savarino companies(11617)

City residents may recall a number of years ago when code enforcement officials tamped down on all things unsightly, from overgrown grass and garbage cans left by the curbside to missing address numbers on homes and other property maintenance issues gone awry.

No one is exempt from this policy, and Sam Savarino of Savarino Companies has apparently made the unkempt list for his parcels at 40 Ellicott St. that have apparently been abandoned by the now-defunct Buffalo-based company.

The developer of the stalled Ellicott Station apartment complex received a list of code violations in September, City Manager Rachael Tabelski says.

Code Enforcement Officer Douglas Randall sent a letter to Savarino informing him about the violations.

“After visiting the Ellicott Station project site, the Bureau of Inspections has determined that defects in the building envelop may result in weather deterioration of the wood frame structure and freezing damage to plumbing and/or mechanical systems that may contain water used to test newly installed piping.  We encourage you to take all precautions to winterize the residential building,” Randall said. “Please be aware there are building materials scattered throughout the grounds that present an attractive temptation for passersby and habitation opportunities for rodents and other animals. Access openings into the existing masonry building are unsecured and will likely attract unwanted intrusion through the fencing and onto these properties.”

A list of violations was attached that included cleaning up weeds, plants, grass, rank vegetation in excess of 8 inches, and other debris on the premises, and the need to perform some building site work to make sure the property is secure during the lapse in construction. 

Examples of needed work include “the exterior walls into the interior, the exterior finish system is incomplete, and the roof system in unsecured and loose along the top of the walls in various areas. The wood structure of this building must be protected from weather deterioration,” one violation stated. 

"Exterior walls shall be free from holes, breaks, and loose or rotting materials; and maintained weatherproof and properly surface-coated where required to prevent deterioration," another citation states. 

Yet another stated that “Vacant premises, structures and portions thereof, or vacant land shall be maintained by the owner in a clean, safe, secure and sanitary condition as provided herein so as not to cause a blighting problem or adversely affect the public health or safety.” Corrective action was recommended, given that the interior of this masonry building under reconstruction is open to the public and adverse weather, that the exterior doors and windows of this structure must be secured to prevent unauthorized entry and protect the building from further deterioration.”

Deadlines for taking corrective action began Sept 26 and continue into October, with fines starting at $250 for the city to take care of the necessary maintenance.

To her knowledge, those items have not been taken care of yet, Tabelski said.

“The clean-up has not been satisfied,” she said to The Batavian on Tuesday.

When asked if Savarino has been getting hit with fines, she said: "not yet."

"(It) has not gotten to court yet," she said.

Ellicott Station is a low-income housing development on the city’s Southside. Due to financial entanglements, company owner Sam Savarino announced earlier this summer that he was closing his company, which meant the ceasing of construction at Ellicott Station soon after. 

More recently, tenants who were selected for housing in the 55-unit complex received emails notifying them to consider alternate housing since there was no guarantee they would be getting a new home at Ellicott Station.

Tabelski has also been remaining in contact with other agencies, including the state Office of Homes and Community Renewal, which had contracted with Savarino for low-income housing tax credits upon completion of the apartment complex.

She has not heard back from HCR recently, she said, and has “no new information at this point.” The Batavian plans to provide periodic updates on the status of the four-story project as it sits idle on the sidelines of a busy Route 63. 

While a few prospective tenants of the stalled Ellicott Station strategize their next move, folks at Genesee County Economic Development Center apparently believe they are making headway.

A few of the tenants chosen for the Southside apartment complex are considering possible legal action against Savarino Companies for pulling out of the project that has left them dangling with hope that they might still have a new home come 2024. As one tenant said, it’s about “what Savarino did to all of us, ‘cause it’s not fair to us.”

Meanwhile, Steve Hyde, CEO of the county’s economic center, gave a brief yet vaguely optimistic statement this week that his agency has been working with Sam Savarino and the state Office of Housing and Community Renewal to get Ellicott Station back on track.

Hyde and his lead staff reviewed this past year’s activity during the county’s Ways and Means meeting. As noted in prior articles on The Batavian, City Manager Rachael Tabelski has said that developers have expressed interest in Ellicott Station, and Hyde provided further confirmation that talks are progressing.

“And, of course, our favorite project sits here, nearby. And you know, what I could say about Ellicott Station is I've been in the middle of discussions with the developer, general partner, the investors, and state housing. That's all in the sorting-out phase. But what I can say to you is it's likely we'll see a different general partner coming in at some point,” he said. “And I think what we'll end up with is a project that will be better than what we currently had or what was previously designed. 

"I think there's some additional willingness by the housing HCR to work with us and be a little more flexible. It may not be perfect, but we'll end up with a better situation than we had," he said. "I can’t say any more than that right now. But at least it's in the sorting out phase, and there's quite a bit of interest.”

As for GCEDC’s remaining portfolio, there were 75 projects that “committed $937 million of capital investment” versus the prior 76 projects at a $162 million investment, demonstrating what Mark Masse said was “just a much larger scale.”

After celebrating her 10th year on the Legislature, along with Marianne Clattenburg as EDC liaison, it’s been amazing to watch “the incredible investment that helps our local taxpayers,” Chair Shelley Stein said.

