savarino companies

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

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

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

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

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

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

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

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

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

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

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

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

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

Press release:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

In other developments:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

In other action, Council:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Press release:

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

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

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

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

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

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

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

Press release:

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

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

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

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

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

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

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