BUDC acts on ex-steel plant site

Calling it the "last step" in a crucial process to deliver more shovel-ready development sites in Buffalo, one of the city's primary economic development agencies signed off on a financing package that allows for the deal to close.

The Buffalo Urban Development Corp. directors, Monday afternoon, unanimously approved a $4.63 million pass-through financing package that allows the city to complete the long-discussed acquisition of the 186-acre Steelfields property along South Park Avenue. The deal could close later this week. Buffalo Urban Development Corp. agreed to take title of the land from Buffalo Economic Renaissance Corp. -- another city development agency -- so the property can be marketed to developers.

Buffalo Urban Development Corp. is already marketing 24 acres just across South Park Avenue that was once site of a hydroponics tomato growing greenhouse operation.

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Between the two parcels, Buffalo Urban Development Corp. will have more than 200 acres of shovel-ready, development parcels available.

"It's important to deal with them together," said David Stebbins, BUDC vice president.

Proceeds from any sale will be jointly split between the two city agencies and used for future development projects.

"It's a fair deal, all around," Stebbins said.

The deal is coming together just as one company, BIDCO Marine Group Inc., has agreed to lease -- with an option to buy -- a 10-acre site along the Steelfields property for its new Buffalo operations. BIDCO had been operating on Ganson Street for many years, but recently moved to Grand Island.

The new deal will bring the company back to its Buffalo birthplace.

"This is the kind of company that you normally have to go outside the city to attract," said Dennis Penman, BUDC vice chairman. "This is a great kickoff to the Steelfields."

Under the terms of the contract, BIDCO has agreed to lease the property for 10 years, paying $25,000 annually. If it decides to purchase the property, the company will pay $500,000, or $50,000 per acre.

"I'd call this a big victory," Penman said.

In other action:

• The developers of the Genesee Gateway project received unanimous approval for a $100,000 matching grant offered by National Grid, with BUDC acting as the pass-through agency.

The development team is taking a series of historic, but long-vacant and dilapidated buildings at Genesee and Oak streets and is planning a $10 million transformation into a series of restaurants and offices.

The buildings have long been considered an eyesore for the city as they sit by the Elm-Oak arterial and the western end of the Kensington Expressway.

"Every time I drive by those buildings, I cringe," said Buffalo Mayor Byron Brown. "I'm very glad to hear that this is moving forward."

Work on the project is expected to start this summer.