Leaders: Rochester region poised for growth

Rochester is on the cusp of a major transformation, with new housing at the forefront of change, area civic and business leaders say.

At the 2015 Economic Breakfast hosted by area real estate groups downtown Thursday, speakers pointed to projects such as College Town, City Gate and The Reserve as well as the boom in downtown loft building as signs of growth in the region.

"The time is now," said Mark Peterson, president and CEO of Greater Rochester Enterprise. "This is going to be a really neat time to be a part of this region."

Following national trends, Rochester is experiencing a boom in urban housing development, said Heidi Zimmer-Meyer, president of Rochester Downtown Development Corp. Since 2000, 2,000 residents have moved downtown with 32 buildings remodeled to suit new housing needs, she said. Another 1,800 people are expected to move downtown in the next few years, she added.

"I haven't seen anything like this in 30 years, so fasten your seat belts," Zimmer-Meyer said.

The popularity of downtown living is apparent across the country as people seek walkable neighborhoods to live in, said Danielle Hale, director of housing statistics at National Association of Realtors. Housing trends mimic what's on television, and millennials and Gen Xers who grew up watching Friends or Sex and the City are likely to seek out urban living spaces, she said.

College Town near University of Rochester is another project that is adding to the vibrancy of the community. University of Rochester president Joel Seligman highlighted the mixed-use site at the summit, noting that retailers such as Barnes and Noble and Moe's have already moved in, with more stores such as Constantino's Market on the way.

UR is anticipating that it will seek requests for proposals for a project similar to College Town near Eastman School of Music on a 1.6-acre parking lot at Main and Gibbs streets, Seligman said.

Developer Anthony Costello of Anthony J. Costello & Sons highlighted what he called his canal projects at CityGate in Rochester and The Reserve in Brighton.

Located near UR and University of Rochester Medical Center off Westfall and East Henrietta roads, CityGate is a $177 million mixed-use site along the Brighton-Rochester border, anchored by Costco but also including other retail, offices, a hotel and an apartment complex.

CityGate is near the new College Town and right near the Erie Canal. Two 150-foot docks are being constructed by Costello at CityGate and The Reserve in Brighton for boating and kayaking, he said.

Sales have been brisk at The Reserve in Brighton since it opened last year, Costello said. The Reserve is a residential community of townhouses and single-family homes with prices starting at $295,000. It is resort-style living with a clubhouse near the canal path so people can walk or bike along the canal, Costello said.

The Rochester region is still going through its transition phase, but growth in housing is a positive sign for the area, said Gary Keith, vice president and regional economist at M&T Bank.

Real estate is a predictor for the regional economy, as purchasing a residence is a long-term commitment, Keith said. When people buy a home, they are investing in the community, he said.

Home purchases also have a trickle-down effect for the economy as homeowners will have to purchase other items such as furniture once they move in, he added.

But Rochester is still lagging behind the national average when it comes to economic growth, Keith said. With every new-economy job that's added, another old-economy job is lost in the region.

"Rochester is still going through a transition stage," Keith said, calling the decline of Eastman Kodak Co. a 100-year storm. "We're still climbing out of that hole."

MCHAO@DemocratandChronicle.com

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