CCIDA Board Approves Brownfield Cleanup Loan for Gateway Lofts Project in Jamestown

Funding comes from CCIDA’s new Brownfield Revolving Loan Fund

JAMESTOWN, NY -- The County of Chautauqua Industrial Development Agency (CCIDA) Board of Directors approved its first loan from a newly established Brownfield Revolving Loan Fund (BRLF) for brownfield cleanup and redevelopment. Southern Tier Environments for Living (STEL) was approved for a $325,000 low-interest loan that will help jumpstart the Gateway Lofts project at 31 Water Street in Jamestown.

Loan funding will help with STEL’s urgent need to install a sub slab depressurization system, which is required by the New York State Department of Environmental Conversation before development can take place.

The Gateway Lofts project will transform the Gateway Center, the former Chautauqua Hardware factory, into a 110-unit, multi-family affordable housing complex, which will be anchored by supportive wrap-around services. The $67 million project is a collaboration among Community Helping Hands, the YWCA of Jamestown, and STEL. STEL is hopeful that the overall project financing will be finalized in the coming months, with construction anticipated to begin in mid-to-late 2025.

Deputy County Executive for Economic Development and CCIDA CEO, Mark Geise stated, “This type of project aligns perfectly with the intended purpose of the new BRLF, which is to provide critical gap financing to ensure complicated brownfield remediation and redevelopment projects can come to fruition. While this is a complex project, we’re excited to see it moving forward, and we hope our assistance will help get it over the finish line.”

According to Tom Whitney, Executive Director of STEL, the Project was ready to close on all sources of financing in April 2020. Unfortunately, due to the Covid-19 pandemic, the tax credit investor for the project pulled out. Inflationary factors contributed to a much higher overall project cost; however, STEL has the project back on track with all required local approvals obtained and a new investor on board. 

“We are incredibly thankful to the CCIDA for providing critical financing for the environmental-cleanup and monitoring components of this project while we wait for New York State Brownfield Tax Credits to become available,” said Whitney.  “We’re hopeful that with this challenge addressed, we can button up the remaining project components and move to construction next year.” 

This project marks the second time the CCIDA and STEL have collaborated in the last year. In 2023, STEL and their partner, Park Grove Development, took over as the developer of the Silver Creek High School property in the village of Silver Creek. That project, which involves the demolition of the derelict former school building and the development of 54 affordable senior housing units, is slated to close and move forward by the end of 2024.

“STEL has been a great partner of the CCIDA in redeveloping key properties of community importance, delivering more affordable housing opportunities, and eliminating blight in Chautauqua County, all of which align with our economic development goals,” said Geise. “I can’t thank Tom Whitney and his team enough for their determination in making these complicated projects realities.”

In 2019, Chautauqua County and the CCIDA re-engaged in brownfields redevelopment activities to improve blighted and underutilized areas in the County, improve the health and safety of its citizens by cleaning up contaminated sites, increase the County’s tax base, spur job creation, and where applicable, kick-start revitalization activities within neighborhoods throughout the municipalities in the County.

The CCIDA was able to establish its BRLF in 2023 after it applied for and received a $600,000 United States Environmental Protection Agency (EPA) grant in late 2022 to initiate this program. Coupled with funding the CCIDA received from Chautauqua County, the Agency’s BRLF was established to provide loans to for-profit and non-profit developers, and subgrants to municipalities to facilitate brownfield remediation and redevelopment of key properties. Being accepted into this program also places the CCIDA in a favorable position to secure supplemental EPA resources to replenish the fund as more loans are made.

“It was imperative Chautauqua County Government support the establishment of the CCIDA’s Brownfield Revolving Loan Fund,” said Paul “PJ” Wendel, Chautauqua County Executive. “Like so many other municipalities in the Northeast, there is a long list of legacy industrial sites in Chautauqua County that need attention and remediation. This fund will help in that effort and, as a result, help to grow and strengthen our local economy as we continue to move forward.”

Since its inception in 1995, EPA’s investments in brownfield sites have leveraged more than $35 billion in cleanup and redevelopment activities, which has led to significant benefits for communities across the country. The CCIDA was one of only 17 awardees across the Unites States to receive a Revolving Loan Fund grant to establish the program.

About CCIDA - The CCIDA is an economic development organization authorized and empowered by the State of New York to make Chautauqua County a better place to work, live, and visit. It facilitates development by attracting new businesses, while promoting the retention and expansion of existing businesses. Assistance in the form of incentives – tax abatements, low interest loans, and bond financing – enhances the opportunities for job creation and retention by our businesses. For more information visit ChooseCHQ.com.