Two years later, $10M downtown plans are in flux
Two years in, Dunkirk’s Downtown Revitalization Initiative is hardly a stunning success, but also far from a complete disaster.
The Dunkirk Marina is in “legal limbo,” according to city Planning and Development Director Vince DeJoy. Also, Jamestown Community College pulled back plans for a workforce development center on Central Avenue.
However, construction is progressing on a mixed-use development in a former bank building within sight of DeJoy’s Stearns Building office. DeJoy expects work to start soon on a 80-unit apartment development planned for two locations.
Gov. Kathy Hochul visited the Clarion Hotel in January 2023 to announce the $10 million DRI award as part of a state-backed program. Projects that will access the funding were announced in spring 2024.
There’s high interest over the status of the DRI in economically depressed Dunkirk. Councilperson Natalie Luczkowiak asked DeJoy about it at this month’s Common Council meeting. Coincidentally, the OBSERVER had an interview planned about it with DeJoy for the next day.
Here’s what he said:
DUNKIRK MARINA
City officials want Triple S, LLC to take over running the marina. However, “it’s in legal limbo,” DeJoy said, over challenges to the ownership.
Previous marina runner Peter Smith found himself on the outs with city officials after a bad July 2023: he was arrested over alleged threats, and accused of a fish-stuffing incident at a tournament in a separate incident. Triple S was confirmed by the Common Council last year as new marina leaseholders.
However, according to DeJoy, Triple S is suing Smith for not properly conducting the handover. DeJoy said he had a meeting planned Friday with Chautauqua County Industrial Development Agency officials to discuss the case.
The DRI project would install new docks at the marina. DeJoy made clear the project will continue once the legal problems are sorted out.
“We’re disappointed the project is stalled, but we see that as an important component of what the DRI will accomplish,” he said. Waterfront development is a key part of the DRI, he said.
FORMER BANK BUILDING
DeJoy can see a happier DRI story right across the street from his office. Peak Development is currently constructing a mixed-use development in the former bank building on the corner of Fourth Street and Central Avenue.
There will be market-rate apartments on the second floor and commercial space on the ground floor. DeJoy acknowledged he is unaware of any firm commitments to using the commercial space.
He noted that a flatbed truck piled high with construction materials had arrived at the site on the previous day. DeJoy added that workers have to do a lot of asbestos abatement.
Despite the lack of commercial tenants so far, “at least we’ve seen some substantive
progress happen here,” DeJoy said. “I think it will help spur additional collateral development and investment in that area, once it’s completed.”
JCC CENTER FALLS THROUGH
“I personally tried my best to make it work,” DeJoy said of a proposed Jamestown Community College workforce development center in the Graf Building near the corner of Third Street and Central Avenue. JCC backed away from the project in December.
“It was a great project but it probably wasn’t the right time for JCC,” he added.
The $2.2 million allocated to the project in the DRI will now go elsewhere. DeJoy will meet with state officials to hash that out.
“There’s at least four potential projects” that could get the money, DeJoy said. They are projects that were proposed for the DRI but didn’t make the cut when Dunkirk officials sent their plan to the state for approval.
The four projects are for Demetri’s Restaurant, Central Station, Ada’s Cafe, and a renovation of the old Ehlers building on Central Avenue.
DeJoy said some of the $2.2 million could also be diverted into the DRI’s small business fund.
SMALL BUSINESS FUND
That fund has $473,000 in it, but can be up to $600,000. “It’s basically to assist businesses within the DRI footprint to do projects that could be impactful, such as rehabilitation of a facade,” DeJoy said.
Other projects could include interior remodeling or the purchase of equipment to increase business capacity, he said.
Businesses that win grants from the fund will have to pay for the projects upfront. The grants can reimburse up to 75% of the costs. The maximum grant is $100,000.
The state mandates that the city hire a consultant to run the fund. DeJoy said Dunkirk has received three replies on its Request for Proposals to consultants. A decision on who to hire will come within days, he said.
DeJoy is hoping the fund program can launch by the end of January. “We really want to see some great participation” from Dunkirk businesses, he said.
APARTMENT DEVELOPMENT
Regan Development received $500,000 from the DRI for a $35 million project to build 80 apartment units at two sites. One of the sites is next to the Save-a-Lot Plaza, the other is the vacant lot in the 200 block of Washington Avenue.
“They’ve submitted applications for housing tax credit financing,” DeJoy said of Regan. They are awaiting approval sometime in the first quarter of this year and will proceed with construction once that happens, he said.
These apartments will not be market-rate, rather they are designated as “workforce affordable housing.” DeJoy said they are “not Section 8,” but acceptance of applicants will be based on income.
“It’s very much needed here in Dunkirk,” he said. “If you ask anyone who’s looking for an apartment here, it’s hard to find a decent, safe one.”
OTHER PROJECTS
— “We haven’t had much of an update” on plans to convert the former Adams Art Gallery into a community center called Central Hall, DeJoy said. That project received $1.127 million.
He said organizers of that project are still trying to get additional funding. “If they don’t succeed, we want to be ready with another viable project lined up,” DeJoy said.
— “We’re still trying to put together the Clarion Hotel project,” DeJoy said.
There was $1 million appropriated for renovations to the city’s waterfront hotel. “It’s important to have that presence on the waterfront,” DeJoy said.
Steelbound Brewery opened a branch in the hotel a few years ago. The company is “still very high on Dunkirk” and wants to invest in it, DeJoy said, although its recent focus has been on opening new locations in Williamsville and Las Vegas, Nevada.
— “I hope to have some encouraging news in the next couple weeks” about a project for the building at Washington Avenue and Lake Shore Drive across the street from the Clarion, DeJoy said.
The DRI awarded $500,000 for a plan to convert the building into medical office space and market-rate apartments. The project also got a $1 million Restore NY grant, DeJoy added.
He said the building’s owner is bringing a new investor into the limited liability company behind the project. The investor will have a majority share in the project.