The Barn

Figure 6-1: A Dutch Barn showing its steeply pitched roof and low side walls

Source: Gabler. “About Barns.”

Figure 6-2: An English Barn one story tall with a loft above for hay

Source: Gabler. “About Barns.”

Figure 6-3: A Gambrel-Roof Barn displaying its double pitched roof

Barn Typology and History

Barns have played an important role in the United States since the first European settlers arrived, bringing with them their knowledge in erecting new structures for uses such as storing hay, livestock and equipment. They are essential for farms to function properly and they have evolved greatly over the years. The Dutch Barn was prominently built between the 1640s and the 1840s in the United States. They commonly have a steeply pitched roof with low side walls. Their floor plan is usually almost a perfect square with wagon doors on both gable ends. A dramatic feature of the Dutch Barn are their massive beams that span the main aisle connecting the posts with large protruding tenons. There is typically a main center aisle with rows of stalls on either side. The wagon doors were typically hung on wooden or metal hinges with one side halved to create what we know as the typical “Dutch door.” 1

English Barns were prominently built between the 1780s and the 1850s. They are typically one story and rectangular in shape. Like the Dutch Barn, the English is also divided into three bays. They are entered through the long side that opens into the center bay. The bay on one side housed livestock while the other was an enclosed grainery. Hay was stored on poles in the loft above. Their basic frame consists of four bents or cross sectional framing units connected by plates or sills. 2 Gambrel-Roof Barns were prominent from 1850 to the present. They have a double pitched roof and wagon doors on the long side of the barn. Some of them may have basements while others may not. Essentially they have the frame of an English Barn with a roof style that is borrowed from early colonial houses. In the later part of the nineteenth century the Gambrel Barn became popular in the western portion of New York State. At this time they were often adapted to balloon frame construction which used sawn planks instead of hewn timbers. The Gambrel Barn, with its classic red paint and white trim, has come to be known as the “classic American barn.” 3

popular in the western portions of New York State, the barn on the Richardson Campus seems to fit the English and Dutch Barn styles more. It is not one style in specific because the barn is pieces together with parts from other barns that were demolished. This is part of what makes this barn special. It was built with whatever they had and they made it work.

William Haugaard

After the original work of the Richardson Olmsted Complex was completed by architect Henry Hobson Richardson, other local and state architects stepped in to develop additional portions. Some of these architects included Andrew J. Warner, William W. Carlin, Edward B. Green, and William E. Haugaard. William E. Haugaard was a notable contributor to the Wagon Shed, which is why we named our redevelopment of it after him. 4

William Haugaard is known to be the man directly responsible for the construction of the Wagon Shed that we are redeveloping. After Haugaard received his architectural education at Pratt Institute, he became State Architect of New York. He held this position from 1928 to 1944, where he worked on several projects such as the Panama Canal, the Attica State Prison, and the Sixty-fifth Regiment Armory in Buffalo. Haugaard came into power a couple decades after the hospital was up and running, and he made some major changes. He designed the Female Dining Hall and the second Nurse’s Home. Once he got into his office of State Architect, he transferred the northern half of the hospital to the city in order to create the State Normal School, which is now Buffalo State College. This transfer saw the movement of the Male Tuberculosis Ward and the Pre Industrial Shop to the school. It also saw the demolition of Elmwood Building and the Kitchen on the ROC. Most importantly, Haugaard was responsible for the construction of the Wagon Shed, which

Figure 6-4: The Barn displaying its mix of classic barn typology

Source: Siera Rogers

Figure 6-5: Notches in the wooden beams are evidence that they came from somewhere else where they had a specific use

Source: Siera Rogers is the subject of our proposal. In order for Haugaard to build the Wagon Shed, he had to oversee the deconstruction of the frame farm buildings. He allowed pieces from all over the ROC to be used to construct the Wagon Shed, which is what gives the barn its piecemeal form. 5

These architects all had a similar vision of how they wanted the campus to look. One significant feature in all of the barns on the campus are the board and batten exteriors. The first major architect who influenced the barn designed was William W. Carlin. Soon after W.W. Carlin moved to

Buffalo in 1884, he became a prominent figure. He served as the last president of the Western Association of Architects and designed many important buildings and residences. W.W. Carlin was involved in the design and construction of multiple buildings on the ROC from the years 1885 up until his death in the early 1890s. The buildings on the ROC that he was associated with were the Second Barn, the Hen House, the Hog House, the Greenhouse, the brick Employee Building, the three Summer Houses, and Ward F. 6 All of the additions to the ROC were faithful to Richardson’s original design and completed his overall vision. 7

The Barn’s Connection to the Kirkbride Plan and the Olmsted Campus

The barn was constructed around 1930 but is made of materials from other barns that date back to the late 1800s. Barns were important at Buffalo State Hospital because during the 19th century farming was seen as a form of therapy for mentally ill patients. 8 The hospital was designed with over half of the land to be set aside as farmland. The farmland was used for patient recovery that started with a good site with tillable soil so that the farm and gardens would provide fresh food for the patients. 9 The patients participated in regimental farm labor as a part of the

healing process, which provided the mentally ill with daily tasks that did not differ so much from the daily lives of the sane. There were many barns on the campus before this barn was built around 1930. There were some for livestock such as pigs, and others for storage. When those barns were torn down, records show that pieces of them were taken to create this wagon shed. The wooden beams on the interior have notches and marks on them that show they were used somewhere else previously. There are steel beams on the first floor that have “bite marks” in them suggesting they had some sort of gear system attached to it in its previous use. Each of the windows on the first floor have two sets of windows in them, as if they didn’t have storm windows to use but had extra single pane ones that they could double up to effectively be a storm window. The doors are all different styles and opening mechanisms, suggesting they came from different places.

Figure 6-6: The different styles and opening mechanisms of barn doors hint that they came from different places

Source: Siera Rogers

Figure 6-7:

Bi-fold door

Source: Siera Rogers

Figure 6-8:

Hinged barn doors

Source: Siera Rogers

Figure 6-9:

Sliding barn doors

Source: Siera Rogers

Character Defining Features and Existing Conditions Feature: Barn Doors

Description: There are 11 wooden barn doors, including the hatch door on the second floor under the hoist beam and the small door on the added on shed.

Condition: Varies

Integrity: High

Deficiencies: Rot, inoperable, missing hardware, discoloration, deteriorated frames. Some doors were altered from their original slide opening system to a hinge system. Some door openings were cut to become larger to allow for bigger equipment to be stored inside.

Recommendation: Repair doors where possible. It can cost about $9,000 to purchase replacement wooden barn doors and up to $2,000 for new track systems, depending on the material needed.

Figure 6-10: Opening that has been cut to make room for larger equipment

Description: The barn features a variety of different window styles, likely thrown together with any extra hardware lying around. There are x amount of sash windows. They are both double and single hung and mostly 6 over 6 or 20-25 panel. In some cases, 2 windows are built together, likely to give the illusion of temperature control. Minimal nail use.

Condition: Varies

Integrity: High

Deficiencies: The windows suffer from varying degrees of damage. There is rot, peeling paint, broken frames and glass panels, inoperable, and missing hardware. Some are boarded up.

Recommendation: Repair windos where possible. To replace windows inside existing and structurally intact window frames, it could cost between $300 to $1,000 per window. If the existing window frame is rotted or damaged in any way, the frame must be rebuilt. A new frame and window could cost up to 100% more than just the replacement window. This is a cost of about $600 to $2,200 per window.

Figure 6-11: One of the typical cases where 2 windows were installed together

Source: Siera Rogers

Figure 6-12: Windows on the lower level are boarded up to deter vandals

Source: Siera Rogers

Figure 6-13: Windows in the chicken coop for the chickens to enter and exit from

Figure 6-14:

Board and batten siding

Source: Siera Rogers

Figure 6-15: Board and batten siding on the chicken coop

Source: Siera Rogers

Figure 6-16: Board and batten siding on the side of the carriage barn

Source: Siera Rogers

Figure 6-17: Board and batten siding on the front of the main barn Description: Majority is vertical wooden board and batten siding, with horizontal wooden board and batten siding on the side with the chicken coop doors. On the north and south facades there is a sawtooth decorative edge cut on the bottoms of the upper boards.

Condition: Varies

Integrity: High

Deficiencies: Most of the wooden siding is damaged by water and deteriorated and suffers discoloration. Some areas of the siding are rotting or have broken off pieces.

Recommendation: Repair board and batten siding where possible. The cost to replace wooden board and batten siding ranges from $3-$10 per square foot. Average installation costs can range from $4,000 to $14,000. Replace 40%, restore the rest.

Description: The exterior mortar is rough faced aggregate that is tooled

Condition: Good

Integrity: High

Deficiencies: Some spots may need to be re-pointed

Recommendation: Repair the pointing where needed and repair it in kind to what is original

Figure 6-18: Aggregate can be seen in some exposed areas of the foundation

Source: Siera Rogers

Figure 6-19: Different aggregate can be seen in the foundation and the brick work

Source: Siera Rogers

Figure 6-20: A hole in the roof can be seen from the interior of the carriage barn

Source: Siera Rogers

Figure 6-21: More holes in the roof seen from the interior of the carriage barn

Source:

Siera Rogers

Figure 6-22: Water damage can be seen on the second floor of the main barn

Source:

Siera Rogers Description: Gable end roof with saltbox form at the extension of the gable at the outer wall

Condition: Fair to poor

Integrity: High

Deficiencies: Roof is deteriorated at wall connection in some places, rot and water damage can be seen, shingles are missing and deteriorated; roof over the chicken coop is almost completely collapsed in some places

Recommendation: Repair the damaged sections of roof and replace in kind where necessary. New shingles are necessary.

Figure 6-23: Damage can be seen on the main barn roof and the edges of the carriage barn roof

Description: Decorative cornice where the eave and gable ends

Condition: Good

Integrity: High

Deficiencies: Deteriorated and damaged in some spots

Recommendation: Repair the damaged sections and replace in kind where needed

Figure 6-24: Cornice on the brick mechanical roof of the barn

Source: Siera Rogers

Figure 6-25: view

Beaked roof eave side

Source: Siera Rogers Description: Beaked roof eaves at the peak of the barn roof

Condition: Good Integrity: High

Deficiencies: None

Recommendation: Should keep as is and repair where needed

Figure 6-26: view

Beaked roof eave front

Source: Siera Rogers

Description: metal gutter system to catch and distribute water off the roof

Condition: Fair to poor

Integrity: High

Deficiencies: Missing in many spots, broken, detached and falling off where existing

Recommendation: Repair the damaged sections, replace in kind where necessary

Figure 26-7: Intersection of the main barn and carriage barn showing the existing gutters

Source: Siera Rogers

Figure 6-28a: Support post that the bottom has been severely damaged

Source: Siera Rogers

Figure 6-28b: Second view of the above damaged post

Source: Siera Rogers Description: Heavy timber framing that includes posts, beams and joists

Condition: Fair

Integrity: High

Deficiencies: Posts too small or too damaged to support the load above, water damage on some joists, some beams have notches carved out of them from prior use

Recommendation: Posts in some spots may need to be sistered with new posts to provide enough support for the roof and second floor, repair damaged and replace in kind where needed

Description: Concrete floor in the main barn lower level, wood flooring on the second floor

Condition: Good

Integrity: High

Deficiencies: Cracks in the concrete

Recommendation: Leave as is and polish concrete, repair any wood that needs it

Figure 6-29: Concrete floor typical on the first floor of the main barn

Source: Brenna Reilly

Figure 6-30: Wooden floors typical on the second floor of the main barn

Source: Brenna Reilly

Feature: Wood

Apply chemical preservatives, or coatings to wood that are subject to weathering, moisture, ultraviolet light, such as exposed beam ends, and rafter tails.

