Buffalo, N.Y. (WBEN) - We're starting to see a pullback in several development projects around Western New York as banks are being more cautious about giving loans to developers.
Paul Brown is witnessing it first hand.
"It's pretty bad," said the President of the Buffalo Niagara Building Trades Council. "The Hotel Niagara has been trying to get financing forever. Even the Amazon project in the town of Niagara was supposed to start last September." It too, is being held up by financing issues.
WBEN recently reported that construction has ground to a halt at the Heritage Point project at Canalside after financing fell through.
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Brown explained another option has also run dry. "The unions, through our pension fund, can offer financing through Unico but they're not lending any money either."
He said it's been going on for the better part of two years, but it's just starting to catch up.
The new stadium project in Orchard Park does not seem to be impacted
"That's mainly because the state put up $650 million dollars from the Senecas for its share of the stadium," noted Brown. "Erie County is putting in $250 million and as for Buffalo Bills owner Terry Pegula, I don't think he's financing it. I think he's just paying for it."
The challenge in financing comes at a difficult time. "Buffalo is an exciting place to be right now," added Brown. "Empire State Development has done a great job of getting people to want to come to Buffalo."
He's hoping the financing issue is a temporary one. "I'm not a finance guy, but I understand that interest rates are supposed to start dropping in a month or two so I'm hoping things will start picking up again.