (PILOT) installments of $25,312.26 for Ellicott Station and $11,743.90 for the adjacent property that was to be a brewery/restaurant, according to documents provided to The Batavian.

By the time that letter from Harris Beach was sent to Ellicott Station LLC on Jan. 3, 2024, GCEDC was demanding immediate payment of $833,021.26 as part of “its right to capture agency benefits,” plus late payments and interest.

The recapture schedule includes $23,868.23 for a PILOT payment, $637,500 in sales tax exempt savings for 2023, and $170,209 mortgage recording tax exemption savings for 2021, for a total of $831,577.23 in October 2023 for Ellicott Station LLC, plus a PILOT of $10,964.29 for the adjacent Ellicott Street property, $212,500 in sales tax exemption savings in 2023 and $57,274.50 in mortgage recording tax exemption savings in 2021, for a total $280,738.79 in October 2023. 

The Batavian asked Savarino if he is planning to pay the “clawback” request of more than $1.1 million and about his response to the GCEDC. 

“Ellicott Station LLC has responded to the GCEDC. No further comment at this time,” he said. 

In a letter dated Dec. 1, 2023, Savarino contested the agency’s claims of recapture as being “without merit” since Ellicott Station LLC only received notices of default in July and August, and “all of the information request in the July notice, however, was provided by July 31, 2023, as acknowledged in the August notice,” Savarino said. 

He also disputed the discrepancy of income requirements since “numerous emails between you and myself or Oxford Consulting reflect your and other agency officials’ knowledge and agreement that the 55 units of housing would be limited to occupants with income below 60 percent of the area median income.”

“There is simply no basis to contend that the company in any way misled the agency, which is the only claimed cause for termination of the agreements,” he said. “We respectfully request that the agency reconsider the termination of the agreements and revoke its demand for recapture of benefits thereunder.”

A response from GCEDC to Savarino's letter was unavailable prior to publication.

Meanwhile, Steve Hyde, CEO of the economic agency, has given the community a whiff of optimism by stating that he believes the project will end up better in the end. There’s just no telling when and by whom that ending will happen. 

To read all about Ellicott Station, go HERE

Photo: Workers install siding on Ellicott Station

By Howard B. Owens
ellicott station crew
Photo by Howard Owens

While the pace of work at Ellicott Station has slowed to a crawl since August, when Sam Savarino announced he was closing his development company, there continues to be the occasional contractor on the site doing some work.

On Wednesday, there was a two-man crew putting more siding on the front of the apartment building under construction.

There has yet to be an announcement from local officials or Savarino about the future of the project.  There is reportedly a search underway to find a new contractor to complete the project, which is potentially hampered by a very low-income requirement for renters from the Office of NYS Homes and Community Renewal, but officials have yet to reveal any progress on that front.

For previous coverage of Ellicott Station, click here.

Contractors seek payment through liens against Ellicott Station LLC for nonpayment of goods, services

By Joanne Beck
savarino ellicott station
2023 File Photo of a construction trailer being removed from the premises of Ellicott Station on Ellicott Street, Batavia as it sits uncompleted and in limbo. Several contractors have filed mechanics liens against businessman Samuel Savarino for nonpayment of goods and/or services.
Photo by Howard Owens.

A recent peek at legal filings in Genesee County shows that five contractors have filed mechanics liens against Ellicott Station Commercial LLC, owned by Samuel Savarino, for labor and materials totaling more than $243,000 as of early September of 2023.

Ellicott Station, the four-story, 55-apartment complex at 56 Ellicott St. in downtown Batavia, has been left idling since Savarino shut down his Savarino Companies this past summer. Tenants were chosen, tax credits were promised, and paperwork was signed, yet he walked away from the deal, leaving the unfinished property in limbo. 

One of those liens, filed by Carter Lumber Co. of Pennsylvania for $49,015.79, was later discharged or dropped. The lien was filed for several supplies, including framing lumber, Tyvek house wrap, anchor bolts, Simpson Hangers, and other framing materials that were installed beginning in September 2022, according to lien documents.

As of Sept. 13, the lienor, Carter Lumber Co., “does hereby consent that any notice of pendency/Lis Pendens filed against the private improvement be discharged of record,” a document states. 

Available documents indicate there is a remaining $194,094.10 unpaid to the other contractors, including:

  • Truax & Hovey, Limited, of Liverpool,  which filed a lien for $63,000. The unpaid sum was for labor performed on Gypsum Cement underlayment.
  • AmBuild Supply, LLC, of Fairport, for $89,746.30. The company provided materials valued at $235,974.89, of which $146,228.59 was paid for, documents state. 

    The remaining unpaid amount was for “labor and materials were performed and furnished for and used, and that the professional services rendered in the improvement of the real property hereinbefore described.” The date when the first time of material was supplied was Aug. 4, 2022, up to the last item being supplied on May 19, 2023, documents state.

  • Triton Mechanical, Inc., of Rochester, for $39,118.40. The company provided its first labor or materials on Sept. 20, 2022, up to Aug. 8, 2023, it states in related documents. 

    The contract was for HVAC installation with Savarino Companies LLC, and the lien is against Ellicott Station LLC.

  • DV Brown & Associates, Inc. of Tonawanda, for $2,229.40. The company supplied materials that were installed in the building on July 20, 2023, for linen chutes and carts, according to documents.  

Documents also include a signed and notarized copy of Samuel Savarino’s agreement as grantor, to “hold the right to receive such consideration as a trust fund to be applied first for the purpose of paying the costs of the improvement and will apply the same first to the payment of the cost of improvements before using any part of the total of the same for any other purpose.”

That agreement was signed on April 25, 2018. Savarino was grantor of the merged properties of 40 and 56-70 Ellicott St., which he completed with a quitclaim process for a dollar. 

