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Anthony J. Costello & Son Development Signs Agreement with Costco Wholesale Corporation (Costco) to Locate at CityGate and Commences Demolition Work on the Former Children's Detention Center

Anthony J. Costello & Son Development announced on March 17 signed an agreement with Costco Wholesale Corporation to locate its first Western New York warehouse club this fall at CityGate. The agreement concludes negotiations to bring the retailer to Rochester with the promise that it will create up to 300 jobs and anchor the $177 million CityGate development project spanning 45 acres in the city of Rochester.

“This agreement allows us to move forward with transforming the landscape of the city’s southern gateway,” said Anthony J. Costello, chairman of The Costello Group and Anthony J. Costello & Son Development. “In just seven short months, a 150,000-square-foot Costco store will be bustling with shoppers where we stand today.”

To coincide with today’s announcement, Anthony J. Costello & Son Development began demolition work on the former 40,000-square-foot Monroe County Children’s Detention Center, the last of the buildings to be torn down before the site is made level for future buildings. A building pad must be made available to Costco by June 1 to ensure a store opening this fall.

In addition to Costco, CityGate will include a 150-room hotel, 300 loft-style apartments overlooking the Erie Canal and additional commercial and retail space including a street of shops and restaurants. Anthony J. Costello & Son Development has partnered with Perinton-based Morgan Management to build and lease the loft-style apartments.

In total, 19 free-standing buildings are proposed at the site of the former Monroe County Iola Campus. Plans also call for construction of a satellite transit center on the northeast corner of CityGate to include a 90,000-square-foot parking garage. The transit center would be a multifaceted facility with accommodations for automobile commuters, public bus transportation and bicycles. The proposed facility would act as a transfer point for commuters going from their vehicles to public transportation provided by the Rochester Genesee Regional Transportation Authority (RGRTA). In partnership with the RGRTA, Anthony J. Costello & Son Development has secured $6 million in funding for the satellite transit center through a New York Economic Development Assistance Program (EDAP) grant offered through the Dormitory Authority of the State of New York (DASNY).

“The CityGate project will create tremendous economic opportunity in the Greater Rochester region and it's a result of Governor Cuomo’s leadership that this project is moving forward,” Empire State Development Chief Executive Officer and Chairman Kenneth Adams said. “In keeping with the progress being made in the region, I look forward to future development and investments at the site and thousands of jobs."

State Senator Joseph E. Robach added, "I applaud the vision of Anthony and Brett Costello for developing CityGate and The Reserve, both of which will bring quality jobs, housing and businesses like Costco to the Rochester community. This project will have a positive impact on the lives of the people who live and work at CityGate, as well as our entire region. This truly is a win-win for Rochester."

Assembly Majority Leader Joseph D. Morelle said, “The CityGate project will transform the southwest side of the city and provide a vital source of employment and economic opportunity for the local community.  Today’s announcement is the culmination of a team effort.  I applaud Anthony and Brett Costello, and all of our local partners who have been involved for their diligence in moving this project forward and making today a reality.”

Anthony J. Costello & Son Development has worked closely with its partners in state, county, and city government, as well as city neighborhood groups sharing its vision for the 45-acre parcel.

In January, the Monroe County Legislature approved the capital budget that included funding so that aging Children’s Detention Center on the CityGate property could be closed and the children there relocated to the state-owned Industry Residential Center campus in Rush.

“I would like to thank Governor Andrew Cuomo, Rochester Mayor Lovely Warren, Monroe County Executive Maggie Brooks, State Senator Joseph Robach, State Assembly Majority Leader Joseph Morelle and Vincent Esposito, Empire State Development’s Finger Lakes Regional Director, whose help made an agreement with Costco possible and allowed CityGate to move forward,” Costello said.

 

“Congratulations to Anthony J. Costello & Son Development on finalizing the agreement with Costco Wholesale Corporation,” Rochester Mayor Lovely Warren said. “We are looking forward to the opportunities being created at CityGate—especially the 300, living-wage jobs that will be created when this anchor store opens its doors this fall. CityGate represents an outstanding example of what can be accomplished when all levels of government, along with the private sector, work together to benefit the community.”

The result is a project that promises to embrace its historic roots and architecture while offering tasteful, innovative landscape design that encourages a strong pedestrian presence.

Concrete sculptures and bricks from buildings that once stood on the former tuberculosis sanatorium site will be used for walkways planned throughout CityGate. Some of the buildings were about 90 years old.

