Carl Paladino, former gubernatorial candidate and businessman from Buffalo, is unhappy with state officials for denying funds for a project he has invested in located in downtown Jamestown.

Even though Jamestown officials received $10 million to fund 10 downtown projects through the Downtown Revitalization Initiative, two projects that received local support received no funding from state officials.

Last month, it was announced that the redevelopment of the Furniture Mart Building and the project to acquire riverfront development property where Chautauqua Brick Company is located to facilitate riverfront development would receive no DRI funding.

The Local Planning Committee had requested $1.5 million in DRI funding to redevelop the 10-story Furniture Mart Building into a mixed-use space with office, hotel and residential uses. The development would also include an adjoining 354-space parking structure connected to the building. The Furniture Mart project would also mean the preservation of 350 jobs at The Connection, while also adding 80 additional jobs throughout the rest of the building.

Buffalo businessman Carl Paladino recently sent a letter to the State Department of Economic Development regarding the denial of state funds for a revitalization project in Jamestown.

The proposed redevelopment efforts are being led by Buffalo-based Ellicott Development, with local partner the Gebbie Foundation.

Following the denial of funding from state officials for the Furniture Mart project, Paladino, Ellicott Development Company chairman, wrote a letter dated June 29 to Howard Zemsky, Empire State Development chief executive officer and state Department of Economic Development commissioner, stating his displeasure. A copy of the letter was sent to The Post-Journal.

“We have learned that our DRI grant application has been turned down by you and the governor’s office. I can only assume that the rejection had something do with politics. That is very unfortunate for the people of the city of Jamestown,” the letter read.

“Our project was introduced to us by a local foundation whose mission it is to rejuvenate downtown Jamestown through economic development because of the positive effect it would have on the core of the city at such a critical location. We too saw the potential impact of breathing new life into an older downtown office building and adding the parking that is so vital for the area.

“We have negotiated a contract with the owner of the Furniture Mart building to buy the property and renovate it into a multi-use building at a high-profile location across the street from the National Comedy Center and a block away from the arena,” Paladino stated.

“Our project includes The Connection, which provides approximately 356 jobs in a call center operation with federal government contracts. It was a desire of the tenant to relocate from what is now the fourth floor to the first floor of the building for various reasons include the experience of their employees in being able to get in and out of the leased space readily on breaks, etc. instead of overcrowding elevators. The DRI grant was directed at some of those costs to keep the tenant at a reasonable rental.”

Paladino’s letter continues to state that Ellicott Development had identified a plan to possibly use Brownfield and historic tax credits and explored County of Chautauqua Industrial Development Agency PILOT program benefits.

“Your refusal to consider the DRI grant has now put our project at risk and the maintenance of The Connection tenancy in downtown Jamestown at risk,” Paladino said. “I am asking that your department reconsider the grant for this worthy project.”

Last month, Gregory Edwards, Gebbie Foundation chief executive officer, said the Furniture Mart project continues to be a viable option.

“It is a project with such value that we continue to work the right funding, the right components and the right developers to put it together, and I remain hopeful that we can advance quickly as we continue to build the project,” Edwards said.

According to the city of Jamestown Local Planning Committee draft project profiles from its Feb. 16 meeting, the Gebbie Foundation has an exclusive option to purchase the building. The full cost of the project is estimated to be $19 million, with private funding accounting for $14 million.

The other project denied funding was the acquisition of riverfront development property. The Local Planning Committee had requested $1.4 million toward acquiring waterfront property on the south side of the Chadakoin River where Chautauqua Brick Company is located. By acquiring this property, this would have allowed city officials to request proposals to redevelop the industrial site into a more suitable recreation spot along the waterfront.

Last month, Vince DeJoy, city development director, said he hasn’t had any direct discussion with the owners of Chautauqua Brick since the DRI funding request was denied.

“It is still an idea and concept we would like to pursue, and we will be looking for alternate funding sources. The DRI would have made it feasible to begin the project, and now it is a longer term concept we are still pursuing,” DeJoy said.

DeJoy said city officials still want to keep Chautauqua Brick in the city.

“(Chautauqua Brick owner) understood something more tourism related there is a better use and they were willing to explore an alternate site. The public funding through DRI would have made the project work a lot better,” he said.