Firm Tied To Major County Projects Closes
It appears two major projects in Chautauqua County may be in limbo after Savarino Companies indicated it is shuttering operations.
Savarino is heavily involved in the construction and development industry across Western New York and elsewhere in the state. The company confirmed to The Buffalo News on Tuesday that it was ceasing operations and laying off 30 employees.
It’s unclear what Savarino’s sudden shutdown will mean for two major projects in Chautauqua County.
A development team headed up by Savarino Companies previously announced plans for the re-development of the Welch building in Westfield. The project calls for 46 mixed-income residential units ranging from 500 to 1,200 square feet as well as 3,700 square feet of commercial space at the corner of Portage Road and Main Street.
At a cost of $18 million, the project was supposed to begin this year after final Historic Landmark status was approved by the National Parks Service.
Savarino also is tied to a development project in downtown Falconer.
In late February, Rob Savarino went before the Falconer Village Board about purchasing several downtown parcels for the construction of residential units including apartments or town houses as well as new commercial space. The front end of the block previously housed commercial and residential buildings, but were destroyed in separate fires in 2017 and 2018.
Savarino’s pitch came after another project — known as Falconer Square — fell through after the developer failed to secure the necessary funding.
“It’s a real estate development, so there is some time for us to sort out all of the issues. This is just the starting point,” Rob Savarino told Falconer officials earlier this year. “The company that I represent has done numerous projects of this type.”
Trustees eventually approved a purchase and sale agreement for the six village-owned parcels on West Main and Everett streets. According to county records, the six parcels had a total assessed value of $76,000.
At the time, Trustee Alan Gustafson Jr. voted against the sale, citing the few details that were provided ahead of a special meeting.
“This project will impact Main Street for decades to come,” Gustafson told The Post-Journal. “Given the short timeframe to review the purchase offer and a need for more specific details of what is envisioned for the property, I could not commit to moving forward at this time. That said, I support mixed-use housing and new commercial space in our downtown, and I look forward to Savarino Development bringing new life to Falconer Square.”
With the sale agreement, Savarino told village officials that the company would begin the planning stage of the project. “All of the details of the development are still subject to village review and the public input,” he said.
Just recently, Savarino Companies was awarded $250,000 from the latest round of the Regional Economic Development Council Initiative through Empire State Development for the Falconer project.
At SUNY Fredonia, Savarino served as general contractor for work down at Houghton Hall.
According to the Buffalo News, Savarino cited “ongoing and increasing costs” from a dormitory renovation project at SUNY Alfred State as the reason for its shutdown.
In a WARN notice filed with the state Labor Department, Savarino said separation with 30 employees began Friday and “will continue as company terminates work on current projects.” Four of the employees impacted work in Fredonia.