USAN Board Meets and Advances Hotel Niagara Project
General Project Plan modified, renovations will resume in the fall
The USA Niagara Development Corporation (USAN) Board of Directors met today and authorized measures that will advance plans to restore the historic Hotel Niagara in Niagara Falls and transform it into a full-service, 160-room “upper-upscale” hotel with restaurants, lounges, and banquet facilities. Work on the 12-story structure, the city’s oldest standing hotel, will resume this fall, with completion expected at the end of 2026. Brine Wells Development, LLC, originally broke ground on the project in December 2019 but the restoration was stalled by the economic impact of the COVID-19 pandemic. Renderings available here.
“Getting this complicated, $58.8 million restoration project off the ground is a huge win for downtown Niagara Falls,” said USAN Chairperson Francine Delmonte. “With Governor Hochul’s strategic investment in this—and many other—important projects close to Niagara Falls State Park, we are bringing new visitors and economic activity to the city while restoring an iconic, historic landmark.”
“The Development team is excited to finally see this restoration and extensive renovation of the Hotel Niagara moving forward, transforming this property back to its historic position as a leading hotel in Niagara Falls,” said Brine Wells Development LLC Managing Member Ed Riley. “Without the cooperation and close working relationship with USA Niagara and Empire State Development, and commitment from the community, this project would not have been possible.”
The modifications to the General Project Plan (GPP) include refined project specifics and updated cost estimates, with no impact on the quality level of the project as originally proposed.
Due to current market conditions, which have increased project costs and the access to capital financing, additional financial assistance is required to ensure that the project is successful. As such, the board approved an additional $4 million incentive towards the project, which is now estimated to cost $58.8 million, an increase of $16.8 million from the original $42 million total project cost. These modifications will be incorporated into a revised Land Disposition and Development Agreement between USAN and Brine Wells Development, which will provide the detailed terms and conditions for the project.
City of Niagara Falls Mayor Robert Restaino said, “The Hotel Niagara has been a quintessential part of our city for more than a century, and generations of locals and visitors have made memories within those walls. It’s been disheartening to see the building shuttered more recently but I look forward to seeing work to restore the hotel begin again thanks to assistance from the city and state.”
Built between 1923 and 1925, the Hotel Niagara was once among the city’s finest lodging and banquet establishments and is listed on the National Register of Historic Places. Although it has long held a prominent spot on the downtown Niagara Falls skyline, decades of deferred maintenance, neglect and multiple changes in ownership resulted in the property’s degradation and eventual vacancy. The Hotel Niagara’s final iteration, a Travelodge, closed in 2007.
After a lack of progress on restoring this iconic building, USAN acquired the Hotel Niagara property in July 2016 for $4.4 million. In July 2017, Brine Wells was designated as the “preferred developer” for the hotel’s restoration and in December 2018, the board adopted the original GPP.
The USAN Board also authorized the following actions:
- Authorization to enter into a contract not to exceed $403,650 with Red Rose Landscaping, LLC for equipment installation services. The project is located at 102 Old Falls Street on property acquired by USAN’s Strategic Land Acquisition Program. The existing building on the site has been demolished and a new building will soon be constructed on the north portion of the site. The southern portion of the site—along Old Falls Street—is slated for future development, but plans have not been finalized. In the interim, USAN will install an ornamental fence along the edge of the property facing Old Falls Street. Additionally, a small public space will be created at the corner of Old Falls Street and First Street that will provide shade, seating, games, and other amenities. This interim installation is aimed at activating the space and providing additional amenities on Old Falls Street until future development takes place.
- Authorization to enter into contract amendment with Practice for Architecture Urbanism DPC (PAU) for consultant services related to Niagara Falls Heritage Gateway. The new proposed total contract amount is not to exceed $2,941,663. To date, two of the proposed gateways—Gorge Gateway Park and Hydraulic Power Plaza—are under construction. A third—the Riverway Tree Walk—is in its final design stage. This amendment would allocate additional resources to expand the scope of the fourth gateway, the “Cataract House Memorial.” While some funding for this gateway was provided in the original contract amount, a series of workshops with local stakeholders and representatives from Niagara Falls State Park and Niagara Falls National Heritage Area revealed the need for a more intensive community engagement process and a more ambitious design. The gateway would create a memorial at the former site of the Cataract House in Niagara Falls State Park—once the city of Niagara Falls’ most exclusive lodging, hosting presidents and other visiting dignitaries, all the while serving as a terminus on the Underground Railroad.
About USA Niagara Development Corporation
USAN, a subsidiary of Empire State Development, is solely dedicated to the support and promotion of economic development initiatives in Niagara Falls by leveraging private investment and encouraging growth and renewal of the tourism industry in the City of Niagara Falls. More information is available here.
Contact:
Pamm Lent (ESD) | [email protected] | (716) 846-8309 | (800) 260-7313
Laura Magee (ESD) | [email protected] | (716) 846-8239 | (800) 260-7313