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

Construction on a $20.4 million senior housing project is expected to begin now that the developer received a boost from the Amherst Industrial Development Agency.

IDA directors approved a payment-in-lieu-of-taxes package Nov. 19 for Waldex Holdings LLC that is considered crucial to the overall financing package.

Waldex is proposing construction of a pair of three-story, 100-unit senior apartment complexes at 9500 Transit Road, north of Casey Road. The units will be marketed exclusively to people age 55 and above.

The seven-year PILOT package will save Waldex an estimated $3 million in sales, property and mortgage recording tax fees. Company officials said those savings will translate into lower rents and make the apartments more affordable for the target market. Monthly rents are expected to be $750 for one-bedroom units and $850 for two bedrooms.

"The market study they presented to us proves there is a need for this type of product in Amherst," said James Allen, Amherst IDA executive director.

Waldex attorney Sean Hopkins said construction will start soon. He expects the first building to be completed by next fall.

In other action by the IDA directors:

• T.P. Woodside Inc. and affiliate Quality Plus Inc. received approval for an abatement package to help finance a 6,400-square-foot expansion to the company's office and warehouse on Lawrence Bell Drive. The project carries a $750,000 development cost for the HVAC equipment provider, which is expected to add two jobs to its 30-person payroll.

• Iskalo Development received approval on an abatement package it sought that is considered key to purchasing the former Pitt Petri store on Main Street in Williamsville. The company is expected to close in January on the deal for the virtually vacant, 7,500-square-foot building. One small office tenant remains in a rear portion of the building.

The IDA directors approved a payment-in-lieu-of-taxes package that covers a proposed $1.7 million planned investment by Iskalo. It includes buying and renovating the building. The project qualifies under the IDA's adaptive reuse policy.

"We think this is great project," Allen said.

Without IDA involvement, Iskalo might walk away from the deal, leaving Williamsville with an empty building on a key stretch of Main Street. Two years ago, Pitt Petri consolidated its retail operations in the flagship Delaware Avenue store downtown.

David Chiazza, Isaklo executive vice president, said his company is negotiating with a tenant for the building. The negotiations hinged on the IDA package in large part.

"The classic ‘but/for' fits this project," he said.

Depending on negotiations, the tenant could be in the building by early summer.

• Prometheus Books Inc. received an abatement package to help finance a 4,800-square-foot expansion of its warehouse on John Glenn Drive. The project will cost $236,057 and is expected to create two jobs while retaining 11 in the warehouse.