Savarino returns to complete three projects in Buffalo area

But that hasn’t stopped him from acting as a developer, and he’s pursuing major projects in three different counties. After months of uncertainty over the future of the former Welch’s building in Westfield, the F&M building in Lockport and an industrial site in North Buffalo, Savarino still hopes to achieve the goals he originally set for each.

Savarino, a construction industry veteran, was one of the most consistent and active players in the development field for more than 20 years, doing construction work throughout the region and tackling development projects through his Savarino Companies and related entities. But that ended last summer after the New York State Dormitory Authority fired the company for cause in connection with a renovation project at SUNY Alfred State.

The Dormitory Authority had accused Savarino of failing to meet the construction schedule for MacKenzie Hall, failing to correct work it said was done improperly, failing to manage its subcontractor’s asbestos personnel and failing to provide an acceptable plan for using minority and women contractors on the project. It suspended and then fired Savarino in November 2021.

Savarino denied the charges and filed a lawsuit against the Dormitory Authority a year later, accusing the state agency of wrongful termination and breach of contract. But the agency countersued for $4.85 million in damages. Savarino’s bonding company — his insurer — was required to complete the work under the performance bond, with Savarino reimbursing the insurer even though the contractor was not paid.

Savarino suffered $3.3 million in losses and was unable to obtain the insurance it needed to handle its clients’ construction projects, costing it $110 million in new work. So the company essentially shut down last August and laid off its entire staff. And Savarino withdrew from all other work, leaving the three development projects hanging in limbo.

Savarino is now back and is optimistic about his ability to do so. “We plan to move forward,” he said.

Last month, Savarino won a one-year extension on city approval to transform a burned-out factory along Scajaquada Creek into a 50-unit waterfront apartment complex. Construction would take 18 to 20 months, likely beginning in early 2025.

“I bought the property, so I’m committed to doing the project,” he said. “It’s been delayed, but it’s going to go ahead. The plans that have been approved are the ones we’re going to follow.”

The $15 million project by Howell Street Venture LLC would demolish a 10-year-old industrial warehouse that was badly damaged by fire and erect a new building in its place. It also includes a $2 million investment in remediating the heavily polluted parcel as part of the state’s brownfield cleanup program. The proposed five-story, 49,000-square-foot building would contain 14 studios, 28 one-bedrooms and eight two-bedrooms.

Financing is not yet secured, however. The building was originally planned to be a mixed-income building, with units offered at affordable rents based on the area median income. But that no longer works financially, so Savarino would either use a higher percentage of AMI or make all rents market rate.

In the village of Westfield, a partnership between Savarino and another company has agreed to purchase and redevelop the historic former headquarters of Welch’s Grape Juice Co. through 2 Portage LLC. The partners have finalized their $475,000 purchase and received approval from the Chautauqua County Industrial Development Agency for $1.76 million in tax breaks to support the $16.15 million project.

Renovation plans called for the building at 2 S. Portage St. to be transformed into 46 mixed-income residential apartments and 3,700 square feet of commercial space. The project includes 31 one-bedroom and 15 two-bedroom apartments, ranging in size from 500 to 1,200 square feet, with both commercial and affordable pricing.

The project already has funding commitments and low-income housing tax credits, as well as historic tax credits and grants, and Savarino’s team is currently working to finalize architectural plans with the hope of breaking ground by late 2024 or early 2025. As with Howell, however, he is now looking to make all the apartments market-rate.

“The rents you could get at best in Westfield are not the same as what you could get in Buffalo,” he noted. “The rents will be lower than similar housing in Buffalo.”

Savarino had planned to spend $9 million to redevelop the city of Lockport’s former Farmers & Mechanics Building, adding 30 new residences to the historic building. Located at 116 Main St., the building consists of a historic tower and a one-story shopping center dating back to the 1970s. But they’ve been mostly vacant for more than 30 years.

Plans call for 21 one-bedroom apartments and nine two-bedroom apartments, as well as first-floor retail space in the bank’s former lobby. The tower would be restored, while the mall would be gutted and lined with housing along the perimeter and 22 covered parking spaces inside.

Savarino has both buildings under contract with Granchelli Development and has received an 18-month extension of city approval for the project, now valued at $12 million. He is working with Lockport Development Corp. to conduct due diligence and has not requested financing.

But he previously expected to use historic tax credits, a Restore NY grant and $1.4 million from the Downtown Revitalization Initiative, as well as a Main Street grant from New York State Homes and Community Renewal, a first mortgage and loan subsidy.