“The intent of this deed is to combine the described parcels into one tax map parcel,” which merged the former utility and Della Penna properties under Savarino’s ownership for what was originally described to be a microbrewery, restaurant, office/retail and market-rate-turned-affordable apartment project on the two commercial lots. 

Due to wide gaps of delay before the project began, Savarino said his intended tenant from Buffalo for the brewery backed out. Savarino Companies would either find a replacement vendor or do it themselves, he said. That did not materialize, along with the anticipated completion of Ellicott Station by the summer and then the end of 2023. 

Since the stalled apartment construction, officials from Genesee County Economic Development Center and the city have hinted that there are developers interested in picking up where Savarino left off, and Steve Hyde, CEO of the EDC, has promised that a good ending is possible.

“And you know, what I could say about Ellicott Station is I've been in the middle of discussions with the developer, general partner, the investors, and state housing. That's all in the sorting-out phase. But what I can say to you is it's likely we'll see a different general partner coming in at some point,” he said during a county meeting in September. “And I think what we'll end up with is a project that will be better than what we currently had or what was previously designed. 

"I think there's some additional willingness by the housing HCR to work with us and be a little more flexible. It may not be perfect, but we'll end up with a better situation than we had," he said. "I can’t say any more than that right now. But at least it's in the sorting out phase, and there's quite a bit of interest.”

Toward the end of November, EDC officials severed their ties with Savarino Companies and asked for more than $1 million of tax benefits back.

The lien documents were obtained by The Batavian through December 2023.

Some tidying up, holding out hope, at Ellicott Station

By Joanne Beck
Ellicott Station winter prep 2023
Signs of life, albeit temporary tidying up before winter, at Ellicott Station in downtown Batavia. 
Photo by Howard Owens

There have been signs of life at Ellicott Station, if for no other reason than to button up the property just before it officially becomes winter. 

Construction vehicles have been parked on the premises, and Public Works Director Brett Frank confirmed that staff has observed a few subcontractors who were “closing up the building and moving materials in preparation for winter weather” the past week or two. 

The Batavian has been regularly checking in with City Manager Rachael Tabelski for any updates about the property, and she was told by investors that "the building would be winterized," she said.

"HCR, the bank, and the investors continue to work on a takeover/transition plan with other interested housing developers/operators," Tabelski said. 

HCR is the state Department of Housing and Community Renewal. 

The Ellicott Street property has been fairly dormant since late August when former developer Sam Savarino announced that he was closing his Savarino Companies. There apparently won't be any further construction on the apartment complex until a new developer is in place, and tenants that were chosen for the 55 rental units have been advised a while ago by Savarino's management company to find alternative housing. 

The Batavian had also asked Tabelski for a response to how Ellicott Station seems to be representative of what some communities are fearful may happen to them -- the town of Pembroke as one example -- and is named as some type of icon of doom that other developers don't wish to be compared to. 

"Respectfully, I think the characterization of Ellicott Station as the 'icon of doom' is overdramatic," Tabelski said. "I understand there is disappointment with the project, but our strong hope is another developer will see this as an opportunity to invest in our city.  The final verdict on the success of this project is still out. 

"The city is focused on moving forward, working on creating housing that adds tax base and gives middle and higher earners the products they demand, as well as active seniors, who want to move to apartments/condos with less maintenance," she said.  "The (Batavia Development Corp.), with participation from the GCEDC and city, hosted a very successful developers tour on (in late November).  There remains a lot of interest in developing projects in our city."

GCEDC terminates agreements with Savarino, asks for $1M back

By Joanne Beck
ellicott station
Ellicott Station in Batavia
Photo by Howard Owens

Genesee County Economic Development Center officials have severed their ties with Savarino Companies and asked for more than $1 million of tax benefits back, Senior Director of Marketing and Communications Jim Krencik says. 

“This action includes cancellation of the lease leaseback agreement, the tax agreement (payment in lieu of taxes) and the sales tax exemption agreement, and have returned the three parcels involved back to the taxable side of the tax rolls,” Krencik said Tuesday. 

The EDC officials sent Ellicott Station LLC and Ellicott Station Commercial LLC related legal notices due to their “lack of curing of the default on our local tax agreement,” Krencik said. 

He referred The Batavian to an explanation CEO Steve Hyde gave The Batavian in an Aug. 23 article

To clarify, the majority of the GCEDC financial agreements for the project are termed over 30 years that start following the completion of the project. These are structured as performance-based. Additionally, the project was notified in July that it is in default of its GCEDC financial agreements and is currently in a cure period to meet the goals of a workforce housing project,” Hyde said in the August article. “In light of the news yesterday, the project being in default to our financial agreements enables the GCEDC to have a greater role in ensuring a positive solution as we work with all parties involved. We continue to work with the City of Batavia towards this goal."

On Tuesday, Krencik said, “Additionally, we have issued a demand letter to Savarino Companies demanding repayment of the sales and mortgage tax benefits enjoyed by the project to this point, and we are attempting to claw back $1.1 million of those benefits.”

One of Savarino’s Ellicott Street properties was also fined for neglected property maintenance, along with a number of others, to the tune of an extra $30,000 for city cleanups of grass, weeds and debris, City Manager Rachael Tabelski said this week.

During Monday's City Council meeting, Tabelski asked council for a budget amendment to increase the expense line for “multiple grass, weed, and debris violations” this year. While 85 percent of the time, residents will take care of the issue once they’re cited, she said, other times, “we do have to go in and either cut the grass ourselves or remove debris.”

Tabelski gave The Batavian a list of citations for Savarino Companies earlier this year that included lack of property maintenance, including overgrown weeds, debris on the premises, and rank vegetation, for Ellicott Station and not securing the partially finished apartment complex on Ellicott Street. Savarino halted work on the project this summer after shutting down his company due to financial issues. 

Councilman Bob Bialkowski asked her if the city can recoup the expense of cleaning up these properties, which also included a larger site of the defunct Days Inn at 200 Oak St.

