NIAGARA FALLS: Hoping position builds a better Niagara

Local News

September 8, 2008

Council votes to hire Peter Kay as economic development director

By Rick Forgione<br><a href="mailto:forgioner@gnnewspaper.com">E-mail Rick</a> The Niagara Gazette Mon Sep 08, 2008, 10:56 PM EDT

Niagara Falls will be getting its economic development “czar,” but five supporting city positions are in danger of being unfunded.

In separate 3-2 votes Monday, the City Council approved Mayor Paul Dyster’s request to establish a $100,000-a-year-economic development director, but also denied using $380,000 in casino money to fund related positions relating to the Urban Renewal Agency and NFC.

Dyster has already announced he plans on hiring Peter F. Kay of Ohio to fill the newly created position, which amounts to $132,000 a year when factoring in benefits. Dyster has said at least $40,000 of the annual cost will come from the Building a Better Niagara Falls Fund set up by the Community Foundation of Greater Buffalo.

The City Council was split on the vote, with members Steve Fournier Jr., Chris Robins and Charles Walker casting the approving ballots.

“I think it’s a necessary tool to establish where we’re at,” said Fournier, who praised Kay’s more than 20 years of economic and community development experience. “He’s got a hell of a resume. We need to get someone with experience in there to tell us what we need to do to survive.”

Councilmembers Samuel Fruscione and Robert Anderson Jr. have gone on record saying they weren’t opposed to an economic development director, but were concerned about the Building a Better Niagara Falls Fund covering a portion of the salary since the financial donors are anonymous.

An estimated 200 people attended Monday’s council meeting, including several who spoke out against the need to create the position. Among them was David Bieksza, who repeatedly slammed his fist onto a podium and scolded the council that there are people in the city losing their homes while the administration is creating unneeded positions with six-figure salaries.

Bieksza pointed out the area’s other economic development officials and resources such as USA Niagara and Samuel Ferraro, commissioner of the county’s Department of Economic Development.

“This is bull, how many times are we going to duplicate services?” Bieksza said.

Elliott J. White, a former member of Dyster’s transition team, asked the council to hold off on creating the director position until the mayor comes up with an economic development plan to move the city forward.

Fournier said the council’s decision doesn’t prevent a plan from being put together, including the consolidation of any duplicating services.

“There’s going to be some restructuring,” he said.

That could affect the five positions tied to the URA and NFC, including an economic development specialist and tourism coordinator. As a result of the council’s action Monday, the positions do not have a funding source in the 2009 budget.

Dyster had requested the city use $380,000 in casino revenue to cover the salaries and fringe benefits. The positions were transferred earlier this year to the general fund and will eventually be reimbursed from NFC and URA.

Anything cut from the 2009 budget would not take effect until Jan. 1.

Robins said after the meeting he didn’t think the jobs would be cut, but pointed out not using casino funds would shift the burden onto taxpayers.

Fruscione, who led the 3-2 vote with Fournier and Anderson, said he didn’t think paying the salaries was an appropriate use of casino money.

“This gives the mayor four months to find another way to fund those positions,” he said.

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