By James Fink
Business First

As expected, the sale of the Statler Towers was approved Tuesday afternoon by a U.S. bankruptcy judge.

Hon. Carl Bucki approved the $1.3 million sale to New Buffalo Statler Development LLC, a partnership headed by local businessmen William Koessler, Richard Sterben and Tom Zawadzki, who out bid one other party on Aug. 12 for the fabled-but-ailing downtown Buffalo landmark.

Bucki's approval is one of the final steps before the 18-story building, which overlooks Niagara Square, can be turned over to New Buffalo Statler Development LLC. A closing is tentatively set for Aug. 28, although it may be pushed back a few days if the pre-closing due diligence takes longer than expected, said David Pfalzgraf Jr., attorney for the ownership team.

The 40-minute hearing was delayed by nearly an hour as Pfalzgraf and other attorneys worked on specific lease arrangements concerning cell-phone transmission towers on the building's roof. The towers are run by Sprint and Verizon.

Kimberly Colaiacovo, Sprint's local attorney, said she remains "optimistic" that the lease issues can be resolved.

"I'm optimistic there will be fruitful discussions," she said following the hearing.

Amherst attorney Morris Horwitz, whom Bucki appointed as Statler trustee this spring when the building was placed into involuntary Chapter 11 protection, said he doesn't anticipate any legal potholes to emerge that would delay the closing.

"It doesn't appear there is anything unusual in this type of commercial transition," Horwitz said.

New Buffalo Statler Development has already invested nearly $350,000 in the deal, including pre-closing payments and agreeing to take on insurance payments totaling just under $11,000.

The New Buffalo deal will end the three-year ownership of British investor Bashar Issa, who bought the building in 2006 with hopes of renovating the historic structure. Issa is facing legal and financial troubles in both Buffalo and Manchester, England.

New Buffalo plans a multi-phase renovation effort that may top $100 million. Tentative plans call for a mix of a 235-room hotel, 111 apartments, Class A office space, two restauranta and a jazz club, all anchored by the Park Lane Catering operation on the building's main floor.

Renovation work is expected to start this fall.