By RICK MILLER
Olean Star
OLEAN — Talks are underway with Cattaraugus County lawmakers, Olean officials and the Cattaraugus County IDA on plans for tax breaks to help redevelop the aging Olean Center Mall.
The IDA last week tabled a revised application for a $40 million project called Olean Towne Centre and owned by Angelo Ingrassia of Rochester.
IDA executive director Corey Wiktor said Wednesday he is planning to review the project with city officials as directed by the IDA board.
Members questioned the assessed value of the mall property — now $450,000 — not the proposed payment in lieu of taxes (P.I.L.O.T.) agreement.
The assessed value is set by the Olean city comptroller.
Olean Town Centre LLC is seeking $1.5 million in sales tax exemption and $437,991 in mortgage tax exemption plus a P.I.L.O.T.
The proposed P.I.L.O.T. calls for no increase in the property tax over the current rate for 10 years. In year 11, the P.I.L.O.T. would be $82,784; year 12, $168,878, year 13, $258,384; year 14, $351,402 and year 15, $448,038.
The discussion on the application started with IDA members Joseph Snyder and Ginger Schroder saying they were each a “hard no” on the project as things stand.
Snyder questioned reducing the assessment of the mall to $450,000 after Ingrassia paid $5 million for it a few years ago. That meant other City of Olean taxpayers paid the difference in taxes to the tune of about $190,000, he said.
“Until they fix that, I’m a hard no,” he declared.
IDA Chairman Thomas Buffamante told Snyder all the board was seeking at this time was a public hearing on the plan.
“The aim is to revitalize the mall and infrastructure,” Wiktor said.
“It needs to be done fairly and not on the backs of others,” replied Snyder. “I have no problem with a P.I.L.O.T., but the assessment is unfair.”
The mall has anchor tenants J.C. Penney and Kohl’s on opposite ends of the existing mall. A pizza store, a jewelry store and an arcade are all that remains open in the rest of the mostly deserted mall. There are about 20 vacant storefronts.
Wiktor said Ingrassia was the only one who stepped up to the City of Olean’s invitation to take over and reimagine the mall. If he doesn’t do it, I don’t know what would happen.”
With at least three IDA members opposed to moving forward on the mall project at this time, no public hearing was set. Wiktor was asked to meet with city officials for further discussions.
Attorney Brandon Cottrell of Hodgson Russ, who represents Ingrassia, submitted additional information on proposals to divide the mall property into six lots, with plans to undertake projects on each lot.
The company had already disclosed that it wants to partially demolish the former Bon-Ton store, retaining and renovating about 20,000 square feet of space and creating an inviting new entrance. That project is expected to cost $6.5 million.
Also, three 3,000-square-foot buildings valued at $2.8 million each, a multi-phased project involving demolition of former tenant spaces, $345,000; replacement of common area ceilings, $126,000; facade restoration, $200,000; roof replacement, $1.1 million; new tenant build-outs, $11.1 million; equipping common areas, $2 million and soft costs of $400,000 for a total of $16.2 million for Lot 5
The last lot involves the construction and equipping of a 35,000 square-foot building for $9 million.
There have been few other details on what the different lots would be used for.
Ingrassia had also sought a housing component as a separate multi-story building on the site, adjacent to the mall. People Inc. of Buffalo would build the housing.
The City of Olean has commissioned a study on renovating space at the mall to house the city’s Youth and Recreation services and the current John Ash Community Building. That study, by Plywood Studios, Allegany, has not yet been completed.
Mayor Bill Aiello said last week he wasn’t sure what the IDA was looking for from the city.
Assessor Greg Piechota said the mall’s assessment was cut to $450,000 to reflect its value given all the work that is needed at the aging mall. Ingrassia assumed mortgage payments with $450,000 in cash to purchase the mall.
“My job is to make sure everyone pays their fair share — market value,” Piechota said.
Aiello said in order to remake the mall property, the city has embraced a private/public partnership in order to create a community space. A meeting is coming up soon with Plywood Studios and city officials on their proposal for space for the city’s Youth and Recreation Services and John Ash Center, Aiello said.
“Angelo has a good plan,” the mayor told the Olean Star. “I don’t understand all this from the IDA.”
Keri Kerper, director of Community Development, said the city has received two state grants — a $2 million grant from Empire State Development and $1.25 million from Restore NY toward the project.
“We are elbow-deep in this project,” Kerper said. “This is the last piece of downtown Olean that needs revitalization,” she said.
City officials have decided a mixed use for the mall is the way to go in the future, the mayor said. He said it seems the project is being held up by the IDA without a good reason.
