Published: October 09, 2008 01:26 pm      

HOTEL NIAGARA: Owners decline $4M in public funding due to crisis

Citing the country’s current financial crisis, the owners of Hotel Niagara have turned down $4 million in public assistance and decided to scale back its renovation plans for the historic Niagara Falls building.

Mayor Paul Dyster said the city’s economic development team met Wednesday afternoon with Judi Cook, who, along with her husband Tom, operates Amidee Hotels and Resorts and owns Hotel Niagara on Rainbow Boulevard. She reaffirmed the couple’s commitment to the renovation project, but don’t want to rely on funds from the state and city, Dyster said.

This past summer, USA Niagara committed a $3.5 million grant to the project on behalf of Empire State Development and the city approved a contribution of $500,000.

In a released statement Wednesday, the Cooks said they decided to forego the grants, pointing to the recent bailout actions by the U.S. Congress and stressing they could not “in good conscience take money from the government and other taxpayers during the country’s time of crisis.”

“If we did such a thing, we would not be acting in a manner consistent with our principles and would be no better than those who are taking advantage of the situation,” Tom Cook said, adding Amidee has always funded its developments on its own and Hotel Niagara would’ve been the company’s first venture seeking government assistance.

Back in July, a press conference was held to introduce the Cooks and announce their renovations plans for the 12-story building, which was built in 1924 and had been a social and civic hub in Niagara Falls for several decades before undergoing numerous ownership changes and falling into disrepair. Interior restoration work is ongoing and, once completed, the hotel will feature all of the original 193 rooms refurbished, along with a 4,500-square-foot grand ballroom, boutique retail, spa and fitness center, multiple restaurants and a rooftop club overlooking the Falls.

The couple spent $4.6 million to purchase the building at an auction in 2007, and initially announced they would be pumping another $15.2 million into its renovation, including the $4 million in public funds.

Dyster said their decision to turn down the grants raised immediate questions whether the renovation project would fall by the wayside. However, he said Judi Cook explained the reasoning and assured the project would continue on track for completion by next spring.

“Obviously we were very concerned at first, but are happy to hear the project will continue,” Dyster said.

According to Dyster, Cook said there will be some minor changes in the plans to reduce costs, but shouldn’t have a significant impact on the overall design. Those cutbacks include installing carpet instead of hard-wood floors in certain rooms and eliminating some of the restaurant equipment.

By turning down the grant, the Cooks will be able to avoid some of the strict requirements imposed under the state’s historic preservation laws, which could’ve led to delays in the renovation. The money from the state and city would’ve been from reimbursable grants, meaning the developers would’ve needed to spend $4 million of their own funds first.

Contact reporter Rick Forgioneat 282-2311, ext. 2257.