GOVERNMENT: Hoping lawsuit frees New York from handouts

Local News

August 4, 2008

Group trying to put an end to using public money for private projects

By Mark Scheer<br><a href="mailto:scheerm@gnnewspaper.com">E-mail Mark</a> The Niagara Gazette Mon Aug 04, 2008, 06:54 PM EDT

A taxpayer advocacy group with roots in Lockport has taken its concerns over state-sponsored economic development projects to a court in Albany.

Buffalo attorney James Ostrowski on Monday filed a lawsuit in New York State Supreme Court on behalf of more than 40 taxpayers who are hoping to put an end to New York’s long-standing practice of using public money to support private businesses.

Said Lockport businessman Lee Bordeleau, “If we are successful with this lawsuit, they are going to have to lure businesses here with lower taxes and a better business environment instead of ‘here, here’s $2 million for your company.’ ”

The lawsuit names Gov. David Paterson, Assembly Speaker Sheldon Silver and Senate Majority Leader Dean Skelos and several other top state officials as defendants. It also asks the court to put an immediate stop to more than $1 billion in state subsidies currently in the pipeline, including dollars that have been set aside for projects involving Delphi Harrison’s Lockport plant and Bass Pro’s proposed waterfront store in the City of Buffalo.

Ostrowski is the founder of the taxpayer group, Free New York. He is handling the case as a private attorney and not as a representative of his own organization. He announced the filing of what he called “The Mother of All Lawsuits” on his blog: blog.jimostrowski.com. He personally traveled to Albany on Monday to file the lawsuit and to hand out copies of it on the steps of the state capitol. Ostrowski said a court date for the case is scheduled for Sept. 15. He intends to discuss the case in greater detail during a press conference scheduled for noon today in Buffalo.

The lawsuit stems from a grassroots effort led by Bordeleau, an investment company owner who heads the taxpayer advocacy group, Free Niagara. He gained notoriety last year when he paid for a billboard on South Transit Road that proclaimed Niagara County as the highest taxed county in the country. Last month, he called on county residents to join him in mounting a legal challenge against state officials which he insists violate Article VII, Section 8 of the state’s constitution every time they provide cash assistance in the form of tax dollars to business owners in New York.

“It’s pretty clear,” Bordeleau said. “We’ve done volumes and volumes and volumes of homework and reading on this and we can’t find anything that allows it.”

Errol Cockfield, a spokesperson with Paterson’s office, did not respond to requests for comment on Monday.

Representatives from the state’s economic development office, the Empire State Development Corp., also did not respond to requests for comment. In the past, attorneys representing the agency have said that its financial dealings with companies, including grant-funded projects, comply fully with the state’s constitution and all applicable laws.

Bordeleau and his supporters financed their legal challenge through private donations. Bordeleau said donations are still being accepted. Individuals interested in getting involved are encouraged to call 433-0574 for more information.

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