Photo by Howard Owens.
As Ellicott Station, the four-story apartment complex in Batavia’s downtown Southside, remains unfinished and behind schedule of what was previously announced for a summer opening, Samuel Savarino of Savarino Companies confirmed Tuesday that the 23-year-old company “will be winding down and ceasing operations,” according to The Buffalo News.
Savarino said that the company would be laying off 30 employees after being unable to overcome significant financial losses following its dismissal from a state-funded SUNY construction project, the article states.
The Batavian called City Manager Rachael Tabelski and Samuel Savarino for comment and received an emailed response from Savarino confirming that the company will be "winding down and ceasing operations," however, it offered a thin promise for Ellicott Station's future completion.
UPDATED 4:12 p.m.: "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. Without that work, it would not be possible for the company to operate profitably," the email stated. "Savarino Properties, LLC, which is an independent company and provides property management services throughout Western New York, will not be impacted.
"Savarino Companies, LLC is actively working to achieve the best outcomes for its employees, clients and vendors. The firm is working with its clients, and in some cases, its surety to complete work on active projects and, where needed, is making arrangements with replacement contractors for upcoming work the company was slated to perform," the company stated. "The status of several initiatives and development projects that Savarino Companies was affiliated with has yet to be determined."
City Manager Rachael Tabelski said that the city had not been contacted by Savarino Companies before the announcement and is, therefore "reviewing and evaluating all information as it comes forward."
"Over the past month, the City has worked with the Genesee County Economic Development Center (GCEDC) to demand Savarino Companies provide workforce housing at Ellicott Station as promised in their applications to the State and City. The City will be meeting with regional and state partners to seek assistance to move the Ellicott Station Project forward," Tabelski said Tuesday. "As more details become available, we will update the community.”
Savarino also emailed reports of the many charitable organizations that the company has supported over the years of its existence.
Photos by Howard Owens.
