By Eileen Buckley
Buffalo, NY – Buffalo's Statler Towers is officially out of business.
U.S. Bankruptcy Court Judge Carl L. Bucki ruled Tuesday afternoon that mothballing of the building should continue. The heat and electricity have been shut off. Attorney Raymond Fink represents the mortgage holder.
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"The mothballing or the closure of the building is underway to protect the building. Perhpas a buyer will surface one of these days," said Fink.
The judge issued his ruling despite a plea from Preservation Buffalo Niagara. An attorney for the group argued that turning off the heat would compromise the building. But bankruptcy court trustee Morris Horwitz says unless the group wants to buy the Statler, it must be shutdown.
"It is kind of a little late in the game to start saying they want me to keep the utilities I don't know where they thought the estate was going to get the money to keep the utilities on," said Horwitz
The Preservation attorney claims the organization could raise funds from foundations and endowments to help pay for heat. But it costs about $12,000 a week to heat the Statler.
Judge Bucki said it was a difficult issue to deal with. But he said the building must be mothballed.
"One set of frozen pipes" would make the building beyond restoration, noted Bucki.
The New Buffalo Statler Redevelopment was unsuccessful in closing its deal to buy the Statler for $1.3 million. Bars will be put on the lower windows and steel doors will be added to secure the building. The sprinkler system is also being drained.
All the tenants, with the exception Parklane Catering, have moved out of the Statler.
$100,000 has been set aside for the mothballing process. So far about $47,000 has been spent on closing down the Statler.