“We bill them at 30 days, we bill them at 60 days, and we bill them at 90 days. And we will bill them again until it's time to put it onto the tax bill. At that time, Heidi's office, the city clerk, will go ahead and levy that amount onto the tax bill,” Tabelski said. “And a lot of times, it'll get paid in conjunction with the late tax bill. So we need to increase the expense line this year by about $30,000. And we are done, with snow on the ground, for grass, weeds and debris. So I don't feel like this will go any higher than where it is this year.”

Photo: Workers stop by Ellicott Station project

By Howard B. Owens
ellicott station work
Photo by Howard Owens

Three trucks were spotted at about 10 a.m. on Wednesday morning at the Ellicott Station construction project, which has stalled after developer Savarino Companies announced it was going out of business six weeks ago.

A supervisor said a work crew was on the roof completing a project. He said the work was being done because it needed to be completed and not in response to building code citations issued by the city, which The Batavian first reported about this morning.

At 11 a.m., the workers were seen departing the construction site.

There's also recently been some weed removal on the property.

County officials optimistic about Ellicott Station while prospective tenants mull legal action

By Joanne Beck
ellicott station ground breaking may 2022
File photo of Ellicott Station groundbreaking with city, county and company officials in Batavia.
Photo by Howard Owens

While a few prospective tenants of the stalled Ellicott Station strategize their next move, folks at Genesee County Economic Development Center apparently believe they are making headway.

A few of the tenants chosen for the Southside apartment complex are considering possible legal action against Savarino Companies for pulling out of the project that has left them dangling with hope that they might still have a new home come 2024. As one tenant said, it’s about “what Savarino did to all of us, ‘cause it’s not fair to us.”

Meanwhile, Steve Hyde, CEO of the county’s economic center, gave a brief yet vaguely optimistic statement this week that his agency has been working with Sam Savarino and the state Office of Housing and Community Renewal to get Ellicott Station back on track.

Hyde and his lead staff reviewed this past year’s activity during the county’s Ways and Means meeting. As noted in prior articles on The Batavian, City Manager Rachael Tabelski has said that developers have expressed interest in Ellicott Station, and Hyde provided further confirmation that talks are progressing.

“And, of course, our favorite project sits here, nearby. And you know, what I could say about Ellicott Station is I've been in the middle of discussions with the developer, general partner, the investors, and state housing. That's all in the sorting-out phase. But what I can say to you is it's likely we'll see a different general partner coming in at some point,” he said. “And I think what we'll end up with is a project that will be better than what we currently had or what was previously designed. 

"I think there's some additional willingness by the housing HCR to work with us and be a little more flexible. It may not be perfect, but we'll end up with a better situation than we had," he said. "I can’t say any more than that right now. But at least it's in the sorting out phase, and there's quite a bit of interest.”

As for GCEDC’s remaining portfolio, there were 75 projects that “committed $937 million of capital investment” versus the prior 76 projects at a $162 million investment, demonstrating what Mark Masse said was “just a much larger scale.”

After celebrating her 10th year on the Legislature, along with Marianne Clattenburg as EDC liaison, it’s been amazing to watch “the incredible investment that helps our local taxpayers,” Chair Shelley Stein said.

“By having these opportunities for the creation of these businesses, the careers, it enhances our entire foundation of our economy here and careers. Our schools benefit from it. Our communities benefit from the investment,” she said. “So some days are hard, some days are, you know, celebratory days. But this work is important to us here in Genesee County. Thank you.”

Some of those hard days have been dealing with and enduring the lag of that Ellicott Station project, which stopped in mid-August when Savarino announced the closing of his company due to a financial snag with a project at Alfred State College and a loss of more than $3 million. 

Since then, city and county, along with HCR officials, have said they are working on moving forward, potentially with a new developer and financial agreements and construction schedule.

Tenants that were chosen in May for the 55 apartments received word earlier this month that they might want to search out alternative housing options since there’s no guarantee about when Ellicott Station will be ready for occupancy.

Prospective Ellicott Station tenants advised to explore 'alternative housing'

By Joanne Beck
ellicott station savarino business closed
File photo of a padlocked Ellicott Station property as the Batavia apartment complex-in-progress grinds to a halt indefinitely due to Savarino Companies' closure. 
Photo by Howard Owens 

An email was sent out from Savarino Companies to those 55 tenants selected this past May for one of the Ellicott Station homes that had been in progress until a month or so ago. 

And, no, it was no longer congratulatory in nature about the tenants’ good luck in being chosen for one of the safe, quality, affordable rentals on the city’s Southside.

It was one of regret.

“You are receiving this email because you were chosen to be considered for an apartment in Ellicott Station Residential Apartments,” it began. 

“We are writing to inform you of the status of Ellicott Station Residential Apartments. Regrettably, we must convey that, as of today, there is no clear answer for when the Ellicott Station Residential Apartments may be ready for occupancy,” it stated. “Due to this unforeseen circumstance, we highly recommend that you begin exploring alternative housing solutions. We understand the uncertainty and inconvenience this situation may cause. We apologize for any inconvenience to you. 

“We will continue to monitor the situation and provide updates as they become available,” the company said. “Thank you for your understanding and your cooperation.”

Up to now, there have been few if any answers as to the plight of those tenants and the fate of the four-story apartment complex that now sits idle at 50 Ellicott St. 

City Manager Rachael Tabelski has said that developers have expressed interest in the property, but the city doesn’t own the property and has no say in how it proceeds from here.

The Batavian reached out to her Friday about this latest development and with additional questions. She said that “this week there has been multiple conversations with Savarino Companies, investors and lenders about how best to move forward.”

There are two main options, she said, one is to find a general contractor to complete the work and a new property manager, or pause the project completely and reboot with a new developer/operator.    

For any observant spectators passing by the apartment site this past week, you may have seen some people there — city inspectors — who will be issuing notices to the owners, construction lenders, and investors “to provide better site security, remove any grass, weeds and debris, and winterize the building,” Tabelski said.

