Niagara Falls
THE
NIAGARA FALLS REPORTER
LOCAL NEWS  •  LOCAL VOICES  •  LOCAL MATTERS

Restaino’s Hidden Costs: Niagara Falls Dishing Out Big Bucks for Eminent Domain Battle

N
Niagara Reporter-  ·  August 6, 2024
Restaino’s Hidden Costs: Niagara Falls Dishing Out Big Bucks for Eminent Domain Battle
SharefXin

By Frank Parlato

How Much Has Niagara Falls Spent on Buffalo Lawyers to Stop the AI Data Center ?

Niagara Falls Mayor Robert Restaino has decided not to disclose the amount of money the City has spent on a Buffalo law firm for an eminent domain procedure against a private landowner.

Restaino is interested in acquiring 10 acres of land owned by Niagara Falls Redevelopment LLC (NFR).

The 10 acres, known on survey maps as Parcel 0, part of a larger 100 plus acre site, is in the middle of NFR’s planned development of an AI digital data center. The data center is expected to create 500-600 jobs.

Restaino wants 10 of the 100 acres in front of the data center project, which would block the entranceway to it.

His “public purpose” – a requirement for eminent domain lawsuits – to build Centennial Park, a 7,000-seat arena with a pocket park.
The estimated cost of the project is $165 million plus the cost of taking the land and legal fees.

Restaino retained Hudson Ross, a Buffalo-based law firm, to take the property. Eminent domain is a two-fold legal process that allows the government to force an owner to sell property if it is for a public purpose, but in return forces the government to pay fair market value to the owner.

Eminent domain legal battles – especially over the price – can go on for years and cost millions of dollars in legal fees.

Restaino estimated the value of 10 acres of land at $10 million, but a previous eminent domain procedure for land directly across the street indicates the value is $25 – $30 million.

There is another factor that will likely emerge in the fight over price between NFR and the City.

Restaino is not merely taking 10 acres from a private owner, but stopping a 100-acre project, planned to be the Niagara Digital Campus with a $1.5 billion cost.

The eminent domain price war will almost certainly include NFR’s claims that the City took the economic use of 100 acres and its $1.5 billion project away with its taking, since Parcel 0 is planned to be the entrance to the proposed digital data center.

The final cost to the City may be significantly higher, possibly upwards of $50 million.

As of today, Restaino refuses to say how much the city has spent with Hudgson Russ to handle the procedure.

Despite criticism by the Niagara Falls Reporter and Niagara Gazette, Restaino has declined to answer Freedom of Information Law requests to disclose what public money he has spent with the Buffalo law firm.

Some insiders at City Halls have disclosed Restaino has paid more than $1 million to Hodgson Russ, and the City has not yet acquired the land.

According to its website, “As one of the oldest law firms in the United States and the oldest law firm in Buffalo, Hodgson Russ provides business-focused advice to many of the most recognizable companies in the world. The 200-plus attorneys at Hodgson Russ work in every major area of the law. Our clients include public and private companies, high-net-worth individuals, government entities, and not-for-profit organizations.

“Our Buffalo office serves as the firm’s headquarters and is located in The Guaranty Building, a National Historic Landmark designed by Louis Sullivan.”

With its 200 lawyers and 400 support staff, Hodgson Russ employs – with its 200 years of operation – about as many people as the number of new employees the NFR Niagara Digital Data Center will create almost overnight should Mayor Restaino chose to let go of his plan to take their property – with its exceptionally high costs and build elsewhere.

He might consider doing just that.

SharefXin

Comments (0)

Leave a comment

More From Niagara Falls Reporter

Craig Bucki Stands Out in Race for Supreme Court, Has All the Tools to Be Strong Judge
Featured

Craig Bucki Stands Out in Race for Supreme Court, Has All the Tools to Be Strong Judge

By tony Farina · September 16, 2026

By Tony Farina I’ve covered many court proceedings and trials in my more than 35 years as a newspaper and television reporter and I want to make the point at the beginning of this story that whether elected or appointed, some judges are fair and honest and many others fall short of the mark. In other words, the word jurist does not convey skill and knowledge of the law; it is just a role that some serve with distinction, and others do not. By definition, a jurist is a person who has expert or thorough knowledge of the law but

Is Niagara Falls Crisis Self-Inflicted? Lots of Questions, Few Answers
Featured

Is Niagara Falls Crisis Self-Inflicted? Lots of Questions, Few Answers

By tony Farina · September 15, 2026

By Tony Farina There are certainly many questions swirling around the mayor’s declaration of a state of emergency in Niagara Falls over trash, blight, and deteriorating streets that was declared back on July 20 and has been extended several times since because, according to Mayor Robert Restaino, the City Council refused to approve contractor agreements. But some observers point to depleted staff at City Hall, like in Public Works and Code Enforcement and other departments, as really self-inflicted wounds that are the underlying reasons work is not getting done in the city. Or is there even more to the story,

NIAGARA FALLS BUILT THE MODERN WORLD ON ITS POWER. IT CAN DO IT AGAIN.
Featured

NIAGARA FALLS BUILT THE MODERN WORLD ON ITS POWER. IT CAN DO IT AGAIN.

By Niagara Reporter- · September 11, 2026

The  Data Center That Answers Hochul’s Objections There was a time when Niagara Falls did not ask Albany whether it was permitted to prosper. The river was here. That was enough. The town had something Albany couldn’t give it. It used what was here. Water. Power. Work. Jobs. Industry. A future. In 1895, the Adams plant took the river and put it into wire. The current went to Buffalo. It changed the industrial world. Tesla supplied the designs. Westinghouse built the machines. Niagara supplied the falling water. Then industries came. Electrochemical. Electrometallurgical. They came because Niagara offered abundant, inexpensive electricity.

Niagara Falls Has Millions of Tourists But Needs to Find a Way to Capture That Wealth
Featured

Niagara Falls Has Millions of Tourists But Needs to Find a Way to Capture That Wealth

By tony Farina · September 8, 2026

By Tony Farina The City of Niagara Falls, N.Y., boasts one of the world’s greatest natural wonders that people from around the world come to see, but despite incredible tourism numbers of more than nine million visitors a year, the city of now less than 50,000 people is still pretty darn poor. Niagara Falls does not have a tourism problem; it has a tourism-capture problem, and the distinction should be a starting point for a serious new discussion about the city’s future. And ladies and gentlemen, that discussion needs to start now. The question is no longer whether Niagara Falls