BUFFALO, N.Y. (WIVB) -- A 40-million-dollar project at Canalside is currently at a standstill. WIVB News 4 has confirmed there are now penalties coming for the developer.
Construction for Heritage Point began in March of 2021, yet the two multi-use buildings, intended for retail, restaurants and office space, are nowhere near finished. Now New York State is stepping in, demanding answers and money.
Sources have confirmed to WIVB News 4 the Erie Canal Harbor Development Corporation (ECHDC) is now requiring the developer, Sinatra & Company, to pay damages since it has failed to meet a substantial completion date.
According to sources, the developer must now pay $100 each day for the first 60 calendar days, and then $500 per day until the work is "substantially complete".
Nick Sinatra, the founder and CEO of Sinatra & Company Real Estate says the reason for the delays is because of a big jump in both labor and materials costs following the pandemic. He says the rising costs have impacted developers nationwide.
"In Buffalo, it has caused the project cost for Heritage Point to nearly double from the time it was awarded by the state pre-covid," Sinatra said in a statement. "Despite adhering to all New York State guidelines, these rising costs have created financial challenges that require additional support from all partners."
Sinatra says his company has invested over $12 million in equity and the project has already spent $18.8 million. However, he believes an additional $4 million from a loan from New York State is critical to complete the project in a timely manner.
WIVB News 4 heard from Buffalo Common Council Member Mitch Nowakowski in late July. He said he filed a letter with the council looking for an update from Nick Sinatra. Nowakowski requested that update from Sinatra by 2 p.m. on Sep. 10, to be presented during the city’s Community Development Committee meeting.
Sinatra says there has never been a point where his company has considered not completing the Canalside project.
"As a major employer in the region, we are fully committed to Heritage Point and stand ready to resume construction immediately upon receiving the needed support," Sinatra stated.
If the work does not get completed within the next six months, ECHDC says it has the right to terminate the agreement and seek return of the property.
Trina Catterson joined the News 4 team in 2024. She previously worked at WETM-TV in Elmira, a sister station of WIVB. See more of her work here.
