Parlato, Pigeon buy former Occidental Building, plan to fill "AquaFalls" pit

By ANDREW Z. GALARNEAU

December 15, 2004

A group headed by Buffalo developer and former PoliticsWNY.com writer, Frank Parlato Jr, purchased the landmark building which was once the corporate headquarters of the Occidental Chemical Corporation.

One Niagara LLC acquired 2.2 acres on the corner of Niagara and Rainbow Blvd. in downtown Niagara Falls, through a foreclosure sale on December 9, 2004. The property includes a nine story, all- glass building-- known locally as "The Flashcube," and a notorious one acre, 40 foot deep hole, which was excavated five years ago for a never developed acquarium project called Aquafalls.

Much of the 150,000 plus square foot building, which has approximately 17,000 square feet of rentable space per floor, is empty. Additionally, the building's largest tenant, the federal Small Business Administration, which has about 40,000 square feet, announced plans last month to relocate to downtown Buffalo this Summer. About 400 SBA employees work in the building.

Parlato said he is unconcerned about losing his government tenants.

"I don't anticipate any difficulty filling up the only office space in the world which has a view of Niagara Falls," he said.

His first step is to turn the building's first floor into a 24 hour welcome center for tourists.

"That's not even about money -- that's just hospitality and common sense," Parlato said. "Tourists walk by this building, and the Rainbow Mall, and the Turtle and they say, 'Oh, the United States is closed,' and they go back to Canada. We have to welcome people 24 hours a day."

Another priority is filling the hole. An underground parking ramp is being considered, and above it, once it's filled, plans might call for retail businesses, tourist attractions, and open space.

Inside the building, Parlato said he plans to have conference areas where public groups and private businesses could meet while enjoying a spectacular view of the falls. A restaurant on one of the upper floors is another consideration, as well as a rooftop lounge.

Steve Pigeon -- who set up Tom Golisano's purchase of the Buffalo Sabres -- put this deal together, according to Parlato.

Pigeon helped assemble an expert team of lawyers to work out numerous title, mortgage and corporate complications, a team which included Richard Day, Vince Hauber, and Paul Peters, from Hiscock and Barclay, Doug Kirkpatrick from Pigeon's law firm, Underberg and Kessler, and Greg Davis, and Tom Augello, of Davis, Augello and Matteliano.
Gary Parenti, a long time Pigeon ally was also appointed director of marketing and administration for the building.

"It feels great to work with Frank on this," Parenti said. "He understands the social impact of having that hole here, and he's got a strong passion to help the city of Niagara Falls come back."

Parlato in turn credited the business community, as well as City Hall, with helping him make the necessary steps to acquire the property.

"(Mayor) Vince Anello has been extremely helpful, and his administration has made a serious effort to help us realize our best hopes for the property," he said.

These hopes include creating an incubator for entrepreneurs in and around the building, using the facility to encourage use of the state parks along the river, and eventually acquiring other underutilized downtown properties, such as the dormant Rainbow Centre Mall across the street.

"There's a piece for everybody here," Parlato said.

Information from Niagara Falls Reporter's staff reporter David Staba 12-14-04 article was used in this report.