Council in the dark on NFR grant

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September 7, 2010

Lawmakers have no details on offer, resident calls Thompson funding plan ‘appalling’

By Mark Scheer Niagara Gazette The Niagara Gazette Tue Sep 07, 2010, 10:41 PM EDT

NIAGARA FALLS — City lawmakers are taking a wait-and-see approach when it comes to a proposed state grant for a subsidiary of Niagara Falls Redevelopment.

After hearing a complaint on Tuesday from a local businessman who described plans to give a division of the downtown development company $400,000 in state funds as “appalling,” several city lawmakers admitted they had no details on the project and suggested the resident’s questions would be better posed to the man who is spearheading the effort - State Sen. Antoine Thompson, D-Niagara Falls and Buffalo.

“It’s out of our hands,” said Council Chairman Sam Fruscione. “It’s none of our business. That’s between the state of New York and NFR.”

Thompson confirmed last week that his office secured $400,000 in state funds to assist in the demolition of “dilapidated” residential properties owned by Eleventh Street Properties, LLC, a subsidiary of Niagara Falls Redevelopment. Thompson indicated the demolition and construction would take place within NFR’s development territory, specifically in the area bordered by John B. Daly Boulevard, Portage Road, Buffalo Avenue and Niagara Street. The funding is expected to come from the New York State Dormitory Authority. A spokesperson with the authority told the Gazette last week that a grant application has been submitted on behalf of Eleventh Street Properties, which is listed as the owner of more than 400 parcels in and around the downtown development territory claimed by NFR, a company financed by New York City real estate developer Howard Milstein. The dormitory official indicated that the full scope and purpose of the project was not yet in place and the application is still in the preliminary stages of review.

Art Garabedian, owner of Art’s Woodshop and School of Wordworking on Portage Road, objected to the proposal during Tuesday’s council meeting, encouraging lawmakers to use their “common sense” when it came to giving away state money to “speculators” with deep pockets who have not lived up to development promises they made more than a decade ago.

“Who does he represent — NFR or the citizens of the city or the state?” Garabedian said in questioning Thompson’s motivation.

After Tuesday’s council meeting, Fruscione said Garabeian should direct his questions to the senator himself, saying City Hall has nothing to do with the proposal. Fruscione said he knew only that Thompson was working to secure grant funds for the company and was not aware of any specific plans for the project. He said he trusted that Thompson’s office had done its research before deciding to push for the funding. He added that he did not find it unusual for NFR or any other company to apply for grants where available.

“A lot of businesses need grants,” Fruscione said.

Other lawmakers shared similar views on the subject.

Councilman Robert Anderson said the proposed grant for the NFR subsidiary came as a “new one on him.” He directed residents with questions about the proposal to Thompson’s office, adding that he assumed the senator did his homework before allowing the proposal to move forward.

“I don’t know what they submitted it on,” Anderson said. “I don’t know what justification they used.”

Councilman Charles Walker said he knew only that a grant application was in progress. He added that in previous discussions with NFR, company officials have indicated a strong desire to piece parcels together within the development territory in order to present them as a more attractive package for potential investors. As for the funding, Walker noted that it has been common practice throughout the years for governments and public agencies to supply private companies with funds as an incentive to follow through on development projects. In this case, Walker said he remains hopeful this could be just the incentive NFR needs to begin doing the types of things they promised to do when they arrived on the scene in 1997.

“My opinion is that it’s a good thing if it brings about development,” Walker said.

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