Struggling Downtown Grocery Faces Uncertain Future After City Bailout

A year after the City of Buffalo provided a $561,000 lifeline to the struggling Braymiller Market, the downtown grocery store continues to face financial difficulties. Despite the city's intervention, the store remains behind on its tax payments, putting its tax abatements at risk. The article delves into the store's ongoing struggles, the city's efforts to support it, and the broader questions surrounding the viability of a downtown grocery store in Buffalo.

Revitalizing Downtown, One Grocery Store at a Time

A Risky Bet on Downtown's Future

The Braymiller Market project was part of the City of Buffalo's broader vision to transform the downtown area from a business district into a thriving neighborhood. The city believed that a grocery store would be the key to this transformation, and it actively sought to bring one to the downtown area. However, even at the time of planning, city officials acknowledged the inherent risk in this endeavor, recognizing that it was unclear whether there was enough foot traffic and residential population to support a profitable grocery store in the downtown area.Despite these concerns, the city forged ahead, announcing Tops Friendly Markets as the "preferred operator" of the grocery store in 2016. However, the plans ultimately fell through, as Tops would have required a significant subsidy from the city, which the city was unwilling to provide.

Braymiller Market Steps In, but Struggles to Succeed

In 2019, Stuart Green's Braymiller Market committed to the project, taking out a $4.6 million loan from Evans Bank to purchase the store from the builder, Ciminelli Real Estate. The city and Green believed that the store could succeed by combining a traditional grocery operation with a wholesale component serving local restaurants.However, the store's financial troubles began almost immediately. Within a year of opening in the fall of 2021, Braymiller Market was facing steep revenue losses, unpaid taxes, and outstanding vendor bills. The COVID-19 pandemic, which led to a significant decrease in downtown foot traffic and stalled residential projects, exacerbated the store's challenges.

The City Steps In with a Bailout

Faced with the prospect of Braymiller Market's failure, the city stepped in with a $561,000 forgivable loan in 2022, intended to stabilize the business. The decision to provide this bailout was not without controversy, as some members of the Buffalo Common Council questioned whether the city's resources could be better spent elsewhere.The city's intervention, however, did not immediately solve Braymiller Market's problems. Records show that the store continued to struggle, losing an average of $32,000 each month between May 2022 and April 2023. The store also fell behind on its loan payments to Evans Bank and its tax payments to the city, putting its tax abatements at risk.

Questioning the City's Approach

The Braymiller Market's ongoing financial struggles have led some developers and officials to question whether the city made a mistake in its approach. While some, like downtown real estate investor Jim Militello, believe the city should find a way to make the project work, others, such as developer Carl Paladino, argue that the city's investment in a downtown grocery store was "absolutely insane" given the lack of business in the area.The city, however, maintains that the project was a necessary investment in the future of downtown Buffalo. Brendan Mehaffy, the executive director of the city's Office of Strategic Planning, argues that but for the COVID-19 pandemic, Braymiller Market would be thriving today. He believes the city's intervention was crucial to supporting a business that was crucial to the overall health of the downtown area.As the Braymiller Market continues to navigate its financial challenges, the city's decision to invest in a downtown grocery store remains a subject of debate. The outcome of this project will likely have significant implications for the future of downtown Buffalo's revitalization efforts.