“Today is a proud day for Monroe County because CityGate represents a successful public-private partnership that will bring good paying jobs to our community,” Monroe County Executive Maggie Brooks said. “Breaking ground on CityGate is once again a testament to the great progress that is possible when local leaders put politics aside and support vital projects that will create jobs.”

A pocket park will anchor CityGate’s northwest quadrant at the corner of East Henrietta and Westfall roads incorporating the sycamore trees that stand on the property today.  Plans also call for a boat dock and light poles along the canal completing a nearly two-mile stretch of lights between Winton and East Henrietta roads. The lights are expected to be installed by June 1 to encourage people to walk, run or ride a bicycle between CityGate and Anthony J. Costello & Son Development’s new housing community called The Reserve, currently under construction on the canal in Brighton less than one mile east on the Canalway Trail from CityGate.

“The canal project is something my son, Brett, and I have been talking about for a long time,” Costello said. “Brett and I are excited to see our vision become a reality.”

 

Anthony J. Costello Announces Promotion of His Son, Brett Costello, to CEO of USAirports and CEO of Anthony J. Costello & Son Property Management; Anthony Costello Assumes

the Title of Chairman of The Costello Group

Anthony J. Costello announces that his son, Brett A. Costello, has been promoted to chief executive officer of USAirports and Anthony J. Costello & Son Property Management.

Brett Costello succeeds his father as CEO of USAirports while assuming the title of the newly created entity called Anthony J. Costello & Son Property Management. Anthony Costello assumes the title of chairman of the newly created Costello Group while also continuing in his role as chairman and chief executive officer of Anthony J. Costello & Son Development.

“This is one of the most significant announcements in our 30-year history serving the Rochester community and a very proud moment for me personally,” Anthony Costello said.  “There is no greater reward as a father and businessman than to promote your son to CEO of companies you founded after watching him learn every detail of both businesses.”

The Costello Group will focus on the development side of the family businesses which Anthony Costello started and has grown with Brett Costello to include properties throughout Monroe County.  Projects currently under development include The Reserve on the Erie Canal, a 327-home residential community in Brighton, and CityGate, a 45-acre parcel in Rochester that will include retail and commercial space in addition to a hotel. Costco Wholesale Corporation (Costco) recently announced it has approved the site to locate its first Western New York warehouse club. The Costello Group also owns 82 additional acres in Brighton where it is proposing to build Clinton Crossings Corporate & Lifestyle Center – a mix of corporate, medical, restaurant and hotel space.

Under the leadership of Brett Costello, USAirports will continue to operate as the Fixed Base Operator (FBO) at the Greater Rochester International Airport (GRIA) where the company is headquartered and serves both commercial and general aviation customers. USAirports also will continue to provide cargo handling services at Hartsfield-Jackson Atlanta International Airport.

In his new role, Brett Costello will manage USAirports and Anthony J. Costello & Son Property Management and oversee the executive administration of both companies’ real estate portfolios as well as USAirports, which provides fueling, de-icing, aircraft maintenance and general FBO services at the GRIA.

“I appreciate the confidence my father has instilled in me and the opportunity to continue the growth of our organization, while nurturing our existing customers and employees,” said Brett Costello, who has nearly 30 years experience developing and managing construction for both USAirports’ and Anthony J. Costello & Son Development’s commercial real estate portfolios.  These properties include airport hangars and office space, the Medical Office Building (M.O.B.) at Rochester General Hospital and Clinton Crossings Medical Center, regarded as one of the premier and largest Class A medical campuses in Western New York.

All these properties join USAirports, Anthony J. Costello & Son Development, Anthony J. Costello & Son Property Management, The Reserve, CityGate and Clinton Crossings Corporate & Lifestyle Center to make up The Costello Group, headquartered in Brighton.

Prior to joining USAirports and Anthony J. Costello & Son Development, Brett Costello studied Environmental Science at the State University of New York at Canton and graduated from Bishop Kearney High School.

He holds leadership positions in several community organizations and has particular interest in promoting, developing and preserving the Erie Canal as an economic development asset and historic treasure.  Brett Costello also serves as chairman of Corn Hill Navigation, a nonprofit whose mission is to improve and sustain the Erie Canal and adjoining Genesee River for current and future generations through awareness, education and enjoyment.

He is an active member of Peace of Christ Parish and Vistage International, a peer-to-peer membership organization for CEOs, business owners, and executives of small and mid-sized businesses.  He is also an authority on the New Urbanism development movement and a member of both the Congress for New Urbanism and the Urban Land Institute.

