After hearing opposition from investors, developers, professionals, former commercial tenants, and residents on Wednesday, the Common Council tabled a proposed temporary law to stop development in two zoning categories of any new multiple-family structures with more than 25 units.
John Craig, 1st Ward alderman, moved to table the measure due to the public outcry, with Kathryn Fogle, 4th Ward alderman, seconding the motion.
People speaking at the public hearing described the proposed law as “disingenuous,” “targeted,” “too quick,” “crazy,” “alarming,” “making no sense” and likely to jeopardize the financial advantages of tax credits already granted for the Bewley Building.
The measure would have halted the developments in MU and MLI zoning districts across the city, but in addressing projects of 25 units or more, many said it could only apply to the renovation proposal for the Bewley Building, the former hospital, and the former infirmary on Davison Road. The renovation of the F&M Building would be unaffected because it will create 16 apartments.
“The elephant in the room is the Bewley Building,” said Chuck Bell, former director of planning and development for the city, who owns two business properties. “I think it’s an awesome proposal — $66 million downtown! That’s the kind of thing I would long for when I was in that job!”
The renovation proposal by PathStone Development would convert the Bewley Building to 100 apartments with ground-floor retail units.
The text of the moratorium described the city finding “potential gaps” in the new Comprehensive Plan and Zoning Code. “The greater density caused by more than 25 such units within existing and new structures presents potential impacts on community services and other aspects of the environment that may not have been fully considered,” including demands on “sanitation, fire and police.” The city contracted with Colliers Engineering to perform detailed research and draft the plan along with the corporation counsel’s office.
“A moratorium will render this building unsellable and unmarketable,” said Matt Martin, Bewley Building property manager and a local developer. “In order for us to just break even, we need an 87% occupancy rate. We are down currently at 35% is our current occupancy rate. … Frankly, there’s no path to ever make this building break even or even profitable as an office building. Businesses are not clamoring to come to downtown Lockport. So in order for this building to thrive and survive, it has to be converted.”
In an interview, Mayor John Lombardi III said the city has had no additional inquiries about developing the Bewley Building, and no additional plans had been submitted. When asked whether it concerned him that the moratorium would interfere with the development of the former Eastern Niagara Hospital, he said, “Yes. I think the council made the right decision today.”
Lombardi said it’s been about six months since he heard from Shraga Gold, CEO of Kids First, who purchased the former hospital. When asked if he had made calls to Gold, Lombardi said, “No. I need to.”
Thundering at the podium and waving his hands, George Muscato, a local attorney, said, “It’s not the developer’s $66 million. It’s our $66 million that’s going into this business.”
Steve Jerz, senior vice president at M&T Bank and chair of the Greater Lockport Development Corporation’s board of directors (GLDC), came to the microphone later to correct what he called “misinformation.”
“Large developers pay those tax credits to large corporations, who then pay for the $66 million,” Jerz said. “It is not the Lockport taxpayers.”
Jerz said someone should check with the state to see if the tax credits provided for the Bewley Building would be extended after a moratorium, doubting that they would. He asked the board to postpone the moratorium decision.
Kevin McDonough, a member of the GLDC’s board of directors, was incredulous over the idea that downtown didn’t have the capacity for such housing.
“It is a joke to suggest that a pre-existing office building, once packed to the gills with people, would have a negative impact on our environment in the one part of the city that can and always did handle that level of infrastructure,” he said. “We need this housing downtown if we are to ever have a successful downtown. What was the impact on our infrastructure when the Bewley Building was a fully operational office building with all the people in there every day coming and going, using the bathrooms?”
McDonough noted community confusion about the type of housing proposed in the Bewley Building.
“These people would pay their own rent,” he said. “What the state is doing is providing incentives for both private developers and private investors to produce a $66 million project held to the same standard as was the recently renovated Old Post Office.”
Regarding concerns in the moratorium about access to parking, McDonough said, ”The whole concept of shared parking has been around longer than even those of you have been on the council.”
Former 2nd Ward Alderman Anita Mullane agreed.
“You have a developer with a proven track record. It is the same architect that did the Old Post Office. … Parking is not a valid opposition to this. Years ago, federal funds helped subsidize the parking lot behind Sub Delicious … and that was meant to be city parking. Take that lot back somehow.”
Mullane said the council carefully created the city’s comprehensive plan last year after assessing the demands and impacts of each zoning district.
“I was happy to see that you spent a lot of time revamping an antiquated comprehensive plan and coming up with new zoning. And it’s good,” Bell told the council.
Added director of planning and development, Bell, “I can tell you it’s really hard to draw developers. “If you pass a moratorium, it’s a huge ‘closed’ sign. ‘Don’t bother! Stay away!’ It’s a killer. Why on earth would you do that?”