BUFFALO, N.Y. (WKBW) — After years of delays, the long-troubled Heritage Point project at Canalside in Buffalo may finally be back on track, with support from Buffalo Bills and Sabres owner Terry Pegula.
According to Empire State Development, Sinatra Development has reported to the Erie Canal Harbor Development Corporation that it has completed the financial closing necessary to move forward with construction of the project.
ESD said ECHDC is requiring Sinatra to resume construction on the project no later than April 1, 2026, weather permitting.
"ECHDC will be closely tracking long-stalled project progress, requiring mandatory monthly construction reports from the developer. As a reminder, no state funds will be distributed to the developer until the project is completed in the spring of 2027," a statement reads.
Pete Guelli, President of Business Operations for the Buffalo Bills and Buffalo Sabres, has confirmed to 7 News that Terry Pegula is stepping in and his investment in the project will allow construction to resume.
Guelli provided this statement:
“After seeing Heritage Point sit stagnant for a number of years, Terry Pegula’s investment will fortunately allow construction to resume. Given the proximity to KeyBank Center and Harborcenter, he felt it was important to step in to ensure the project is completed as part of his desire to see the area move forward. It is disappointing that the project was not managed in a manner that would allow it to be finished, however our community deserves to see growth throughout the downtown region. We have been encouraged by our conversations with the state, county, and city around a shared vision for the waterfront. We are hopeful that our involvement will help the area continue to progress.”
The $40 million mixed-use project broke ground in 2021 but has remained stagnant since March 2024, when Sinatra encountered financing issues.
Despite promises last fall that work would resume "within weeks," the site has remained largely idle.
In a statement, Sinatra & Company called the financing a "critical milestone" for the project's remobilization:
"The financing represents the culmination of years-long efforts to overcome meteoric cost escalation, stubbornly high interest rates, and other persistent challenges in the real estate market. In addition, Heritage Point presents unique site conditions, including environmental considerations and a high-water table, requiring careful planning and execution during its development. SCRE expresses its appreciation to all project partners for their collaboration and commitment in navigating these complexities."
In January, Governor Hochul said she was "so frustrated" when asked about the stalled development.
WATCH: Governor Hochul expresses frustration over stalled Heritage Point development at Canalside.
Hochul said in January that the deal with Sinatra was made under the Cuomo administration, leaving the state with limited options to change course. She said future contracts would include more restrictive language based on lessons learned.
City leaders reacted to Sinatra Development's update on Thursday.
"It's been a while, and that's an embarrassment on our waterfront," said Buffalo Mayor Sean Ryan, "I'm optimistic that if Terry Pegula is going to become involved, this will get the project moving, but remember, it's not Terry Pegula's project, so we have to work with the developer who doesn't seem too keen on getting this project done."
"The Pegulas have a big stake in the KeyBank Center, and they have a large part of the success of Canalside relies on the arena and activity there," said Fillmore District Council Member Mitch Nowakowski. "For Buffalonians and people that have a stake in the area to finish financing it gives me more hope that this project will see completion."
WATCH: After years of delays, the Heritage Point project at Canalside may finally be back on track
