Buffalo, N.Y. (WBEN) - By all accounts, the partnership between Terry Pegula and developer Nick Sinatra that centers on the long-stalled $46 million Heritage Point project could be a significant game changer not only for the Canalside and Lower Main Street district but all of Downtown Buffalo.
"It's the tie-breaker," said Carl Calabrese, former Town of Tonawanda Supervisor and Deputy Erie County Executive. "This is the kind of message that developers are looking for when it comes to Buffalo."
Since the COVID-19 outbreak in March 2020, the region - and specifically Downtown Buffalo - has seen a long laundry list of announced projects either stall or outright head into the development graveyard.
At, or near, the top of the list was Sinatra's Heritage Point project - located at the eastern edge of Canalside where Main Street and Marine Drive intersect.
Heritage Point construction started four years ago but rising costs coupled with astronomic interest rates forced Sinatra to put the project on hold.
Heritage Point is anchored by 64 apartments and is one of the first, private sector-backed, residential-anchored developments within the Canalside footprint.
The more the project was put on hold, the more skepticism and ire was directed towards Sinatra.
"This is the third time we heard the project is re-starting," said Mayor Sean Ryan. "I'll celebrate it when the construction actually starts. Until then, it remains an embarrassment on the waterfront."
Sinatra securing the final financing package - which was completed on Feb. 26 - and includes Pegula's involvement was a "critical milestone."
Work will resume in early March and the project should be tenant move-in ready by late summer 2027.
Having Pegula involved is a game changer, said Steve Carmina, Buffalo Place Inc. chairman.
"Terry is doing Buffalo a favor," Carmina said. "He is pushing the project over the finish line."
Some have wondered if a connection can be drawn between Pegula's involvement and his efforts to secure state and local financing for a massive renovation being planned for KeyBank Center - home to the Buffalo Sabres and Buffalo Bandits, two teams owned by Pegula.
That notion has been quickly discounted by Carmina, Calabrese and John Cimperman, a local restaurateur, developer and sports and marketing insider.
"I think Terry views it as one of the missing links that he wants to see developed around the arena," Cimperman said. "To me, his role is more about building critical mass around the arena."
In an emailed statement, Pete Guelli - Bills and Buffalo president of operations - says Pegula is investing in Heritage Point because "he felt it was important to step in to ensure the project is completed as part of his desire to see the area move forward."
Carmina said Pegula's role is more tied to the bricks-and-mortar element of Heritage Point than anything else.
"It's time to put on our big boy pants and get this project done," Carmina said.