Implement pest management insect damage, such as installing termite guards, fumigating, and treating with chemicals.

Retain coatings that protect the wood from moisture and ultraviolet light.

Paint should be removed only when there is paint surface deterioration and it is necessary to repainting or applying other appropriate coatings.

Remove damaged paint to the next sound layer using the gentlest method possible (e.g........, hand scraping and hand sanding) prior to repainting.

Repaint historically-painted wood features with colors that are appropriate to the building and district. Use coatings that encapsulate lead paint, where the paint is not required.

Feature: Masonry

Cleaning soiled masonry surfaces with the gentlest method possible, such as using low-pressure water and detergent and natural bristle or other soft-bristle brushes.

Applying non-historic surface treatments, such as water-repellent coatings to masonry only after repointing and only if masonry repairs have failed to arrest water penetration problems.

Evaluating the overall condition of the masonry to determine whether more than protection and maintenance, such as repairs to masonry features, will be necessary.

Repairing masonry by patching, splicing, consolidating, or otherwise reinforcing the masonry using recognized preservation methods. Repair may include the limited replacement in kind or with a compatible substitute material of those extensively deteriorated or missing parts of masonry features

Sealing joints in concrete with appropriate flexible sealants and backer rods, when necessary.

Cutting damaged concrete back to remove the source of deterioration, such as corrosion on metal reinforcement bars. The new patch must be applied carefully so that it will bond satisfactorily with and match the historic concrete.

Applying permeable, anti-graffiti coatings to masonry when appropriate.

Replacing in kind an entire masonry feature that is too deteriorated to repair (if the overall form and detailing are still evident) using the physical evidence as a model to reproduce the feature or when the replacement can be based on historic documentation. Examples can include large sections of a wall, a cornice, pier, or parapet. If using the same kind of material is not feasible, then a compatible substitute material may be considered.

Duplicating historic mortar joints in strength, composition, color, and texture when re-pointing is necessary. In some cases, a lime- based mortar may also be considered when re-pointing Portland cement mortar because it is more flexible.

Duplicating historic mortar joints in width and joint profile when re-pointing is necessary.

Removing deteriorated lime mortar carefully by hand raking the joints to avoid damaging the masonry.

Feature: Roofs

Designing and installing a new roof covering for a missing roof or a new feature, such as a dormer or a monitor, when the historic feature is completely missing. It may be an accurate restoration based on documentary and physical evidence, but only when the historic feature to be replaced coexisted with the features currently on the building. Or, it may be a new design that is compatible with the size, scale, material, and color of the historic building.

The rehabilitation of the Barn at the Richardson Olmsted Campus is an interesting challenge for a prospective developer. The rehabilitation of the property must be in accordance with the Secretary of the Interior Standards as the Barn is a contributing structure to the National Historic Landmark. This project will utilize historic tax credits and other funding sources to finance the project. The proposed use will generate income for the property and help to ensure that the project is a financial success. The study began with an extensive trial of use proposals in which various project uses were discussed, studied, and financially tested to determine the potential for success in terms of returns as well as market fit. After this trial phase, it was determined that given the unique location at the conjunction of a state college, diverse neighborhood, and boutique hotel resort, the use would have to be considered a destination that would attract a broad range of individuals. A neighborhood market assessment was completed to understand what amenities and functions were already established in the neighborhood, and interviews with surrounding students and resort staff were conducted to understand what gaps exist that could be filled. This research has led to a conclusion, the surrounding neighborhood lacks affordable options for casual food, inviting atmosphere that is unique and welcoming to all, and retail that is unique and relatable. The proposed redevelopment uses for the Barn include a casual restaurant with bar and tasting room, as well as destination retail components including unique home furnishings and artisan oil and vinegar shop. In order to determine if the proposed uses would provide a revenue that would produce a return on investment, rental comparisons were studied in different areas in the Buffalo real estate market to determine an expected rental rate. The results of this study yielded the achievable rental rates that can be expected for a triple net lease of a retail space in this area, and proves this project to be profitable. The marketing of this unique, historic property to attract exciting and dependable tenants will be crucial, and will determine the long-term success of the return potential of the site. The Barn offers a unique destination quality that other spaces simply cannot, and the location amongst a diverse mix of potential patrons will offer a continuous attraction that is sure to succeed over time. Given the unique challenges that come along with the restoration of historic structures, extensive cost analysis was performed to understand the types of expenses that are to be expected during redevelopment. Studies on interior and exterior renovation costs, furnishings and fixture estimates, as well as predictions of soft cost stacks were compiled in order to conceptualize the total development cost of this property, all while respecting the historically significant features of the structure. The decision to renovate the Barn in accordance to historic standards was crucial in the

financial feasibility of the project, as it allowed for specific development credits to be utilized while constructing a cost proforma. The renovation of the historic Barn within the confines of the Richardson Olmsted Campus will provide a unique communal amenity that will act as a destination for a wide variety of people. It is expected that this income-producing development plan will add incredible value to the campus, and the neighborhood as a whole. This development will also allow for a fluency of outdoor space and site work connectivity by means of its pergola outdoor seating. The following sections are intended to provide an in-depth understanding on the critical components of historic reuse, and prove the validity and financial success of the redevelopment of the Barn.

Use Breakdown Analysis

The proposed use of the barn structure is retail space. The barn will be divided into two main portions to make the best use of the available structure. The main barn and the chicken coop will be dedicated towards restaurant space. The proposed use of the wagon shed is retail space. The space will be divided into two separate spaces to allow for retail spaces that fit within the current demand of the market. Below, Table 6-1 shows the breakdown of the uses for the proposed historic Barn, there will be 8,880 square feet of gross lease-able space. There will be two destination retail spaces consisting of 628 square feet and 1,650 square feet. The third and largest retail space will consist of a restaurant that will be 6,602 Square feet. Common areas will consist of 785 square feet.

Table 6-1:

The Barn square footage by use

Restaurant Component One of the three proposed uses for the barn structure is a tasting room designed to bring together a ground-floor restaurant and several local distilleries and breweries to make a Buffalocentric inclusive restaurant and bar where patrons are free to experience a variety of different beers and spirits, crafted locally. This use will be called, “Haugaard House” based on the name of the architect who oversaw the construction of the Barn in 1928. The second floor of the Barn which is a large open space, will be used as a second bar with long communal tables. This space will be called “Asylum Tasting Room,” based on the history surrounding the Richardson Olmsted Campus’ former use as the Buffalo State Hospital. The Asylum Tasting Room will be the primary space that can be rented out for private events such as weddings or banquets, and the entire venue Haugaard House and Asylum Tasting Room, can also be rented out for large-scale events. The overall site will be replanned, offering green connections and space for programmed activities outside of the tasting room in the courtyard, to be utilized during warm-weather months as well as creating availability for outdoor restaurant seating.

Reasoning Behind the Use There are multiple factors which led the development team to considering a restaurant and bar use for this portion of the barn. The main idea is to create a use that will attract a wide base of customers in terms of age and income. The location of the subject property is a main reason for the proposed use as well. It is located off of Rockwell Road, in between the Richardson Olmsted Campus and Hotel Henry to the south and Buffalo State College directly to the north. Further south, is a concentrated neighborhood with a wide variety of demographic conditions, largely made up of young urban professionals and older residents between the ages of 55-65. Also surrounding the site are Delaware Park and The Albright-Knox Art Gallery. The goal for the tasting room is to be a use that can attract people from any one of these areas while they are in proximity, as well as be a destination for those not in its vicinity. Another factor which influenced how the use was developed is the interior space itself. The lower floor is separated into two large spaces as the customer walks through the large barn doors. The entry space will be used for the main bar with side tables spread throughout and the space to the left will be used for seating. However, further back into the space, it begins to narrow, leaving little room for a kitchen. In its current condition, the back of the barn has a former chicken coop space, which has been determined to be the best location for a small kitchen. This limits the ability to run as a large-menu restaurant, so the concept was molded to be oriented to a smaller menu. The interior material also lends to the idea of a tasting room/bar use. The rustic nature of the barn gives a homey and historic feel to the space and there are several historic built-in furnishings that would operate well in storage for glassware and the variety of different spirits on display.

The plan for the restaurant is to also be utilized as a potential rental space for private parties, more namely, weddings. The over-arching plan for the barn site will see the re-planning of its surrounding green space to make it more walkable, along with the ability to program activities in warm weather. The site offers impressive backdrop views of the Richardson Olmsted Campus’ architecture and provides the rustic theme which has become increasingly popular for weddings. Also on the Richardson Olmsted Campus is Hotel Henry which can be utilized to accommodate guests attending the wedding. The large open floor plates inside the barn on both the first and second floor ensure that space requirements for small to large events can be met.

Destination Retail Component Another potential use for the historic Barn is for retail shopping space. To make retail space successful in this building, it is necessary to have a tenant that is a destination. A retail tenant cannot rely on foot traffic from the street, as there is no such traffic present. Retailers that need to be on main pedestrian streets or in malls will not be successful in this location. Retailers will have to be able to market themselves and take advantage of the unique characteristics set forth by having the barn as a storefront. There is the possibility for the barn to be divided into smaller retail spaces while preserving the character defining features of the structure. The wagon shed and its three associated stalls are not connected to the larger two story barn by any interior pathways. The wagon shed’s existing partition can be maintained to divide the two smaller spaces. These separations between retail spaces are possible while retaining the interior character defining features. The available loft spaces in the wagon shed can be used for running mechanicals for this retail space, or for the potential of overhead storage space for the retail operations. These smaller spaces would be more suitable for smaller tenants that are just starting their businesses and would like a unique and rustic setting. The entire barn complex would need a single tenant with an established brand and clientele base to be successful in such a large space. The entire barn is over 6,000 square feet, which is a very large retail space compared to retail found on traditional storefront corridors. The Elmwood Village is home to many high-priced retail storefronts. The storefronts in this commercial strip of Elmwood Avenue are normally fairly small, about 1,000 to 2,000 square feet. The market comparable range from $22 to $30 per square foot per year. In addition to the high rent, the leases are triple net, meaning tenants are responsible for paying for maintenance, utilities, insurance, and other related expenses. The storefront at 773 Elmwood Avenue is leased at $30 per square foot. This at the top end of the market but it is a relatively small space (830 square feet) in one of the best blocks of the Elmwood Village for pedestrian activity. Other examples include 448 Elmwood Avenue, a 1480 square foot space that was previously a clothing boutique. The building is not historic and is recent new construction. It is currently for leased for $20 per square foot triple net. The restaurant