“The construction lenders and investors have been extremely responsive to our requests and I look forward to working with them through this process,” she said.

Tabelski was aware that the letter went out to tenants but had no further information or comment about it. One of the tenants who has been communicating with The Batavian will remain in her current apartment and is hopeful that one of those new apartments will be hers one day.

For those looking for an apartment with similar income qualifications of Ellicott Station, Genesee County has a website with subsidized housing.

Pathstones also has resources for housing assistance and education, Tabelski said. 

The Batavian asked Tabelski if obtaining a new developer would mean starting all over with selecting new tenants, but since it was not a local lottery under Batavia’s control, “I cannot say how this will work,” she said. She referred The Batavian to Savarino and the state Office of Community Renewal for those answers.

HCR has stated that promised tax credits are tied to the project’s completion and that it will continue to oversee the project to ensure it reaches that end, similar to Genesee County Economic Development Center’s financial incentives. 

A bulk of the money promised to Savarino has a contingency that the project and/or stipulations within the project must be met in order to receive funding. This includes the $500,000 state grant from the Downtown Revitalization Initiative fund, which is attached to completion of rehabilitation of the electric building on the Ellicott Street property. 

Tabelski said that “the building was not completed and there has been no grant funds issues from New York State to Savarino Companies for the project that I am aware of.” It’s a similar scenario for a $250,000 National Grid grant for work to be done on Ellicott Trail.

“There are multiple grants supporting the project and they are all reimbursable upon completion. There was some Ellicott Trail work completed, however, the enhancements of lighting and benches have not been installed yet. The majority of the brownfield work has been completed, and more than 50 to 75 percent of the residential building work is complete,” she said.  “The work to the electric building, that was to become a brewery, was not as far along, and significant rehabilitation and restoration need to be completed.”

Developers are interested in Ellicott Station, a 'complex situation'

By Joanne Beck
savarino ellicott station
What may be the last activity on the property of Ellicott Station for awhile, the construction trailer gets loaded up and hauled away in late August. 
Photo by Howard Owens.

There are “several interested developers” working with Sam Savarino, president of the now-defunct Savarino Companies, after he announced closing about a month ago, City Manager Rachael Tabelski says.

In response to a request for an update, Tabelski said Tuesday that Savarino and banking institutions have been involved in talks with those developers, though she did not have or divulge anything “official.” 

“As of last week, the construction leading bank confirmed there were no liens on the project, meaning (subcontractors) were paid up to that point,” she said.  

When asked about the role of the state Office of Homes and Community Renewal, the agency that granted Savarino $5.7 million of low-income housing tax credits for the project, Tabelski said that “HCR is actively working with any/all developers interested in the project and has promised flexibility in their approach with AMI’s, etc.”

The city had hoped to negotiate the current AMI — area median income level — that had been set at a low to very low versus a higher workforce level, and it appears that it will fall to the next developer to take on that task.

Areas of concern for any construction project would include preserving the structural integrity so that nothing deteriorates or is damaged during the pause in work, and Tabelski said that “the City would like to see the investment winterized first and foremost and remain secured while the project is unwound.”

Savarino Companies celebrated a groundbreaking last year, and chose tenants for the 50 Ellicott St. site in May. It was to open up 55 homes between December of this year and February 2024.

Later this year, Savarino announced financial difficulties stemming from a deal gone wrong at Alfred State College, and shut down operations of his Savarino Companies, with the stipulation that Savarino Management would remain open. He did not contact city officials about the announcement or provide details about what that would mean for Ellicott Station, Tabelski said. Since then, the construction trailer was seen getting hauled off the property. 

Since the project is not merely a privately funded one, and involves county and state funding, the process will likely start over with a new developer, which will also likely delay the entire timeline. It’s not up to the city as to who and how it proceeds from here.

“We do not have a say as to who the developer will be to take on the project; it’s a private transaction,” Tabelski said. “This is a complex project and complex situation, and whoever takes on the project will need to be a seasoned and skilled developer who can make the project and finances work. The City remains encouraged by the interest.”

Apparent construction office for Savarino Companies removed from Ellicott Station site

By Howard B. Owens
savarino ellicott station
A worker for A-Verdi Storage Containers loads what was apparently the on-site construction office for Savarino Companies at Ellicott Station onto a flatbed before removing it from the site at 5 p.m. on Thursday.
Photo by Howard Owens. 

Just before 5 p.m. on Thursday, a worker with A-Verdi Storage Containers removed an apparent mobile unit that seemed to have served as the on-site office of Savarino Companies at the Ellicott Station construction site.

The Savarino sign that had been on the unit was removed, and a metal desk and storage cabinet sat on the ground outside of it.

The driver confirmed he was removing the unit from the site and was later seen hauling it west on Ellicott Street.

More than a week ago, Developer Sam Savarino announced he was shutting down his company, citing massive losses from a dispute over a dormitory project at Alfred State College.

While at times it has appeared that work has continued this past week on the $22 million Ellicott Station apartment complex, the project is supposedly without a general contractor with the closure of Savarino Companies.  Sam Savarino has said his management company is still in business, still running the project, and will seek a new general contractor.

City Manager Rachael Tabelski has said there has been no communication from Savarino regarding the status of the project, which is subject to multiple financial agreements involving the city, the state and GCEDC. 

Reached on Thursday evening, Tabelski told The Batavian that there have still been no updates from Savarino. She said she has heard that other general contractors and developers are contacting Savarino, expressing interest in the project.

"The city and GCEDC have been talking with potential developers who have initial interest in taking over the project, but there will be a lot of financials to unwind, if this is in-fact possible to reassign grants and pay off lenders, etc."

She said there is nothing concrete to report at this time, and there is a meeting with NYS Housing and Community Renewal, a major government funder of the project and has expressed a commitment to The Batavian in seeing the project completed.

