Q & A
Rocco Termini: One singular sensation
By Barry A. Muskat; photos by kc kratt
When it comes to adaptively reusing downtown buildings for innovative residential lofts, Rocco Termini brings a spectacular project to life with every step that he takes. He has provided a glittering kick line of urban living spaces and brought a new vitality to buildings that run the gamut from what could be labeled “prime and easily feasible for adaptive reuse” to others that have deteriorated to the brink of deep peril. Signature Development has an impressive portfolio of successes that include (chronologically) the Ellicott Lofts, the Oak School, Ellicott Commons, the IS Lofts, the Webb Lofts, and the soon-to-come-on-board AM&A’s Warehouse Lofts. The developer isn’t slowing down either. Termini’s marquee promises yet another hit season of major projects, bigger and even more significant than those previously attempted.

Termini is not just accessible—he’s brutally honest, offering concise, thoughtful answers to issues that face the city and threaten continued development.

Despite the economy and many stumbling blocks, there seems to be an energy happening downtown. Has progress slowed to a crawl or does the momentum continue?
I think that the momentum continues because we didn’t experience the irrational exuberance that the rest of the country did. As long as there is healthy demand, the momentum continues.

Where do you see downtown heading? What changes do you see that would help developers?
We need [the power of] eminent domain so that we can achieve critical mass in areas of downtown. We need the business community to get more involved in bringing back our downtown, especially when it comes to purchasing tax credits. Large corporations that have large tax liabilities can buy historic tax credits at really no cost to them. Instead of paying taxes directly, they’d buy the credits. At the same time, they’d be providing the equity for the funding gap of the things we need to get done. It would cost them nothing—they’d become heroes to the community by providing the equity needed to rebuild downtown.

You’ve got a most impressive list of completed downtown projects of which you’ve got to be very proud. You seem to have even more on your plate right now. What do you see as your most exciting challenge?
The Lafayette Hotel, because it’s the most challenging historic preservation project since the Prudential Building. The restoration of the Lafayette will be an honor for me to do. It’s the last remaining major work of Buffalo’s architect Louise Bethune. I feel, as a resident of Buffalo, we have a special responsibility to this building.

From a preservation standpoint, how will you be handling the different stylistic eras represented in the Lafayette?
My first inclination was to remove the modern fabric in the building and restore it to its original French Renaissance grandeur. But I have been convinced by SHPO [the New York State Historic Preservation Office] that the Art Moderne—probably the last real example left in Buffalo—is probably more important than the French Renaissance. Therefore, we will be keeping both. The part that doesn’t have an Art Moderne cover will be left in its French Renaissance stage; that represents mostly the banquet rooms. The lobby, which was converted in the 1930s, will be restored as is. We will separate the two areas of style by a clear glass wall so that there will be a clear distinction between the two styles and portions of the building.

The Webb Building was a nineteenth century manufacturing facility with tons of history and architectural merit. Preservationists hailed it, yet others thought it was too deteriorated to save. You pulled off an award-winning restoration. I know you found this a particularly difficult endeavor. Looking back at the project, how do you feel about it now?
I’m happy that we took on the challenge. You stand in front of that beautiful building today, and you could not possibly imagine it not being there. Only in the United States would we even ask that question. Foreign countries have a much greater appreciation for historic buildings.

How do you feel about the status of the Statler and hopes for its future?
The best thing that could happen to the Statler is that some governmental agency take it over and mothball it. It would give the community an opportunity to come up with a viable use. Once we decide on a use, we can start a community-wide effort to find the soft financing needed. The process would take at least two years. It’s too big to allow to it to fail. The bankruptcy courts want everything done in ninety days, but it would take two years to formulate what to do and to raise the capital. This isn’t a developer’s project: it’s a community project.
What do you see as the best use for the Statler?
The UB Law School. The university is talking about moving the Law School from the North Campus to the South. But it belongs downtown. That’s where it is in every major city—downtown, where the lawyers practice. We keep making mistakes over and over again. Don’t wait five years and say, “We should have.” The University of Buffalo needs to step up to the plate, and here’s a perfect place to do it.

Many would agree that the AM&A’s building on Main Street is as important to the core of the city as the Statler and that it’s critical to bring vitality back to Main. Can you describe your vision for the project?
Because of the size of the building (350,000 square feet), we have decided to break it up into multiple uses. It will be a 117-room Hilton Hotel, a food court, offices, health club, independent senior housing, and apartments. My partner, Mark Hamister, will operate the hotel [and the] independent living [facility], and move his corporate offices from Amherst to downtown. This restoration—along with the AM&A’s Warehouse and the Lafayette—will give us the critical mass we need to develop downtown.

