Bringing a can-do portfolio to rejuvenate the cityscape
He wants to turn downtown's former AM&A's department store into a hotel, banquet center, food court and upscale apartment complex.
And he has his sights on the nearby Lafayette Hotel building, hoping to revitalize the faded landmark.
Are Rocco R. Termini's visions for rehabilitating two icons in the central business district pie in the sky? Or do they stand a real chance of happening?
The developer is the first to acknowledge that his plans are still in their infancy and face hurdles — including snaring financing that would require historic preservation tax credits and other public subsidies. The AM&A's project alone would cost an estimated $70 million.
Still, Termini's proposals have been greeted with cautious optimism by some downtown business leaders, developers and government officials.
"Isn't it amazing? When Rocco says he's going to do something, he usually gets it done," said Buffalo Place Executive Director Michael T. Schmand.
Commercial real estate experts say Termini has built a reputation for delivering on his plans and has a keen sense of the downtown market.
"I wish there were 10 of him out there doing things," said James R. Militello of J.R. Militello Realty.
Termini has shown a willingness to take on what are often difficult reuse projects, Militello said. "People don't realize how tough it is to get things done in any city. It isn't just Buffalo."
Mayor Byron W. Brown described Termini as a "creative" developer with "a pretty good track record of getting projects accomplished."
'Usually finds a way'
But not all of Termini's proposals have moved beyond the idea stage. For example, financing difficulties spurred him early last year to shelve plans for Century City Lofts, a rehabilitation and transformation of several empty buildings into apartments and retail space in the 500 block of Main Street.
But in most instances, Termini has turned blueprints into bricks-and-mortar projects.
"He usually finds a way to get things done," said Schmand, whose group manages and markets the downtown district.
Termini's projects include renovating some old industrial and commercial buildings in the 500-600 block of Ellicott Street. Termini, an executive with Burke Bros. Construction, turned the buildings into the successful Ellicott Lofts and Ellicott Commons residential complexes.
His Signature Development of Buffalo also launched a multimillion-dollar face-lift at the former Buffalo Alternative High School, converting the old Oak Street building into apartments and business space.
He turned the former Kasting's Flower Warehouse at 362 Oak St. into the $4.3 million IS Lofts, which features two dozen apartments.
Perhaps the most difficult and controversial project involved the $9.2 million conversion of the former Webb Building at 90-92 Pearl St. The long-empty manufacturing site was turned into 32 loft-style apartments and commercial space.
But tragedy struck during the 2007 reconstruction when worker Jonathan S. Fundalinski, 24, fell to his death as floor joists were being replaced. David Burke Construction, the firm performing the floor work, was cited by federal safety officials for failing to have proper guardrails and safety harnesses in place.
Termini and Signature Development were not cited by the Occupational Safety and Health Administration in connection with the death, but it triggered city and federal probes into Buffalo's permit and inspection procedures. It also thrust Termini's development policies into the spotlight. Some depicted him as a vindictive bully who wasn't shy about using City Hall connections to advance his agenda.
In the last two years, Termini's projects have moved forward with little controversy. His most recent one involves transforming some old AM&A's warehouse buildings on Washington Street into apartments and office space.
"His projects take older buildings that end up beautifying the city," said Drew Cerza, interim head of the Buffalo Niagara Convention & Visitors Bureau.
With several new downtown hotel proposals being discussed, Cerza acknowledged that some are understandably asking whether there's a need for hundreds of additional rooms. Competition, he said, ultimately improves the product. In the end, Cerza believes that the market will decide how many projects move forward.
Taking on too much?
Termini's vision for the 350,000-square-foot AM&A's complex includes a 117-room hotel that he hopes would be operated by a national chain, banquet facilities, a food court, 55 upscale apartments and office space.
Militello said Termini puts his knowledge of the local market to work, in contrast to some out-of-town developers who hesitate or don't follow through on their plans. "He doesn't sit there and question whether he should do it or not," Militello said. "He just does it. He understands the market and believes in it."
Termini is being lauded for his effort to preserve a building that he said is structurally sound, despite being cited for repeated code violations.
"In my opinion, he's one of the most preservation-aware developers we have," said Timothy A. Tielman, executive director of the Campaign for Greater Buffalo History, Architecture & Culture. "He shows an eagerness to use the tools provided by historic preservation."
Termini's interest in the Lafayette Hotel building and the former AM&A's store, as well as the reuse of the former AM&A's warehouses already under way, raises a question: Would he be taking on too much at once? Shana B. Stegner, director of office sales and leasing for CB Richard Ellis' Buffalo office, said Termini has a good track record, which lends credibility to the outlook for his plans.
"He understands the economic incentives available to developers downtown," Stegner said.
Termini has not detailed plans for the Lafayette Hotel building, should he complete a deal for it. But Militello described the property as "a jewel waiting for someone to tackle."
Paul F. Ciminelli, president and chief executive officer of Ciminelli Development, said he also believes that the Lafayette has a lot of potential, assuming the economics work for Termini. It is close enough to Erie Community College's downtown campus to tap into that student market for rental housing, Ciminelli said.
He and other real estate experts agree that the former AM&A's store would be the more difficult of the two projects, given that the complex has been mothballed and consists of several buildings with a common facade. Termini has a purchase option agreement with the current owner, Long Island-based New Horizons Acquisitions, that would allow him to buy the facility.
The key to successfully reusing the former AM&A's store would be to secure an office tenant on a long-term lease and ensure that the hotel component is viable, Ciminelli said. Taking care of those two pieces would allow him to focus on the residential part of the project, he said.
Ciminelli said the former AM&A's store and the Lafayette Hotel building would be challenging for Termini to handle at the same time, since they would stretch his resources. "But he's also doing it in his own backyard, and that helps," Ciminelli said.
Large-scale downtown projects such as those Termini is now considering typically involve some kind of public-sector support. Militello said that such incentives are part of the business nowadays.
Stegner said Termini's history with other projects gives hope for the revival of a property such as the former AM&A's store, where a series of ideas have come and gone over the years.
"It is exciting to have someone like Rocco Termini being involved in something like that," she said, "because maybe it really will become a reality."
bmeyer@buffnews.com and mglynn@buffnews.com
Log into MyBuffalo to post a comment
MyBuffalo is the new social network from Buffalo.com. Your MyBuffalo account lets you comment on and rate stories at buffalonews.com. You can also head over to mybuffalo.com to share your blog posts, stories, photos, and videos with the community. Join now or learn more.
Reader comments