CITY OF LOCKPORT: GLDC defends Canal Street aims

By Joyce Miles<br><a href="mailto:joyce.miles@lockportjournal.com">E-mail Joyce</a>

Whose job is it to set a course for development of public buildings and grounds?

When it comes to city-owned property, 4th Ward Alderman Andrew Chapman asserts it’s the Common Council’s job.

Behind the scenes, several city officials said, Chapman has been highly critical of Greater Lockport Development Corp.’s desire to sell four Canal Street properties to inLighten, a global digital media technologies company.

Out front Wednesday, Chapman proposed that when city-owned property is up for sale or lease, the Council should set “parameters” for the negotiations, not leave them to the GLDC board of directors, alone.

To the Council’s work session, he brought a list of items he thinks the Council should agree on before GLDC negotiates anything: Price, type of business, proof the business is financially stable, job creation benchmarks, analysis of physical impact on nearby existing businesses, “continuity to the mission of the general area, etc.”

Chapman insists he’s not “1,000 percent opposed” to inLighten taking over the Canal Street properties, but since they were developed with public dollars on the premise they’d eventually house small retail and tourism-related businesses, he wants an explanation why GLDC is now wooing inLighten, a manufacturer, instead.

He got an answer from GLDC board members directly. Eight of them showed up for the work session, unexpectedly for Chapman, to publicly defend the board’s course — and face a related criticism that it’s not supportive enough of local small businesses.

Of GLDC’s ongoing negotiations with inLighten, board member Mary Murphy said, “I think we’re being criticized for looking outside the box.”

It’s been difficult trying to get the Canal Street buildings occupied due to their “envelope” condition, board members have said. The exteriors were restored by developer/former GLDC partner Ben Kendig but the interiors are gutted. There are no walls, floors, plumbing or HVAC; that way, the thought went, tenants or buyers could design the interiors to fit their individual needs.

The problem with envelopes: Somebody has to foot the bill for interior buildout, either the tenant/buyer or GLDC. The agency doesn’t have the cash — and neither, it seems, do most small businesspeople who’ve expressed interest in a building.

Late last year, inLighten proposed buying all four buildings, for $100,000, and investing $1.5 million in development of new company headquarters on the block. The Depew-based business would move 70 jobs here and create 25 new jobs, according to its proposal. Its annual payroll is said to be about $4.5 million; and the paychecks go to engineers, software developers and programmers, tech support specialists, editorial staff.

“Nobody else has come running to us and said, ‘We’ll put a million dollars into this,’” GLDC board member Chris Boron said.

Nobody else has proposed a business that would bring 100 jobs and year-round additional foot traffic downtown, either, Murphy said.

In fact, she added, over the past couple of years, GLDC has seen only two “true proposals” for developing Canal Street: inLighten and Jack Martin’s proposal to buy 79 Canal St. and open a local wineries’ cooperative.

“We’d love to see (Canal Street) as a tourist block. It’d be great for Lockport,” Murphy said. “If somebody has a proposal, present it.”

“A lot of people have come in with grandiose plans — and no money,” GLDC/City Attorney John Ottaviano said. “A major part of Kendig wanting out (of Canal Street development) is the market. He told us: ‘I can’t do what you want me to do.’ ”

Small retailers who’ve pitched a new business on Canal Street typically are looking for money — GLDC loans and/or grants — in addition to real estate, board member Dan Wilson said.

Noah’s Ark owner Kathy O’Keefe attended the work session and complained of what she said was GLDC’s less-than-effusive reception of her pitch to open a toy museum at 57 Canal St. last year. She claimed GLDC director William Evert refused to quote her a price to buy or lease the building. Shortly after she gave Evert and GLDC consultant Harry Sicherman the outline of her idea, she added, Mayor Michael Tucker informed her that the building she wanted had just been tentatively claimed — by inLighten.

Bothering her most since then, she said: Nobody from GLDC has offered to help her develop the museum elsewhere in the city.

“I know we’re just a toy store, but we’re the only one in town. Other businesses are closing, and we’re still standing. When somebody like me comes to the table with an idea, I expect to be treated with the same (enthusiasm) shown to bigger businesses, if not more,” O’Keefe said. “If you truly want to bring more businesses downtown, start listening to the ones that are already here.”

GLDC Board Member Dennis Devine answered the critique by saying the members “should hear a positive message ... . Maybe we can improve.”

Chapman, who seemed flustered by GLDC directors’ presence at the work session, said repeatedly that he’s not necessarily opposed to inLighten occupying Canal Street, nor was he “insinuating” anything negative about the board in suggesting the Council set broad sale terms for it.

Unlike Harrison Place, which is owned outright by GLDC, the Canal Street properties are owned by the city and were leased to GLDC for development/management.

“You are the selling agent, we are the ones held accountable,” Chapman said of GLDC and the Council. “We need to help you; that’s all I’m suggesting.”

Tucker, who doubles as GLDC president, suggested Chapman was in fact making insinuations about GLDC’s competence. The items on Chapman’s proposed “parameters” list have all already been considered by the board as it’s negotiating with inLighten, he said.

“These are all business people in our community. I think it’s very wrong for anyone to assume GLDC hasn’t done its due diligence ... . Their job is to promote economic development when it comes to them,” Tucker said. “We all wanted (tourism development) on Canal Street, but at the end of the day (inLighten) may be better than anything else we could have received.”

Contact reporter Joyce Miles at 439-9222, ext. 6245.

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