HCR initially awarded Savarino $1.2 million per year of low-income housing tax credits for 10 years based on his ability to secure investors and more recently awarded Savarino $5.7 million in low-income housing tax credits for the downtown apartment project.

"HCR has been actively monitoring the progress of the construction of Ellicott Station and will continue to do so as we work to ensure completion of this critical project and deliver 55 affordable homes to Batavia,” a spokesperson for HCR told The Batavian a week ago. 

For all of The Batavian's previous coverage on Ellicott Station, click here.

savarino ellicott station
Photo by Howard Owens

HCR's role for Ellicott Station: to 'deliver 55 affordable homes to Batavia'

By Joanne Beck
ellicott station savarino business closed
A photo of the apartments at Ellicott Station under construction from earlier this week.
Photo by Howard Owens.

The state Office of Homes and Community Renewal has and will be involved with the Batavia-based Ellicott Station project, which has been thrown into some doubt recently after developer Sam Savarino announced he was shutting down his development firm, Savarino Companies.

An agency spokesperson responded to The Batavian’s request for comment, given that HCR initially awarded Savarino $1.2 million per year of low-income housing tax credits for 10 years based on his ability to secure investors, and more recently awarded Savarino $5.7 million in low-income housing tax credits for the downtown apartment project.

"HCR has been actively monitoring the progress of the construction of Ellicott Station and will continue to do so as we work to ensure completion of this critical project and deliver 55 affordable homes to Batavia,” the spokesperson said Friday. 

The Batavian had asked HCR about its role in the Ellicott Station project, the requirements of receiving the tax credits and if they could be transferred to another developer if Savarino walked off the job. 

The agency further added that:

  • No tax credit funds are disbursed until a project is 100 percent completed.
  • As with any HCR-financed affordable housing development, a new sponsor will be required to implement the terms of affordability in the existing regulatory agreement. 

It is unclear as to whether the apartment complex will remain in the current very low to low-income level, as per application guidelines on the Ellicott Station website, as city officials have been discussing the possibility of getting those levels raised to include workforce income levels. 

City Manager Rachael Tabelski said Thursday that city officials will be meeting with HCR to further discuss the current situation of Savarino’s company closing and the apartment complex’s income levels and future at a meeting in September. 

Savarino has not responded to requests for further comment since issuing a statement regarding the closing on Tuesday. As is posted on the company website, Savarino Companies, LLC, a full-service construction firm located in Buffalo, New York, will be winding down and ceasing operations.

"The primary factors governing the firm’s decision are ongoing and increasing costs related to a project the company’s surety was forced to complete at Alfred State College, a recent termination of work and the company’s inability to obtain surety bonding or acceptance of alternative performance guarantees for $110 million of 2023 work which the company would otherwise have had underway at this time," the site states. "Without that work, it would not be possible for the company to operate profitably.

"Savarino Properties, LLC, which is an independent company and provides property management services throughout Western New York, will not be impacted."

As of late Thursday afternoon, no one from Savarino Companies had reached out to the city about the fate of Ellicott Station, though there has been some apparent work activity noted at the 50 Ellicott St. site.

Dealing with communication shutdown: 'a long process,' city manager says

By Joanne Beck
sam savarino
File photo of Sam Savarino, president/CEO of Savarino Companies, which he announced he was closing this week, during the groundbreaking of Ellicott Station.
Photo by Howard Owens

Suffice it to say that the name Savarino will be the word of the day for some time to come, as working through the recent company’s closure and what that means for Ellicott Station will be “a long process,” City Manager Rachael Tabelski said Thursday.

The Batavian had reached out to Tabelski late Tuesday about any updates on the closure of Savarino Companies and how that may impact the work-in-progress at the Southside apartment complex known as Ellicott Station. 

Tabelski responded on Thursday to say that company President Sam Savarino has not been in touch with the city since the publication of the news and that city officials are continuing to work on the situation. 

“There’s been no contact from the company,” Tabelski said. “We’re trying to gather as much information as we can. We don’t have answers yet, and we’ll be working on it. And looking to get those answers for everybody in the community, what next steps might be and what that might look like.”

She confirmed that prospective developers have contacted the city expressing interest in the project and that no vendors or subcontractors have called with concerns or complaints at this point.

City officials plan to meet with staff from the New York State Office of Homes and Community Renewal in September, which has been in the works since the city learned about lower-than-expected income requirements at Ellicott Station.

First promised as market rate, then workforce housing, the apartment complex's application surprised city officials earlier this year with low to very low-income levels, prompting them to reach out to HCR for assistance to see what could be done to raise those income levels to allow for workforce housing tenants. 

Apparently, in addition to the apartment complex, on-site work has also included preparation for a brewery, which had been discussed in original plans but had fallen through with the one company, Buffalo-based Resurgence Brewing. Savarino had later said that he still intended to follow through with the plan for a restaurant and/or brewery, whether it be another vendor or his own company. 

The developer owns the property at 30-50 Ellicott St. as part of a deal brokered by Batavia Development Corp. in an effort to throw a spark onto an underutilized piece of “brownfield” property that needed a remediation and economic boost.

New York State’s Office of Homes and Community Renewal promised $1.2 million per year for 10 years in low-income housing tax credits -- incentives that were tied to the developer securing an investor or investors to back the project.

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. The bulk of the incentives are only realized by the developer after the compilation of a project.

Genesee County Economic Development Center CEO Steve Hyde said Wednesday that the agency is working to determine the next steps to be taken and that the agency had already found the company to be in default of its financial agreement. 

Savarino was awarded $425,000 of the city’s Downtown Revitalization Initiative grant money and $5.7 million of HCR’s low-income housing tax credits.

In 2017 and 2018, the city also awarded his company 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. 

Savarino stated at the start of the project that the estimated construction costs at the time were more than $22.5 million.  The total of awarded grants, incentives, and tax credits is about $11.6 million. With the project incomplete, Savarino has not yet realized the full value of those incentives, grants, and tax credits.

