As owner of one of the region's largest commercial real estate portfolio, Bill Paladino has some serious concerns about how Mayor Sean Ryan's proposed 25% property tax increase will not only impact his bottom line but also the ability to bring more business into Buffalo and the central business district.
"It is going to effect us and going to effect a lot of our tenants," said Paladino, Ellicott Development Co. president and CEO.
Ellicott has more than 10.5 million square feet of commercial space in its local portfolio including the historic Ellicott Square Building.
The property tax hike comes against the backdrop of rising utility, gas and operational costs - all of which have increased multi-fold since the Covid-19 pandemic.
"The trajectory on this is not good," Paladino said.
The developer could see some building owners walking away from their portfolio.
Others may opt not to develop in Buffalo, or New York state, for that matter.
"New York state is always viewed as difficult," Paladino said.
The property tax increase could also impact downtown at a time when there is a concerted effort to revive the central business district.
"Downtown, as we know it, is not in good shape," Paladino said.
The local economic landscape has Paladino putting several of Ellicott's proposed projects on hold. And, he is not alone.
"As a developer, it is just tough to get out of bed in the morning," Paladino said.