New investment group buys One Niagara

Jul 29, 2010 — The Buffalo News

Richard E. Baldwin

Jul. 28, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- NIAGARA FALLS -- The tangled history of the former Occidental Chemical office building, now known as One Niagara, took an unexpected turn Tuesday when Frank Parlato Jr. bowed out as a principal in the ownership group.

The nine-story landmark building was sold to another group of local investors for an undisclosed amount.

Paul Grenga, a Niagara Falls lawyer who represented Parlato and his Whitestar Development Corp., emerged as the leader of the new investment group.

Tony Farina, who recently signed on as president of One Niagara, is a member of the new group, and he will remain on as its president. Neither Grenga nor Farina would disclose the terms of the stock sale, but Farina said: "This was a private transaction, and I will continue to serve as president under this new hometown team.

"This is an exciting time. There is a lot of opportunity here. We have seven vacant floors that can be developed. The heart of downtown is right here."

The sale took place against the backdrop of several troubling issues for One Niagara.

Whitestar Development's nonvoting but equal partner in the venture, Incredible Investments Ltd.,

has sued Whitestar over unpaid local real estate taxes and other issues.

Niagara Falls city code enforcement officers have refused to issue occupancy permits for the building.

The operators of neighboring parking lots have complained that One Niagara's lot is competing with them unfairly.

And a Whitestar employee, John Adams, was killed July 4 when he was crushed by a trash compactor while he was at work.

Grenga said he hoped the new group could deal with each of those issues quickly "in a cooperative relationship, not an adversarial relationship. We want to resolve the issues with the city and with Incredible Investments in an open dialogue, and we are looking forward to a friendlier relationship."

He said Adams' death was "such a tragedy." As an on-duty employee, Adams' loss will be covered by Workers' Compensation payments, Grenga said. As for the other claims pending against One Niagara, he said he hoped they could be settled sooner rather than later.

B. Kevin Burke Jr. of the Buffalo law firm of Jaeckle Fleischmann and Mugel, attorney for Incredible Investments, said he was "looking forward to cooperating with the new management group. We are concerned about the past, but optimistic about the future."

Burke said he wished Grenga and his group success, but existing lawsuits against Parlato and Whitestar would remain in place, at least for now. Burke said he preferred to settle those matters outside of court, if possible.

Mayor Paul A. Dyster, recalling that One Niagara owes "more than $1.5 million" in unpaid real estate taxes, said the city administration is "interested in talking" with the new owners "of this prominent and visible building." He said, however, that the city is unlikely to forgive any part of the unpaid taxes or to negotiate a partial payment.

"I represent all of the taxpayers of the city, and we do not negotiate with any of them for partial payments of what they owe," he said.

Other members of the new investment group, besides Grenga and Farina, were identified as Richard Soluri, former mayor of Lewiston and a member of the state Greenway Commission; Frank D'Agostino, owner of Cataract Tours, which is based at One Niagara; Danny Cipoliti, whose family operates a food and beverage business in the food court at One Niagara; Mike Hooper, a real estate broker who will help in leasing space in the building; Gene Carrella, president of Niagara Sports Tours, an operator of athletic tournaments; James C. Roscetti, a lawyer who has represented Parlato and is the lead counsel for the new group; and Richard Horn, former chief of the Niagara Falls Fire Department.

Newstex ID: KRTB-0019-47430195