(Rochester, N.Y.) – PAETEC Communications has again scaled down plans for a new headquarters downtown, but the CEO remains committed to the project.
CEO Arunas Chesonis said the city and state did not deliver the incentive package originally proposed when the project was announced in October 2007. That incentive package will likely be announced in late March, he said, along with his firm’s signed commitment to build on the Midtown site.
"We've downsized the building as much as we can to minimize the cost. Anything smaller would be too small for our needs,” Chesonis said.
The new design is also expected to be unveiled in late March. It will be shorter and fatter, and look dramatically different from the previous 9 or 10-story design, released in 2008. The headquarters was originally envisioned as the tallest building in Rochester.
“Yes they've scaled down the design, but in this economy, in this recession, there's a lot of companies that have gone far beyond scaling down designs,” said Mayor Robert Duffy.
The headquarter’s location has also shifted to the northwest corner of the Midtown block, at Main and Clinton. The mayor submitted legislation to City Council last week for appraisal services for three properties that the city would acquire to make way for PAETEC.
PAETEC plans to use portions of existing buildings on the Midtown site. For example, the top floors of the Seneca Building would be lopped off, and the headquarters would be built over and around the structure. Other buildings may be used as well. This will save several million dollars.
“That also saves the garage and the tunnel underneath, which also is saving some of the money with demolition,” said Duffy.
Chesonis said the community shouldn’t be disappointed with a smaller headquarters.
“It's still going to be able to support the original 1,000 high-paying jobs downtown,” he said, adding that retail is still a component of the first floor plans.
Chesonis also said a less-dense Midtown site could encourage development surrounding the block.
Christa Development and Bob Morgan have agreed to renovate Midtown Tower into luxury condos. The city is also pushing a performing arts center on the Midtown site.
