Pictured are members of the City Council during Monday’s special voting session. P-J photo by Timothy Frudd

The City Council voted Monday to move forward with an application for a New York State Empire State Development grant for the redevelopment of the Furniture Mart Building.

During a special voting session, the City Council unanimously approved the city’s request to apply for a grant under the Restore New York Communities Initiative through the New York State Empire State Development.

The application is for up to $2 million in funding for the redevelopment of the Furniture Mart Building property, located at 111 W. Second St.

The City Council previously passed a resolution in September in support of a grant funding application for $500,000 for the renovation and restoration of the Furniture Mart Building.

Monday’s resolution increased the city’s application amount by an additional $1.5 million. Crystal Surdyk, city director of development, explained that the specific grant the city is applying for is up to $2 million, which led the city to decide to apply for the full amount.

“We decided we should request up to as much as we can,” she said.

Gebbie Foundation President Greg Edwards said the Furniture Mart Building redevelopment project will cost over $18 million. Edwards explained that it is “not unusual” for prospective developers to seek up to 30% of the project’s funding between grants and other assistance in order to “incentivize” their investment.

If the $2 million Restore New York Communities Initiative grant is awarded for the projects, Edwards said it will “match up” with the $1.34 million Empire State grant previously secured by the Gebbie Foundation through its partnership with the city. Nevertheless, Edwards said that even with the grant funding, the project would still be a costly investment by the Savarino Company.

“If you think about it, even if it was $3.34 million, up against $26 or $27 million, it’s well below that threshold; in fact, it’s about 15% as opposed to 30%,” he said. “It would be an investment that would have a dramatic impact on the city.”

Currently, Edwards said the Furniture Mart Building redevelopment project is projected to add high end residential housing and”modest level” residential housing on the upper floors, a hotel property on the middle floors and commercial retail space on the first two or three floors.

“It really does address many of the issues that we have right now in the city as far as development goes,” he said. “It’s a great building. It’s 180,000 square feet. Right now it has I think four or five units leased in it. All the rest of it is vacant and ready to be redeveloped. It’s a critical component to the overall redevelopment and realization of the economic development of the city.”

In addition to the redevelopment of the building, Edwards said the Gebbie Foundation and the city have been working “really hard together” to convince the Savarino Company to construct a multi-level parking structure next to the Furniture Mart Building in order to enhance the “positive impact” of the project in the Jamestown community.

Edwards emphasized the importance of “substantial growth” in the city’s parking capacity.

“The owner of the building has already committed a option purchase option with the Savarino Company,” he said. “They are in the latter stages of negotiations with The Post-Journal and another adjacent property to acquire property to add to that development and its impact.”

While Edwards highlighted the developer’s record of success in redeveloping similar buildings in other communities, he stressed the importance of assisting the Savarino Company with the project. Edwards explained that the Savarino Company is the third developer to consider the project.

“Each one of the developers has expressed the same concern as Savarino,” he said. “Without this assistance in incentivizing the development, the dollars just don’t cost out. The risk is too high. The cost of redeveloping it and having them go out and borrow the money necessary as long as with their own dollars as well.”

Edwards said he is “excited” that the City Council approved the resolution to move forward with the application process.

Following the City Council’s approval for the grant application, the city is scheduled to hold a public hearing today at 5:30 p.m. on the Restore New York Communities Initiative grant application. Public comments can be submitted to Crystal Surdyk, city director of development, prior to the meeting. Local residents are also encouraged to voice their comments in person at the public hearing, which will take place in the City Council Chambers at City Hall.