The former Key Bank building, located at 200-206 N. Main St., and former Marine Midland Bank, located at 201-203 N. Main St., are being sold by building owner Arnold Duke. Duke had purchased the former Key Bank during an auction in July 2016 and closed on the purchase of the former Marine Midland Bank in May 2018.

The plan for the former Key Bank building was to transform the property into a dinner theater, residential apartments and office space. The plan for the former Marine Midland Bank was to create a new location for a local distillery.

“I bought them both with the full intention of rehabilitating them to turn them back into the great buildings that they are,” he said. “I’ve had some terrible circumstances. One right after the other.”

Duke said the COVID-19 pandemic significantly impacted his main business as president of the International Gem & Jewelry Show Inc, which he said was the world’s largest traveling jewelry store before having to shutdown because of no large public gatherings. He also said that he is going through a lengthy divorce and spent two months in the hospital following several operations.

The former Marine Midland Bank is up for sale. There had been plans to redevelop the building into a distillery. P-J photo by Dennis Phillips

“I decided to put them up for sale because I no longer have the financial wherewithal and physical ability to continue the rehabilitations,” he said.

Duke said he is looking for a business partner or for another developer to purchase the buildings to finish the projects.

“I’m still optimistic I will be able to find a partner who can pick up the ball from me and get it across the goal line,” he said.

Duke said he listed the properties with Century 21 Turner Brokers. Also, the former Key Bank building comes with two state grants that would reimburse a developer who finishes a rehabilitation project. The grants include $1 million of the $10 million city officials received through the state Downtown Revitalization Initiative and a Restore New York award of $500,000.

Crystal Surdyk, city development director, said both state grants are still available for reimbursement to a developer who completes a state approved project at the former Key Bank.

“The building owner (Duke) didn’t receive any DRI funding up front, so now that he is selling the building he’s not eligible to receive the DRI reimbursement,” she said.

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“Anyone who purchases the building is available to receive funding as reimbursement. They would have to submit a plan for use of the building. As long as it’s in line with the state’s goal, they would consider that use and using the DRI funds to stay with the property. It’s a process that would have to be approved by the state.”

When Lt. Gov. Kathy Hochul announced the city projects that would receive DRI funding in May 2017, it came with the understanding that state officials wanted the money spent within a few years. Earlier this year, state officials instructed city officials to reallocate $300,000 in funding that was going toward assisting organizations with special events downtown. Surdyk said state officials want this funding spent as soon as possible, but also want to see redevelopment downtown.

“The clock is certainly ticking,” she said. “I think there is an opportunity if we find the right developer that the state would consider granting an extension. It comes down to getting a developer in there and getting their plan approved.”