BUFFALO, N.Y. — One of Western New York's largest construction firms is ceasing operations.
Savarino Companies announced that it's shutting down its construction business.
In a statement to 2 On Your Side, Savarino Companies said the main reasons for closing are due to a court battle with the NYS Dormitory Authority, and failure to secure new bonds.
"The primary factors governing the firm’s decision are ongoing and increasing costs related to a project the company’s surety was forced to complete at Alfred State College, a recent termination of work, and the company’s inability to obtain surety bonding or acceptance of alternative performance guarantees for $110 million of 2023 work which the company would otherwise have had underway at this time. Without that work, it would not be possible for the company to operate profitably.
Savarino Companies has worked on nearly 100 construction projects in Western New York since opening 23 years ago.
Currently, the company is working on the redevelopment of the DL&W Terminal, owned by the NFTA.
In a statement to 2 On Your Side the NFTA said:
"The NFTA is aware of recent announcements concerning Savarino Construction. While Savarino’s involvement with the DL&W is uncertain at this time, the NFTA will continue to advance the DL&W project. This includes $30 million in state funding provided by Governor Kathy Hochul to improve the core and shell for future development. The design work is currently underway as well as construction of a new revenue track and new station that will be directly integrated into the DL&W facility. In addition, with the earlier assistance of Sam Savarino, the DL&W has applied and received the New York State Historic designation earlier this month and has been nominated for the federal register listing which will make the facility eligible for future historic tax credits. Finally, the NFTA is currently exploring new market tax credit opportunities that will help with future development. The NFTA looks forward to restoring this incredible facility, creating a new space for public use, and restoring public access once again."
Savarino Companies is currently involved in legal action with the NYS Dormitory Authority over a renovation project at Alfred State College. The Dormitory Authority terminated its contract with Savarino after claiming the company missed construction deadlines.
The company says it's working with other contracting companies to take over projects that were already in process.