NFR 'unveils' site plan for $1.5B data center in Niagara Falls

Oct. 11—Niagara Falls Redevelopment has "unveiled" a site plan for the first phase of its $1.5 billion data center proposal.

NFR spokesman James Haggerty provided copies of the company's site plan for its Niagara Digital Campus proposal in a press release issued to the newspaper and other media outlets on Wednesday.

The company's announcement came about an hour after Mayor Robert Restaino's administration issued statements and a pair of videos that were critical of the company and its long history of failing to redevelop its property in the city.

He acknowledged in a follow-up email to the newspaper that the site plan has not been formally submitted to the city and it made "no sense" to do so at this time as the parcel where NFR has proposed the start of construction for the data center remains under the threat of being acquired by the city using its power of eminent domain.

"Sadly, so far no one from the city has engaged on the settlement and development proposal sent in early June," Haggerty said. "But to suggest that the lack of a formal submission somehow indicates a lack of interest or commitment on Urbacon's part is ludicrous. No developer in their right mind would go forward with a full submission under these circumstances."

The site plan, which was prepared by the Toronto-based firm Urbacon, NFR's partner in the Niagara Digital Campus proposal, shows what the companies say the first phase of the project could look like on what NFR describes as "Parcel 0," a 10-acre plot of land it owns off John B. Daly Boulevard near the intersection of 10th and Falls streets.

"We are pleased to present this plan for the Niagara Digital Campus, which we believe will jumpstart a tech revolution in the City of Niagara Falls," said Roger Trevino of NFR. "Working with Urbacon, we have a rare opportunity to bring jobs and opportunity to the residents of Niagara Falls — the types of jobs that can change lives and foster high-technology infrastructure that will benefit the City of Niagara Falls for generations."

"Parcel 0" is the same 10-acre site that is currently the focus of an ongoing legal battle between NFR and the city, which is attempting to acquire the land through its power of eminent domain so it can be used as the site of Mayor Robert Restaino's proposed $150 million "events campus" known as Centennial Park.

An appellate court agreed with a lower court that the city should be allowed to acquire "Parcel 0" from NFR for the purposes of pursuing the development of Centennial Park. NFR has appealed the decision. Should the company's appeals fail, the city will be able to take the 10 acres with a judge in Niagara County being assigned at some point later in the process to determine what the property is worth. NFR officials have suggested the final price tag could be $20 million or more.

In its release, NFR, which owns roughly 140 acres of land in the Falls, refers to "Parcel 0" as the "only" site that could accommodate plans for the Niagara Digital Campus.

"After much consideration, Urbacon has determined Parcel 0 is the only site that will work for the first phase of the Niagara Digital Campus," the press release indicates. "Parcel 0 is the only site that is shovel-ready, with access to power and other infrastructure necessary to support this initial phase of the Niagara Digital Campus."

Restaino and others who who have questioned whether NFR is serious this time have cited the company's failure to submit a site plan as evidence that NFR and Urbacon are more interested in driving up the value of the property than actually building a $1.5 billion data center.

In response to the site plan announcement, the mayor's office issued a statement from Restaino that read:

"This proposal is more of the same that has already been reviewed and rejected by two separate law firms representing the city. NFR's insistence on the rescinding of eminent domain was rejected by all council that have reviewed their proposal. NFR continues to own the property without any lien against it based upon pending eminent domain proceedings. They have continued to neglect taking any necessary steps to advance their imaginary project. This is more of the same from NFR."

Restaino's office also released a separate press release that included critical comments from Restaino about NFR and its promise of new development in Niagara Falls since 1997. Restaino noted that the city and its residents are "still waiting for those promises to become reality."

"With numerous 'proposed' projects under their belt, Niagara Falls has waited long enough for something to happen," Restaino said. "And, honestly, this city and its residents can wait no longer."

Accompanying the press release were links to a pair of videos produced by the mayor's office.

The first video, called "Niagara Falls Redevelopment — Zero Development," offers viewers a timeline of NFR's arrival and what's described as the company's "years of neglect, abandoned properties, and broken promises."

It also references what the mayor's described as the city's "historic win" in its ongoing eminent domain case and how Restaino's proposed Centennial Park events center would help extend the Niagara Falls hospitality season.

The second video from city hall, titled "Niagara Falls — The Key to Development," seeks to "change the narrative that nothing is happening or will ever happen in the City of Niagara Falls."

"Despite NFR'S failure to follow through with their projects, development is happening," the description for the second video from Restaino's office reads. "There are developers who have worked and continue to work with the city to bring new businesses to Niagara Falls."

Both videos can be viewed by visiting the mayor's Youtube channel.

NFR and Urbacon indicated that they propose building the Niagara Digital Campus in two parts, a first and second phase, over the course of about 24 months from groundbreaking. Phase I, which would be located on the 10-acre "Parcel 0" property, would be house about 282,000 square feet of the 600,000 square-foot data center space envisioned for the entire project.

The site plan shows the first 50 MW of the proposed 135 MW project would fit on the parcel and the location of an electric substation that NFR and Urbacon say the would build at the site to provide power to the data center and, according to company officials, "materially improve the downtown Niagara Falls electric grid."

In its press release, NFR describes the Niagara Digital Campus as being energy efficient, low noise" and blending "seamlessly with the surrounding area." It also says the project, if completed, would be "among the largest data-center developments in Western New York" and would "serve as a magnet for additional high-technology jobs and opportunity in the region."

NFR suggests construction of the Niagara Digital Campus would create more than 5,600 construction jobs. Once completed, NFR and Urbacon say the project would add 500 full-time jobs on site and have an economic impact, including wages, of more than $250 million annually.

NFR said the digital campus will also be home to the Niagara Digital Campus Technology Education Center, where local school groups and other interested members of the community will have the opportunity to learn about all aspects of data engineering and network operations. Future plans include scholarship programs and partnerships with local educational institutions to advance these efforts, the company said.

The company notes that the data center would only progress if the city granted the necessary approvals for the project.

In order to do so, NFR also notes that city officials would also be required to rescind their efforts to forcibly acquire "Parcel 0" through eminent domain.

In exchange for putting an end to the eminent domain proceedings, NFR previously offered Restaino and city council members a proposal involving the donation of more than 10 acres of land it owns in the Falls, along with $350,000 to the city each year for 10 years for upkeep, maintenance and economic development projects.

Corporation Counsel Christopher Mazur declared to the city council, in July, that there was a conflict of interest between the city's legislative and executive branches with regard to the Centennial Park eminent domain proceedings. That declaration cleared the way for the city council to hire its own outside attorney to review NFR's proposed settlement.

The Niagara Gazette reported that Palumbo, following a closed-door ZOOM meeting with council members on Aug. 23, told lawmakers in attendance that the settlement was "a bad deal for the city" and should be "rejected."