At the end of the year, you threatened the city that the AM&A’s project might not be viable because of the problem with tax credits. Why are these credits so critical?
The credits will provide about $35 million dollars’ worth of equity for this project which helps close the financing gap. The state’s new historic credit makes it almost impossible to sell the credits. The state has said that you cannot sell them to banks or insurance companies. This eliminates sixty percent of the market. It’s like telling a newspaper you can sell ads to everyone but department stores, auto dealerships, and food stores.

What will it look like?
Like the Gaslight District in San Diego. The streets [Clinton/Ellicott/Eagle/Washington/Main] all will be improved and made into an historic district. And it will be lit up. There will be all-new historic-style streetlights, ten feet apart with landscaping and lighting throughout. It will take on a different form and character from the rest of downtown. We’ll close off Washington Street [for] street festivals, farmers markets, wine tastings, and different things to bring life to downtown. The four garage doors at the back of the Lafayette building will become four small restaurants with awnings and outdoor eating. The food court in AM&A’s will not be greasy spoons, but food stations that wind like a street through a village, serving sushi, crepes, and baked products. With over 350 people living on these blocks, there will be restaurants, hotel, and critical mass to provide everything people want where they live.

Is it true that the AM&A’s Warehouse project will be coming to market in May?
Yes, it will finish in May. The first model opened December 20. It looks better than I imagined, and the public agrees; in the first two weeks, we rented ten units. We believe half the units will be rented before we open. [Rents range from $950 to $1,150.] From the top floor apartments, you can see Canada. These are top-shelf loft units with granite countertops, hardwood floors, and stainless steel appliances. That’s what people expect, and those features are now standard in all my apartments.

What are your thoughts on market-value rental units vs. market-value condominiums in the city’s downtown core?
You cannot produce a condo downtown for less than $250,000. That’s a tough sell when people could buy a house in North Buffalo for $150,000. You also have the problem with critical mass and code enforcement. You wouldn’t want to buy a condo next to a neglected building—that’s a problem for downtown.

So which project of yours is the most personally satisfying?
The Webb Building, which is completed. And a new venture that I’m doing, at 127 Cherry Street—it can be seen to the south as you approach the downtown end of the Kensington. We’re converting it into a business incubator. We’ll rent portions to small startup companies that are in their venture capital formation. The building was built in the 1800s for the Buffalo Trunk Manufacturing Company and in more recent times was a warehouse for Anthone Furniture. Today, it’s right off the Expressway and on the cusp of the Medical Campus. It’s only two blocks from the proposed site of the UB medical schools.

That’s a change from apartments.
We’ll be filling a void in the market. The problem in Buffalo is that there’s no venture capital money. If you get government money, it’s there for research and development. We spend all of our government dollars to help companies develop a product. There’s nothing here to help a company go from R & D to start-up. When it comes time to hire the people and manufacture the product, the companies relocate to Ohio and Pennsylvania where they have great programs. What we’re doing will be to take the place of government in filling that void. We’ll be putting in clean rooms to manufacture high tech products. We have two start-up companies on line for occupancy. One is ENRG and the other is VIZON. ENRG plans to produce fuel cells here in Buffalo that will be twenty percent smaller than the fuel cells you use now in automobiles—small cells that will do the same amount of work. We hope to be open in March of 2011. It will be very positive for the neighborhood.

So how many apartment units do you currently have in the downtown market?
With AM&A’s Warehouse it will be 225. For now, there are 183.

How many vacancies?
We’re working on AM&A’s. The rest? They’re all rented!
ROCCO in brief
Geography:
Buffalo born—Grover Cleveland High School and Canisius College, with a B.S. in accounting.

Happily married:
To Bridgette.

The same woman?
She’s put up with me for thirty-six years.

Kids:
Brad, Eric, and Jason.

Where do you get your energy?
I never quit. I start at 5:30 a.m. in the office, leave at 4:30 p.m, then I work at home. There’s so much to do, and you’ve got to get it done.

Your workout?
I run around. I don’t eat lunch, or rarely take lunch. I don’t have time; it’s a wasted hour. Then you don’t have to worry about your weight, either!

What do you especially love?
I love to create something out of nothing—something that nobody else wants to do. Almost every building I’ve tackled, nobody else wanted. I see hidden value. That’s where I get my pleasure. And I like working ten to twelve hours a day. It’s not a job; that’s my pleasure.

Drink of choice?
I don’t normally drink—not alcohol or coffee.

Favorite food?
Spaghetti—I’m Italian!

Music or reading?
I read a lot. I’m just finishing Too Big to Fail and The High Cost of Parking.

Most satisfying project?
The Webb Building, which is completed. And a new venture that I’m doing on Cherry Street.

—Barry A. Muskat

Barry A. Muskat is Spree’s architecture critic. A businessman and architectural historian, he is a proponent of sensible downtown development and reuse of our existing building stock.


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