Batavia Downs Hotel Expansion: WROTB Approves $6.25M Kmart Site Purchase

The Batavia Downs hotel and event center plan has its site: on October 29, 2026, the Western Regional Off-Track Betting Corporation board voted unanimously to buy the former Kmart property at 8363 Lewiston Road, across from Batavia Downs Gaming and Hotel, for $6.25 million, calling the land essential to a proposed hotel expansion and new events center estimated at just under $80 million (The Batavian; The Batavian, September 2026).

What Happened

The WROTB board authorized spending no more than $6.4 million including closing costs to buy about 5.3 acres, including the building, from 570 DAB 30, LLC (The Batavian). The Daily News of Batavia identified the seller as Benderson Development and described the property as the former 116,000 square foot Kmart building with about 100 parking spaces (The Daily News).

In its resolution, the corporation said "the acquisition of the adjacent K-Mart property is essential to the proposed project," and that market demand, operational performance and long term planning point to a need for more hotel and event capacity at Batavia Downs (The Batavian). The Daily News reported that WROTB described the purchase as "the first step of an important part of our future" (The Daily News).

Conditions Before Closing

The purchase will be paid from WROTB's Eligible Capital Awards Fund, pending approval from the New York State Gaming Commission. Several conditions must be met before closing, which the corporation expects near the end of 2026 (The Batavian):

• Town of Batavia approval of a requested subdivision
• Confirmation that no encumbrances affect ownership or use of the property
• Confirmation that zoning and other land use rules allow the planned use, including parking and site development
• Any variances or other land use approvals required for that use

The Project Behind the Purchase

The existing hotel at Batavia Downs has 84 rooms (The Batavian). In September, WROTB Chief of Staff Steve Casey told the board the project would cost just under $80 million based on concept renderings. The preferred concept includes a hotel expansion, a multipurpose event center linked by a skywalk and more parking, and a second option would expand the current hotel in place (The Batavian, September 2026). A rendering published by The Daily News, credited to R2 Architects, shows the current building outlined with a new event center and a new hotel connected to the north (The Daily News).

The plan has been building for two years. In 2024, the board approved up to $16 million to add 76 rooms to the 84 room hotel, then shelved that plan when bids came in over budget. In November 2025, the board revived the idea and added an event center to a new market study (The Batavian, September 2026).

How It Would Be Paid For

WROTB plans to cover about half the cost, roughly $40 million, and seek about $30 million in state assistance from several programs, including Restore NY (The Batavian, September 2026). Because only local governments can apply to Restore NY, Genesee County agreed to sponsor the application, and WROTB committed to covering the 10% local match for any award. WROTB President and CEO Byron Brown said sponsorship creates "no financial burden" for the county (The Batavian, September 2026).

The corporation's finances have improved. Vendor fee revenue topped $3.5 million in 2026 through September 20, and management projected about $5 million for the full year, gains it tied to a state cut in the tax rate on gaming revenue from 49% to 44% (The Batavian, September 2026).

Why WROTB Says It Needs the Space

According to the September report, the four existing event venues at Batavia Downs are at capacity, the area lacks a modern conference venue so local groups book in Buffalo or Rochester, and organizers of the 2026 World Aerobatic Championships cited accommodation challenges when the event was lost. The Genesee County Economic Development Center supports the project (The Batavian, September 2026). Batavia has been an active market, from the city's second $10 million DRI award to food manufacturing growth in its business parks.

Implications for Owners, Developers, Contractors and Subs

• Approvals come first. Subdivision, zoning and Gaming Commission approvals must be cleared before WROTB owns the land, so design and bidding are unlikely to move ahead of closing.
• Reuse or replace. A 116,000 square foot former retail box raises early questions about demolition, abatement and site reuse that will shape the first contract packages.
• Funding sets the scope. With about half the budget dependent on state programs, the final size of the hotel and event center may depend on grant outcomes. The 2024 bid overrun is a reminder that cost discipline will matter.
• Hospitality and assembly work. A hotel addition, event hall and skywalk combine hospitality, assembly occupancy and structural connection work, which favors contractors with experience on occupied sites.

What to Watch

Watch for the Gaming Commission decision on the acquisition, the Town of Batavia subdivision vote, the Restore NY award round and the selection of a design and construction team.

Bottom Line

WROTB has committed $6.25 million to secure the land for its Batavia Downs hotel and event center. The roughly $80 million project now moves to approvals and funding, with a closing targeted near the end of 2026.

Key Questions

What is planned for the old Kmart in Batavia?

Western Regional Off-Track Betting Corporation voted to buy the former Kmart at 8363 Lewiston Road for $6.25 million to support a Batavia Downs hotel expansion and new events center (The Batavian).

How much will the Batavia Downs hotel and event center cost?

WROTB has estimated the Batavia Downs hotel and event center at just under $80 million, with about $40 million from WROTB and about $30 million sought in state aid (The Batavian).

When will WROTB close on the Kmart property?

WROTB expects to close on the Batavia Kmart property near the end of 2026, pending Gaming Commission approval and a Town of Batavia subdivision approval (The Batavian).

When will construction start at Batavia Downs?

A construction start date for the Batavia Downs hotel and event center has not been disclosed (The Batavian).

Related Coverage

• Batavia Wins Its Second $10 Million DRI Award, and a Data Center Is Already Breaking Ground
• HP Hood's $26 Million Expansion Deepens Batavia's Hold as the Northeast's Dairy Manufacturing Capital
• Hotel Niagara's $58.8 Million Restoration Moves Into Interior Work: A 100-Year-Old Landmark Targets 2027 Opening

Image credit: R2 Architects rendering via Mike Pettinella, The Daily News. Image from the source article.

Sources

• The Batavian, WROTBC approves $6.25 million purchase of Kmart property, https://www.thebatavian.com/brianquinn/wrotbc-approves-625-million-purchase-of-kmart-property/649707
• The Daily News (Batavia), WROTB takes important first step toward construction of new event center, hotel, https://www.thedailynewsonline.com/news/wrotb-takes-important-first-step-toward-construction-of-new-event-center-hotel/article_d0689607-25dd-4dc2-9111-e467c47f93e1.html
• The Batavian, WROTB turns to Restore NY program to potentially help fund $80 million Batavia Downs expansion, https://www.thebatavian.com/howard-owens/wrotb-turns-to-restore-ny-program-to-potentially-help-fund-80-million-batavia-downs