BUFFALO, N.Y. (WKBW) — After sitting idle for more than 10 months it appears that the $40 million Heritage Point development project at Canalside is ready to get started again.
Sinatra & Company Real Estate told me that the project is "officially back on course" after securing additional financing, and a loan from Empire State Development.
I've learned that Empire State Development has agreed to give Sinatra & Company a $4 million loan to help push the project forward.
The $4 million loan will only be payable upon "substantial completion" of the mixed-use project and the agreement lays out construction milestones that Sinatra & Company must hit at Heritage Point to avoid paying penalties.
I'm told the loan term is 25 years and it is not forgivable.
According to Sinatra & Company, construction at Heritage Point is now expected to resume in April 2025 and completion of the project is scheduled for June 2026.
"This transformative development is once again moving forward!," said Nick Sinatra, Founder & CEO of Sinatra & Company Real Estate, in a statement. "We would like to thank Governor Kathy Hochul for her leadership in our joint effort to move this project forward."
Heritage Point was announced as a public-private project in 2018 with the promise of 61 apartments and ground-level retail space.
Construction on Heritage Point broke ground in 2021 but was halted in March 2024 as financing for the project fell through.
Watch: 'There’s been no progress': Erie County Executive questions when $40M Heritage Point project will resume work
In a letter dated June 11, obtained by 7 News, Sinatra & Company CEO Nick Sinatra wrote to the ECHDC that the Heritage Point project "has endured unrelenting materials cost escalation, unprecedented interest rate spikes, and labor inflation issues."
Sinatra estimated total costs for the project jumped from more than $21 million in 2019 to more than $39 million in 2024. He also asked for a $4 million increase in state-back funding, a request that was ultimately fulfilled to move this project forward.
In November 2024 Empire State Development confirmed with 7 News that the agency was negotiating with Sinatra & Company to try and get the project moving forward.
Here is the full statement from Nick Sinatra, Founder & CEO of Sinatra & Company Real Estate.
"We are pleased to announce that the Heritage Point project at Canalside is officially back on course. This transformative development is once again moving forward! The construction is scheduled to resume in April 2025 and completion projected for June 2026. As the first major residential project in the area, Heritage Point at Canalside will bring jobs, housing, and new economic opportunities to Buffalo. While the journey to this point has faced challenges—ranging from unprecedented cost increases and interest rate hikes to engineering hurdles—our dedication to seeing this project through has never wavered.
We would like to thank Governor Kathy Hochul for her leadership in our joint effort to move this project forward. With additional support from the Empire State Development and the strong commitment of our dedicated contractors/vendors, we have secured the financing needed to overcome these obstacles. Heritage Point at Canalside is a testament to the power of collaboration and to our shared vision for revitalizing Buffalo’s historic waterfront. I want to extend my thanks to NY State for their partnership and commitment in helping us reach this milestone. We look forward to delivering a vibrant, world-class building that the community can take pride in and will act as a catalyst for other development and business investment in the Canalside area."