WRFA’s Julia Ciesla-Hanley spoke with Chautauqua County Executive PJ Wendel about the City of Dunkirk‘s recent DRI announcement, funding for Chautauqua Lake, an Airport Market Analysis, and more.

PJ Wendel

Governor Kathy Hochul with Dunkirk Mayor Willie Rosas and other officials for the Downtown Revitalization Initiative Award announcement (January 23, 2023)

The City of Dunkirk has been awarded $10 million in Downtown Revitalization Initiative monies.

Governor Kathy Hochul announced the funding from Empire State Development Corporation at the Clarion Hotel Monday.

Dunkirk Mayor Willie Rosas said the plan presented to the EDC has ten different projects including work on the marina, an indoor waterpark, Jamestown Community College having a presence downtown, and renovations to the Clarion Hotel.

Dunkirk will now begin the process of developing a Strategic Investment Plan to revitalize its downtown with up to $300,000 in planning funds from the $10 million DRI grant.

A Local Planning Committee made up of municipal representatives, community leaders and other stakeholders will lead the effort, supported by a team of private sector experts and state planners.

The Strategic Investment Plan will guide the investment of DRI grant funds in revitalization projects that will advance the community’s vision for its downtown and that can leverage and expand upon the state’s $10 million investment.

Officials celebrate the Riverwalk Illumination Project with the Jamestown BPU’s silo lit in the background (November 10, 2022)

The City of Jamestown has officially “flipped the switch” on the Riverwalk Illumination project.

The project, funded through Downtown Revitalization Initiative monies, lights up the Jamestown Board of Public Utilities Coal Silo, Washington Street Bridge piers and abutments, and the Main Street Bridge arches over the Chadakoin River.

BPU Senior Electrical Engineer Kris Sellstrom said he remembers looking at the BPU’s silo and discussing with others what to do with it, “And how are we going to revitalize this river. As the Riverwalk started getting put in and some of the local lighting got put in there was kind of a resurgence of an idea to light up all of this great infrastructure. We came out with a few generators one night and stuck them under the silo and thought that as pretty cool. We ended up playing around a little bit. The Washington Street bridge got pulled into that and that’s probably the keynote now. When you see it tonight, I think you’ll be really surprised how beautiful that looks.”

The City of Jamestown received $10 million through the DRI in 2016.

Jamestown City Council

Mayor Eddie Sundquist said CSEA represents clerical staff in city hall, which is the lowest of the salaried units, “In addition, it does raise the healthcare wages for this unit up to 21% by the end of the contract. It also increases insurance deductibles for each member, both for individual and family as well as prescription co-pays, which brings this unit in line with our many others.”

This is the first of six contracts that are up for renewal to be passed this year. Sundquist indicated his staff is trying to get contracts approved with the other five unions before the end of 2021.

Council also voted to contract with Stark Tech Group for $918,173 to illuminate the Washington and South Main Street bridges and the BPU Coal Silo. Director of Development Crystal Surdyk said the project originally had $325,000 allocated to it, but when it went out to bid, the funds weren’t enough.

She said the state allowed the city to reallocate Downtown Revitalization Initiative funds for a train project that wasn’t ready to go toward the illumination project, “The solution was, because of the time frame we needed to spend the DRI funds within, to reallocate the $670,000 that was set aside for that project into the Riverwalk Experience Project which includes the illumination, some kayak launches, and a safety boom at the Warner Dam.”

Surdyk said work will begin as soon as materials are available and is expected to be completed by the end of 2021.

Other items passed by City Council last night included a resolution to allow Medicare-eligible city retirees to voluntarily move to a Medicare Advantage plan. Council Member at Large Jeff Russell said the potential savings to the city could be up to five-figures a year.

And a $36,680 grant from FEMA for fire prevention and safety training was passed. The Jamestown Fire Department and Chautauqua Children’s Safety Village will use the funds to provide more public education regarding fire safety including an ad campaign to promote fire safety in homes and businesses.

