Issa seeking partners on Statler revival in downtown Buffalo
Erie, Pa.-based firm approached by BSC
Cash-strapped British developer Bashar Issa might be taking on U. S. partners to jump-start conversion of Buffalo’s Statler Towers to a mixed use complex featuring a Wyndham Historic hotel.
Issa’s representatives have reached out to Erie, Pa.-based Scott Enterprises, a family-run hospitality company, regarding a partnership with Issa’s BSC Development Buffalo. The deal under discussion would see Scott become the hands-on operator of a proposed 346- room Wyndham hotel.
Scott would oversee extensive renovations at the building, as well as future operation of the planned rooms, suites and related meeting space.
Scott, best known for its Splash Lagoon Indoor Waterpark Resort in Erie, owns and operates several hotels and restaurants in its hometown. The privately- held company is about to enter the Buffalo market with a Staybridge Suites hotel on Sheridan Drive and a Quaker Steak & Lube restaurant on Transit Road, both in Clarence.
Neither Scott representatives nor Issa could be reached to comment Thursday. However, Williamsville businessman Richard Sterben, who is acting as Issa’s liaison with the Wyndham Hotel Group, confirmed talks with Scott.
“If you can bring an experienced operator like Scott to the table, Wyndham would look very favorably on that,” Sterben said.
Issa has been negotiating with Wyndham Hotel Group to locate one of its Historic brand hotels in the 85-year-old building, which began its life as Ellsworth Statler’s flagship hotel. Wyndham currently operates just eight of the unique properties, all of which are located in landmark buildings.
Issa halted Statler renovations in early April citing cash-flow problems. Issa’s money woes have also stopped work on three projects on his home turf in Manchester, England.
Sterben said talks with Scott Enterprises do not involve an investment in the building’s renovation.
Sterben declined to put a timetable on Issa’s Statler efforts, but sources familiar with the situation said key decisions about the fate of project will be made by the end of August.
Issa has told the British press he is negotiating with Gresham Ltd., a London-based lender on a $240 million (U. S.) loan. He has also filed an application with New York State for $20 million in Historic Tax Credits.
While current talks with Scott would see Issa’s firm retain ownership of the 800,000- square-foot Statler complex, sources said there are signs the British developer might be willing to sever his ties with the property.
Issa paid $3.5 million for the property in August 2006. During his ownership, he has updated the building’s main elevators and installed new marble tile in the lobby.
However, progress on a complete overhaul has not progressed beyond demolition of a few floors of the building’s original hotel rooms.
The Buffalo News has also confirmed that Toronto developer and entrepreneur Howard Hurst met with Issa in London last month to discuss how the project might be salvaged. Hurst served as an advisor to Buffalo’s Savarino Cos. in 2005 when it considered acquiring and rehabilitating the Statler.
Hurst declined to comment on any direct role he might play involving the Statler.
