Orchard Park-based Krog will have to resubmit its application for tax breaks for its project to redevelop the Trico building now that it has lost Emerson School of Hospitality as a tenant, according to Erie County Industrial Development Agency officials.
The agency granted $3 million in tax breaks for the project last August, which are no longer valid since it was based on a plan that included Emerson, ECIDA CEO Steven Weathers said.
A revised application is expected, with new plans for the former Emerson space, but it will likely not be considered by the ECIDA until at least the agency's March board meeting, officials said.
Besides the school, Krog's plan for the sprawling 10-story complex also included a 120-room extended-stay hotel, 150 apartments, office and retail space, and a parking ramp.
The change in plans has also again delayed Krog's $35,000 purchase of the 617,000-square-foot building, which is still owned by an affiliate of the Buffalo Urban Development Corp.
The acquisition has already been held up for over two years because of due diligence and other complications, including financing. The developer is also awaiting final approval of a Buffalo Building Reuse Project loan, but was turned down on an application for a $500,000 state grant through the New York Main Street program.
Krog is still able to access the 10-story building to perform some necessary stabilization and preparation work inside, under an agreement with BUDC.
"Everything that they’re doing in the building is still to our benefit, even if they were eventually to walk away from the building," said BUDC President Peter Cammarata.