at 929 Elmwood Avenue is a 2,630 square foot operational restaurant that is for lease for $22.81 per square foot triple net. This space has access to a 50 space parking lot to the rear of the building, not common for Elmwood Avenue retail properties. A space in a less trafficked area, located in The Mentholatum at 1360 Niagara Street, is a 2,293 square foot retail space. It is for lease for $12 per square foot triple net. The barn property cannot command the rent of the Elmwood Village main commercial corridor. However, it is possible to achieve a rent higher than that of Niagara Street. This barn property would be one of the most unique retail spaces available and will have ample parking resources. An estimate for an achievable rent for the barn is between $15 and $20 per square foot per year, triple net. Breaking up the barn into a series of smaller retail spaces will achieve a higher rent per square foot, as smaller tenants pay a premium to large single use tenants. The lack of available storage space in the barn will require retailers to be creative with excess inventory. There is the option to purchase off site storage units from a variety of different providers to store excess and seasonal merchandise that does not need to be on the sales floor. The fixtures for the retail space can be selected to allow for storing extra merchandise within them and out of view. If Buildings 40, 39, and 38 are renovated to include basement space, there may be an opportunity to lease storage space in these basements in a similar fashion to the occupants of the apartments above. Storage space comes at a lower price than typical retail square footage. This creates the opportunity for cost savings by not wasting valuable sales floor space for storage. The Barn will have to be a destination retail space and will as a result need good access. While the distinction between the Richardson Olmsted Campus and Buffalo State College is lacking, there are available roadways to provide access to the site. Its location near the New York State Route198 brings in traffic from all directions. It is easy to connect to all major highways in the Buffalo metro region through this expressway. This will allow destination retailers to have a wide customer base into other parts of the city and surrounding suburban areas. The parking lot surrounding the barn will provide ample parking resources to the retail space. Branding for the Barn and the associated retail will be important to making retail space successful. The presence of a barn of this style in the city of Buffalo is a very unique characteristic. The historic board and batten exterior and other exterior features separate the barn from the surrounding building types. The interior of the barn provides the opportunity for a unique retail experience that cannot be found in any surrounding competition. While some spaces on Elmwood Avenue have hardwood floors and exposed brick walls, the mass timber beams and columns are unique. The fit out of the retail space must make the most of these character defining features, as well as make these features a part of the branding and marketing for the retail tenants. The reuse of the barn as retail space will limit the necessary build outs to the structure. It is important that the beams and columns remain exposed, and the wood floors are maintained in the second floor of the main barn. The ground floor of the barn and wagon shed will be suitable for poured concrete floors that

are useful for retail spaces. Retail uses will not require a lot of plumbing, kitchen, or bathroom build outs. There will be a need to provide ample electrical outlets throughout the entire building. The lack of available natural light in the barn space will need to be supplemented with artificial lighting. Lighting is a key component of retail businesses, and any permitted renovation that provides more light should be considered.

Figure 6-32:

Proposed interior space planning for The Barn

The reuse of the barn as destination retail space is a realistic future use. The barn will provide a one of a kind retail space that will be able to differentiate itself from other retail in the surrounding area. There is the possibility for the space to be occupied by a single large tenant or divided up into smaller storefronts for multiple tenants. Branding and marketing for the prospective tenants will be key to their success. It is necessary that these tenants are able to drive their own traffic through existing established operations or recognizable and desirable brands.

Retail Competition The proposed goal tenants for the retail space includes a home furnishing shop in the larger

portion of the wagon and an artisanal oil and vinegar shop in the smaller space. There are a variety of home furnishing stores and interior design showrooms in the area. They are located mainly on the commercial corridors including Elmwood Avenue, Hertel Avenue, and Amherst Street. The retail competition in the Elmwood Village include Neo Gift Studio located at 905 Elmwood Avenue and Ro at 732 Elmwood Avenue. Neo focuses on gift type and small home decor products and does not carry lines of furniture. Ro is a mid-century modern style shop that includes some vintage furniture and smaller items that fit the mid-century style of the shop. There are two home decor stores located on Hertel Avenue. These include ROOM at 1400 Hertel Avenue and MiMO Decor at 1251 Hertel Avenue. ROOM is a home furnishings store in addition to a showroom connected to the interior designer who owns the store. MiMO Decor is a mid-century modern and contemporary furniture store with other smaller items that accent the mid-century style. There are a few interior design showrooms in the surrounding area. The closest to the site include Michael Donnelly Interior Design at 463 Amherst Street and Blueprint Design Studios at 464 Amherst Street. Conley Interiors has a showroom at 1425 Hertel Avenue in addition to the ROOM showroom that includes the decor portion of business. Nest Interiors is located at 443 Delaware Avenue. Competition for artisanal olive oil and vinegar is not present close to the site. The closest comparable business is House of Olives located at 1374 Hertel Avenue. A location in the surrounding suburb of the Village of Williamsville is the D’Avolio Kitchen at 5409 Main Street. This shop offers a wide range of imported and flavored olive oils and vinegars, in addition to being an eat-in restaurant. Farmers and Artisans is also located near the Williamsville area, and is a store that features a wide variety of local produce and other edible products. Premier Gourmet in the Town of Amherst at 3904 Maple Road sells specialty kitchen products and gourmet prepackaged foods.

Alternative Analysis and Back of the Envelope

The potential for providing high-quality tenants to attract a great customer base is essential for the success of any development project. By evaluating alternatives based on their performance with respect to individual criteria, allowed us to conclude the highest and best use of the 8,880 SF barn space. The evaluation matrix that determined the highest and best use, involved several tools and real estate research to assist in adopting the recommended use. Tools that test the highest and best use of a property would include permissible legal use through zoning, physical and historic characteristics, financial and investment analysis, and a marketable use of the facility.

Alternative 1: Fitness Center Fitness centers can be broken into three categories; mega fitness centers, medium fitness centers and boutique fitness centers.

Table 6-2:

Types of fitness centers

For a fitness center to work in the Historic Barn space, it would have to be considered the “Boutique” fitness center type. Rather than a monthly fee that is seen at mega gyms or medium sized fitness centers, boutique fitness centers usually charge per diem or per class. According to 2019 CBRE Market Outlook report about retail spaces, the larger the fitness center the larger the customer radius. Research shows the vast majority of people are willing to drive three miles or less (or travel ten minutes or less) to a gym to work out. Proximity remains one of the biggest drivers of where people choose to work out. Boutique fitness centers however, have a much smaller footprint of attendance radius. The small footprint allows these centers to be plentiful, but location density is one of the top priorities. When it comes to boutique gyms, the travel time for gym users would actually be less than what is stated in the CBRE study. Travel time is reduced to a five-minute travel radius, rather than ten. There are two very important reasons that this alternative is not the highest and best use. The first is the location of the historic Barn. The location does not have the walkable perspective. In addition, the five-minute walk or drive vicinity, there is the Hotel Henry which has a gym, and Buffalo State College. There are multiple concerns with Buffalo State College students as a market group. There is a gym facility at the school and the students are unlikely to pay the premium cost of boutique fitness which can range from $10-$30 per class and $400 per month. The surrounding density of the historic Barn would likely not support a boutique style fitness center. The second reason is high tenant improvement cost for construction. According to the Design Cost Data database, tenant improvement for fitness facilities for new build is $200 per square foot and an additional $40 per square foot for FF&E (furniture, fixtures and equipment). FF&E for fitness centers would include showers, high capacity cooling units, sound proofing between rooms, and special gym flooring. With extra FF&E expenses, rents needed to offset cost of construction will need to be a minimum of $36 per rent-able square foot, triple net lease using an 8% Cap Rate. 10 In addition, these FF&E expenses will not be eligible for Historic Tax Credits. 11

The closest comparable for a boutique fitness center is BikeorBar, that is located on Elmwood Avenue, three quarters of a mile from the Barn. Elmwood Avenue is a popular site for mixed-use residential and commercial sites. It contains over 300 shops, coffee houses, restaurants, bars, offices and art galleries. Most shops are storefront facilities, typically 800-2000 square feet. BikeorBar holds a $25 per square foot, triple net lease in a roughly 2,500 square feet faculty.

This concept would work better for new construction and retrofitting store fronts in more densely populated and walkable areas like Hertel and Elmwood Avenue. If $25.00 per square foot for rent is charged, the value will not be greater to the cost of building out this type of facility. The Back of the Envelope Analysis (BOTE) for the fitness center (Appendix II), shows that Total Project Cost would be $2,359,669.41, while the value would be $1,806,196.88. Figures on the BOTE analysis are based on market research from CBRE, one of the world’s largest publicly traded real estate companies, as well as industry standards.

Alternative 2: Bed and Breakfast Space Using this space as a bed and breakfast space was conceptualized because unlike hotels, they offer more space and more rooms, and will operate independently from the Hotel Henry. The bed and breakfast will offer a different experience than that of the hotel and can be operated by a local establishment. The bed and breakfast would have 3-8 rooms over the 6,500 feet square of the historic Barn, with a kitchen facility on site. One major hurdle would be changing the zoning to allow for hospitality establishment. According to the City of Buffalo zoning map from the 2016 Buffalo Green Code, the historic Barn is zoned Campus. Campus zoning areas do not allow for hospitality establishments, so the developer would need to apply for a variance to change zoning. Variances are not the end all be all to a development project, since the Hotel Henry had to do the same. While it is likely a variance would be given, there is no guarantee that it will be granted. The additional time and money needed to apply for a use variance would add additional risk to the project. There was also a concern that the bed and breakfast would be too much like Hotel Henry. The hotel has a non-compete clause in regard to the other uses of the campus. Although a bed and breakfast is not a hotel, it is very similar. This could create some early issues in the development process. There is also a concern for a lack of use-diversity of the Richardson Campus. The historic Barn gives the opportunity to bring in more diverse uses rather than residential and hotel space. Uses such as retail, or restaurant space would be a great addition to the campus and with the Barn’s location close to Buffalo State College and the West side, it could be a great segue to connect the campus to the surrounding area.

Alternative 3: Destination Retail Only The historic barn on the Richardson Olmsted Complex has many opportunities for rehabilitation and reuse. After considering uses such as a Fitness Center and Bed and Breakfast, it was clear that this space would be better suited for retail. To make retail space successful in this building, it is necessary to have a tenant that is a destination. A retail tenant cannot rely on foot traffic from the

street, as the location of the barn does not allow for foot traffic along sidewalks.. Retailers that need to be on main pedestrian streets or in malls will not be successful in this location. Retailers will have to be able to market themselves and take advantage of the unique characteristics set forth by having the barn as a storefront. The entire barn is over 8,000 square feet, which is a very large retail space compared to retail found on traditional storefront corridors. The Elmwood Village is home to many high-priced retail storefronts with strong pedestrian traffic. The storefronts in this commercial strip of Elmwood Avenue are normally fairly small, about 1,000 to 2,000 square feet. The market comparable range from $22 to $30 per square foot per year. In addition to the high rent, the leases are triple net, meaning tenants are responsible for paying for maintenance, utilities, insurance, and other related expenses. The storefront at 773 Elmwood Avenue is leased at $30 per square foot. This at the top end of the market but it is a relatively small space (830 square feet) in one of the best blocks of the Elmwood Village for pedestrian activity. Other examples include 448 Elmwood Avenue, a 1480 square foot space that was previously a clothing boutique. The building is not historic and is recent new construction. It is currently for lease for $20 per square foot triple net. The restaurant at 929 Elmwood Avenue is a 2,630 square foot operational restaurant that is for lease for $22.81 per square foot triple net. This space has access to a fifty space parking lot to the rear of the building, not common for Elmwood Avenue retail properties. A space in a less trafficked area, located in The Mentholatum at 1360 Niagara Street, is a 2,293 square foot retail space. It is for lease for $12 per square foot triple net. The barn property cannot command the rent of the Elmwood Village main commercial corridor. This barn property would be one of the most unique retail spaces available and will have ample parking resources. An estimate for an achievable rent for the barn is between $15 and $20 per square foot per year, triple net. The back of the envelope analysis for retail reviles that with a core and shell cost of 100 per square foot. This price per square foot to build out retail is lower than a fitness facility due to the fact that the building just needs to be stabilizes as the historic features of the building will remain intact as it is. The retail tenant will then be responsible for all their build out expenses, as they typically are in this type of agreement. Retail will also not require special FF&E expenses that a fitness facility would need. To be conservative, using a $20 per square foot for rent will value the barn at a higher price than what it cost to build the property. With any Back of the Envelope Cost of construction can vary, so being conservative is key at times in the development process. Figures on the BOTE analysis (Appendix II) are based on market research from CBRE, one of the world’s largest publicly traded real estate companies, and industry standards. The Back of the Envelope shows that retail will be the highest and best use. However, 8,000 square feet of destination only retail, may not work. Therefore, a multi-tenant mixed retail location would be the highest and best use for this location.

