I'm not sure where they're referring to as an exact location, but I do know that there is definately a LOT of space there, and this would be a much welcomed attraction by both the locals as well as the county & town. The mall near-by there is a disaster that's been bought by at least 7 owners in the past 5yrs, each proclaiming that it'll become a major tourist destination, and have a major all-around Christmas theme or some crap like that.
The thing is, Rentzy17... Niagara Falls New York is NOT detorriating. It has already hit the bottom of the barrel a couple years ago. The casino was the first step in digging the city out of the hole. The 2nd step is the addition of the 26 story hotel which is already 14 stories up (steel frame). They are going to continue their master plan (the Seneca Indians) which will turn around the city partially into a more touristy destination. There are also proposals for some major attractions in 'Da Falls that were announced within the past 2 months that sound interesting.
So you can't say that NF, NY is really the bottom of the pit. They're trying, and they already hit rock bottom. They're now trying to climb out of the hole, and the work progress is starting to show.
The only thing with the Wheatfield site is that it's about 2 miles away from the airport down the road. That would restrict height variances... and there are newer neighborhoods that have been popping up that might also not like the idea (although I don't see why they wouldn't encourage development for what essentially is just a large plot of dirt).