Business leaders raise concerns over Canalside subsidized housing

Buffalo, N.Y. (WBEN) - A group of Downtown Buffalo business leaders are sounding the alarm after they say the developer of the North Aud Block at Canalside altered their plans to greatly increase the amount of low income housing their development would include, without public input.

In a letter sent to the governor, mayor, county executive and others, the group that includes Buffalo developers Rocco Termini and Chris Jacobs is asking for oversight of Pennrose Development's plan for the high-profile plot of land they say has significantly changed from its original scope to become overwhelmingly filled with low-income housing.

The group says 75% of the residential units it plans to construct on the site will be low-income housing.

"Erie Canal Harbor (ECHDC) sent out an RFP years ago and asked for proposals to build on that site," said Larry Quinn, representing the Golisano Institute for Business, which is opening just a block away. "They had already done an environmental review plan that was very specific in saying they did not want any subsidized housing on that site. Pennrose was selected and their proposal was that they would build 30% affordable and 70% market rate. That was the proposal... turns out that's really not the case."

The Buffalo News reports Pennrose did add more subsidized units to make project financing work, but said the project is half market rate and half affordable. Pennrose, though, defined units priced at 80% of Area Median Income as "market rate" for Buffalo.

"We laud affordable housing in Western New York — including the planned expansion of the Marine Drive Apartments nearby — but Pennrose’s plan for this prime Canalside location is misleading and contrary to the original Canalside plan," the letter said.

"Pump the brakes here, take a look at the whole thing, and say, 'What's best for Buffalo?'" Quinn said with WBEN.

Also joining Quinn, Termini and Jacobs with signing the letter, which was written by attorney Terry Conners, are developers Paul Ciminelli, William Paladino, and vice president of leasing and development for Benderson Development Eric Recoon.