NIAGARA FALLS, NY - New York State is making good on its pledge to acquire properties for development near Niagara Falls State Park.
USA Niagara Development Corporation, a division of Empire State Development Corp., recently approved the purchase of a one acre parcel of vacant land on Buffalo Avenue, situated on a bluff above the Niagara River across from Goat Island.
The purchase represents the first orchestrated by the state from a $24 million fund contained within the Buffalo Billion initiative to enhance tourism efforts in Niagara Falls.
According to a proposal presented to the USA Niagara Development Corp. Board, the Maid of the Mist Corp. bought the parcel, which is directly east of the Parkway Apartments, just over a decade ago for $634,000 with plans to build an office for its tour boat operation.
That plan never panned out, however, and the company recently listed the property through a realtor asking $1 million.
USA Niagara Development was able to purchase the land for $850,000 but ideally won’t keep it for long, hoping to lure a developer to take over the parcel which offers sweeping waterfront views.
Requests for Proposals
The state will seek proposals for the land, which it says could be for residential, lodging, or commercial purposes—so long as they fit the character of nearby historic homes and the park which abuts it.
In a statement, USA Niagara Development said, "The purchase of 305 Buffalo Ave. is our first acquisition and is a unique parcel of land…It is our goal to catalyze a development that is consistent with the current zoning regulations as well as physical and visual public access to the overlook and down to the river in perpetuity."
"I think it is wonderful news anytime there's initiatives to put forth new products into the marketplace," said John Percy, President of the Niagara Tourism & Convention Corp. “I think it’s an ideal location to put out for bid."
$850,000 for an Acre of Property?
The land has perhaps been enhanced in its value and attractiveness by the recent removal of a section of the Robert Moses Parkway, which opens up access between the parcel and the nearby river.
That’s something that was key to Faisal Merani when he decided to build the full service Doubletree by Hilton hotel, just up the street.
“One of the deciding factors of building as big as we did, and spending as much as we did, and even building on this patio we are we are standing on right now was because of the work going on at the Parkway,” Merani told 2 On Your Side while during an interview on the patio behind his 180 room hotel, which affords a panoramic view of the waterfront, near where parkway berms once blocked that view. “It increased our views immensely and it's made it so much more pleasurable for our customers to be able to walk right to the waterfront,” Merani said.
The state acquiring properties to flip to private developers is not without precedent.
Earlier this year, after paying more than $4 million for the dormant Hotel Niagara, the state sold the vacant property for one dollar to a developer who plans to spend $42 million to renovate and re-open it.
Although when it comes to building lodging on the state’s newly acquired Buffalo Avenue property, Percy and Merani are uncertain.
"I would prefer that maybe it not be used for more accommodations and instead be used for a year round attraction of some type,” said Percy. “We need things to expand our (tourist) season so that Niagara Falls can become a year round destination.”
“That's what is needed to take Niagara Falls, New York to the next step,” agreed Merani. “We need a couple major attractions and a couple of supporting attractions to make that happen."
It also might seem, given its size limitations, that the parcel would be somewhat limited in attracting either a hotel or an attraction (which would presumably require parking) as it is only one acre in size.