The Batavian has reached out to Savarino for further details about the closure and future of Ellicott Station and its 55 previously confirmed tenants; and to HCR for comments about the agency's ongoing role and responsibility in this situation and will provide an update when/if a response is provided.

Previously:

Savarino explains reason for business closure

By Joanne Beck

Sam Savarino cited a loss of more than $3.3 million that stemmed from a construction job at SUNY Alfred State College as reason for closing his Savarino Companies, and therefore leaving Batavia's Ellicott Station apartment complex in the lurch this week. 

Savarino sent The Batavian a four-page outline detailing what had transpired during that job, and we wanted to publish that explanation, albeit lengthy over the course of three years, here.

It began with DASNY
Savarino had a contract with the Dormitory Authority of the State of New York, known as DASNY, to perform the construction of a student housing project at Alfred. The project was called MacKenzie Hall Phase III renovation and associated asbestos abatement. It was broken down into three phases, and phase 3A was to be done before 3B and 3C were to begin, Savarino said, though there was some overlap between all three phases.

The pandemic plays a role
Soon after Savarino began the work in March 2020, it was suspended by DASNY due to COVID-19 and state executive orders. Savarino reserved its rights based on the project shutdown, and DASNY eventually determined that the work would resume on May 18, 2020, and the schedule would be reset. Phase 3A was then to be completed by July 23, 2021.

Phases 3B and 3C were to begin on May 17, 2021, and Savarino objected to the schedule that was being imposed and reserved all of its rights, he said. He moved toward completion of Phase 3A and also began certain work on the other two phases.

Alfred's change of plans
On April 30, 2021, more than two and a half months prior to the required substantial completion of Phase 3A work, DASNY informed Savarino that Phase 3B and 3C were being put on pause, Savarino said. Alfred College had determined that it needed to continue the use of dormitory rooms that would have been renovated as part of Phase 3B and 3C. No other reason was given at that time, Savarino said.

For a variety of reasons, including COVID-19, supply chain issues, shortage of labor issues, owner delay issues (e.g., late change order work and failure to require design professionals to timely respond to Savarino requests for information and assistance) and other issues that were not attributable to Savarino, the Phase 3A work was not substantially completed by DASNY’s imposed date of July 23, 2021, Savarino said. 

He was issued a temporary approval of occupancy by DASNY on or about Nov. 3, 2021, with respect to Phase 3A. Completion of “punch-list” items was still remaining.

Terminating services
Notwithstanding its approval of occupancy, DASNY provided notice to Savarino on Nov. 4, 2021, that it intended to terminate Savarino with respect to the Phase 3A work and the remainder of the project, being the Phase 3B and 3C work that DASNY had paused back on April 30, 2021. 

Savarino contested its termination in writing on Nov. 16, 2021, as well as during a conference call that was afforded to Savarino on that day, he said. By letter dated Nov. 19, 2021, DASNY terminated Savarino, purportedly for cause. Savarino has objected to its termination and has claimed that DASNY has breached the contract. Savarino has reserved all rights.

Good faith punch list
Notwithstanding the Nov. 19, 2021 termination, Savarino and its subcontractors continued to perform in good faith the “punch-list” items on the Project until DASNY terminated Savarino’s right to do that on or about Dec. 7, 2021. This punch-list work could have been completed within a short period of time, But DASNY required that it have in place a take-over agreement with Savarino’s surety, Endurance Assurance Corp., before any work could continue. This would prove to delay completion of the work, he said.

On DASNY’s demand, Endurance agreed to complete the work on the Project. Endurance requested that the surety be permitted to hire Savarino as its contractor to complete the work. This was a permitted alternative under the performance bond, but that alternative required the owner’s consent. DASNY flatly refused, Savarino said.

Completion/Takeover Agreement
Eventually, Endurance and DASNY entered into a Completion/Takeover Agreement that was executed on April 5, 2022. This allowed the completion of the Phase 3A “punch-list” work and set new dates for completion of the Phase 3B and 3C work. The surety hired Loewke–Brill Consulting Group as its representative and replacement contractor, all at great cost to Savarino, he said. 

While the agreement provided Savarino with the ability to assist Loewke–Brill, he was essentially barred from the site. Savarino assisted in scheduling, continuing subcontracts with subcontractors, payment applications and other matters to progress the work. DASNY’s own actions delayed the completion of the Project, he said. 

The “pause” on the Phase 3B and 3C work on April 30, 2021, for the convenience of Alfred State College, cannot be attributable to Savarino, he said, and its refusal to allow work on the Project to proceed until the Completion/Takeover Agreement was signed on April 5, 2022, further delayed the Project.

Building his case
Savarino denies that it was appropriate for DASNY to terminate his work on the Project. Savarino said he believes that the termination resulted from deteriorating relationship between Alfred State College and DASNY and DASNY’s attempt to “save face” by blaming Savarino for delays in the completion of the Project. 

Savarino further believes, according to his email, that, in any event, other causes contributed to the delay in completion of the Project. Savarino has engaged an expert to study the delays that he incurred that were outside of his control, and preliminary indications from that expert indicate that an extension of time in favor of Savarino for the Phase 3A work beyond DASNY’s imposed date of July 23, 2021, would be appropriate.

Moreover, the contract with DASNY provides for liquidated damages for a delay in project completion. If these are appropriate in amount and not unenforceable as a penalty, that would provide DASNY its remedy for delay in completion. 

Savarino believes that, in any event, Alfred State College was not materially impacted by the delay in completion of Phase 3A. The students that would have occupied Phase 3A were housed in other facilities on campus, he said.

Filing his lawsuit
On Nov. 15, 2022, Savarino filed a lawsuit against DASNY in the Supreme Court of the State of New York, with the venue in the County of Albany, to seek an adjudication of the respective claims of the parties. That lawsuit is now in the discovery stage.

