"This is a significant project that will both energize development in Buffalo and connect the downtown area to the waterfront," says Gov. Eliot Spitzer, in a statement. "I would like to commend Empire State Development Corp. and its subsidiary, Erie Harbor Canal Development Corp., for the vision to take the proposal to where it is today."

The $275 million price tag is expected to be funded by developer Benderson Development Corp. and public funds. The two groups will split the costs equally.

At full build out Canal Side, as the project has been dubbed, will include up to 250,000 sf of retail space, 80,000 sf of restaurants and entertainment locations, 30,000 sf of office, a 125,000 hotel and 75,000 sf of residential. Benderson will also build a 1,300 space parking facility.

"Canal Side represents a landmark development opportunity that can be a catalyst for the rebirth of downtown Buffalo," says developer Todd Benderson. "We envision a vibrant and unique mixed use waterfront development that will include local, regional and national interests and become a real destination. Bass Pro Shops commitment to this project will help enable us to capitalize on our many existing relationships throughout the retail industry. We look forward to partnering with Bass Pro Shops along with ECHDC and the City of Buffalo to help create this truly unique project."Bass Pro Shops Outdoor World has signed on to be one of the projects major retail tenants. The store will total 100,000 sf in three floors and is set to overlook the Inner Harbor with a 50-foot-wide boardwalk wrapping the facility. A 20,000-sf Erie Canal Museum and a 30,000-sf arcade and public market will be built by the ECHDC near the store. Also a public green area will connect to the store.

"Bass Pro Shops is very enthused and respectful of the historical significance of this very special location," says Bass Pro Shops president Jim Hagale. "Of the many options that were reviewed, the recreation of the central wharf is the most exciting and authentic. Our store design will pay tribute to the heritage and national importance of the Erie Canal terminus."

The ECHDC will pay for the site preparation and development of the Bass Pro Shop, utilizing $25 million or $35 million that was earmarked by the State of New York in 2004 for the project. According to a statement, "ECHDC will own the building and Bass Pro Shops will pay common area maintenance and fees of $300,000 a year for an initial 20-year lease with renewals to 50 years for a total of $15 million. At its cost, Bass Pro Shops will operate the Erie Canal Transportation Museum and a new harbor marina located adjacent to the store that will be open to the public."

When complete the project is expected to create 1,000 jobs, $9.5 million in sales-tax revenue yearly, and $1.2 million in yearly property taxes. According to a government issued statement about the project, in the first 20 years of its existence the project will bring in $189 million in sales tax revenue.

Demolition of the Memorial Auditorium, which currently sits on the development site, and construction of the new facilities are not expected to begin until 2008; although the remainder of this year will be used to put final touches on the design and receive public and environmental approval. The remaining $10 million, not being utilized to build the Bass Pro Shop will be used to tear down the Auditorium.