By RICK MILLER
Olean Star
OLEAN — The Olean Common Council voted unanimously Tuesday to help the Olean Center Mall owner to more quickly redevelop it into a multi-purpose, mixed-use project.
Rochester developer Angelo Ingrassia, who purchased the 355,000 square foot mall in January 2021, said outdated lease restrictions for anchor tenants has stalled redevelopment and asked the city to use eminent domain for “narrowed proposed interests” in order to get the project started.
Allison Fiut of Harris Beach, a Rochester law firm hired by the developer to look after the city’s interests, said the eminent domain action would apply to the Kohl’s and JC Penney anchor stores in the otherwise mostly vacant mall. KeyBank is no longer part of the action, she said.
The council voted unanimously on both a State Environmental Quality Review Act (SEQRA) resolution and the eminent domain resolution. That was a big change from the 4-3 vote in March 2025 to set a public hearing on the issue of using eminent domain and a 3-3 deadlock on the issue the previous month.
Fiut told aldermen on Tuesday that for plans to go forward, the developer needs to acquire the interests in lease restrictions from Kohl’s and JC Penney.
Ingrassia continues to be involved in discussions with representatives from Kohl’s and JC Penney “toward the voluntary relinquishment of certain rights,” she said. Unless the restrictions are lifted, the developer’s ability to modify the site’s footprint into “something other than a traditional retail shopping mall” will be inhibited.
The developer is seeking to extinguish certain restrictions including building height restrictions, footprint restrictions, common area restrictions and approval rights.
Fiut emphasized that no specific development plan has been committed to by the developer, nor does either of the resolutions give approval for any construction. The mall owner needs flexibility in order to make the mixed-use plan work and wants both anchor stores to remain.
There is also a housing component to the project. It has changed a couple of times.
Mayor Amy Sherburne told the Olean Star the housing proposal is now 60 market rate apartments in a two-story building. It would be near a portion of the Bon-Ton building, part of which will be demolished.
Alderwoman Sonya McCall, D-Ward 4, said she was glad to see Ingrassia had reached out to Kohl’s and JC Penney, something he had not done prior to the public hearing last May.
Ward 5 Aldeman John Crawford said he expects the eminent domain resolution to bring the anchor stores back to the negotiating table to talk about the restrictions Ingrassia wants lifted.
The developer said last year he has extended the stores’ leases by 10 years.
Council President Vernon Robinson Jr., D-Ward 6, said no one likes to talk about eminent domain, but it is a common practice in New York state to extinguish outdated lease restrictions.
In other action, the council approved a resolution asking the State Legislature to permit the city assessor to accept a retroactive application for a real property tax exemption for Operation Warm Hearts location on North Fourth Street.
