University seeks land development

Under a new agreement with development company Ross Wilson & Associates, Inc., a hotel, restaurants, retail stores or apartments could be constructed on the university-owned former Castle Inn properties as early as 2010.

Brenda Snow, senior vice president for finance and administration, said the Williamsville, N.Y., development company signed a memorandum of understanding with the university earlier this year. Under the agreement, the company and the university will work together until August to determine if the company's concept of bringing in a hotel, some restaurants, stores or apartments is feasible.

The university completed the purchase of the former Castle Inn properties, located across from the Townhouses on Route 417, in February 2003 for about $1.8 million. Since then, the university paid more than $500,000 in property taxes, Snow said.

The land, which spans about 17 acres, remains undeveloped after COR Development Company, of Fayetteville, N.Y., failed to land major retailers as required by their former development plan.

COR's contract with the university expired in April 2008.

Snow said Ross Wilson & Associates' initial concept differs from COR's because it doesn't rely on national retailers with stringent business plans and, therefore, may be more successful.

"We had Target for nine months, and then Target changed its business model such that when they ran all the components for this site on it, we didn't make the cut anymore, and then boom-we were gone," Snow said. "That's pretty standard, as I understand, how national retailers look at the feasibility of a site . they have a very structured business model."

The demographics of the area, specifically the small population, made landing a retail anchor difficult, Snow said.

A hotel in the area is an easy sell, according to Snow, because community leaders and others believe the area is "under bedded" in hotel room availability. She added restaurants previously on board for the former COR plan are still interested in signing on to this one if the major anchor company (in this case, perhaps a hotel) commits to building.

Snow cited several reasons an additional hotel is needed for the university community and the greater Olean area. Area businesses, like Dresser-Rand and Olean General Hospital, have several visitors, as does the university.

"(The concept) is tailored to the kind of activity that we have anyway and we think we have some capacity for it. We have capacity for recreation, hotels (and) restaurants."

Snow added the possibility of an apartment development, while not specifically built for the Bonaventure community, could offer alternate housing for students, faculty and staff.

"We know that we do not have accommodations that are sufficient for our graduate student population. In the area market there is not readily available housing, particularly new housing, for faculty or staff we attract," Snow said.

When asked about how the recent national economic downturn could effect the plan's success, Snow said, "economics right now are challenging, I won't deny that ... that's a component that remains to be seen in the feasibility (study)."

Ross Wilson & Associates presented its plan to an invited ad hoc group of deans, vice presidents and other administrators, faculty and staff. The board of trustees was also briefed on the plans, Snow said. In August the board committee for buildings and grounds, considering feedback on the plan from the ad hoc group, will make a decision on whether or not to sign a contract or work further with the development company.

Laurie Branch, adjunct professor of finance and board of trustees member , saw the presentation and said the development would be good for the area, if it reached fruition

"It would be spectacular if they can actually bring to life what they have on paper," she said. "It would be beneficial for the university ... and the community."

David DiMattio, dean of Clare College, who was also invited to see the presentation and give feedback, agreed.

"It definitely has potential for St. Bonaventure faculty, staff and students, but also has a possible large potential for the greater Olean community," he said.

Snow said the details of the business relationship between the university and the company are also being looked into from now until August. The funding for the land's development is up to the developer, not the university, Snow said.

Possible options for the university include retaining the land, having some degree of ownership or selling the land, although Snow said university administrators aim to retain the land.

"The university has had some interest in retaining the land because that, of course, is the ultimate source for control and when you're a 150-year-old institution you're very interested in what is around you in development, not just today but in the future."

According to Ross Wilson & Associates' Web site, the company works on several projects and recently outlined plans for construction of an indoor water park in Salamanca and construction of a 54-unit townhouse complex, called Morningside Estates, on Route 219 in Ellicottville. Snow said the company also has experience in hotel development.

Snow said she would be able to release more information on the specifics of the plan once ongoing discussions between Ross Wilson & Associates and university officials reach completion in August.

"We're hoping to have a wonderfully exciting development right next to the university that is something that is an amenity for our students and maybe some fun restaurants and recreation; that's an amenity in the way of providing for visitors, whether its conferences or parents and friends or other visitors to the university, and that's an (amenity) to the area."e-mail:holfotsm@sbu.edu