September 30, 2009 Big plans for big building NYC developer to buy Sawyer facility, eyeing Civic Center
By MAURY THOMPSON
thompson@poststar.com
GLENS FALLS -- The New York City-based developer who is buying the J.E. Sawyer & Co. building plans to renovate it to house a 125-room hotel and convention center with a pedestrian walkway over Glen Street to the Glens Falls Civic Center.
Peter Rice, the developer, also has discussed with city officials buying the Civic Center and expanding it. The city owns the Civic Center.
"The project weﾒre trying to develop is how we can help the city itself grow," Rice said Tuesday. "One of the things weﾒre looking at is expanding the arena to bring in A venues ﾗ which is a little higher-end shows. They need minimum seats for around 10,000 people."
Rice said if he did buy the arena, he would seek to keep professional hockey and the state high school basketball tournaments.
The arena now has 4,806 fixed seats and can fit 7,000 people at concerts, using folding chairs.
Glens Falls Mayor John "Jack" Diamond said he and Ken Green, the cityﾒs economic development consultant, had "very preliminary discussions" with Rice and his real estate broker about the Civic Center, but did not discuss a price or other details.
"My position was Iﾒd have to speak with the Common Council, but I think we might be open to any options with the Civic Center," Diamond said, "And I want to emphasize these are very preliminary discussions."
J.E. Sawyer announced this week that Brightstar Development, a company headed by Rice, has signed a contract to buy the Sawyer building, and is expected to close in late December.
J.E. Sawyer, a plumbing and heating supply business, would relocate next spring to a yet-to-be determined location elsewhere in Warren County, said Russ Chatham, the companyﾒs chief executive officer.
Chatham said his company, working with real estate broker Mark Levack, has narrowed its search to "a few places" in Glens Falls and Queensbury and he expects to make a decision in November.
Bill Enny, the real estate broker representing Rice, said Rice is eager to move forward with the hotel and convention center complex regardless of what happens with the Civic Center.
Neither party would discuss details of the J.E. Sawyer sale, but Enny said he does not expect any contingencies would derail the sale.
"We donﾒt feel like there are any blocks in the way," he said. "Now everything is very aggressive. Sawyers wants to sell and we want to buy. Thatﾒs the sweet music to the whole thing."
Enny said financing is already arranged.
"Thatﾒs in place. That will not be an issue," he said.
Rice, a Mohawk Indian, is founder of Rice Mohawk Industries, a New York City-based steel fabrication and bridge construction company that specializes in projects employing American Indian workers.
Rice and Enny both said he would employ local unionized construction workers to build the hotel complex, and would employ local people to operate the hotel.
Enny said he is scheduled to meet Friday with a local representative of the plumbers union to discuss the project.
The Rice family owns several other businesses, in addition to its construction company.
Peter Riceﾒs son, Burton Rice, is publisher of Naked Eye, a pop culture magazine in Canada, and also is a mixed martial arts promoter.
Burton Rice was denied permission to hold an event in Quebec in June, just before he, his father and Peter Francis Rice, a brother, were arrested on charges connected to alleged illegal tobacco production and sales on the Kahnawake reserve outside Montreal, according to a June 6 Vancouver Sun report.
Law enforcement officials raided a warehouse the Rice family owns on the reservation, according to a July 27 Canadian Magazine Industry News report that was posted on the Internet.
All three have pleaded not guilty to all charges, and were released, according to the report.
Peter Rice told The Post-Star earlier this month that the arrests involve a territorial dispute and he and his family have done nothing illegal.
He said Tuesday he hopes the matter will be settled soon.
"Weﾒre trying to get them (Canadian court system) to expedite things," he said.
Enny said the Rice family does not have plans at this point to try to bring mixed martial arts events to Glens Falls, because the sport is not legal in New York.
Enny said Rice plans to keep the main portion of the 104-year-old Sawyer building in place, but would reconfigure the inside of the structure to have three, instead of four stories, to accommodate higher ceilings.
The first floor would house a restaurant, bar and hotel lobby, with meeting and banquet space on the second floor and either offices or apartments on the top floor.
A new hotel wing with 125 rooms, including 15 suites, would be built behind the main structure.
It is not yet clear whether a newer portion of the Sawyer building would be demolished or expanded to accommodate the hotel wing.
Enny said Rice is negotiating with nearby property owners about possible easements to construct a parking garage.
"There are ideas set out there. Parties are willing, but there is nothing struck yet," he said.
A proposed pedestrian walkway over Glen Street hinges on city approval of the plans, but does not depend on public funding, he said.
"It would help with traffic flow. It would definitely benefit the project to be connected with the Civic Center," he said.
Diamond said he and Rice have discussed generally what types of incentives are available through the cityﾒs development agencies, but they have not discussed details of what, if anything, the developer might seek.
Diamond has said Rice previously expressed interest in several buildings in Glens Falls, including the armory building on Warren Street and a former garment factory on Elm Street that the Greater Glens Falls Local Development Corp. owns.
Enny said Tuesday that Rice is still considering the Elm Street building, but now is "not so much" interested in the armory.