It should be noted, he said, that Phase 3B of the Project achieved a temporary approval for occupancy as of Aug. 11, 2023, and is now being occupied. It is anticipated that Phase 3C will be completed by the anticipated date of Nov. 24, 2023, as set forth in the Completion/Takeover Agreement with Endurance.

Savarino claims that it has been severely impacted by DASNY’s actions on this Project. Savarino will be seeking damages from DASNY in the currently pending action, he said.

Savarino included an attachment that tallied estimated damages of $3,310,282.82 based on the increased costs and legal fees that Savarino incurred that were caused by DASNY’s actions.

Documents say Savarino defaulted on financial agreements, GCEDC and city work on 'next steps'

By Joanne Beck
ellicott station savarino business closed
File photo by Howard Owens.

The next steps are yet to be determined.

That seems to be the ongoing response from city and county officials in the aftermath of an announcement by CEO Samuel Savarino that his company will be ceasing operations and laying off its employees.

Savarino is the developer of Ellicott Station, the four-story apartment complex touted as an economic lifesaver for downtown Batavia and for working individuals and families in need of an affordable, quality and safe place to live.

That economic vision was blurred earlier this year when the online rental application indicated income requirements of very low to low ranges, seemingly squelching the notion that the units would indeed be for workforce individuals. The Batavian had reached out to Savarino requesting details about a lottery that awarded rentals to 55 tenants. He wasn’t privy to such information, he had said at the time.

Apparently, the Genesee County Economic Development Center had more luck. The agency had, according to its June 29 meeting minutes, “requested “blind” demographic information to ascertain 1) where the lottery winners are from and 2) what percentage of the lottery winners are gainfully employed.

“Despite numerous efforts, there has only been partial information received back from the developer.  On July 13th, a demand letter was issued to provide the information requested to assess if the project meets the requirements of Workforce Housing,” the minutes state.

Savarino finally responded on July 31. After careful analysis, GCEDC determined that the developer remained “in default for performance reasons.”

There is an insufficient number of lottery winners that meet the GCEDC definition of workforce housing, which is aligned with the industry definition as well,” the minutes state.

When reached for comment about the company closure Wednesday, Steve Hyde, CEO of the agency, said that “next steps are yet to be determined.

To clarify, the majority of the GCEDC financial agreements for the project are termed over 30 years that start following the completion of the project. These are structured as performance-based. Additionally, the project was notified in July that it is in default of its GCEDC financial agreements and is currently in a cure period to meet the goals of a workforce housing project,” he said. “In light of the news yesterday, the project being in default to our financial agreements enables the GCEDC to have a greater role in ensuring a positive solution as we work with all parties involved. We continue to work with the City of Batavia towards this goal."

Savarino issued an emailed statement Tuesday, and added that there would be no further comment at this time. The Batavian reached out to one confirmed future tenant of Ellicott Station, who did talk to a Savarino employee. Carla Laird was featured in The Batavian after the lottery happened this past spring, and her excitement hasn’t diminished about moving into Ellicott Station, though she is concerned.

Laird was told to continue planning for her new apartment, with a move-in sometime between December and February. The Batavian emailed Rachel Good of Savarino Companies to confirm this and has not received a response.

On Tuesday, City Manager Rachael Tabelski said that the city had not been contacted by Savarino Companies before the announcement and is, therefore, "reviewing and evaluating all information as it comes forward."

"Over the past month, the City has worked with the Genesee County Economic Development Center (GCEDC) to demand Savarino Companies provide workforce housing at Ellicott Station as promised in their applications to the State and City.  The City will be meeting with regional and state partners to seek assistance to move the Ellicott Station Project forward," Tabelski said Tuesday. "As more details become available, we will update the community.”

Back in February, city and county officials responded to the news that Ellicott Station was not going to be as workforce-friendly in diverging ways. City Council sent a letter to the state Home and Community Renewal agency seeking assistance to ensure that income levels could be increased to offer a better mix of rental opportunities.

Hyde focused on the longstanding and dilapidated defunct buildings at 30-50 Ellicott St., and how 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 had said in February.

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. 

Savarino had said he wasn’t sure why city officials were upset, as income qualifications hadn’t changed according to his understanding. 

He said that those numbers were fixed in 2019 per 50 to 60 percent of the area median income at the time. The project will have to be up and operating before it can be adjusted, he had said at the time, but that is a possibility. 

“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 said.

Previously:

Savarino Companies going out of business, leave Ellicott Station up in the air

By Joanne Beck
ellicott station savarino business closed
The gates at Ellicott Station are closed with padlocks in place and there were no contractors in site on a normal work day on Tuesday.
Photo by Howard Owens.

As Ellicott Station, the four-story apartment complex in Batavia’s downtown Southside, remains unfinished and behind schedule of what was previously announced for a summer opening, Samuel Savarino of Savarino Companies confirmed Tuesday that the 23-year-old company “will be winding down and ceasing operations,” according to The Buffalo News. 

Savarino said that the company would be laying off 30 employees after being unable to overcome significant financial losses following its dismissal from a state-funded SUNY construction project, the article states.

The Batavian called City Manager Rachael Tabelski and Samuel Savarino for comment and received an emailed response from Savarino confirming that the company will be "winding down and ceasing operations," however, it offered a thin promise for Ellicott Station's future completion.

UPDATED 4:12 p.m.: "The primary factors governing the firm’s decision are ongoing and increasing costs related to a project the company’s surety was forced to complete at Alfred State College, a recent termination of work and the company’s inability to obtain surety bonding or acceptance of alternative performance guarantees for $110 million of 2023 work which the company would otherwise have had underway at this time. Without that work, it would not be possible for the company to operate profitably," the email stated. "Savarino Properties, LLC, which is an independent company and provides property management services throughout Western New York, will not be impacted.

