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

Faced with a Nov. 15 deadline to close their deal to purchase Statler Towers, the project's principals have detailed their business plan for the Buffalo landmark.

They warned, however, that the proposal could die if a public-private partnership can't be forged to underwrite nearly $5.26 million in immediate repairs.

The plea was made Nov. 10 to more than 125 people who came to the building's Terrace Room to hear about development plans by businessmen Mark Croce and James Eagan through their Statler City LLC affiliate.

Statler City was ordered to close on the U.S. Bankruptcy Court-approved sale of the mothballed Statler by that deadline. It offered to pay $200,000, plus $500,000 in back taxes, for the 18-story, nearly 800,000-square-foot building that overlooks Niagara Square.

"I'm very optimistic," Croce said about landing the funds to stabilize the building and close the deal. "But remember, the roofs aren't going to get better by themselves."

He said his group is open to securing the necessary funding from public- or private-sector sources.

Robert Knoer, Statler City attorney, said it is "50/50" that he may ask court-appointed trustee Morris Horwitz and special counsel Garry Graber of Hodgson Russ LLP for an extension.

Last week's presentation marked the first time Croce and Eagan talked publicly about their multi-phased plan.

They have an incremental development blueprint beginning with immediate repairs to the building exterior followed by reopening the first floor and mezzanine level - home to the Golden Ballroom and Terrace Room - for a banquet hall, bar and small retail operations.

Knoer said those operations could generate $458,000 in annual revenues. The building's upper floors would be developed "organically," he said, depending on market conditions.

Later phases include an elevated, covered walkway between the Statler and Buffalo Niagara Convention Center.

Statler's City's conservative development plan stands in stark contrast to more grandiose proposals ranging in cost from $80 million to $100 million.

"This is not an $80 million or $100 million development today," Knoer said. "Maybe over time, but not today."

Statler City's presentation also marked the closest thing to a formal business plan that many, including Buffalo Mayor Byron Brown, said was necessary before funds could be committed to the project.

"Show me a plan and I'll fight like heck for the dollars," Brown told Business First. "But I need to see a (business) plan."

Horwitz and Graber have said unless a deal can be closed soon with Statler City, they may recommend the building be abandoned - making it a de facto ward of the city,

Knoer said the $5.26 million his clients want is about one-third of what many have estimated would be a $15 million demolition cost if the Statler were to be razed.

Catherine Schweitzer, meanwhile, is chairman of Preservation Buffalo Niagara chair and executive director of the Baird Foundation. She said the foundation may be willing to offer some seed money to Statler City, but she wants to review the development plan.

"Supporting the Statler is something (the Baird Foundation) has talked about, but we haven't put a figure to it," Schweitzer said.