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November 2007 > City of Buffalo Acquires Steelfields Property

City of Buffalo Acquires Steelfields Property

Source/Contact
Office of the Mayor
Peter K. Cutler
Director of Communications
716-851-4841

185 shovel ready acres coming to the City for future development

Mayor Byron W. Brown today announced that the City of Buffalo is acquiring the South Buffalo former brownfield property known as “Steelfields.”  This acquisition will bring 185 additional shovel ready acres of prime industrial/commercial land to the City’s inventory.   The total price, $4,638,250, will be financed by the City and purchased through the Buffalo Urban Development Corporation (BUDC).

Mayor Brown signed a Memorandum of Understanding for the future BUDC-financed purchase with Steelfields, Ltd. President Gary E. Smith.

“Today’s agreement between my Administration and Steelfields, Ltd. represents a significant step forward in the redevelopment of the City of Buffalo’s former vacant industrial brownfields and opens the way for greater private sector investment and job creation in Buffalo,” said Mayor Brown. “These additional 185 acres of shovel-ready land will further strengthen the already significant activity that is occurring in the Buffalo Lakeside Commerce Park, which is adjacent to the south of the Steelfields site.”

The Steelfields site is home to the new HydroAir Components Inc. manufacturing facility, which opened in January 2007. The company has invested $8.5 million in their new 160,000 square foot manufacturing facility (which sits on a 31-acre parcel), employing 114 jobs, which is expected to grow an additional 200 new jobs.

“The City of Buffalo is experiencing an unprecedented period of investment and development activity, which exceeds $4.3 billion in announced projects and the addition of the 185 acres from the Steelfields site will significantly enhance our development capabilities,” said Mayor Brown. “The continuing development of the Buffalo Lakeside Commerce Park demonstrates that the City of Buffalo can compete for new development opportunities and that we can attract businesses that bring new jobs and future business growth to Buffalo.”

The City of Buffalo, through the BUDC, has owned or developed 225 acres in the Buffalo Lakeside Commerce Park, which includes the new business homes of Cobey, Inc. ($10 million dollar investment; 70 jobs) and CertainTeed ($12 Million dollar investment; 200 jobs). In addition, Sonwil Industries is investing $13.2 million in a new 300,000 square foot distribution center in the Park and plans to build a second 300,000 square foot distribution center within the next two years.   

Earlier this week, Philips & Burns LLC, a national debt recovery firm, announced that it will construct a new $4 million, 30,000 square foot facility in the Buffalo lakeside Commerce Park – the first office-only building to be constructed in the expanding business park. The company currently has 47 employees and expects to add 100 new employees over the next three years.

“I thank our partners in the Buffalo Economic Renaissance Corporation, the Buffalo Urban Development Corporation and the Erie County Industrial Development Agency who we have worked closely with on brownfield restoration and business development,” said Mayor Brown.

Following the signing of the MOU between the City and Steelfields LLC, the City of Buffalo will facilitate the acquisition of the Steelfields property by BUDC.  The final transaction will be subject to approval of the Common Council of the City of Buffalo and the Buffalo Fiscal Stability Authority.