By RICK MILLER
Olean Star
OLEAN — The Olean Common Council voted 4-3 at a special meeting Thursday to set a public hearing on whether to authorize the city to use eminent domain if necessary to acquire certain real property rights from Olean Center Mall tenants for the developer.
The council deadlocked 3-3 on the eminent domain question at its Feb. 11 meeting when Alderman Jason Panus, R-Ward 2, was absent.
At Thursday’s special meeting where all seven aldermen were present, Panus joined Common Council President John Crawford, D-Ward 5; Vernon Robinson, I-Ward 6, and Jennifer Forney, R-Ward 3, for a majority on the eminent domain question.
Voting no were Aldermen Lawrence Bennion Jr., R-Ward 1; Finance Committee Chairman Sonya McCall, D-Ward 4, and David Anastasia, D-Ward 7.
The vote came after a half hour executive session, where aldermen and Mayor Bill Aiello huddled with developer Angelo Ingrassia, who has proposed a $40 million redevelopment of the aging Olean Center Mall, which he purchased last year.
As Crawford sought a council vote to go into executive session, Anastasia said, “Everyone knows what’s going on. Why do we need to go into executive session?”
Crawford responded that since the issue involved property, the council deserved to hear about it in executive session.
Crawford said after the executive session that the council got clarifications and some of their questions answered with regard to Ingrassi’s plans for the mall. Besides JC Penny and Kohl’s, the mall is nearly a shell, he said.
McCall said she supports redevelopment of the mall, but the developer should bear the responsibility of negotiating with tenants, not the city.
Anastasia said he agreed with McCall. He wants the mall to be redeveloped, but doesn’t want the city to set a precedent by imposing eminent domain.
Last month he cited concern that the city would be looking at a major sales tax loss if the eminent domain issue caused either of the two anchor retailers to rethink their presence in the mall.
Anastasia noted city attorney Bridget Marshall was not present due to a family medical emergency.
Forney said that in order to promote economic growth, the council needs to do what is necessary to move the mall redevelopment forward.
Crawford said it was proper for government to get involved in a project to produce meaningful progress.
Asked after the special meeting what benefits the eminent domain issue would produce for Olean Town Centre redevelopment project, Ingrassi declined to comment. An aide said the resolution calls for a public hearing under Eminent Domain Procedure Law. No date was immediately set for the hearing.
The developer is seeking a mixed-use facility including commercial and residential to add to the two major retail stores. Some of the site interest rights might interfere with the redevelopment.
The resolution states the city “desires to acquire the site interest rights to induce the company — Spot On Development — to redevelop the 18-acre site.
Site interest rights negotiated under the previous mall owner, George D. Zamias, could hamper the mall’s redevelopment.
Ingrassi provided a draft acquisition agreement to the city to aid in obtaining site interest rights — through negotiations or condemnation.
The Common Council voted last year for a study of possibly relocating the Youth and Recreation and Senior Services departments to the mall as it is redeveloped.
Ingrassi has spoken about plans to first demolish a portion of the former Bon Ton store. The redevelopment will be done in phases over a couple of years.
Not part of the mall redevelopment are plans for People Inc. of Buffalo to build an apartment facility on the mall property — between the mall and Olean Creek in an area that is currently a parking lot near the North Barry Street entrance.
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