Figure 6-33: Magnolia flagship store exterior; Waco, TX

Source: magnolia.con

Figure 6-34: Magnolia flagship store interior; Waco, TX

Source: magnolia.com

Figure 6-35: Research & Design flagship store exterior; Orchard Park, NY

Source: researchanddesign.com Since the historic barn on the Richardson Olmsted Campus has many opportunities for rehabilitation and reuse, precedents are important to show. There are several precedents of rehabilitated barns for both a retail destination and tasting room use.

Retail Destination Precedents: One of the most remarkable and renowned barn rehab projects for destination retail is Magnolia Market in Waco, Texas. Magnolia Market is a flagship store for a wellestablished brand headed by Johanna Gaines. The barn space and its unique features are an extension of Magnolia’s mission and visibility. There are also plenty of local examples found in Western New York. Patricia’s Back Barn located on Shawnee Road in North Tonawanda is an antique shop in a rehabilitated barn with an eclectic mix of furniture, home décor, accessories, antiques, vintage clothing, and architectural salvage. The Plant Shack located in East Aurora on Knox Farm State Park, is newly built out of an old horse stable, retailing plant and gardening items. The Plant Shack is a stand-alone barn, with a similar setting to the Historic Barn found on the Olmsted Campus, as it is located in Knox Farm State Park. The most closely associated local precedent is Research and Design, located on North Buffalo street in Orchard Park, New York. Research and Design is a retail destination. The flagship store is located in a rehabilitated 150 year old two-story barn.

Tasting Room Precedents While there are no local examples of tasting rooms used in rehabilitated barns there are several successful establishments across the county. Round Bar Tasting Room in Baroda, Michigan is a wine tasting room with locally inspired food, craft beer and other spirits. The Tasting Barn, at the Seneca Lake Restaurant is a rehabilitated house barn, that serves tapas-style snacks, brunch, lunch, dinner, local coffee, and fresh, made-to-order, farm-to-table, local food.

Figure 6-37:

Round Barn Tasting Room exterior; Baroda, MI

Source: roundbarn.com Figure 6-38: The Tasting Barn: Seneca Lake Restaurant, Winery and Tasting Room exterior; Burdett, NY

Source: thetastingbarn.com

The most relevant rehabilitated barn turned tasting room is Mallow Run Winery Tasting Room found in Bargersville, Indiana. The tasting room is located in the hayloft of a nineteenth-century timberframe barn built circa 1870. The Barn that was rehabilitated is very similar in size, age and condition as the historic barn found on the Richardson Campus.

Figure 6-39: Mallow Run Winery Tasting Room exterior before being rehabilitated; Baroda, MI

Source: mallowrun.com

Figure 6-41: Mallow Run Winery Tasting Room interior; Baroda, MI

Figure 6-40: Mallow Run Winery Tasting Room exterior after rehabilitation; Baroda, MI - not consistent with the Secretary of the Interior’s Standards becasue of the change in elevation to entert the building

Source: mallowrun.com

Figure 6-42: Mallow Run Winery Tasting Room interior; Baroda, MI

Statement of Objective: This market analysis is used to identify strengths and weaknesses of the overall regional market, demographically as well as the site and proposed use for marketable viability.

Executive Summary: The market analysis revealed that the proposed uses for the subject property are proper for the scope of the building as well as the location. It is determined that the location of the property is advantageous to capitalizing on multiple age groups. Income levels in the both the macro and micro markets appear to be sufficient to maintain steady sales for the retail uses. The supply analysis shows that the market is not saturated in any of the proposed uses, nor would any of the uses cause any over-saturation. The mix of uses are differentiated enough in the market that competition should be limited. The demand analysis takes into consideration multiple interviews as well as demographic data and it showed there is sufficient demand for each use. Overall, the projected development is appropriate in size, scale and scope. The uses provide a unique combination and its location allows for a wide mix of potential patrons.

Methods and Process: There were a variety of methods used in researching the site and determining the proposed use for the building. There were several days spent on site measuring, documenting, and analyzing the structure and surrounding site to identify possibilities for the space as well as what uses would not be feasible. Measuring and documenting the structure and site allowed the team to rule out uses that would potentially harm the existing structure or would not be enough of a draw. Market reports were used as well in determining the highest and best uses for the site. Reports generated by REIS, CBRE and ESRI were used to research the surrounding region to narrow down what could and could not be supported based on demographic metrics. An ESRI report generated for the City of Buffalo titled, “Retail Demand Outlook” is especially useful in determining what the retail uses currently have and are projected to have the greatest amount of money spent in each industry sector. For example, Furniture sales and home furnishings are projected to be one of the highest growing retail sectors in Buffalo. This will be expanded further upon, in the demand portion of this market study. Lastly, we conducted interviews with various members of the community, including Buffalo State College Students and residents in the local neighborhoods.

Macro-Economic Analysis:

Given the location of the subject property, the macro-economic area that will be analyzed for

Population Trends: The target demographic the proposed uses will be aiming for are the young urban professional demographic (23-30) and the aging demographic between 50-60. These demographics have been selected due to the availability of disposable income which is necessary for the success of a retail use. Per ESRI data, Buffalo has seen a population decline since 2000, and the metro statistic area is at approx. 1.56 million people. 12 Beneficial to the proposed use, currently, the demographic targets make up the highest percentages of ages in Buffalo; 25-34 makes up 12.3% while 55-64 makes up 14.7% of total population. 13 Moreover, the projected values for 2024 show those same age brackets continuing to own the largest shares of population percentage, 12.3% in the 25-34 demographic and 13.8% of the population being made up of 55-64. Based purely on age demographics, it would appear that the project is targeting the correct age groups to rely on as patrons.

Income Trends: As previously stated, the demographic age brackets that are being targeted with the proposed site are defined in census data as 25-34 years old and 55-64 years old. It is important to consider the income and spending potential in Buffalo, especially given that a proposed use for the site will be destination retail in the form of a home furnishings store. It is crucial that the target market have a stable income and spending ability for the success of the retail uses. Based on ESRI data, income in Buffalo is varied. It is well known that Buffalo does not have a very high rate of high-income individuals, but the spread of income in the city is encouraging for the potential uses. When looking at households by income, there are a considerable amount of households with income $50,000 and under, but there still are a large amount of households that post incomes above $50,000. 18.6% of households post incomes from $50,000-$75,000. An additional 26.5% post incomes spanning from $75,000-$150,000. By 2024, it is anticipated that there will be an even higher percentage of medium to high-income households, bumping up from 45.1% to 46.6%. A small percentage, but one that shows potential income growth for the city, which is encouraging. Disposable income is another important metric to consider when planning for a retail use. Per a disposable income profile report, ran by ESRI, there are a total of 646,111 households in Buffalo with available disposable income. Similar to the data on household income, there are a considerable amount of households in Buffalo with lower levels of disposable income. What is encouraging for the proposed use however, there is a high concentration of population with medium to high levels of disposable income. 47% of the population with disposable income have between $35,000-$100,000 in disposable income, which is considerable buying power. The target demographic of people aged 25-65 also make up a large amount of the disposable income in Buffalo. Based on the data, the ages between 25-65 make up

the four largest groups of disposable income, a finding that bodes well for a use that looks to target this exact demographic. Having a higher potential for disposable income allows for a much more sustainable client base and potential income stream. 14

Retail Demand Potential:

The proposed uses for the subject property include a tasting room with a bar and food as well as destination retail including home furnishings. It is important to understand what kind of demand there is for retail uses such as these in Buffalo in order to make an investment decision. The first

report to look at is the Restaurant Market Potential report, provided by ESRI. This report is important in understanding what kind of restaurant uses would be feasible as well as what kind of money people are more likely to spend at a restaurant. The report shows that on average, the majority of people will spend between $51-$100 each time they go out to eat. This bodes well for the projected use in that most tasting rooms will offer meals in this range of pricing. It would not be overly cheap, but it would not offer very high-priced meals, landing in this range of what people are most likely spend at a restaurant. Another stat from this data that encourages this use is the fact that nearly 75% of the population reported that they have eaten out in the past 6 months. 15 Having a community around the restaurant that eats out often is a serious benefit to this use. The other uses for the site

involve destination retail, more specifically in home furnishings. ESRI’s Retail Demand Outlook report allows for the most popular retail markets to be categorized and sorted by how much money is spent on them per year. There are several categories, ranging from clothing, technology and food sales. But what is a very good sign for this project is that home furnishings is projected to be one of the highest categories in terms of spending growth from 2019-2024. This confirms that the proposed use for this site is in fact the correct one or has considerable potential for success. 16

Local Market Assessment:

General Description: While understanding the macro market as a whole is important to get an idea on what kind of demand a project can drive from the larger market, it is equally important to understand what demand factors are present in the subject property’s immediate surroundings and neighborhood. The neighborhood identified is a 2.18 square-mile section of Buffalo. The 198 Expressway serves as a natural barrier to the north, while Delaware Avenue, the 190 Expressway and Utica Street serve as barriers to the East, West, and South respectively. The neighborhood is varied in terms of land uses, property ownership and the demographics of people residing in it. The neighborhood just south of the subject property contains mostly single-family styled housing, the majority being rental units. There is a strong influence of Buffalo State College on this neighborhood as it is a popular area for

student housing. During site visits, there would frequently be students crossing through the subject property to walk or bike to the campus, just north of the site. Further east, running south along Elmwood, there is a wider mix of uses, including multifamily and single-family housing, storefront shops, restaurants and office space. This area is known well in Buffalo as the Elmwood Village and is a popular area for a wide variety of people with different demographic backgrounds to live.

Proximity to Key Locations: The subject property is placed in a convenient location between Buffalo State College’s campus and the Richardson Olmsted Complex. Directly to the north of the property is Buffalo State College, one of the major higher education institutions in Buffalo. The tasting room/restaurant use looks to capitalize on students leaving class or filling time between class. To the northeast, about 0.5 miles from the subject property is the Albright-Knox Art Gallery, a historic and popular art museum which is heavily visited by people local and foreign to Buffalo. Directly south of the subject property is the Richardson Olmsted Complex, which currently is partially occupied by Hotel Henry Urban Resort Conference Center. Located inside the hotel, 100 Acres, is an upscale restaurant which caters predominately to hotel guests. 17 The subject property would look to attract hotel guests looking for something different from what 100 Acres has to offer. Approximately 0.5 miles south of the subject property is Forest Avenue, which also serves as an entrance to the Richardson Olmsted Complex. Forest Avenue can be seen as the gateway to the large neighborhood south of the site, where there is a large mix of student housing as well as young urban professionals and families. The students living in this neighborhood who attend Buffalo State College are frequently seen walking, skateboarding and biking through the Richardson Olmsted Complex to get to and from class. This is seen as an important group of people to capture as a potential client base to ensure the sustained success of the business. About 1 mile south of the subject property is the neighborhood known as the Elmwood Village. This neighborhood has several uses throughout and the patrons of the business as well as the residents of the surrounding side-streets would be seen as target patrons of the proposed uses at the subject property.

