By James Fink

Business First

As expected, a Buffalo City Court judge has ordered eviction for the last remaining tenant in the Statler Towers.

But what wasn't expected is a possible legal battle between the City of Buffalo and the U.S. Bankruptcy Court-appointed trustee over the costs to board up the 18-story Niagara Square landmark.

The tug-of-war emerged Thursday morning as part of a series of matters heard before Buffalo City Court Judge Hon. Henry Nowak.

Nowak signed an eviction order that will force Park Lane Catering from the closed building. While virtually all of the utilities, save for some minimal electric service that Sprint is paying for to operate a cell tower on the building's roof, have been shut off, Park Lane kept a small office open in the Statler's lobby.

All other Statler office tenants left two weeks ago as the mothballing process began.

Nowak's order, which Park Lane Catering agreed to, gives the company until Feb. 3 to leave the Statler. As part of the agreement, Amherst attorney Morris Horwitz, the Bankruptcy Court-appointed trustee, said Park Lane could leave some of its heavier equipment, such as freezers and stove,s in the building "at their own risk."

Park Lane Catering is in the process of finding a new office and operations location.

Meanwhile, both the City of Buffalo and Horwitz have balked at paying the costs to board up lower-level windows in the Statler to prevent break-ins. Horwitz has two estimates ranging from $37,500 and $42,000 for the work.

The issue has as much to do with costs as legal liabilities.

U.S. Bankruptcy Court Judge Hon. Carl Bucki, who is overseeing the Statler's involuntary Chapter 11 protection proceedings, last month allowed Horwitz to use $100,000 of a $500,000 pool of good-faith payments made by New Buffalo Statler Redevelopment, a local investment group that had bid $1.3 million for the building last August. The New Buffalo team, which included Park Lane owner William Koessler, failed to meet several closing dates and was declared in default by Bucki in December.

Horwitz said that of the $100,000 allocated to him by Bucki, approximately $3,500 is left after a number of bills were paid and payroll demands were met.

On-site security will remain in the Statler "until the money runs out," Horwitz said.

"We're getting close to the bottom of the well," he added.

Nowak suggested that the Buffalo Police Department be "put on alert" concerning the Statler. Horwitz said that process should be completed by this Thursday.

"After that, the building will be locked up tight," Horwitz said.

Only a short list of people will be allowed to enter the building.

Horwitz said several parties remain interested in the downtown Buffalo structure, but no purchase offers have been made.