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

Four local companies were among the six to submit bids to build the first phase of a replica network of Erie Canal waterways that will serve as a centerpiece of Canalside in downtown Buffalo.

The bids ranged from a low of $19 million by Cheektowaga's DiPizio Construction to $27 million by STC Corp. The Erie Canal Harbor Development Corp., which is overseeing development, had pegged the project at an estimated $25 million.

Rochester-based Pike Construction Co. submitted the second-lowest bid of $21 million.

The bids by DiPizio and Pike are being reviewed by Erie Canal Harbor Development staff; a formal recommendation is expected at the agency's Jan. 9 meeting. Work will likely start in February and the canals are due to be completed by next winter.

Other bids included: $23 million from LPCiminelli Co., $25 million from Tug Hill Environmental Co., $26 million from Union Concrete and STC's $27 million.

"I am happy to say that ECHDC is approaching the start date for this highly anticipated project," said Chairman Jordan Levy. "Our staff will be reviewing the bids that were received and will make a recommendation to our board in January, with work beginning soon after. By this time next year, the public will be enjoying ice skating and winter programming on the new public canal system."

The first phase will see the waterways constructed from Marine Drive east to Main Street, with a dog leg toward Pearl Street. The canals will cut through a portion of the razed Memorial Auditorium property.

A second phase will bring the canals from Main Street to Washington Street and will go to bid by mid-2012, with the work due to be completed by early 2013.

The canals are among the more than $75 million in construction projects taking place in Canalside or through Erie Canal Harbor Development in 2012. Chief among the projects is Benderson Development's $30 million conversion of the former Gen. William Donovan State Office Building into a multi-tenant facility. The anchor is Phillips Lytle LLP, which is leasing the top four floors.