Jan 9 wedding at (closed) Statler Towers?

**kernwatch** · December 29th, 2009, 10:20 AM

This sad tale dramatizes Bflo's "unsustainable" development.

I have watched in dismay as many 100's of new subsidized housing units are going up citywide, usually costing $200K-plus each, & in places folks never lived whn Bflo was 2X bigger.

Now the thought of a major landmark downtown closing as heavily subsidized new hotels are being planned is also troubling. And there is an incredibly costly, major new government building rising across the street.

Progress?

http://www.buffalonews.com/home/story/907017.html

Statler Towers may face shutdown

By Matt Glynn, News Staff Reporter, December 28, 2009, 10:36 PM /

The Statler Towers could be closed next month, unless a purchase of the property comes together quickly. U.S. Bankruptcy Court Judge Carl L. Bucki on Monday authorized the court-appointed trustee in the Statler case, Morris Horwitz, to begin spending about $100,000 that Horwitz said is needed to secure the property against the winter weather and cover expenses such as payroll for the few remaining employees.

The funds will come from the $500,000 that New Buffalo Statler Redevelopment, the high bidder at an August auction, has paid so far. The group has struggled to complete the $1.3 million purchase, despite two extensions granted in court. The last of those extensions expired Nov. 30.

The group had been covering the weekly operating expenses for the property but has recently missed payments, Horwitz said. The trustee's attorney, Garry Graber, says Park Lane Catering, a Statler tenant, missed a $34,000 rent payment, a point disputed by David Pfalzgraf Jr., an attorney for New Buffalo Statler Redevelopment.

Horwitz told Bucki that the diminished funds to cover the operation of the Statler have left him with no choice but to move toward mothballing the property, to protect it from long-term damage if the heat is shut off. "We really need to get this building closed down," Horwitz said.

But he and Pfalzgraf separately held out hope that the Statler could be sold and a shutdown averted. "We're going to go down the closing path and still work toward finding a viable purchaser," Horwitz said. That buyer, he said, could be New Buffalo Statler Redevelopment or someone else who steps forward.

New Buffalo Statler Redevelopment didn't object in court to the trustee using part of the money it has paid toward the purchase to begin the mothballing process. But Pfalzgraf said the group is not giving up on the purchase effort. It needs to come up with $800,000 to complete the deal. "New Buffalo Statler Redevelopment still hopes to close this transaction as soon as possible," he said. The group's principals include Richard Sterben, Thomas Zawadzki and William Koessler, who runs Park Lane Catering.

Only 14 tenants remain in the Statler. Horwitz said all of them were sent letters urging them to move into other offices as soon as possible. Horwitz did not name a specific date the property might be closed but estimated it would take place in mid-January, barring a sale. A New Year's Eve party scheduled in the Statler will go on as planned.

With Bucki's green light to start spending some of the $100,000, Horwitz will explore how quickly he can bring in specialists to perform tasks such as winding down the Statler's boilers, fire system and plumbing.

Bucki set another hearing for Jan. 12 and said Horwitz could draw upon the $100,000 to cover items that needed to be addressed before that date. Raymond L. Fink, an attorney for Mohmoud al-Issa, who claims to have a $4.5 million mortgage on the Statler, raised questions about whether the entire $100,000 had to be put toward the mothballing plans.

Fink, who has frequently criticized New Buffalo Statler Redevelopment for failing to close the deal, lamented the current state of affairs at the Statler. "We're disturbed that we find ourselves in this situation, but it's a situation we predicted months ago," he said.

Pfalzgraf said bookings of events at the Statler through Park Lane Catering have declined to "next to zero," and he criticized the handling of the Statler by developer Bashar Issa and his father, al-Issa. "Park Lane Catering's business has been destroyed by this ordeal," Pfalzgraf said.

Amid courtroom debate about missed payments and tenants, Gabe Ferber stepped forward to make a personal plea. His son, Daniel, and his future daughter-in-law, Tina Parise, are getting married there Jan. 9. He asked for consideration to keep the building open until at least then. During a break in the hearing, Ferber said 210 guests are expected for the wedding. "Tina had her heart set on this location because of the romantic aspect of it," he said.

Bucki expressed sympathy for Ferber's situation. He also expressed concern over the wages owed to the Statler employees, saying it was unfair they had been caught up in the Statler's financial woes.

The judge reflected on the events of the past several months that began with BSC Development of Buffalo LLC, Issa's company, being forced into bankruptcy last April. The hopes were that new ownership and a redevelopment plan would emerge, he said.

Bucki also said he was concerned about the Statler's future downtown. He noted its prominent presence on Niagara Square, and the new federal courthouse rising across the street. "What goes up on one corner is somewhat in contrast to what's happening on the other corner," he said.

mglynn@buffnews.com

**kernwatch** · December 29th, 2009, 10:29 AM

I missed "Steven's" earlier post from Business First

Sorry . . .

**Linda_D** · December 29th, 2009, 12:53 PM

How dare you question that downtown/waterfront residential and hotel development, Kern!!! What are you? An old, ignorant hillbilly who knows nothing of Baltimore and Philadelphia and San Diego and ... and ... and ... South Buffalo???

// sarcasm off!

Seriously, Dick, I have long questioned the idea that downtown/waterfront residential is Buffalo's salvation, and have been repeated beaten up by the downtown booster crew for my stand. They repeatedly ignore the fact that in a metropolitan area where the median single family home price is around $130,000 and nice rentals in desirable urban neighborhoods (ie, Delaware District, Allentown, etc) are considerably less than $1,000 a month, there's a very limited market for high-end condos and rentals. There are NOT tens of thousands of yuppies and DINKs waiting to buy up downtown/waterfront condos for 2-5 times the median SFD sales price just to live downtown, but the downtown booster crew simply ignore that reality.

More recently, I asked why every single new development downtown seemed to have to have hotel units in them even when it appeared that building new hotels would kill off existing hotels. I was told by the supposed "experts" on this MB that Buffalo "needs" these hotels because it doesn't have enough hotel rooms. I remain skeptical.

The Statler is a different kettle of fish. It may be that it's an old building that has outlived its useful life, has been allowed to deteriorate, and will require a massive infusion of funds to save it. Before it gets saved, however, somebody has to have a clear idea of what to do with it -- and the money to invest in it. Does downtown Buffalo really need more residential units? more hotel rooms? more retail? more office space?

**therising** · December 29th, 2009, 03:14 PM

You heard it hear first, folks.

Prolific poster, Gold Member, and Renaissance Man, therising made his prediction on 8/10/09, and still stands by it.

http://www.speakupwny.com/forums/showthread.php?t=75232

The future of the Statler is rubble.

**Save Us** · December 29th, 2009, 04:21 PM

Originally Posted by therising

You heard it hear first, folks.

Prolific poster, Gold Member, and Renaissance Man, therising made his prediction on 8/10/09, and still stands by it.

http://www.speakupwny.com/forums/showthread.php?t=75232

The future of the Statler is rubble.

Would you mind PM ing me for some lotto numbers...I am running out of ideas and don't want the computer to pick....

.....since you are on fire!

Seriously,,,,,the statler hasn't been alive for as long as I can remember.

**joe d.** · December 29th, 2009, 04:23 PM

I have a good Friend who has a July 2010 WEDDING BOOKED at the Statler...his future bride is frantic. They have $1000.00 deposit.....they have tried 20 different restaurants / halls that are upscale...and all are booked for their planned date, They were there today trying to get answers..supposedly there is going to be some type of announcement tomorrow with regards to status..they were told that there is the option of another site..but would not elaborate any more until later date.
GOOD LUCK....