Compromise proposed for HSBC land deal

BUFFALO, N.Y. (WIVB) - News 4 Senior Correspondent Rich Newberg has learned of a hybrid compromise on a land transfer deal for the Webster block, in the City of Buffalo.

HSBC bank is said to be interested in this block for expansion.

The proposal, which was presented by Mayor Byron Brown, sets the appraisal of the land at $3.6 million, and calls for a land disposition agreement which would give the Erie Canal Harbor Development Corporation preferred developer status on the land and would promise that the City of Buffalo would sell the Harbor Development Corporation the land, as soon as HSBC bank chooses the Webster block as its site for expansion.

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Mayor Byron Brown said communication with HSBC Bank has been good, as all the recent issues surfaced.

He expects that the city will not be made to wait months or even a year before knowing which direction HSBC Bank will take.

The new proposal keeps the door open to a future common council approval to more than five acres of additional land in the close proximity of the Webster block. As part of that agreement, the city would give each council member $1 million to help develop small business and create jobs.

Some common council members have been holding out for guarantees of a living wage and low-income housing on the waterfront, two issues the Erie Canal Harbor Development Corporation has refused to consider.

The Harbor Development Corporation however has included several demands for a community benefits agreement, in its overall proposal for the final land transfer. This includes certain protections and advantages for local businesses, women and minorities and environmentally friendly buildings for the waterfront project.

News 4 sources say HSBC will make a decision on where to expand in September. The September decision creates a sense of urgency for the city of Buffalo to transfer the Webster block to the Erie Canal Harbor Development Corporation. The 1.9 acre Webster block, across from HSBC Bank's atrium, and near the arena, is believed to be the primary location HSBC is currently interested in for expansion. Other potential expansion sites include the bank's property behind the atrium building, and Crosspoint Parkway in Amherst.

Buffalo city lawmakers will meet at 7 p.m. Thursday night to consider a last minute compromise on the land transfer of the Webster block.