Niagara Falls Continues Failed Development Legacy As Latest Project in State of Who Knows What

By Tony Farina

Very few government-sponsored development projects make good on their promise in Niagara Falls and the latest hope for a successful finish is now fading like many of the others with the state-backed subsidized housing plan at the former South End TeleTech call center site now being challenged by the mayor who not too long ago was on board.

What is not surprising here is it is more of the same sort of start-stop-start legacy of Niagara Falls development, a development history that has kept Niagara Falls in the dark ages when it comes to capitalizing on the prime location of the Cataract City next to one of the world’s wonders.

The names change over many years but stumbling development efforts never seem to change, unlike on the other side of the border.

USA Niagara Development, a subsidiary of the state’s Empire State Development Corp, the agency that carries out the governor’s plans, whoever the governor is at the time, to build a better Niagara Falls, is in the latest development boondoggle.

Despite all the tools in the book, the state mostly rewards political supporters with development deals that rarely get done with few exceptions. Remember the Hamister Hotel that was going to be a magic draw on Rainbow Blvd. according to the hype?  It got done but a shadow of the draw it was supposed to be but Cuomo friend, that late Mark Hamister, got his hotel. The city got another sort of just another building, nowhere near what the incredible hype said it would be.

Now, the stumbling continues as Mayor Restaino and the council are now not convinced that the nearly $40-million South End project at the site of the property at 333 First St., purchased by the state from Smoking Joe Anderson in a $27 million deal, is appropriate for a low-income affordable housing and a retail complex next to the state park.

This caution comes after USA Niagara has already started work on the project and was delivered in a recent, rather clumsy and awkward letter to USA Niagara Executive Director Anthony Vilardo from Mayor Robert Restaino.,

The letter, on Niagara Falls official letterhead from Mayor Restaino, does not address Vilardo by title but states in the body of the letter the project would better fit someplace else than where work has started, namely on the north side of Niagara St., an area that already supports market rate apartments along various sectors.

What? Are we back to square one.  The Niagara Falls Reporter was unable to reach Vilardo for his take on things, but that’s nothing unusual.  Despite millions of taxpayer dollars at their disposal, the state agencies lack transparency, a point that has been made very clear in a recent state audit by State Comptroller Thomas DiNapoli.

Is the Restaino letter too little, too late?  As observers note, the city had an opportunity to object to putting low-income housing where clearly market rate housing could have been sold to help build the tax base.  Now things stand in the confusing place where most public development resides. Up in the air, whether it be Main St., Third St., or anywhere else in the city where stop and go development resides. Now add the nearly $40-million South End subsidized housing project to the list.

The most successful development next to the State Park is the One Niagara Welcome Center, built into a thriving business and tourist center without one dime of public money.  A fellow named Frank Parlato purchased the One Niagara Building when there was nothing there except for a whale hole in the ground where the previous overseas owner had planned to beach a wale.

Parlato, using scotch tape and other development tools, filled the hole, developed the property on his own, and was taken to the carpet byT the city for tax money.  Eventually the tax issue got settled but not before Parlato was put through the ringer of city scrutiny for daring to do something without public dollars.

The city needs more folks like Parlato, willing to invest their time and effort to build something, not more public dollars to reward political supporters who end up delivering nothing.