Olean Center Mall developer updates Common Council on plans for mall’s redevelopment

By RICK MILLER

Olean Star

Olean Center Mall redeveloper Angelo Ingrassia updated the Olean Common Council Tuesday on setbacks to his efforts to kickstart the mall’s revival. It was not all good news.

Ingrassia, a Rochester businessman who specializes in redeveloping distressed properties, purchased the mall in January 2021 from Zamias Services for $7.2 million. Before selecting Ingrassia as the developer, council members visited Irondiquoit Mall near Rochester, where Ingrassia is reimaging 1 million square feet of former retail space.

Last January, the Common Council approved Ingrassia’s request to declare eminent domain over the mall property in order for him to negotiate new, less restrictive contracts with the mall anchors JC Penney and Kohl’s.

Since then however, the proposed housing developer Ingrassia selected for the site, People Inc., of Buffalo, has pulled out of the project when it failed to receive a state housing grant.

He told the council he is seeking a new housing developer to submit a grant request in June 2027. Grants are usually announced the following spring, Ingrassia said. “I believe we will get approved in the next round.” He is now considering building housing for veterans.

The housing component is key to Ingrassia’s plan to tear down the Bon-Ton store, which faces North Union Street, and build a welcoming new entrance to the property. He said there would be a lot of glass in the new facade. “It would change the dynamic” of the property, he said.

“The key part is to start with the housing piece,” Ingrassia told the council. Beyond that there are few details.

Alderman Joseph Keary, R-Ward 2, asked whether the city would be expected to contribute huge amounts for new infrastructure at the mall property. Ingrassia replied that he did not anticipate that.

Alderwoman Sonya McCall, D-Ward 4, asked about the shift from senior citizen housing and whether affordable housing should be considered. 

Ingrassia said there are many senior housing proposals seeking state grants and that could delay the project for many years. The veterans housing is hard to argue with, he added.  

The mall opened in 1976 and enclosed 355,000 square  feet of retail space. It had two anchor stores, a McDonalds restaurant and a movie theater. There are few stores remaining inside the mall besides the anchors. 

Ingrassia said he narrowly lost out on a bid to locate a new Goodwill store in the mall. The store moved into the former Valu store on West State Street. 

In replying to a question from Alderman David Anastasia, D-Ward 7, about efforts to attract new retailers to the mall, Ingrassia said he had not been successful in those efforts, although he has made inquiries among his contacts and given tours of the mall. 

Ingrassia said he is close to signing a national quick service restaurant for one of the outparcels on the mall property. 

If successful, he said that would draw attention from North Union Street motorists and from other interests looking for space — including office space and non-profit groups. The housing component will also generate interest in the rest of the parcel, Ingrassia said.

Ingrassia said another issue that stalled progress was the delay in the recertification process of the city’s levy system — particularly along Olean Creek, which abuts the mall property. With an ongoing study, that project is on its way to being resolved.

The lack of certification of the city’s levies does not prevent him from selling or leasing other outparcels if the opportunity arises, he said.

“We are doing a conversion of the mall, so we’re trying to be as flexible as we can and to be able to bring in whatever type of tenants we can, such as an office,” Ingrassia said.