Quality of Surrounding Environment: The environment surrounding the subject property has an array of different qualities. Directly north of the site is Rockwell Road, one of the major entrances to Buffalo State College and the Richardson Olmsted Complex. The road is well maintained as well as the buildings and lots on the campus. The road directly south of the site, Richardson Road is in worse condition than Rockwell is. There is significant repair that needs to be done to it, especially near the Rees Street entrance, which is a major detractor to traffic. The surrounding neighborhood is also mixed in its overall quality. The housing stock is older and is a mix of rental houses, predominantly occupied by Buffalo State

Figure 6-43:

Cole’s on Elmwood Ave.

Source: Sharon Cantillon / Buffalo News

Figure 6-44: Room

Tommyrotter Tasting

Source: Buffalo Rising Students but is in overall good condition. There are not many signs of dilapidation throughout aside from the closed restaurants on the corner of Forest Avenue and Elmwood Avenue. The building stock and road conditions are in overall good condition along Elmwood Avenue as well as on the side streets connecting to it.

Supply Analysis

When planning a project of any use, it is important that there is a firm understanding of what exists currently in the market as well as what is planned. This is to ensure that the proposed project does not enter a market where the use is already saturated. The current proposed uses for the subject property include a tasting room / bar which serves food, a destination retail home furnishings shop and a combined loose tea and non-perishables shop with items like olive oil and jarred foods. The current supply for the tasting room is encouraging for its use. In the defined neighborhood, there are no similar uses in terms of building typology in the barn, where it will be located as well as the actual tasting room use itself. Along Elmwood, there are several restaurants and bars, most notably, Cole’s Restaurant and Bar, located at 1104 Elmwood Avenue and Mr. Goodbar, located at 1110 Elmwood Avenue. These two are both popular destinations for residents of the neighborhood and students at the colleges and universities nearby. Cole’s is an Irish bar and restaurant 18 , while Mr. Goodbar is a traditional bar 19 , neither of which are the same use which will be implemented in the site. However, outside of the neighborhood, there are multiple tasting rooms in the City of Buffalo as a whole, all further south towards downtown Buffalo compared to the subject property. Tommyrotter Distillery 20 opened their tasting room to the public in 2015 at their distillery site at 500 Seneca Street, a building developed by Savarino Companies. 21 Their

operation allows patrons to taste their variety of spirits, shortly after their bottling. However, the Tommyrotter Tasting Room is very minimalistic and does not serve as a meeting place for different drinks or food. They act simply as a place to taste their product, which is not the same function as the proposed use. They are similar in the fact that both are located in buildings developed using an adaptive reuse of a historic structure. Another site downtown, in the cobblestone district next to Key Bank Arena is the tasting room at Labatt House. The building opened in 2018, constructed by R&P Oak Hill, and developed by Terry and Kim Pegula. Labatt House is similarly located in an adaptive reuse building and features a large space with multiple bars as well as food service, similar to the proposed use at the subject property. 22 The tasting room, however, is a small portion of the overall Labatt House site, featuring a small bar where patrons can sample limited editions of Labatt’s beer. There is no food service in this

tasting room either. Lastly, also in downtown Buffalo, there is Black Button Distillery, located at 149 Swan Street. 23 They have a smaller space than the subject property and do not offer food, similar to the Labatt House tasting room. There are no current plans in the market pipeline for a similar tasting room and food service combination to the scale of the subject market, making it a use that would not face over-saturation. The home furnishings use is different than an average furniture store and will be more of a destination for limited

or select merchandise. Currently, the neighborhood surrounding the subject property does contain home furnishing shops, but none to the scale of destination retail. Room, 24 located at 1400 Hertel Avenue could be considered destination retail, but is further north than the physical barrier of the 198 Expressway, meaning the subject property’s use would draw from residents further south. In the direct neighborhood however, there are multiple home furnishing stores along Elmwood Avenue, none of them constituting as a destination retail site. Ro, located at 732 Elmwood Avenue

Figure 6-45:

Ro Homeshop

Source: Google Maps

Figure 6-46:

D’Avolio Kitchen

Source: Buffalo Rising

Figure 6-47:

D’Avolio Kitchen

Source: Stepout Buffalo is a popular shop, but is significantly smaller than the subject property’s allotted space for the furnishings shop and is located in a renovated house, where the subject property has the advantage of being located in a rustic and historic location, with easier access given its proximity to the 198 Expressway. 25 Another shop, located at 905 Elmwood Avenue is Neo Gift Studio. 26 Neo is a smaller home furnishings store that serves more as a gift shop than specializing in furniture. There are no other current plans for a destination retail location in the area aside from the subject property. Given the destination retail nature of the proposed use as well its special advantage over other shops in the Elmwood Village neighborhood, one can determine this would not cause an over-saturation of the market.

The third and final proposed use for the subject property is an artisan vinegar and oil products shop. A comparison to a competitor in the larger Buffalo market would be D’Avolio, a local chain that sells gourmet olive oil and vinegars. 27 The differentiation between the proposed use and D’Avolio is the additional offerings from the subject property. As well as artisan oils and vinegars, the subject property will also offer loose teas and act as a tea shop, catering to students at Buffalo State College and those staying at Hotel Henry. While there are not any retail shops with this combination in the area, there are storefronts in the neighborhood that offer one of the goods or the other. There is one D’Avolio Kitchen located downtown at 535 Main Street and offers the gourmet vinegar and oils as well as a kitchen with a full dining menu. This is a similar use as the proposed use for the subject property, except instead of a full kitchen service, the subject property will serve different teas and act more as a coffee/tea shop than an eatery. This is the only D’Avolio Kitchen location in the City of Buffalo; the other locations being in Niagara Falls and Amherst. There is only one other institution in the area which has similar offerings to the proposed use, in terms of artisan

olive oils and vinegars, which is The House of Olives, located at 1374 Hertel Avenue. The House of Olives is a similar storefront to D’Avolio in that they specialize in selling gourmet olives, olive oils, and vinegars. 28 It acts as a storefront, rather than a place to eat and drink, where the proposed use would act as both a store as well as a place to sit and drink tea. The location is also north of the 198 Expressway, which is set as the northern boundary of the target neighborhood. There are coffee shops along Elmwood Avenue, including chains such as Starbucks and Spot Coffee, but there are no dedicated loose tea sales or drinking shops; and none that offer the unique combination of an artisan oil and vinegar shop with a tea shop. Currently, there are no projects in the market pipeline to have this combination in the neighborhood, or Buffalo as a whole, making this use a good fit in the current market.

Demand Analysis:

Equally important to the success of a development as supply is demand for the use. Supply will tell the development team what kind of use could fit in a market, while demand will tell them what is actually desired or would succeed based on current market conditions. Demand for a use is caused by a myriad of things, including existing supply in the market, neighborhood needs and demographic data.

Supply: As previously covered in the supply analysis, the projected uses for the subject property fit well within the market. Each proposed use does not appear that they would cause any form of market saturation nor are the markets already too saturated for the uses to be successful. The location gives it an advantage in the neighborhood given its ability to draw from potential patrons north of the site because of its accessibility by the 198 Expressway; and also prevents patrons from going further north because of the physical barriers in place.

Neighborhood Needs: Neighborhood needs is the second demand factor to be considered and is potentially the most important. Throughout this project, the development team has conducted interviews with people in the neighborhood, such as Buffalo State College students, employees of the Richardson Olmsted Complex and residents of the surrounding neighborhood to best understand what is needed in the neighborhood and what is not. After discussions with Buffalo State students, it became clear that what is needed for them is a place to sit down, study and drink coffee or tea. There are several coffee shops on campus and around it so the development team decided to take a different approach and utilize a loose tea shop, rather than a traditional coffee shop. This way, the shop can capitalize on

the students on campus while providing a different and more interesting concept. The loose tea shop will also be combined with the sale of artisan olive oils and vinegars, which is designed more to cater to an older demographic for those staying at Hotel Henry or who live in the surrounding neighborhood. The destination retail component for the subject property is also designed to attract older demographics than those in school at the college. This is another use that has been discussed with members of the community as well as employees at the Richardson Olmsted Complex. A retail component is something that has been desired by the ROC in order to generate more traffic to the site and based on the location of the property, it has been determined that the appropriate use would be a destination home furnishings shop. After discussions with members of the community to reinforce this idea, the overall sentiment is that this is a use that would attract people to the site, and then be able to keep them on site with the different uses. The largest use on the subject property is the tasting room. Based on conversations with students, employees at ROC and neighborhood residents, this has returned the most interest and demand. The sentiment is that while there are bars and restaurants

in the Elmwood Village, there is nothing this unique in scope and it would immediately become an attraction over these standard bar & grills. Based on interviews with people who are frequently near the subject property, the development team’s proposed uses are reinforced by neighborhood needs. 29

Demographic Data: Demographic data is the final component to demand and is crucial to determining the potential long-term success of a development. The demographic data used in the macro-economic portion of this report has been used, but scaled down to the previously defined neighborhood. Population in this neighborhood has been consistent over the last decade, not rising or lowering significantly, nor is it projected to have any major changes in the next five years. What is important to this development however, is more about the age of residents as well as the spending power. This is where the demographic data benefits the development. The target age demographics that the development plans to bring in are between the ages of 24-64, more specifically 25-34 and 55-64. The reason this benefits the development is that these age ranges are among the highest populated in the neighborhood. The 24-35 range represents the highest amount at 18.4% of the neighborhood while the 55-64 range represents 10% of the neighborhood. 30 All together the age range between 24-64 represents over 50% of the population. This kind of target demographic favors the site greatly in that they have a much larger base of potential patrons. Buying power is another vital demand factor that can positively or negatively affect a development. Buying power can be measured in both household income and disposable income. In the neighborhood, like all throughout Buffalo, the income levels are quite varied. Given that a substantial number of the households are in fact student housing, there is a larger volume of households reporting income below $15,000 (19%). But what is encouraging to the site is the spread of medium to high-income households. In the neighborhood, over 50% of

residents report a household income of $50,000 or higher. 31 This lends to the idea that a good portion of the area will have sufficient buying power to support the retail uses. This idea is further confirmed by a Disposable Income Profile (ESRI) which shows the percentages of how much disposable income households in a neighborhood possess. The data shows that approximately 60% of neighborhood residents have disposable income levels between $35,000 and $150,000, which further bolsters the idea that there is sufficient buying power in this neighborhood. 32, 33

The final market report to look at is the retail demand outlook report (ESRI) and see what projections look like for the demand of the proposed uses. The data is very similar to the data pulled for the macro level reports, most similarly, the home furnishings use is projected to be one of the highest growing markets in the area, with a combined growth in spending of nearly $2 million. Alcohol sales are a very stable use in Buffalo, showing an increase of nearly $700,000. Data is more difficult to find for an artisan oil and tea shop but considering the lack of supply in the area and demand displayed by the neighborhood, it will be a safe use for the development. 34, 35

Conclusions: The overall market for the City of Buffalo and the smaller neighborhood which the subject property sits in is stable for the proposed uses. There does appear to be a market gap that can be capitalized in several aspects. The size of the gap is difficult to quantify but looking at the current supply and demand factors of the market, a significant gap is evident. In each use, there is a lack of supply in the neighborhood and the uniqueness of the proposed uses all differentiate themselves from anything else in the market. The proximity to the college campus as well as the ROC and surrounding neighborhood gives it a unique advantage where it has the ability to attract from people of all age ranges and the proposed uses allow for the site to be visited by anyone of any age. The size capabilities that the site possesses also makes it stand out compared to other similar uses in the area. Based on the supply analysis, one could conclude that there is no market saturation nor would the development cause any. The demographic data also supports the potential success of the development. Based on both macro and micro level data, the demand for retail in each use is projected to grow substantially in the next five years, supporting the idea that not only will the shops be successful, but they will increase in profits yearly. The data also shows that the spending power for the targeted age demographics should be sufficient enough to support the different uses.