Jamestown City Council

After a presentation at last Monday’s work session, the proposed resolution was amended to only allow 8 hunters to receive licenses with the two sites for hunting limited to Jones Memorial Park and the wooded area behind the Allen Park Ice Rink.

Council Member at Large Jeff Russell had suggested to Council member Tom Nelson that maybe the program could be limited to Ward 6, since most of the deer complaints had come from that Ward. Ward 5 Council member Grant Olson said he’d welcome deer hunting in his ward as well.

Under the resolution, hunters would be allowed to take down 4 antler-less deer between the hours of sunrise and sunset, seven days a week, between November 1st and December 31st.

Also under new business, Council will vote on a contract with the Civil Service Employees Association, or CSEA. The agreement runs from January 1, 2022 through December 31, 2024.

Council vote on a resolution to contract with Stark Tech Group for $918-thousand-173 dollars to illuminate the Washington and South Main Street bridges and the BPU Coal Silo. Downtown Revitalization Initiative funds will be used for the project.

Other resolutions on the docket include an agreement to allow Medicare-eligible city retirees to voluntarily move to a Medicare Advantage plan. Council Member at Large Jeff Russell said the potential savings to the city could be up to five-figures a year.

And a $36,680 grant from FEMA for fire prevention and safety training will be voted on. The grant will allow children from around the county to be educated on fire safety and that free smoke alarms will be provided to children as well. The grant allows for an ad campaign in conjunction with the Chautauqua Children’s Safety Village to promote the classes, fire prevention and safety more broadly.

Jamestown City Council

She said the City wanted to continue that, given how many businesses and organizations are still feeling the financial strain from the Pandemic, “We’re looking at what are the things that we can do that we have control of. Ways that we can support really giving the community a shot in the arm and sparking economic development quickly and in a meaningful way, getting people back downtown and getting them back to enjoying events.”

The program will be administered through the Jamestown Local Development Corporation. The monies will come from the Urban Development Action Grant. Surdyk said they will be announcing when businesses can apply for program funding in the near future.

The former downtown Key Bank location, located on the northeast corner of Second and Main Streets. (google street view)

EDITORS NOTE: This story has been updated to reflect additional comments provided by building owner Arnold Duke.

JAMESTOWN – A piece of Jamestown property that was selected to receive $1 million in state funding to help revitalize the downtown is back up for sale.

The former Key Bank building at 200 N. Main Street in Jamestown is on the market for $500,000.

According to public records, the building has been owned by The Duke of Jamestown, LLC since October 2016, when it purchased the building for $110,000. The LLC is owned and operated by developer Arnold Duke. Less than a year after the purchase, the property was named one of the recipients of the $10 million Downtown Revitalization Initiative grant program, announced by the state in May 2017. At the time of the announcement, it was announced that Duke had planned to redeveloped the building into a mixed-used building with office, retail and residential uses.

“Transform a mostly abandoned bank building in the center of downtown Jamestown into a mixed-use downtown anchor which will increase residential opportunities, bring new commercial activity, and create jobs in the downtown,” the grant award booklet stated. “The renovations will provide 10,000 feet of office space, 8 market-rate apartments, a restaurant space, 4-6 pop-up retail spaces, a wine tasting room, and an escape the room-type attraction.”

In a feature story about the project that appeared in the Jamestown Gazette in August 2018, Duke had said he projected a grand opening “in about 16 months”, which would have put the grand opening date in January 2020. But that never occurred and work on the site actually stopped prior to the start of the pandemic in March 2020.

Now the building is back on the market, with a sales price that is nearly five times higher than what Duke spent to buy it back in 2016. However, that increased cost is likely due to the amount of work and remediation – including asbestos removal – that went into the renovation effort prior to the work stoppage.

