BUFFALO, N.Y. (WKBW) — Governor Kathy Hochul shared strong words Monday about the lack of progress on Heritage Point, a $40 million mixed-use development project at Canalside that has sat largely idle for nearly two years.
"I am so frustrated with this project," Hochul said when asked about the stalled development in the heart of one of Western New York's largest tourist destinations.
The public-private partnership broke ground in 2021 but has faced numerous delays over the years. Construction ground to a halt in March 2024 when developer Sinatra and Company encountered financing issues.
WATCH: 'Nothing's going on': Reaction to delay of $40 million Heritage Point Project on South Aud Block at Canalside
"It's practically in my neighborhood. I ride my bike down there. I walk by there in the summertime. And I can understand the seething frustration that is felt by many," Hochul said.
Despite promises last fall that work would resume "within weeks", the site remains largely idle, with only two workers spotted on Monday.
WATCH: Heritage Point project at Canalside set to resume construction 'in the coming weeks'
Hochul said the deal with Sinatra and Company was made under the Cuomo administration, leaving the state with limited options to change course.
"I've examined this. What rights does the state have to basically say we want someone else to do this. We have looked down the path; we've attempted this before," Hochul said.
The governor expressed frustration with the contract language that constrains her ability to act.
"I'm constrained by the contract language. What I want to do, and what I legally can do, are two different things on this. There would have been different leadership, there would have been a different developer, because it's taking too damn long," Hochul said.
Matt Connors, VP of Development for Sinatra Development, shared his company's frustrations surrounding the delays in a statement.
"We want to make it clear that we have stayed committed through unprecedented economic conditions, historic interest rate increases, construction cost escalation, and a severely constrained tax credit equity market that has impacted major projects nationwide as well as locally," Connors said.
Connors told reporters in October that closing documents for financing had been prepared.
WATCH: 'Get the damn thing done': Erie County Executive demands action on development of Heritage Point
On Monday, he said the process continues, adding that once Sinatra and Company closes on full project financing, the project will be completed in 12 to 13 months, likely pushing construction into 2027.
Hochul said future contracts will include more restrictive language based on lessons learned from Heritage Point.
WATCH: Governor Hochul expresses frustration over stalled Heritage Point development at Canalside
"The contract that was let to allow for this developer to be selected and go forward, they are not as restrictive as I'm going to write with future projects with the lessons learned here," Hochul said.
Here is the full statement from Matt Connors, VP of Development at Sinatra Development.
"We understand the frustration surrounding Heritage Point, and we share it. This is one of the most important development sites in Buffalo, and as Buffalo natives, this project matters deeply to us personally and professionally. We want to make it clear that we have stayed committed through unprecedented economic conditions, historic interest rate increases, construction cost escalation, and a severely constrained tax credit equity market that has impacted major projects nationwide as well as locally. The remaining work on this project is about capital execution, not intent. Our company and our investors have invested over $14M to date and intend to invest much more. We are actively working with our tax credit investor, lenders, and public partners to finalize the remaining capital stack in a responsible way that protects the long-term success of the project and the public interest. Once we close the full project financing, we will complete the project in the next 12-13 months. We have been working closely with Erie Canal Harbor Development and with other state and local stakeholders to get to this point and remain fully committed to delivering the project that was envisioned for Canalside. Our focus remains on getting Heritage Point built the right way, with the right financing, so it can be a successful project for Buffalo for generations."