Timing and Special Conditions: The success of this development is dependent on outside factors like potential competition as well as interior factors like the timing of the opening of the storefronts. There is always a threat of competition coming in at a later date and taking from the client base. However, based on the unique location of the subject property, it could be argued that in the neighborhood there aren’t any other

buildings that could support this kind of retail development. Bars and breweries are constantly opening in Buffalo, but the differentiation in the market that this use has should be enough to avoid a significant decrease in the customer base if another bar opens up. Similarly with the destination home furnishings use, there is a high level of space required for this type of storefront. The competitors to this use currently in the market are limited due to their space limitations. This is why in this neighborhood, there should not be too much cause for concern of another destination home furnishings store opening. Timing the opening of the development is important to making the right first step towards success. The overall plan for the entire site is to also have programmed activities on the grounds surrounding the Barn site, so it is crucial that the development open in either late spring or summer in order to display the full potential of the uses. Opening in the winter would limit the ability to show the programmed activities and not make it as inviting as it possibly could be. The businesses can expect to do different levels of business throughout a year. But the mix of uses is what will keep the development strong while one business has a down period, another can keep up the pace. For example, if the tasting room is experiencing lower sales in the late winter, the retail uses can expect to carry a burden during the holiday season. It is very cyclical in that sense.

Market Gap Analysis

There are no current retailers the match the style of the Barn. All of the surrounding competition is mid-century modern or contemporary in style, which does not match the aesthetic of the Barn property. A retailer that would make the best use of the space should display products that match the rustic feel of the Barn. The exposed wood beams and columns, as well as the worn concrete floors should be accented by the product mix and merchandising of the home furnishings tenant. The currently popular “farmhouse” style will take advantage of these existing features that have to be maintained in the barn. There are no existing stores in the area that are selling artisan oil and vinegar products. There was a D’Avolio store on Elmwood Avenue but it closed in 2017 and the space has been taken by another business. There is a specialty spice store called Penzeys Spices located at 783 Elmwood Avenue, but their product lines do not include oils and vinegars.

Construction Estimates Analysis The Barn, located on the Richardson Olmsted Campus will be constructed into destination retail and a tasting room restaurant, obtaining accurate estimates for the construction process is a very important aspect of feasibility for this project. Showing feasibility will help with obtaining financing for this project. The construction estimates for this project deals with extensive replacements and repairs to the exterior and the interior. The barn is in poor to fair shape and requires a broad range of renovation. The construction estimates also include estimated costs for relevant furniture and equipment for the retail and restaurant uses. The total project cost is $2,205,849 and a complete breakdown of the construction cost estimates can be found in Appendix III.

Exterior Cost Estimates

The exterior renovation of the barn consists of demolition work, site-work, sheathing, masonry, doors, windows, and roof repairs. Probably the two most important and character defining features of any historic preservation project are the doors and windows. In this case, there are nine large barn doors, including the second-floor door, and some original and some are not. It is best to try and repair the original doors and replace and fix in place the other ones. Some of the barn doors here are hinged, and some are sliding, and it is important to keep these features intact. The original frame and hinges should be used if applicable, or else new roller tracks and trolleys can be used if the originals cannot be repaired. The cost to fully replace a barn door, can be up to $10,000, and is much more expensive than repairing it, but almost half of these doors are so greatly damaged that replacement is necessary. 36 Windows are also very important but can be problematic to restore because wood windows on historic buildings are the most time consuming. The windows to be replaced should be replaced with a sash and flashing to match the existing. A complete restoration includes epoxy repairs, borate wood preservation strategies, weather seal installation, resetting of the glazing, and painting and installation of a storm. The cost of a fully restored historic window can be 4 or 5 times the price of an inexpensive replacement, however, not just any replacement windows can be used in this project, so even replacement windows will still be expensive. A complete wood window restoration can cost between $1,500 and $4,500. 37 Even though restoring historic windows is more difficult and expensive, it is important to do so in order to maintain the historic integrity of the project. Since this is a historic preservation project and most character defining elements must be kept, only a small percent should be demolished. The minimal demolition in the barn consists of the non-historic partition walls in the wagon shed, which will be the future retail space. Demolition costs are high at $10.00 per square foot, amounting to a $13,000 demolition estimate. 38 The exterior

sheathing of the barn is mostly intact and only needs repair. There is water damage in some areas and discoloration throughout. The exterior sheathing estimates are for most of the vertical wood board and batten siding minus the window openings. The siding repairs should be of the same species and the color should revert back to the yellow tint it used to be. There is some masonry on the exterior made out of aggregate concrete blocks that can be repaired. The damage is minimal and will not require major work. Cost estimates for repairing the siding, masonry, and installing new insulation for the roof and the walls were taken from RSMeans Commercial Renovation 2016. 39 As for roofing, roofing-material that keeps the barn dry may be installed. However, plywood or OSB panels cannot be installed over or replace existing roof boards because they would ruin the historic significance. Asphalt roll roofing is allowed to be installed. 40 The barn will require a full replacement of its roof systems, including its shingles and gutters. It will require partial repair to its roof framing. Both of these repairs are costly, and will require approximately $155,000. 41 The site-work for the barn site requires pavement resurfacing for the beer garden, as well as asphalt removal and sod installation for new green space. The pavement resurfacing for the 4,900 square foot beer garden space at $3.00 per square foot amounts to $14,700. 42 The removal of asphalt to make way for the sod installation costs the same price as the resurfacing and will cost $75,000 for 25,000 square feet. 43 The sod installation is cheaper at $0.80 per square foot for 25,000 square feet, costing $20,000. 44

Interior Cost Estimates

Most of the Barn rests on concrete slab foundations, which will remain as the flooring for the renovated barn on the first-floor. Restoring concrete flooring is relatively easy and cheap, compared to installing new flooring. Concrete flooring repair is $2.32 per square foot, costing $13,966.40. 45

Repairing wood flooring on the second-floor space will require more money. The roof leaks in the barn promote rot in the wood flooring and the joists underneath. The more acceptable process of wood floor rehabilitation is to replace or repair the entire or part of the wood joist or floor board with timber of appropriate size using traditional joinery. Any rotten wood can also be cut away and replaced with a structurally and historically appropriate piece. 46 Because of the expensive labor and materials, wood floor repair can be up to $10.00 per square foot, amounting this estimate to $26,855.40. 47 Replacing or repairing the timber framing in the barn can be difficult and expensive, depending on the damage and the type of material. Original wood timber that was used at the time, such as walnut, cherry, or maple, may be currently extinct or very expensive. Replacement timbers may be cut from alternate species that were around during the time of construction. The barn features heavy timber and light timber framing. In general, hardwood should be replaced with hardwood and softwood should be replaced with softwood. It is also a bad idea from a preservation standpoint to replace locally sawn or hewn timbers with dimensional lumber, pressure-treated lumber, and chemically-treated lumber. 48 The barn has both heavy and light timber framing, and

there are some instances of rot, but this barn does not require more than $70,000 in timber framing restoration. Light timber repair is $10.41 per square foot and heavy timber repair is more expensive at $21.25 per square foot. 49 The circulation of the building consists of the addition of one mechanical lift and the repair of the existing staircase, which amounts to $22,886.72. 50 The mechanical fixtures include the addition of four bathrooms, one for the retail space and three for the restaurant space. It also includes five gas fired heating/cooling systems that are made to cover 1,200 square feet each. The total cost for mechanicals is $65,458.204. 51 The electrical systems cost is very high in this project because it needs to build electrical systems in an old and outdated building. Electrical includes two 200 amp service units for retail, one 400 amp service unit for the restaurant, wiring throughout, and both fluorescent lights for retail and incandescent lights to create an ambient feel in the restaurant. The electrical costs amount to $182,398.34. 52 The renovation of an existing building requires new plumbing pipes to be installed, and can get costly. There is one existing bathroom in the barn, so there must be some existing plumbing, but much more will need to be added in order to accommodate all of the customers. New plumbing installation for the barn is $10.02 per square foot. 53 Finally, the commercial kitchen fit out, excluding the purchase of appliances, can be the most expensive part of a project. The food and beverage industry has strict regulations on how a commercial kitchen can be built and they specify professional grade conditions. The major cost of a commercial kitchen is not the kitchen equipment, it is preparing the facility for the installation of the equipment and installing the correct flooring and other surfaces. Prices to build out commercial kitchens range from $149.47 to $254.13 per square foot. The kitchen for the barn restaurant will use $249.05 per square and amount to a cost of $269,970.20. 54

Furniture, Fixtures and Equipment Cost Estimates Since we are proposing destination retail and a tasting room restaurant as the highest and best uses for the barn, we included the fit-out costs of all of the necessary furniture and equipment for these uses. This way we can lease the space to the tenants who will work based off of our proposed uses. These costs can be removed from the proforma in the event a decision is made to instead create an empty space that is flexible for the tenant’s required use. The tables, benches, chairs, and barstools for the tasting room are made out of wood and rustic looking in order to match the look and feel of the barn. The 9 foot long tables are meant to go indoors and outdoors, while the smaller tables and barstools are meant to stay indoors. There are also two large outdoor pergolas that will go outside in the beer garden. The cost of all the wooden furniture is $40,900. 55 The commercial appliances required was information obtained from researching other tasting room restaurants and seeing what they were using. These are the minimal number of appliances for the kitchen and amount to $34,700. 56

Soft Cost analysis Soft costs are any costs that are not considered direct construction costs. Soft costs include everything from architectural and engineering fees, legal fees, permits, market and environmental studies, bank inspections, developer fees. For financed projects soft costs also include loan interest payments during the construction period, title recoding fee and construction loan origination fee. Total soft and financing cost for this project is $303,998, which is 15% of the total construction cost.

