Buffalo's brownfields development: Successes with former industrial sites lead to significant acquisition

On the heels of the grand opening of the new regional headquarters for Blue Cross/Blue Shield of WNY—one of the largest brownfield remediations in the state of New York—the city of Buffalo recently announced the acquisition of the South Buffalo former brownfield property known as "Steelfields." This acquisition will bring 185 additional shovel ready acres of prime industrial/commercial land to the city's inventory. The total price, $4.638 million, will be financed by the city and purchased through the Buffalo Urban Development Corporation (BUDC). The Memorandum of Understanding was signed in November for the future BUDC-financed purchase with Steelfields, Ltd. president Gary Smith. The agreement between the city and Steelfields, Ltd. represents a significant step forward in the redevelopment of the city of Buffalo's former vacant industrial brownfields and opens the way for greater private sector investment and job creation in Buffalo. The additional 185 acres of shovel-ready land will further strengthen the already significant activity that is occurring in the Buffalo Lakeside Commerce Park, which is adjacent to the south of the Steelfields site. The site was once Republic Steel and Donna Hanner Coke, both ceased operations in 1982. Steelfields Inc. acquired the property in 2002 and began the cleanup in 2003. According to the NYS Department of Environmental Conservation, it was one of the most expensive and largest privately-funded cleanup projects ever done under the NYS Voluntary Cleanup Program. The funding for the clean up came from the bankruptcy of Republic Steel and Donner Hanna Coke. The Steelfields site is home to the new HydroAir Components Inc. manufacturing facility, which opened in January 2007. The company has invested $8.5 million in the new 160,000 s/f manufacturing facility (which sits on a 31-acre parcel), employing 114 jobs, which is expected to grow an additional 200 new jobs. The city of Buffalo is experiencing an unprecedented period of investment and development activity, which exceeds $4.4 billion in announced projects and the addition of the 185 acres from the Steelfields site will significantly enhance our development capabilities. The continuing development of the Buffalo Lakeside Commerce Park demonstrates that the city of Buffalo can compete for new development opportunities and that we can attract businesses that bring new jobs and future business growth to Buffalo. The city of Buffalo, through the BUDC, has owned or developed 225 acres in the Buffalo Lakeside Commerce Park, which includes the new business homes of Cobey, Inc. ($10 million investment, 70 jobs) and CertainTeed ($12 million investment, 200 jobs). In addition, Sonwil Industries is investing $13.2 million in a new 300,000 s/f distribution center in the park and plans to build a second 300,000 s/f distribution center within the next two years. Also, Philips & Burns LLC, a national debt recovery firm, said that it will construct a new $4 million, 30,000 s/f facility in the Buffalo Lakeside Commerce Park - the first office-only building to be constructed in the expanding business park. The company currently has 47 employees and expects to add 100 new employees over the next three years. The city, the Buffalo Economic Renaissance Corporation, the Buffalo Urban Development Corporation and the Erie County Industrial Development Agency will continue to work closely on brownfield restoration and business development. Steelfields received its NYS Department of Environmental Conservation Brownfield Site Certificate of Completion in 2007. The DEC's Certificate of Completion provides liability protections for the owners of the site, developers and lessees and will also help identify the availability of tax credits for those who are eligible. Following the signing of the MOU between the city and Steelfields LLC, the city of Buffalo will facilitate the acquisition of the Steelfields property by BUDC. The final transaction will be subject to approval of the Common Council of the city of Buffalo and the Buffalo Fiscal Stability Authority. The Steelfields site falls within the federally designated Renewal Community area. The city of Buffalo, through its state and federal designation as a Renewal Community and its administration of the state Empire Zone program, is able to facilitate economic development, with the assistance of its local and state partners, chiefly the Buffalo Niagara Enterprise, Erie County Industrial Development Agency and the Empire State Development Corporation who offer incentive packages to reduce development costs and operation expenses. Byron Brown is the mayor of the city of Buffalo.