×

BPU Purchase Of Harrison Street Property Could Make Sense

There have been some questions raised recently about the city Board of Public Utilities’ purchase of property on Harrison Street.

After all, why would a utility be buying land and acting as a developer instead of going through the usual channels of allowing a prior owner to hire a realtor to market the property? Should the BPU be in the business of land banking property rather than simply providing utility services and garbage pickup?

Those are good questions to ask. No one wants to see the BPU buying up land and, even worse, derelict buildings, and having those sunk costs lead to higher utility rates to cover the carrying costs. We don’t think that’s going to happen here.

According to records at the Chautauqua County Clerk’s Office, the Board of Public Utilities has purchased 133 Winsor St., 251 Harrison St. and 289 Harrison St., Jamestown, from the Young Men’s Christian Association of Jamestown for $150,000. The YMCA acquired that land in 2021 from the Chautauqua County Industrial Development Agency, buying it so it could build at that time a $26 million facility.

The Winsor and Harrison street properties the BPU has purchased were previously assembled for development and have changed hands several times, with no development actually occurring. It’s not a high priority for realtors, and passive marketing of the property hasn’t worked for decades. Attracting someone to the site requires active work, which is something the BPU is trying to do more of to keep its finances in order. Part of the utility’s job now is recruitment of new customers, and some potential new customers need a shovel-ready site. The BPU controlling the site brings perhaps the city’s most important development tool to the table – low-cost power – early in the process. Utility officials want no part of being a land bank. The best use of the property for the BPU is attraction of a new, rate-paying customer on a site that has been vacant for more than 30 years.

Public entities buying property is a gamble that almost sunk the Arts Council of Chautauqua County decades ago. People are right to be concerned with such purchases now – but this is a gamble worth taking, in our view, if it means something happening, finally, with these Harrison and Winsor street properties.

Starting at $2.99/week.

Subscribe Today