The city's development agency Thursday approved terms of a contract with a Batavia company to manage and market Commerce Square, the former Harrison Radiator plant.
The deal with Mancuso Business Development Group, headed by Thomas Mancuso, calls for the company to be paid $1,500 a month as a management fee.
Mayor Michael W. Tucker said Mancuso also will be paid 6 percent of the rent as a commission if he lines up any new tenants for the 473,000-square-foot facility at Walnut and Washburn streets.
The commission will be 3 percent if Mancuso nails down a deal with either of the two mystery manufacturers who already had approached the city about space in the plant.
The Greater Lockport Development Corp. took over the complex last year when it foreclosed on the previous owners for failing to repay about $1 million worth of loans from the corporation.
Corporation Counsel John J. Ottaviano said the city doesn't have the expertise to market Commerce Square effectively. "It gets the monkey off our back," he said.
Tucker said the city will continue to play a role in talks, and employees at Commerce Square will continue to answer to the city.
He said the manufacturing companies have met with the corporation's Commerce Square committee but not with the whole board. Tucker said that would have to happen before a deal could be made.
"We like them," Tucker said of the bidders. "There's a lot of work to do. There are financial questions."
Ottaviano, meanwhile, said First Niagara Bank has paid the development agency $3,000 to cover the costs incurred in foreclosing on the former Brewhaus Coffee and Cafe.