Brett Costello lives in Rochester with his wife, Christine, and four children.

Click here to read the Democrat and Chronicle story about the transition.


Anthony J. Costello & Son Development Launches CityGate with News that Costco has Approved the Mixed-Use Site to Locate First Western New York Warehouse Club

Costco is proposing to build a 150,000-square-foot warehouse club that would anchor CityGate located at the intersection of Westfall Road and East Henrietta Road in the City of Rochester. The new warehouse club would result in $30 million in private capital investment and 250 to 300 full-time jobs supporting the sale of a large variety of consumer products from gasoline to groceries. 

“We are excited that Costco, a highly sought after and quality retailer, has chosen CityGate to locate its first warehouse club in Western New York,” said Anthony J. Costello, chairman and chief executive officer of Anthony J. Costello & Son Development. “We are confident that Costco will draw other high quality tenants to CityGate.” Current plans for the entire mixed-use CityGate development include a hotel, 300 two- and three-bedroom residential units overlooking the Erie Canal and additional retail and commercial space. The proposed project would create an estimated 1,022 non-construction jobs and 1,527 construction jobs.Anthony J. Costello & Son Development and Morgan Management are co-developing the residential portion of CityGate.“Morgan Management is excited to partner with Anthony J. Costello & Son Development,” said Robert Morgan, chief executive officer of Perinton-based Morgan Management. “We are grateful to be part of this unique community and are humbled at the opportunity to contribute to the revitalization of Rochester.”
 

In total, eight free-standing buildings are proposed at the site of the former Monroe County Iola Campus. Plans also call for construction of a satellite transit center to include a 90,000-square-foot parking garage. The transit center would be a multifaceted facility with accommodations for automobile commuters, public bus transportation and bicycles. The proposed facility would act as a transfer point for commuters going from their vehicles to public transportation provided by the Rochester Genesee Regional Transportation Authority (RGRTA). In partnership with the RGRTA, Anthony J. Costello & Son Development has secured $6 million in funding for the satellite transit center through a New York Economic Development Assistance Program (EDAP) grant offered through the Dormitory Authority of the State of New York (DASNY).

Terms of the deal with Costco to occupy more than 15 acres at CityGate are still under negotiation and Rochester City Council also needs to approve changes to the overall plan for CityGate. Current plans are for the demolition of existing buildings at the site within 60 days and construction of Costco’s membership warehouse club to begin as soon as possible to allow for an opening late spring 2014.  Costco generates nearly $100 billion in revenue annually and is the largest warehouse retailer in the United States with and more than 440 warehouse clubs across the country, including 15 in New York all located downstate. It also operates more than 170 warehouse clubs outside the United States with locations in Canada, Mexico, the United Kingdom, Japan, Taiwan, Korea and Australia. Costco has more than 67 million members.   

In addition to gasoline and groceries, Costco sells products such as appliances, electronics, office products, pet supplies and jewelry. It also retails a number of private-label brands and from time to time makes high-end products available to its members such as Coach purses, according to the retailer’s website.

In the News

Click here to read the Democrat and Chronicle story about CityGate

Click here to view the WROC-TV story about CityGate

Click here to view the 13WHAM-TV story about CityGate

                                   

Anthony J. Costello & Son Development Breaks Ground on The Reserve

Anthony J. Costello & Son Development has broken ground on The Reserve – an innovative 327-home residential community on the Erie Canal in Brighton. The new community will transform the town’s nearly four-mile stretch of undeveloped frontage along the historic waterway and offer homebuyers a diversity of home styles that is unmatched.

The $180 million privately funded project is centrally located off South Clinton Avenue between Westfall and Brighton-Henrietta Townline roads and provides convenient access to Interstates 590 and 390. The Reserve is expected to take five to seven years to complete and create millions of dollars in additional tax revenue for the Town of Brighton and the Brighton Central School District while creating an estimated 875 new jobs.

Anthony J. Costello & Son Development is investing $1.2 million to build a public boat dock just east of The Reserve, light the Canalway Trail with 110 lights and light poles located between The Reserve and East Henrietta Road, build a non-motorized boat put-in at the west end of The Reserve and install public sitting areas along the canal in front of the Reserve. Anthony J. Costello & Son Development also will make improvements to a public parking area across from The Reserve’s entrance on South Clinton Avenue. All the canal improvements will be funded by Anthony J. Costello & Son Development except for a $224,000 grant Brighton received through the New York State Erie Canal Greenway Grant Program. Anthony J. Costello & Son Development will match the grant as part of the investment in the canal.

