Tag Archives: Community Development Block Grant

$5MM in Poverty-Reduction Funds to Statler?

24 Mar

Poverty Reducer

Local restaurateur, developer, parking lot owner, and friend-of-Byron’s Mark Croce famously announced that he would commence an incremental rehabilitation of the Statler Towers. For the time being, only the first two floors will be rehabbed to re-enable the ballrooms to be used for events. The upper floors will be rehabbed as the market demands. The deal amazingly closed for only $700,000; in order to make the Statler commercially viable, he will have to repair of the exterior details, many of which have decided to plummet to the ground in recent years.

In order to do that, Croce has applied for a $5.3 million grant from the City of Buffalo, which would likely come from its Community Development Block Grant funding. That money, however, arises out of a HUD program to provide affordable housing and jobs for poverty prevention. Its purpose is to directly benefit low and middle-income people and reduce neighborhood blight. What that has to do with rehabilitating a millionaire’s $700,000 hotel rehab is beyond me.

Add to that the fact that it was announced just yesterday that a Croce LLC just closed on a $1.2 million Orchard Park mansion. I’m sure congress had in mind that CDBG money would go to help develop a crumbling downtown hotel owned by someone who can afford to plunk down $1.2 MM for a nice 12,800 SF house in a tony suburb. Right?