Fishy Business: Buffalo's Bass Pro/Benderson Deal Threatens Canal District

It is the sweetheart deal to end all sweetheart deals. On March 29, officials of the Empire State Development Corporation (ESDC) subsidiary, the Erie Canal Harbor Development Corporation (ECHDC-falling asleep yet?), a public authority, announced an agreement to agree on fleecing the public by doling out well in excess of $100,000,000 in public money for a development project of big boxes and faux historic buildings that would obliterate almost half of the length of the historic Central Wharf and the rights-of-way of the Prime Slip and Prime Street, and eliminating the central public gathering space, all contrary to a hard-fought public consensus. That's just for starters.

The spin was embedded in the press release issued on March 29 and at the ECHDC board meeting the next day. For example, officials and politicians crowed that the public subsidy to Bass Pro, the chain of big box outdoors stores, was reduced by more than half, from an earlier announced $60,000,000 to "only $25,000,000." In fact, by the time all public upfront costs are toted up, they will likely exceed $120,000,000. And it's show-me-the-money money: all public funds are to be secured before Bass Pro or Benderson build anything. There is no similar demand put on the private interests.

Here's a preliminary list of public obligations based on "Pre-Development Agreement"€ between Bass Pro, Benderson Development and the Erie Canal Harbor Development Corporation (a public authority and subsidiary of the Empire State Development Corporation). Benderson Development will receive the Aud Block, Donovan Block, Webster Block and the entire development area of the Canal District for $10.00 (ten dollars); Bass Pro will receive a new building,  control of the Central Wharf and control of a new yacht basin, for nothing, for a minimum of 20 years. Benderson and Bass Pro must share area maintenance costs with ESDC, with Bass Pro's share not to exceed $300,000 annually. That $300,000 is to be paid to ECHDC, not the Business Improvement District agency empowered to mainatin the area, Buffalo Place, Inc. The pre-development deal calls for all of lower Main Street, including the Canal District, to be exempt from Buffalo Place charges.

As-yet  undetermined financial obligations
# Demolition of Donovan Building
# Site preparation on Central Wharf to include Bass Pro building pad and all utilities
# Demolition of Erie Canal Harbor Metrorail station
# Construction of new Metrorail station located one block south of existing Erie Canal Harbor Station*
# Provision of two surface parking lots to Bass Pro for customers with recreational vehicles

Open-ended undetermined financial obligations

# €œ"All necessary remediation, abatement, and removal work to be performed on the Aud and the Donovan Office Building as required for demolition."€

# Remediation of "any environmental conditions...necessary for development..."€
# Any additional incremental costs associated with contruction on Aud and Donovan sites as a result of the
Hamburg Drain

Stated and estimated costs: $95, 800,000
$25,000,000 Bass Pro store**
$14,800,000 Bass Pro museum**
$34,500,000 parking ramps***
$4,000,000 Benderson "tenant improvements"**
$7,500,000 Yacht basin at foot of Main Street to be made available to Bass Pro free of charge****
$10,000,000 Demolition of Memorial Auditorium*****

In addition, $46,500,000 will have been spent on public improvements in the Canal District by the end of this year.

Foregone revenue
# Difference between market value of Aud Block, Donovan Block, Webster Block, and Canal District blocks and the $10.00 received from Benderson Development.
# Difference between recreational, aesthetic, and social value of Central Wharf as public space and Central Wharf as non-revenue-producing private space.
# Sales taxes on construction of Bass Pro store
# Real estate taxes on Bass Pro store
# Sale or lease payments and real estate taxes on surface lots to be controlled by Bass Pro

*The current "Events-Only Station" on the site of the proposed new full-fledged station, was built with a $7,000,000 appropriation secured by former congressman Henry Nowak.
**Pre-Development Agreement
*** Estimated construction costs based on national and regional construction industry figures
**** Based on estimates for earlier, smaller “South Basin” and the relocation of Buffalo Sewer Authority pumping station.
***** ECHDC news release, 3/30/07.

This estimate is of 4/16/07.