"Savarino Companies, LLC is actively working to achieve the best outcomes for its employees, clients and vendors. The firm is working with its clients, and in some cases, its surety to complete work on active projects and, where needed, is making arrangements with replacement contractors for upcoming work the company was slated to perform," the company stated. "The status of several initiatives and development projects that Savarino Companies was affiliated with has yet to be determined."

City Manager Rachael Tabelski said that the city had not been contacted by Savarino Companies before the announcement and is, therefore "reviewing and evaluating all information as it comes forward."

"Over the past month, the City has worked with the Genesee County Economic Development Center (GCEDC) to demand Savarino Companies provide workforce housing at Ellicott Station as promised in their applications to the State and City.  The City will be meeting with regional and state partners to seek assistance to move the Ellicott Station Project forward," Tabelski said Tuesday. "As more details become available, we will update the community.”

Savarino also emailed reports of the many charitable organizations that the company has supported over the years of its existence.

Photos by Howard Owens.

ellicott station savarino business closed
ellicott station savarino business closed
ellicott station savarino business closed
ellicott station savarino business closed

One woman's dream comes true as first one chosen for Ellicott Station

By Joanne Beck
carla ellicott station

Carla Laird can’t wait to move into her new apartment at Ellicott Station. She was the first name called during the lottery on May 2.

After having her own share of life’s struggles, all Laird wants to do is find a place that’s more affordable, safe and friendly.

“There’s a community room, so maybe I’ll get to know other people,” she said.

A resident of Batavia paying rent that’s nearly $1,000 a month, Laird felt blessed to be chosen for Ellicott Station. She drove to Buffalo and was one of only three people to show up for the drawing.

“I’ve been trying so hard for a very long time, and I’m still kinda in shock because people like me never get chosen first for anything, even in school, I never was chosen -- first out of 102 applications. I’ve been praying hard for this to happen, and finally, it did,” she said during an interview with The Batavian. “And on Monday night, I woke up at 3 a.m. from a dream or a sign that I was gonna get this apartment, and I drove all the way to Buffalo for the live lottery, and that’s when they called out number 49, and my name corresponded with it, and it was the very first number that was drawn.

“And I talked to a few of my Christian friends, and they all told me it was God answering my prayers for that apartment. So yea, I’m still in shock a little because, like I said, this doesn’t happen to someone like me. And I’m very happy.”

Laird has worked part-time jobs, as many hours as she could per disability law. She just received good news that she’s been hired as a cashier associate at a travel plaza on the Thruway, and found her letter of congratulations for the apartment in the mail on Saturday.

She needs to return an acceptance letter, and Savarino Companies will complete a background and employment check, she said. But she’s not worried about any of it, as she has a clean record and has been gainfully employed as much as possible.

Another great perk of her new home is that it accepts one small pet. Sophie, her white Shih Tzu, will be her moving-in companion.

“I chose these apartments because I’m on disability, and all my kids are grown, and I can’t afford the rent at my current place or anywhere else, because it’s very expensive. It will help me a lot because of me being on a fixed income, which is extremely low for this market we live in,” she said. “It will serve me better because it will make it more affordable for me to live in my own place, and it’s ADA accessible, and they won’t make me have to choose my small puppy over a place to live like most places do. They also won’t judge me on account of me being on disability. And it looks like it’ll be a very safe place to live.”

Her current living circumstances include a two-bedroom apartment, a shared garage and a single driveway with a neighbor who “tries to intimidate me.” She doesn’t feel very safe at present and looks forward to this new adventure. Her new rent will be $569, which will allow her to accrue some savings, she said.

Laird will turn 50 at the end of this year, and getting a new apartment is the perfect birthday present, she said.

“So it’s gonna be a big and new experience for me for sure,” she said. “But with the support I have from my friends and family, I should be all right.”

Laird has read news articles about Ellicott Station, and related online comments, and can’t help but feel that some people are “degrading” her when they talk about the housing complex and issues surrounding it. There has been a lot of chatter about the new housing complex being built at 50 Ellicott St., Batavia, but most of it has had to do with unfulfilled promises of the developer, Savarino Companies.

Ellicott Station was originally discussed as market-rate housing, which evaporated quickly into workforce housing as being more viable for this area’s needs and economy.

City officials were on board with that, but when the final plan was unrolled, and applications opened for submissions, the complex was for very low to low-income tenants, which came as a surprise to city officials, they said.

Council President Eugene Jankowski Jr. was one of the first to publicly express he was angry and disappointed with that news, not about the tenants moving in, but that developer Sam Savarino didn’t fulfill his end of the perceived promise, he said.

All eight council members sent a letter to state Homes and Community Renewal officials, which funded a portion of the project, asking them to increase the area's median income level. It was at 50 to 60 percent of the area median income (AMI).

“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 stated. “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.”

City Manager Rachael Tabelski has previously described the project as being “a moving target over the last several years.”

“As the developer made various and multiple overtures to funding entities with regard 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."

That mixed-use component has yet to materialize, as a Buffalo brewery ended up pulling out of the deal, and though there was plenty of talk about a restaurant, none have committed, Savarino said during a prior interview.

Rentals have been promoted as being available in May on the complex sign, and by the summer to fall 2023 during interviews. Laird said that she was told it wouldn’t be until sometime between December to February 2024 before she could move in.

Photo of Carla Laird of Batavia, the first person to be selected in a lottery for Ellicott Station, with her dog Sophie, in front of the housing complex on Ellicott Street in Batavia. Photo by Joanne Beck.

Lottery drawing selects 55 tenants for Ellicott Station, Savarino says

By Joanne Beck
Ellicott Station project w/ Savarino sign
File photo. The Ellicott Station apartment during construction this winter. 
Photo by Howard Owens.

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.

Ellicott Station is going up, city leaders ask for income levels to do likewise

By Joanne Beck
ellicott_station_savarino.jpg

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. 

Ellicott Station developer, GCEDC excited about project for tenants to 'live, work and play'

By Joanne Beck

sav22022.jpeg

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

Authentically Local