WRFA spoke with Duke Monday morning to learn more details about the sale. He explained that due to a number of setbacks – the pandemic, an ongoing divorce battle, and a serious personal health issue he’s only recently been able to recover from – he’s been left with no option but to step away from the project.

“My main business is the International Gem and Jewelry Show,” Duke said. “But because of the pandemic, we’ve not been able to hold or participate in any shows and that’s been a significant financial hit. My recent hospitalization and multiple surgeries, combined with an ongoing divorce battle, have also played a significant role in the decision to unfortunately step away from the project.”

However, he said that in addition to anyone interested in buying the property, he’s also willing to enter into a partnership if they wish to no own the building.

“I love the city of Jamestown and still want what’s best for its downtown development and I think this building can be a key component in making that happen,” Duke told WRFA.

Because the project was never officially completed, Duke won’t receive any of the state money that was earmarked for it. However, city development director Crystal Surdyk says that any new owner of the building who follows through with completing the development effort could receive that money.

“The DRI grant will stay with the building. Because Arnold Duke did not complete the project, he, nor his company, will be eligible to receive any reimbursement from the DRI,” Surdyk said in an email to WRFA. “That said, a new developer will have to work with the state to develop a project that is in alignment with the intent of the DRI and will need state approval in order to develop the building with DRI funding.”

Surdyk didn’t say if there was a deadline for when the funding must be appropriated. There have been other proposed projects that were to receive the money, only to have it reallocated to another project. That includes some of the $600,000 in funding that was given to the city for a Downtown Event Programming fund administered by the Jamestown Local Development Corporation, as well as $670,000 that was originally intended to help bring a passenger excursion train service to the city.

A requirement to spend the money sooner rather than later was the motive for reallocating the remaining money in the Downtown Event Programming fund. According to Surdyik, the city was instructed by the state to spend it elsewhere because of the pandemic and the uncertainty of when major downtown events could occur again. That funding will ultimately be redirected to help entertainment-based businesses and organizations weather the financial storm caused by COVID-19. But for the former Key Bank building, it appears the state is willing to wait until new ownership comes on board, prior to redirecting the money elsewhere.

In the meantime, anyone interested in learning more about the Key Bank Building, or a potential partnership with Duke can call Tom Turner, real estate broker with Century 21, at 763-7506.

In May 2017, the city received a $10 million grant through round 1 of the New York State Downtown Revitalization Initiative program. The money was initially earmarked for 10 different projects.

According to the plan approved by the state, $600,000 was set aside to help coordinate and supplement local efforts to provide All-Season programming to attract people to Downtown Jamestown. A Downtown Programming Fund was set up to hold the money, with the Jamestown Local Development Corporation serving as the agency to recommend how it would be spent down, with the state giving final authorization.

In 2019, over half the money was allocated to ten different events designed to attract visitors to the downtown:

• Buffalo Philharmonic/Queen Concert at Reg Lenna – $50,000
• NCC Presents John Mulvaney at Northwest Arena – $50,000
• Robert H. Jackson Center Presents Bob Wodward at Reg Lenna – $50,000
• Reg Lenna Beer and Wine Festival on E. 3rd Street – $35,000
• Best Day Ever throughout Downtown Jamestown – $31,850
• Spire Music Festival at The Spire – $30,000
• Emmanuel Baptist Church Presents Gospel Explosion at Reg Lenna – $25,312
• NBL Super Grands Karate Tournament at Northwest Arena – $25,000
• Guster Concert at Reg Lenna – $17,500
• Whirlybird Music festival throughout Downtown Jamestown – $5,000
• Total: $319,662

The city also allocated $60,000 from the fund to cover administrative costs for processing funding applications. As a result, an estimated $220,000 still remains.

The remaining money was intended to be spent down this year, with a deadline of December 2020 imposed by the state. However, due to the ongoing COVID-19 Pandemic and the uncertainty of when public gatherings can resume, City Development Director Crystal Surdyk informed WRFA late last week the state will grant an extension on spending the money, but has also challenged the city to consider reprogramming the remaining funds because of the unknowns with regard to events for the foreseeable future.

