BUFFALO, N.Y. — You Paid for It — $76 million in state funds was used to help redevelop the Richardson Olmsted Campus in Buffalo, $16 million more in historic tax credits. Part of the campus was then turned into Hotel Henry, which will close February 27, due to financial impacts from the pandemic.
"Hotel Henry going offline is certainly a body blow dealt by Covid," said Dennis Murphy, a Hotel Henry company member.
The Richardson Center Corporation, which is the steward of the campus, supports the notion that financial difficulties were an issue.
"There was a point in time where they have not been able to continue their rent payments they have been again very proactive in that messaging with our team and our board," said Mark Mortenson, president of the Richardson Center Corporation.
Hotel Henry says 75 percent of projected revenue in 2020 was lost due to the impact of the pandemic. But before the bad times, there were plenty of good times. Hotel Henry has been in business nearly four years, gaining national acclaim.
"When Hotel Henry was named TIME'S 100 Greatest Places in the World, I think that stands out as to itself," Murphy said.
As a way to grow the business, the operators of Hotel Henry say they struck a deal with Hilton Hotels.
"We invested hundreds of thousands of dollars into the Curio brand to bring it forward," Murphy said.
But, due to the pandemic, this never really played out.
"The Hotel Henry had an agreement with the Hilton with them ending business operations here at the Richardson Olmsted Campus that agreement does not translate to us as the Richardson nor does it translate to a future operator," Mortenson said.
As for all the money the state invested here, 2 On Your Side's Jeff Preval asked, "Does any of that need to be paid back?"
"No we've been working with the tax credit investor and my understanding is that no that was an investment made to restore and reuse a historic landmark and that was accomplished," Mortenson said.
The focus now is dealing with clients, customers and finding a new tenant. Buffalo Business First reports that Doug Jemal, owner of Seneca One Tower is expected to take over Hotel Henry, but the managers of the Hotel Henry property tell us no deal is in place.
We did reach out to Hilton for comment but did not hear back. The Richardson Center says it's ideally looking for another hotel to come in and be the new tenant. Residential units are also a possibility.