The new residential community will feature a 12,000-square-foot country club-like clubhouse, 189 loft condominiums, 47 ranch-style and two-story townhomes, 46 ranch-style and two-story-patio homes, 20 traditional brownstones, 19 custom estate homes and The Watermark – a grand building inspired by the style of Rochester’s East Avenue mansions.

“It has been my vision to turn these 65 acres into a destination for people to live while improving the canal area around The Reserve for public benefit,” Anthony J. Costello, chairman, chief executive officer and founder of Anthony J. Costello & Son Development, said. “I am excited to say that this vision is a reality. The Reserve will meet the pent-up demand for new housing in Brighton and people’s desire to live close to work, family, downtown cultural attractions and other frequent destinations such as the airport and providers of medical services.”

It took more than seven years to design and secure the necessary town government approvals to build the Reserve. The property’s design takes advantage of its close proximity to the Canalway Trail and recognizes the waterway’s history. Four of The Reserve’s six distinct neighborhoods (Glenville, Waterford, Fort Plain and Brewerton) and six loft buildings (Rexford Flats, Frankfort, Pendleton, Kingston, Champlain and Black Rock) are named after towns, a village and a neighborhood  located on the 524-mile Erie Canal. The Reserve’s residents will be able to walk out their front door and tie into a system of trails that will take them a short distance around the property or greater distances along the Canalway Trail. One of those trails – the 1.3-mile Emerald Necklace Pathway – was built so that people can walk, jog or ride a bike without leaving The Reserve. As part of the community’s more than $1 million landscaping plan, the Emerald Necklace Pathway will be enhanced with native plant species providing a valuable, organic corridor for wildlife to reach the four ponds located on the property and nearby Meridian Centre Park.

Anthony J. Costello & Son Development was careful to integrate the canal’s coveted waterfront access with elements from successful, planned communities across the nation, setting The Reserve community apart while incorporating green principles. The company will adhere to the National Association of Home Builders’ (NAHB) model green home building guidelines.

Design elements include diversity of home styles, streetscapes ranging from urban inspiration to elegant suburbs, narrow streets and wide, user-friendly streets scaled for pedestrian enjoyment.

The loft condominiums will be located in six five-story buildings along the canal at the south end of the property. The lofts will have spacious terraces and balconies with many overlooking both the canal and Bristol Hills to the south and Rochester skyline to the north. Residents living in the lofts will have secure underground parking accessible via an elevator while their guests enter at street level into an exquisitely designed lobby. The brownstones located across the street will offer an urban-neighboorhood feeling and feature brick exteriors.

The clubhouse also will be located along the canal and feature an array of amenities including a 30-seat movie theater with reclining seats and cup holders and a fitness center staffed by a full-time trainer. The fitness center will feature the Life Fitness Signature Series workout equipment and free weights. 

The dining room and wine cellar are two rooms in the clubhouse designed to meet the entertaining and social needs of residents. The dining room is designed to accommodate up to 80 people with additional expanded space to seat 120. The wine cellar will seat up to 16 people and will be home to 327 wine lockers given to every homeowner complete with engraved nameplates. A gourmet kitchen located close by will provide all the essentials to be a successful host. 

The clubhouse also features a Harvard room that will have overstuffed leather furniture, a fireplace, stocked library, game tables and a board room with a conference table that will provide comfortable seating for up to 12 people. 

Outside residents and their guests will enjoy a pool designed to be an outdoor resort destination that will include fire pits, kitchen with a pizza oven and an aesthetically pleasing water feature. 

“Residents should consider the clubhouse an extension of their home with an array of places to relax, entertain, socialize and recreate,” Costello said. 

The clubhouse is so central to The Reserve that construction of the four-story building that also features 10 loft condominiums will coincide with construction of the first homes so that the community’s initial residents can enjoy all the clubhouse’s amenities early on. 

Everyone who lives at The Reserve will belong to a Home Owner’s Association (HOA) that provides for access to all clubhouse amenities. Separately, residents will pay a monthly fee for services such as driveway snow removal, landscaping, lawn mowing and refuse and recycling pickup. The fee and services will vary by neighborhood. 

“The HOA exists to give residents peace-of-mind and make their life more enjoyable,” Costello said. “Living at The Reserve is about living the life you love.”

For more information, including floor plans, visit BrightonReserve.com or call (585) 272-6500.

In the News

Click here to read a Rochester Business Journal article about The Reserve.