It’s not the first time a portion of the DRI money has to be reallocated. In February, Surdyk announced the state had directed the city to allocate $670,000 in DRI funding that was earmarked for an excursion train infrastructure project. She said because the excursion train and depot project has stalled, the project is no longer eligible to receive DRI funding. That money was instead reallocated to other projects on the DRI award list, including the Riverwalk illumination project and improving city streetscapes.

Surdyk said she will bring a recommendation on how to use the remaining downtown programming fund before the city council in the near future.

Funding for the plan, which will be overseen by Stark Energy Services Company, would come from over $450,000 in unused Downtown Revitalization Initiative money. The rest of the cost would be covered through borrowing from the Smart City Capital Investment program approved late last year.

The total cost would be $1,947,574. Work included in the plan would involve updating the heating and air conditioning systems for city buildings, including City Hall, along with other energy efficiency upgrades that would help to lower the monthly electric bill.

The council also approved a plan to spend $705,000 in federal housing money that is intended to help property owners and businesses impacted by COVID-19.

There was a request by city Resident Doug Champ to have some of that money also go to home owners in the city who are struggling to pay their mortgage. That suggestion was echoed by first-year council member Grant Olson, but in the end, the council unanimously approved the plan as it was presented.

And the council also approved a new fee structure for the Parks Department mowing private lots and abandoned properties, with the cost being charged to the property owner on record. The new fees are a significant increase to the current fees being charged and are intended to help deter properties from relying on the city for mowing.

A September 2018 image of the Jamestown Brewing Company from Google Maps.

JAMESTOWN – The owner of a building that houses a new brewery in downtown Jamestown is trying to evict the business for failing to keep up with rent.

GPatti Enterprises – owned by local developer George Patti – owns the building that houses the Jamestown Brewing Company (JBC) at the southeast corner of Third and Washington Streets. According to a petition filed in State Supreme Court in Erie County on Tuesday, GPatti is claiming it’s received less than 20 percent of four months worth of rent, dating back to Sept. 30, 2019.

The complaint says that JBC owes a total of $85,000, but has only paid $15,000 so far. It also says that the brewing company – which is co-owned by John McLellan Sr. and John McLellan Jr. – has been unable to pay various debts it owes various lenders. Under its lease agreement with the business, GPatti argues it has the right to evict the operation if it fails to pay rent owed after 10 days of its due date.

A hearing for the case is scheduled for Thursday, March 5, in Buffalo.

Meanwhile, the lawsuit is not the first one that’s been filed between GPatti and JBC. In December 2018, JBC filed a lawsuit against GPatti, claiming a Breach of Contract, Fraudulent Inducement, Fraudulent Misrepresentation, and Negligent Misrepresentation when it entered into a lease agreement in 2017. At the time of signing its lease, JBC claims GPatti had said work on the building would be completed in time for an April 2018 opening. However, numerous delays in construction – including an environmental abatement mandated by the state – pushed that opening date back for more than a year. As a result JBC felt GPatti was misleading when it provided the timeline for when the operation could open. It is suing GPatti for compensatory and punitive damages.

In April 2019 the court dismissed three of the claims, while the issue of breach of contract is still playing out in the court.

That case is currently in the discovery phase, with a deadline of April 30 for both sides to present their evidence. The next scheduled court date in that matter is a discovery compliance meeting set for July 10.

According to the Post-Journal, the total project cost for renovating the property and preparing it specifically for JBC was estimated at $3.84 million. Financing for the project included a $475,000 state Main Street grant that was awarded through the Regional Economic Development Council program in December 2015 and $830,000 from the Downtown Revitalization Initiative in 2017. The Jamestown Local Development Corporation has a $180,000 loan attached to the project. The IDA also offered tax abatements for the property.