By JAMES FINK
jfink@bizjournals.com | 716-541-1611

With the clock ticking toward a Nov. 15 deadline, those closest to the possible sale of Buffalo's historic but mothballed Statler Towers are cautiously optimistic.

A number of issues cloud the effort by local businessmen Mark Croce and James Eagan to purchase the 18-story landmark that overlooks Niagara Square. They offered to pay $200,000 for the building, plus $500,000 in back taxes. Their effort may be the last one on the table and all that stands between the Statler finding new life or being mothballed indefinitely.

"We're still doing our due diligence," said Buffalo attorney Robert Knoer. He represents Statler City LLC, the affiliate Croce and Eagan formed to buy the building. "I can't say I am any more or less enthused than the last time we talked."

Morris Horwitz, the bankruptcy court-appointed trustee assigned to oversee the Statler, said he remains optimistic that the deal will close by Nov. 15.

During an Oct. 14 hearing before U.S. Bankruptcy Court Judge Carl Bucki, who is overseeing the complex case, Knoer said that unless public-sector support is in the offing, his clients may not close the deal.

"This is really a public-private partnership in a lot of ways," he said.

Talks with the City of Buffalo have been productive, although a definite incentive package has not been presented. At issue are costs connected with renovating and restoring the Statler, which was in need of more than $6 million of immediate repairs before it was ordered closed by Bucki last winter.

Depending on renovation plans, the cost of restoration could be more than $80 million.

Knoer said his clients got involved more out of loyalty to Buffalo than pure economic sense.

"It was a really a last-ditch effort to help save an important building," he said. "The Statler is not only important from a historical perspective, but also for the impact it has on Delaware Avenue and downtown Buffalo. To see it left in legal limbo would be unfortunate."

It's owned by BSC Buff Development LLC, an entity controlled by British investor Bashar Issa. He bought the Statler in 2006 and promised a $100 million overhaul. Only a small portion of the work was completed before Issa faced legal and financial problems locally and in his Manchester, England, hometown.

He is believed to be living in Dubai.

Bucki placed the Statler into involuntary Chapter 11 protection in April 2009.