The Bona Venture

Issue date: 5/1/09 Section: News

Media Credit: Becky McKeown A new agreement with Ross Wilson & Associates could lead to the development of former Castle Inn property.

Under a new agreement with development company Ross Wilson & Associates, Inc., a hotel, restaurants, retail stores or apartments could be constructed on the university-owned former Castle Inn properties as early as 2010.

Brenda Snow, senior vice president for finance and administration, said the Williamsville, N.Y., development company signed a memorandum of understanding with the university earlier this year. Under the agreement, the company and the university will work together until August to determine if the company's concept of bringing in a hotel, some restaurants, stores or apartments is feasible.

The university completed the purchase of the former Castle Inn properties, located across from the Townhouses on Route 417, in February 2003 for about $1.8 million. Since then, the university paid more than $500,000 in property taxes, Snow said.

The land, which spans about 17 acres, remains undeveloped after COR Development Company, of Fayetteville, N.Y., failed to land major retailers as required by their former development plan.

COR's contract with the university expired in April 2008.

Snow said Ross Wilson & Associates' initial concept differs from COR's because it doesn't rely on national retailers with stringent business plans and, therefore, may be more successful.

"We had Target for nine months, and then Target changed its business model such that when they ran all the components for this site on it, we didn't make the cut anymore, and then boom-we were gone," Snow said. "That's pretty standard, as I understand, how national retailers look at the feasibility of a site … they have a very structured business model."

The demographics of the area, specifically the small population, made landing a retail anchor difficult, Snow said.

A hotel in the area is an easy sell, according to Snow, because community leaders and others believe the area is "under bedded" in hotel room availability. She added restaurants previously on board for the former COR plan are still interested in signing on to this one if the major anchor company (in this case, perhaps a hotel) commits to building.

Snow cited several reasons an additional hotel is needed for the university community and the greater Olean area. Area businesses, like Dresser-Rand and Olean General Hospital, have several visitors, as does the university.

Continued...

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