CATTARAUGUS COUNTY
Developers seek casino funds for infrastructure
LITTLE VALLEY — Developers have requested some of Cattaraugus County’s Seneca-Allegany Casino proceeds to bring sewer and water lines from the Village of Allegany to the former Kmart Plaza, where they hope to attract a regional ambulatory surgery center as the initial tenant of a $5 million project.
Because of a confidentiality agreement, the name of the surgery center can’t be revealed yet, according to Rob Savarino, consultant for the vacant plaza’s owner, Benson Construction and Development. But he assured legislators that the project addresses the community’s lifestyle — keeping patients in the area and attracting doctors, generating development and enhancing existing medical services while driving down costs.
“It’s going to be a stabilization to the medical center in this region,” said Development and Agriculture Committee Chairman Jerry E. Burrell, RFranklinville, who asked legislators to move quickly as a lead funding partner with the Town of Allegany, the state and the federal government.
“That site is getting so old it’s embarrassing to the county,” he said of the long-vacant plaza, on Route 417 at I-86’s Exit 24.
Savarino said Benson will build a 20,000- square-foot surgery center to suit the tenant, but a $1 million investment in sewer and water infrastructure is necessary before the tenant’s Certificate of Need is granted by the state.
Savarino said Allegany has applied for $1.2 million in federal stimulus aid for the plaza neighborhood. Don Benson, of Benson Development, said he met with town officials, who are “on board” and have some funds available, but have made no commitments.
The state Department of Transportation is willing to cooperate on rights of way for the sewer line construction and some alternative sources of funding are available, while the City of Olean’s sewer contract with Allegany holds extra capacity to accommodate the project.
“This is a fast-track project needing commitments. We need to prove it’s going to happen this summer,” said Benson.
“I can assure you it won’t have a detrimental effect on [Olean General] Hospital. It may be something that makes the hospital stronger,” Benson said.
Several legislators spoke in favor of granting the request, but when Benson was asked to say how much money he needed he did not name a figure.
James L. Boser, D-Allegany, suggested making a $250,000 grant from the $545,633 remaining in casino revenue accounts that are devoted to economic development.
But other legislators said they first want to meet with Allegany town officials in two weeks and review the business plan and job projections before naming a dollar figure.
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