Some frantic negotiations Wednesday prevented the collapse of the sale of Buffalo's Statler Towers. New Buffalo Statler Redevelopment, the group buying the building, missed a deadline Tuesday evening for making a $261,000 deposit.
The attorney for the buyers showed up at federal bankruptcy court Wednesday with a bank check for $261,000 and then negotiated in the lobby with the Statler's court-appointed trustee on whether he'd accept the late payment. After much talk they agreed to move forward with the sale on the condition the purchasing group tacks on an additional $30,000 to the $1.3 million sale price to cover the legal costs that are adding up because of all the twists and turns the sale has taken so far.
"It's very good news for the City of Buffalo," says William F. Savino, attorney for the purchasing group. "After a lot of unforeseen extra work by the attorneys... the payment due has been paid and we adjusted the contract to address some extra expenses incurred."
"We're gratified we've had a resolution that brings us this much closer to closing," says Morris Horowitz, the court appointed trustee for the Statler Towers. "We believe the purchaser is now in a position and has committed significant funds up to today so that we can proceed towards November 30th and get this property closed and in the hands of someone who wants to redevelop it."
The group buying the Statler still has to come up with the remaining $830,000 that's due on the November 30th closing date. That amount is small potatoes compared to the cost of renovating the 800,000 square-foot landmark. Some estimates put the renovations cost at $100 million dollars.
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