Niagara Falls Is City On Brink of Collapse; Now Is Time to Pursue a Better Strategy

By Tony Farina

There was a time in the middle of the last century that the City of Niagara Falls was a powerhouse of American industry, home to more than 100,000 people, and a tourist attraction featuring one of the most powerful and majestic waterfalls in the world.

People were drawn to make the city home with one of the world’s wonders on its doorstep and all the electrical power it delivers along with the stream of millions of tourists every year. There was steady factory work, reliable wages, and bustling business corridors on Main St. and Pine Ave. with shops full, thriving neighborhoods, and an economy with purpose.

But those days are long gone, as people have left for greener pastures seeking better jobs, stronger schools, and for cities willing to invest in the future which Niagara Falls has failed to do. And even today with the city crumbling with loss of businesses and living wage jobs, the city is not looking to invest in the tech future to bring back a semblance of a city where residents can earn a living wage all year long.

Tourism alone couldn’t carry the city and the population is now less than 50,000 meaning a shrinking tax base, fewer customers for business, and greater pressure on the fewer people still living here who are forced to carry a greater burden to keep the lights on. Tourists come and go and there is that quick buck to be made, but there is little else in Niagara Falls to keep the tourists on this side of the border as across the river is a city with much more business and appeal. And the area has larger appeal away from the city where not much is left to see. Tourists barely unpack their bags after seeing the state park before leaving the city for more appealing destinations here and across the border.

There are more vacant buildings today than ever in the city. Just walk down once bustling Main St. or Pine Ave. and the decline is clear with more empty buildings than occupied ones, storefronts hollowed out, graffiti on walls, alleyways full of trash and potholes than resemble trenches. The decline is there to see and not a sight to behold but a sight that says the city is in a ruinous state.

And for those who still live here city services are stretched to the breaking point with crews unable to keep up and maintenance at an all-time low. Public Works positions are unfilled and with crews strained to the limit, it gets even worse in winter as salting and plowing roads takes much longer. The city is forced to pay higher overtime costs just to keep up, and that adds to the budget crisis.

The reality is the city can’t afford another investment mistake yet one is on the horizon as the mayor promotes a $200 million taxpayer- funded arena and entertainment complex when there is no demand for a minor-league arena and no developer interested in investing is such a complex, and that includes financially-struggling New York State which is facing multi-year, multi-billion dollar deficits. The state has no money to invest in a sports arena with little or no chance for success. Taxpayer giveaways at this point would be political suicide for Albany. The state is unable and politically unwilling to invest in the mayor’s Centennial Park legacy project which hasn’t drawn a dollar of private investment.

The story here is Niagara Falls needs to play catch up in a hurry. Cities across the country are competing for businesses built on energy and innovation: AI computing, battery storage, robotics, cloud infrastructure, clean-tech manufacturing, and semiconductor support. Niagara Falls is uniquely positioned or these sectors due to one of the largest hydropower facilities in the nation—an asset most cities would fight for.

There is no demand for Mayor Robert Restaino’s Centennial Park legacy and without demand taxpayers will pay the price every year. A shrinking and declining city cannot afford to subsidize wealthy hotel owners or entertainment venues that don’t generate enough activity to support themselves.

Here is the story. Niagara Falls must pursue a strategy rooted in technology, innovation, and sustainable economic development—not nostalgia.

Hopefully, it is not too late, but time is moving rapidly. Now is the time to try and reverse years of bad policy and try moving forward with a strategy that might save the city’s future.