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

What Were They Thinking? Hamister Hotel Shows They Weren’t Thinking At All

M
Mike Hudson  ·  March 31, 2016
What Were They Thinking? Hamister Hotel Shows They Weren’t Thinking At All
SharefXin
Mark Hamister is an extremely well connected businessman who has donated to a plethora of local and state wide politicians.
Mark Hamister is an extremely well connected businessman who has donated to a plethora of local and state wide politicians.

The Hamister Hotel deal is exactly the sort of fiasco that makes Niagara Falls such a special place. Choose a politically connected “developer” who apparently doesn’t have any money, hand him a parcel of prime real estate for pennies on the dollar, along with tax breaks and other incentives, then sit back and watch the years roll by while absolutely nothing happens whatsoever.

What were they thinking?

Hamister got the nod nearly three years ago as the city’s preferred developer for what is known as Parcel Four, a vacant piece of land on Rainbow Boulevard around 150 yards away from the entrance to the state park. The deal had to be done quickly, he said, so that construction could begin in the early spring of 2014.

A plethora of state wide and local politicians fought for the right of Mark Hamister to get one of the most valuable properties in Niagara Falls for 1/15th of its appraised value.
A plethora of state wide and local politicians fought for the right of Mark Hamister to get one of the most valuable properties in Niagara Falls for 1/15th of its appraised value.

Nobody really opposed the idea of a new hotel in the city’s tourist district, but the fact that Hamister had never built a hotel before caused some question. Popular former city councilman Sam Fruscione was so bold as to ask whether the developer actually had the money to do what he said he was going to do and an unprecedented wave of vitriol was unleashed against him.

He was an obstructionist, blocking development, was pro-organized crime and had committed numerous other unpardonable sins. He was running for reelection at the time and those spouting this nonsense included Mayor Paul Dyster, Gov. Andrew Cuomo, Sen. Charles Schumer and Sen. Kirsten Gillibrand. Tens of thousands of dollars were spent on mailings, robocalls and radio and print ads, a media frenzy was worked up and Fruscione lost by a landslide in the primary.

Meanwhile Hamister downgraded the scope of the project – instead of a resort class Hilton the new hotel would be a boxy truck stop class Hyatt Place – even as the projected cost ballooned from $22.4 million to $35.7 million.

A nearly identical Hyatt Place was recently built in Amherst for around $18 million and successful hotelier Michael DiCienzo has said repeatedly he could do the same here if the project were turned over to his company.

A plethora of politicians also worked to arrange for Mark Hamister to build a mediocre hotel for millions in tax subsidies - and turned a blind eye as he inflated the price to increase the tax subsidies. Hoist by his own petard, Hamister can’t get the funding because he has doubled the true price of the mid scale Hyatt Place hotel and financiers know it.
A plethora of politicians also worked to arrange for Mark Hamister to build a mediocre hotel for millions in tax subsidies – and turned a blind eye as he inflated the price to increase the tax subsidies. Hoist by his own petard, Hamister can’t get the funding because he has doubled the true price of the mid scale Hyatt Place hotel and financiers know it.

But it won’t be. A couple of weeks ago the county Industrial Development Agency extended tax breaks for the project that were to have expired today if construction hadn’t begun for another six months. No other developer can take over the project so long as the IDA deal remains in place.

As many as five new hotels have opened in Niagara Falls since the Hamister deal was announced. They did so with little fanfare, and certainly without the involvement of the mayor, the governor and two United States senators.

Fruscione’s 2013 question – Did Hamister actually have the money to do what he said he was going to do? – has long since been answered. He did not.

You don’t have to look far in any direction here in Niagara Falls before the inevitable question pops into your head:

What were they thinking?

And, in most cases, the only conclusion you can reach is that they weren’t thinking at all.

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