The sudden and surprising collapse of Savarino Companies leaves a handful of projects – including the high-profile makeover of the DL&W Terminal in Buffalo – in limbo.
Samuel Savarino, founder, owner and CEO of Savarino Cos., confirmed Tuesday that the 23-year-old company “will be winding down and ceasing operations,” including on several high-profile projects in downtown Buffalo and extending from Niagara County to the Southern Tier.
The developer moved to wind down its operations this week because it could not secure insurance on more than $110 million in new projects after being terminated from a SUNY Alfred State College dormitory construction project, which also cost it $3.3 million in losses. Even so, Savarino still hopes to be able to continue with the DL&W project and two others in Buffalo and Westfield.
But two other projects – the renovation of a Lockport office and retail building and a Buffalo warehouse conversion – may be dead after Savarino said it would no longer pursue those initiatives.
How can Savarino continue to pursue some projects even though its construction business is closing? Part of the reason is the way the projects are structured, with each as its own legal entity – a tactic that is commonly used to prevent problems…
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