Historic Preservation Standards in the Barn Use Proposal

The adaptive reuse of the barn is a development project that would help further restore the history of the Richardson Complex while providing a modern use to the surrounding neighborhood and City of Buffalo. Historic Tax Credits will be used in order to help develop this project and keep it feasible. In order to get the maximum amount of Historic Tax Credits, the redevelopment must stay faithful to the character defining features of the Barn. The proposed uses of destination retail and restaurant/tasting room will stay consistent with the character defining features of the barn in order to create a unique space that showcases the history of the site while providing modern amenities. The new uses will retain the historic fabric and the historic volumes of the barn by keeping demolition at a minimum. Non-physical features will also be preserved by the new uses in terms of the prior uses of the barn and the surrounding region. The prior uses of the region dating back to the 19th century were heavily focused on agriculture and handmade crafts. The restaurant use will retain the past agricultural use of the region by serving locally made beer, wine, whiskey, and food. These all have similar ingredients to what was grown, harvested, and raised in the area. The destination retail use will buy and sell locally sourced and hand-crafted materials and clothing. There will be nothing commercial or mass produced sold since this would degrade the local ambiance and the connection to the region’s history. The proposed uses for these spaces retain the character defining features identified at the beginning of this chapter. The exterior of the Barn is what is seen first and it will be restored back to its original appearance. The site around the barn will be improved and better connected with the rest of the campus to emulate how it once was. The aesthetics of the exterior elements and the facade will remain virtually unchanged, they will just be updated and weatherproofed. The vertical board and batten exterior sheathing will be restored and repainted with a historically accuracte color. The barn doors and windows will be restored which will help to demonstrate how this barn was accessed. The hoist beam that sticks out of the large door on the second floor will be kept as a reflection of how materials were moved. The exterior masonry work and the roof will be repaired. Residents and guests will get a sense of the type of craftmanship and teamwork that was required to build something like

the Barn. The interior of the Barn is unique in that it was essentially cobbled together using leftover materials from the psychiatric hospital outbuildings. Except for the non-historic partition walls in the wagon shed segment that will be demolished, the interior will keep its original volume and special characteristics. The walls in the other sections of the Barn are made of different materials such as stone blocks, wood, and concrete, and these will be preserved. There is a section of the ceiling on the first floor that is made out of left-over tin tiles from the hospital. The restoration of the heavy and light timber framing will preserve the intimate, sectioned setting of the first floor and the large uninterrupted chamber that makes up the second floor. The tongue and groove framing will be retained to showcase the work and care that went into each connection. The second floor will retain its large cross beams and long wooden floorboards and the first floor will retain its durable concrete flooring. The original staircase will be restored and retained as a main circulation component of the Barn. The project will retain the original cast iron radiators on the first floor that have decorative carvings in them. The project will preserve the existing notches in the wood beams on the second floor and the steel members on the first floor. There is also a rope pulley system that extends from the first to the second floor that will be retained. The attic spaces will be kept intact and mostly used for mechanicals and storage space. The chicken coop interior, located in the back of the barn is the only area that will have to be significantly changed in order to accommodate a commercial kitchen fitout.

Investment and Proforma Analysis

The proforma financial modeling has shown that this has the potential to be a strong redevelopment project (See Appendix III). Through the use of relatively minimal public funds (24% of funding), and a reasonably sized conventional loan, the project is able to produce strong returns. A conservative cap rate of 8% was utilized to produce a potential value of $1.89 million based on the projected net income. This figure was used to determine a maximum loan at 75% of that value. Additional loan sizing metrics were utilized including debt service coverage ratio which shows a favorable amount at 1.27 in year one and rising well above 2 by year ten. The debt yield which compares the net operating income to the initial loan amount was utilized, as this has become a highly weighted benchmark in the industry and showed a favorable 10.67%. The project shows a strong internal rate of return at 18% and an average 27% return on the initial developer equity invested, both of which can be used to demonstrate a healthy return to a potential investor. The required developer equity required to be brought into the deal represents

only 12% of the total funding sources which therefore limits the amount of capital that a potential developer would need to put at risk. As stated, based on the proforma model, this project has the potential to be very successful in all the required facets for a development project to proceed to further investigation. The project financials show a return for the developer while effectively redeveloping this historical space into a mixed-use project with broad appeal.

Funding

Funding Sources

The rehabilitation of the barn makes financial sense with the proposed reuse of mixed use retail and restaurant/distillery. The proposed uses will generate enough income to provide a value for the property higher than the expected rehabilitation expenses. The proposed funding sources include conventional bank financing, federal and state historic tax credits, developer equity, and a Save America’s Treasures federal grant. Additional future funding sources can include an Empire State Development grant and Greenway Funding.

Conventional Bank Financing The proposed rehabilitation of the barn into a distillery/ restaurant as well as retail space will generate income for the property. This allows for the project to be financed through conventional bank loans in construction and operation. Based on the financial analysis of the project, the value of the project in operation is approximately $1,891,372 based on a cap rate of 8%. A loan amount for this project will be a 75% Loan-to-Value, resulting in a loan of $1,418,529. The construction period will be financed with an interest only construction loan at 6%. After construction is complete, the construction loan amount will be converted into a permanent loan at 5.25% on a 30 year amortization. The annual debt service for the loan will be $93,998.

Federal Historic Tax Credits The Federal Historic Tax Credit program is a 20% federal credit on qualified rehabilitation expenses of a historic building. The rehabilitation of the Barn will qualify for federal historic tax credits based on its inclusion within the National Historic Landmark status of the Richardson Olmsted Campus. The rehabilitation of the building will need to be approved by the National Parks Service. Qualifying hard costs include walls and partitions, floors, ceilings, permanent coverings, windows and doors, HVAC systems , plumbing and fixtures, electrical and lighting, chimneys, stairs, elevators, and sprinkler systems. Qualifying soft costs include construction period interest and taxes, architect fees, engineering fees, construction management costs, reasonable developer fees, and any

other fees paid that would normally be charged to a capital account. The Qualified Rehabilitation Expenses will total approximately $1,347,795, resulting in a tax credit amount of $269,559. These credits will be syndicated to bring cash equity into the funding stack for the project. The estimated syndication rate is $.90 per $1 of credit. This will result in a cash value of $242,603.

State Historic Tax Credits The State Historic Tax Credit is a 20% credit on qualified rehabilitation expenses, with a maximum credit of $5 million. The size of the barn rehabilitation allows for the utilization of state historic tax credits without exceeding the per project maximum. The qualifying expenses for the state historic tax credits are the same as that of the federal program. The approval for historic tax credits by the National Parks Service guarantees the approval for the state tax credits. The Qualified Rehabilitation Expenses will total approximately $1,347,795, resulting in a tax credit amount of $269,559. These credits will be syndicated to bring cash equity into the funding stack for the project. The estimated syndication rate is $.75 per $1 of credit. This will result in a cash value of $202,169.

Roofing Grant The Richardson Center Corporation has applied for a Save America’s Treasures Grant and has been awarded a grant totaling $400,000. This grant will help to subsidize the replacement of the roof on the barn as well as other buildings on the Richardson Olmsted Campus. The funding allocation for the grant has included $77,500 for the barn roof restoration. This grant involves a match equal to the grant amount allocated for the roof. The available developer’s equity for the project can be used to satisfy this matching requirement.

Developer Equity The developer will need to contribute 12% of the funding into the project. The developer will need to contribute $265,047 to the project to balance the sources and uses for the project. Based on the income potential for the project, there is the ability to invest into the rehabilitation and achieve a return on invested equity. A ten year valuation of the project at an 8% cap rate results in the value of the project in operation of approximately $1,891,372. The return on equity for the first year of operations will be 12%. After holding the property for ten years, the return on equity will be an average of 27% per year. This creates a project that will provide a strong return that will make equity investment a favorable investment decision.

Empire State Development Grant The Empire State Development (“ESD”) Grant provides up to 20% of qualified expenses to construct commercial space. Given the current funding needs for the project, it will not be necessary

to apply for an ESD grant at this time. If there is a change in project scope or value in the future, this funding source may be able to be explored at that time. However, the fixed timeline for applying to the grant will impede the construction schedule. Empire State Development Grant funding becomes available once a year through the Consolidated Funding Application. The goal of ESD grants are to promote economic development across New York State and works toward leveraging multiple funding sources to create impactful projects that help create jobs and restore economic vitality to struggling areas. In the 2019 funding round, up to $150 million of grant funding was available to help fund projects across New York State. The grants are given as a way to help advance the mission and strategic direction of New York State as a whole. Preference is given to projects that support Downtown Revitalization Initiatives and Strategic Community Investments, in addition projects that improve access to child care and that incorporate environmental justice practices. Eligible applicants include for-profit and not-forprofit corporations, local governments and industrial development agencies, as well as many other institutions and groups that help drive economic development. There are generally three categories of investment. These include (1) Strategic Community Investment, (2) Business Investment, and (3) Economic Growth Investment. Grant funds may be used for a variety of purposes. These include the acquisition of land or buildings, demolition and environmental remediation, new construction or renovation improvements, acquisition of furniture and fixtures, soft costs up to 25% of total project costs, and planning and feasibility studies for a specific project or site. Ineligible expenses include developer fees and residential development. The grant can be up to 20% of the total project costs based on the eligible expenses. It is encouraged to have other funding sources present to limit the grant request for each project. Empire State Development requires a minimum of 10% cash equity to be contributed to the project by the developer based on total project costs. There is a potential to use an Empire State Development Grant for the rehabilitation of the Barn given the proposed new use. The entirety of the Barn will be rehabilitated to commercial space, and most of the construction costs for the project will qualify for grant funding. The ESD grant also apples to furniture and fixtures, which are additional expenditures not covered by historic tax credits. The required minimum 10% of cash equity cannot come from loans or from other government grants. It is not explicitly specified whether federal and state historic tax credits would qualify as cash equity If the credits are syndicated, the syndication process will result in cash to fund the project. However, this equity will not be coming directly from developer. This project will require cash equity from the developer based on the proposed funding sources, and will be a large enough amount to meet the 10% requirement.

Greenway Funding The site-work around the barn is not a Qualified Rehabilitation Expense for historic tax

credits. Greenway Funding is possible to help fund the necessary greenspace improvements around the barn and on the rest of the campus. Greenway Funding is a grant program funded through the licensing of the Niagara Power Project. This fund proves $9 million of funding per year to projects within the Niagara River Greenway. In relation to the Barn rehabilitation and the entirety of the Richardson Olmsted Campus, there are $2 million of the $9 million fund allocated to projects in Erie County. The scope of rehabilitation for the Barn does not include a wide range of site work. The existing parking lot features can be used for the proposed use of the Barn. There will be a limited need to remove existing asphalt pavement to improve the operational facilities of the barn as a restaurant and bar. The current available funding stack for the project provides enough capital to make the necessary site-work improvements to the site immediately surrounding the Barn structure. Greenway funding can be considered for future greenspace improvements on the remainder of the Richardson Olmsted Campus.

Funding Gap

The proposed use for the property and the projected income from operation does not result in a financing gap. The construction costs are above the operating value for the property, but the federal and state historic tax credits help to offset the necessary rehabilitation expenses. It is important to note that the state and historic tax credits are crucial to the development’s success. Based on the financial analysis for the project, it is clear that without the historic tax credits, this project would not be feasible. The funds received from each tax credit program total to $444,773, which without would create a deficit in funding which would render the project infeasible. The Save America’s Treasures grant for the roof of the barn will help to cover the costs of the total replacement necessary for the roof and alleviate some of the value gap present. Site work around the barn to improve its connectivity to the remainder of the campus can be funded through Greenway Funding, and the scope of the work can be adjusted based on the available funding resources.

Marketing Plan Outline

Strategic Objectives The tactics in this document are designed and coordinated to increase awareness of the Barn project located within the historic Richardson Olmsted Complex. The specific audiences interested in patronizing and supporting local retail including signature home goods, and craft alcohol distilleries, breweries, and wineries from around the Western New York area. The goal is to generate sales leads in support of the proposed uses of local retail and a functioning tasting

room. Furthermore, a major objective for the redevelopment of this structure is to bring together the vastly separated neighboring tenants by creating a common amenity that can be utilized by all. Marketing must be done in a strategic way to attract all of these different parties, and in order to have an accurate predictor of success, a cohesive surrounding market analysis has been performed to understand the different populations of people, businesses, and institutions that surround the site. Directly surrounding this site exists a State College, an arts corridor, a boutique hotel, and residents that show a mix of demographics and income. In addition to being considered an attractive amenity to the variation of neighboring uses, the functions of this redeveloped Barn should be considered a destination to bring in people from all over the Western New York area. The way to adjust marketing towards this goal is to show promise of variation compared to similar uses in the area; people want to know that when they get there, they will be experiencing something special, and something that cannot be found closer to their place of origin. When discussing alternative development options for this site, many came to mind, however, the concept of destination retail and locally-inspired alcohol tastings was consistently returned to. Buffalo is a close-knit city, and the projects that tend to be most successful and accepted by the public tend to include good food and drinks. Over the past decade, Buffalo and its surrounding areas have proven to take a strong interest in craft alcohol products including beers, wines, and spirits, having a facility in which these products can be showcased and enjoyed offers a unique amenity. Many people enjoy going on wine tours, beer buses, or whiskey riots, to enjoy craft products and experience varying landscapes, but the downfall to these events is they often involve an entire day of planning, traveling, and great expense. “Asylum Tasting Room” allows for this sought after pastime of alcohol or cocktail tastings to occur conveniently under one roof, and by doing this a great variety of people and products can exist cohesively amidst a campus with a grand history and agricultural function.