“By having these opportunities for the creation of these businesses, the careers, it enhances our entire foundation of our economy here and careers. Our schools benefit from it. Our communities benefit from the investment,” she said. “So some days are hard, some days are, you know, celebratory days. But this work is important to us here in Genesee County. Thank you.”

Some of those hard days have been dealing with and enduring the lag of that Ellicott Station project, which stopped in mid-August when Savarino announced the closing of his company due to a financial snag with a project at Alfred State College and a loss of more than $3 million. 

Since then, city and county, along with HCR officials, have said they are working on moving forward, potentially with a new developer and financial agreements and construction schedule.

Tenants that were chosen in May for the 55 apartments received word earlier this month that they might want to search out alternative housing options since there’s no guarantee about when Ellicott Station will be ready for occupancy.

Just before 5 p.m. on Thursday, a worker with A-Verdi Storage Containers removed an apparent mobile unit that seemed to have served as the on-site office of Savarino Companies at the Ellicott Station construction site.

The Savarino sign that had been on the unit was removed, and a metal desk and storage cabinet sat on the ground outside of it.

The driver confirmed he was removing the unit from the site and was later seen hauling it west on Ellicott Street.

More than a week ago, Developer Sam Savarino announced he was shutting down his company, citing massive losses from a dispute over a dormitory project at Alfred State College.

While at times it has appeared that work has continued this past week on the $22 million Ellicott Station apartment complex, the project is supposedly without a general contractor with the closure of Savarino Companies.  Sam Savarino has said his management company is still in business, still running the project, and will seek a new general contractor.

City Manager Rachael Tabelski has said there has been no communication from Savarino regarding the status of the project, which is subject to multiple financial agreements involving the city, the state and GCEDC. 

Reached on Thursday evening, Tabelski told The Batavian that there have still been no updates from Savarino. She said she has heard that other general contractors and developers are contacting Savarino, expressing interest in the project.

"The city and GCEDC have been talking with potential developers who have initial interest in taking over the project, but there will be a lot of financials to unwind, if this is in-fact possible to reassign grants and pay off lenders, etc."

She said there is nothing concrete to report at this time, and there is a meeting with NYS Housing and Community Renewal, a major government funder of the project and has expressed a commitment to The Batavian in seeing the project completed.

HCR initially awarded Savarino $1.2 million per year of low-income housing tax credits for 10 years based on his ability to secure investors and more recently awarded Savarino $5.7 million in low-income housing tax credits for the downtown apartment project.

"HCR has been actively monitoring the progress of the construction of Ellicott Station and will continue to do so as we work to ensure completion of this critical project and deliver 55 affordable homes to Batavia,” a spokesperson for HCR told The Batavian a week ago. 

For all of The Batavian's previous coverage on Ellicott Station, click here.

The state Office of Homes and Community Renewal has and will be involved with the Batavia-based Ellicott Station project, which has been thrown into some doubt recently after developer Sam Savarino announced he was shutting down his development firm, Savarino Companies.

An agency spokesperson responded to The Batavian’s request for comment, given that HCR initially awarded Savarino $1.2 million per year of low-income housing tax credits for 10 years based on his ability to secure investors, and more recently awarded Savarino $5.7 million in low-income housing tax credits for the downtown apartment project.

"HCR has been actively monitoring the progress of the construction of Ellicott Station and will continue to do so as we work to ensure completion of this critical project and deliver 55 affordable homes to Batavia,” the spokesperson said Friday. 

The Batavian had asked HCR about its role in the Ellicott Station project, the requirements of receiving the tax credits and if they could be transferred to another developer if Savarino walked off the job. 

The agency further added that:

• No tax credit funds are disbursed until a project is 100 percent completed.
• As with any HCR-financed affordable housing development, a new sponsor will be required to implement the terms of affordability in the existing regulatory agreement. 

It is unclear as to whether the apartment complex will remain in the current very low to low-income level, as per application guidelines on the Ellicott Station website, as city officials have been discussing the possibility of getting those levels raised to include workforce income levels. 

City Manager Rachael Tabelski said Thursday that city officials will be meeting with HCR to further discuss the current situation of Savarino’s company closing and the apartment complex’s income levels and future at a meeting in September. 

Savarino has not responded to requests for further comment since issuing a statement regarding the closing on Tuesday. As is posted on the company website, Savarino Companies, LLC, a full-service construction firm located in Buffalo, New York, will be winding down and ceasing operations.

"The primary factors governing the firm’s decision are ongoing and increasing costs related to a project the company’s surety was forced to complete at Alfred State College, a recent termination of work and the company’s inability to obtain surety bonding or acceptance of alternative performance guarantees for $110 million of 2023 work which the company would otherwise have had underway at this time," the site states. "Without that work, it would not be possible for the company to operate profitably.

"Savarino Properties, LLC, which is an independent company and provides property management services throughout Western New York, will not be impacted."

As of late Thursday afternoon, no one from Savarino Companies had reached out to the city about the fate of Ellicott Station, though there has been some apparent work activity noted at the 50 Ellicott St. site.