Target Audiences There are a variety of target audiences that need to be marketed towards in order for this project to be successful. Our tactics will be focused primarily on surrounding neighbors, graduate level students, Elmwood corridor employees, downtown workers, craft liquor enthusiasts, etc. There is a large population of homeowners and renters in the surrounding area of the project site, and with homes comes the need for home furnishings. The destination home furnishing retailer as a proposed tenant for the Barn will attract an audience of individuals looking for unique home goods. The benefit of being within close proximity of a state college comes with a constant influx of young people moving into homes, apartments, and dormitories, so unique home furnishings would be an attractive amenity to this targeted group. Another sample of people that this development will be targeted towards is individuals who are interested in historic places, specifically those with previous agricultural uses that also

promote sustainable design and use. The Barn is a structure completely constructed of materials that were once used in other places, and these materials were repurposed to create a very unique space that represents the ability to reuse instead of build custom; this attribute allows for yet another targeted audience that is interested in sustainable building practices and the repurposing of historic structures. Buffalo has a deep history of historic buildings, so this audience of architecture and history buffs is substantial, especially in the surrounding area of a historic park system and arts district. As mentioned before, the concept of a tasting room is one that allows for a growing culture in Western New York to function under one roof, so yet another target audience for this project would be enthusiasts of craft products. Of course, all tastings are made better with parings, so the concept for this use would not only include cocktails and locally-made products, but would promote local foods as well. With a growing trend in food trucks, tapas, and small bites in the Buffalo area growing rapidly over the past decade, the mission to bring these two functions in one property is both convenient and highly-desired.

Historic Connection A thoughtful remodel and adaptive reuse of a historic barn within the Richardson Olmstead Complex will provide space for a tasting room which, if marketed properly, will become a revitalized local landmark. The Barn, as a part of the Richardson Olmstead Complex, is a National Register-listed farmstead complex in Buffalo, New York complete with wagon shed and tool shed with second floor access that would have been operated by the patients staying within the Buffalo State Hospital for the Mentally Insane in the early to mid-1900s. As previously mentioned, the Barn, as we see it today, was actually a reconstruction using repurposed materials from agricultural buildings within the complex. Architect William Worth Carlin would have been the lead designer responsible for the original agricultural structures built in the 1880s, “...earliest work at the asylum was the Second Barn (SD1) and several outbuildings, including the Hen House (HN), built in 1885-86. It is also likely that he designed the Hog House (HG). These farm buildings featured board-and-batten exteriors, and it is possible that some of them were moved and/or provided materials for the Wagon Shed (WAG) of 1928, which also features a board-and-batten exterior…”. 57 So it is clear that this building was patched together in order to serve new agricultural functions for the campus, and the decision to reuse these materials and be stewards to our environment rather than acquiring new materials is an ethical management of resources that would be admired today, but would have been considered a revolutionary marvel during its time of construction. William E. Haugaard, also an architect, would have been responsible for the reconstruction of this barn in the location held today, “...He also likely oversaw the movement and/or the deconstruction of the frame farm buildings for use in the Wagon Shed (WAG) in 1928…”. 58

The two-story barn looks much as it has since erected in 1928, with a gabled roof, barn style doors, chicken coop, and hay door. Inside, the space is still identifiable of its original functions with its original repurposed tongue and groove walls, exposed wood beam ceiling, concrete floors, and unique widows. This structure can be spruced up and complimented by the addition of a tasting bar and seating area, a customer bathroom, storage space, and an area for food preparation. Outside, the courtyard space can be converted into additional seating and event space.

Budgeting Categories

• Photography – Capture the building before and after renovation for use in website and other advertising outlets. Includes interior and exterior photography. Approximate Cost: $1,000.00

• Website – Create a website to showcase the property and help to create a building image. Sharing renderings, progress photos, the history of the building, and media stories will help position the building for success in the marketplace. The website will also include a form for interested retailers to submit a request for a showing. Approximate Cost: $4,500.00

• Collateral Materials – Folders and collateral items (key chains, pens, etc.) for use by leasing agent in securing tenants and retailers. Approximate Cost: $2,500.00

• Open Events/ Previews/ Tenant Parties/Grand Opening – An open house event will be scheduled at the discretion of the leasing agent for the property. This event will be promoted via available advertising outlets, on the website and through social media. It is expected the event will coincide with the grand opening of the building. Additional events to welcome tenants and improve retention rates will be scheduled accordingly with support from Property Manager. Approximate cost: $10,000.00

• Signage/Banner – Capturing localized traffic and pedestrian interest, the site signage will lead potential tenants to contact us for more information. The sides of the building facing Richardson Road, Rockwell Road, or Rees Street are potential locations for temporary signage. Approximate Cost: $2,000.00

• Signage - Prime street level exposure in the lower level near the barn doors fronting the parking lot provides exception signage visibility and the ability to provide a degree of recognition to those spaces while build out occurs. Approximate cost: $10,000.00

• Direct Mail Postcard – A series of postcard style mailings to a list gathered through early preleasing activities. A series of 3 mailings will be used to drive showings. Approximate Cost: $1,500.00 (does not include postage)

• Buffalorising.com – Alternative news outlet. Internet based. Targeting 21-50 yr. olds, making $30-$100k. 150,000 impressions per month. Ad frequency and placement throughout the site will enhance branding message in the market. Approximate Cost: $3,000.00

• Pay-Per-Click (PPC) Advertising A combination of Google Adwords and Facebook advertising targeting specific demographics that are searching for local retail/dining or craft beverages in the Buffalo market. Approximate Cost: $4,000.00

• Loopnet.com – A resource for prospective tenants searching for available space for rent in the Buffalo area. Internet searches on space rental listing websites have proven a very valuable channel for qualified leads. Approximate Cost: $7,400.00

• Apartmentguide.com – A resource for prospective tenants searching for available apartments in the Buffalo area. Internet searches on apartment listing websites have proven a very valuable channel for qualified leads. Approximate Cost: $9,600.00

• ForRent.com – A resource for prospective tenants searching for available apartments in the Buffalo area. Internet searches on apartment listing websites have proven a very valuable channel for qualified leads. Approximate Cost: $4,600.00

• Craigslist – Free listing in Buffalo apartments for rent section of Craigslist can produce valuable leads in the early stages of a retail project.

Endnotes 1 Ann Gourlay Gabler, et all. “About Barns.” In The Hudson Valley Regional Review. 55-57 2 Gabler. “About Barns.” 57-58 3 Gabler. “About Barns.” 58-59 4 Clancy, Goody. “Historic Structures Report: The Richardson Olmsted Complex.”, pg.5, 2008 5 Clancy, Goody. “Historic Structures Report: The Richardson Olmsted Complex.”, pg.59, 2008 6 Clancy, Goody. “Historic Structures Report: The Richardson Olmsted Complex.”, pg.56, 2008 7 Clancy, Goody. “Historic Structures Report: The Richardson Olmsted Complex.”, pg.60, 2008 8 Patricia O’Donnell, Carrie Mardorf, Sarah Cody, Cultural Landscape Report (Heritage Landscapes: 2008), 3. 9 Tomes, The Art of Asylum-Keeping: Thomas Story Kirkbride and the Origins of American Psychiatry, 1984 10 “Cap Rate Survey-Fitness Centers.” Net Lease Advisor, June 28, 2018. https://www.netleaseadvisor.com/tenant/fitnesscenters/. 11 “Fitness Center.” Design Cost Date, October 30, 2018. https://www.dcd.com/articles/category/estimating/fitnesscenters. 12 ESRI, “Market Profile - City of Buffalo” (Buffalo, November 4, 2019) 13 ESRI, “Demographic and Income Profile - City of Buffalo” (Buffalo, November 4, 2019) 14 ESRI, “Disposable Income Profile - City of Buffalo” (Buffalo, November 4, 2019) 15 ESRI, “Retail Demand Outlook - City of Buffalo” (Buffalo, November 4, 2019) 16 ESRI, “Retail Market Potential - City of Buffalo” (Buffalo, November 4, 2019) 17 Hotel Henry, “Hotel Henry Urban Resort Conference Center in Buffalo, NY,” Hotel Henry Urban Resort Hotel Conference Center in Buffalo NY, accessed November 17, 2019, https://www. hotelhenry.com/) 18 Cole’s Restaurant and Bar, “Cole’s Restaurant and Bar, Burgers, Beer, and Pub Food in Buffalo NY,” Coles, accessed November 17, 2019, http://colesonelmwood.com/) 19 Mr. Goodbar, “Mr. Goodbar,” Mr. Goodbar, December 4, 2018, https://mrgoodbarbuffalo. com/) 20 Tommyrotter Distillery, “Home,” Tommyrotter Distillery, accessed November 17, 2019, https://www.tommyrotter.com/home) 21 500 Seneca, “Developers Convert Another Larkinville Warehouse into a Mixed-Use Facility,” 500 Seneca St., March 16, 2015, https:// www.500seneca.com/developers-convert-another-larkinville-warehouse-into-a-mixed-use-facility/) 22 Labatt USA, “History: Labatt USA,” History | Labatt USA, accessed November 17, 2019, https://www.labattusa.com/history/) 23 Black Button Distilling, “Buffalo Distillery: Black Button Distilling: Locations,” Black Button Distilling, accessed November 17, 2019, https:// www.blackbuttondistilling.com/buffalo) 24 “Room,” room, accessed November 17, 2019, https://www.room-buffalo.com/) 25 Ro Home Shop, “Ro,” Ro, accessed November 17, 2019, http://www.rohomeshop.com/) 26 “Neo Gifts Studio,” Neo Gifts - The Art of Gifting, accessed November 17, 2019, https:// www.neogifts.com/) 27 D’Avolio , “Gourmet Olive Oils and Balsamic Vinegars,” D’Avolio, accessed November 17, 2019, https://davolios.com/) 28 House of Olives, “The House of Olives - The House of Olives, Imported Virgin Olives Oils and Vinegars,” the house of olives - The House of Olives, imported virgin olives oils and vinegars, accessed November 17, 2019, https://www.thehouseofolives.com/) 29 Neighborhood Needs Interview, Tony Masiello, November 4,2019. 30 ESRI, “Market Profile - Neighborhood” (Buffalo, November 4, 2019) 31 ESRI, “Demographic and Income Profile - Neighborhood” (Buffalo, November 4, 2019) 32 ESRI, “Market Profile - Neighborhood” (Buffalo, November 4, 2019) 33 ESRI, “Disposable Income Profile - Neighborhood” (Buffalo, November 4, 2019) 34 ESRI, “Retail Demand Outlook - City of Buffalo” (Buffalo, November 4, 2019) 35 ESRI, “Retail Market Potential - City of Buffalo” (Buffalo, November 4, 2019) 36 Lazarus, Richard. “Recommendations for Appropriate Repairs to Historic Barns and Other Agricultural Buildings.” New York State

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