back to Niagara Falls Reporter archive
Local hotelier John Prozeralik and city Councilman Vince Anello say they are frustrated by Mayor Irene Elia's unwillingness to work with Niagara Falls Redevelopment in jump-starting activity in the city's tourist district, and vowed this week to do everything in their power to remedy the situation.
And state Sen. George Maziarz said it's time for Elia to put her "personal feelings" about NFR aside and work with the development group for the betterment of the city.
In the wake of two meetings between the Elia administration and NFR -- described as "disappointing" by both sides -- Anello is calling for representatives of the development group to plead their case directly to the council.
"We need to find out what exactly the problem is and whether there's anything the council can do to address it," he said.
Prozeralik said he is satisfied that NFR is bargaining in good faith, something that can't be said for the administration.
"There's something going on here, and I'm going to find out what it is," he said.
Last Thursday, NFR founder Eddy Cogan and Vice President Anthony Bergamo met with Elia in a City Hall sit-down arranged by Prozeralik.
NFR's proposals included an immediate payment of more than $3 million to the city, a summer-long festival stretching from Lackey Plaza to the West Mall that would employ as many as 1,000 people and the use of the 175,000-square-foot Nabisco Building on Buffalo Avenue as the city's new convention center.
Furthermore, Cogan stressed, the development group is emphatically not interested in any extension on its contract with the city, set to expire in 2005.
Elia said she wasn't interested in any of NFR's proposals, and suggested the group begin construction of a 5-star hotel on a portion of the 142 acres they control in the city's tourist district.
Prozeralik said the mayor's attitude was bad for business and bad for the people of Niagara Falls.
"When you bring a developer in, you don't tell him the kind of projects he should be doing," he said. "He's going to do the projects that have a reasonable chance to make a return on his investment. It's that simple."
Numerous sources familiar with the hotel industry here say the mayor's proposal makes about as much sense as trying to sell ice to Eskimos. Currently, the owners of two of the city's best-known hotels -- the Holiday Inn Select and the Sheraton Four Points -- are in bankruptcy and at least three others are exploring the possibility of seeking Chapter 11 bankruptcy protection. This year, hotel occupancy in the city is expected to be well below 40 percent.
Like many involved in the hospitality business, Prozeralik has been reeling since last June, when Gov. George Pataki announced the Niagara Falls Convention and Civic Center would be turned over to the Seneca Nation of Indians for use as a temporary casino.
Convention officials in Buffalo seized upon the announcement to lure business away from the Falls and, last week, succeeded in stealing the 2002 Kaiser Beauty Show, which has drawn thousands to the city every October for years.
Combined with Elia's whopping 17 percent tax increase last year and this year's reassessment -- which raised the assessed values of some tourist district properties by as much as 100 percent -- the elimination of convention business has been devastating to the city's hotel industry, Prozeralik added.
"You've got a pristine facility in the Nabisco Building, almost built to suit as an expo center," he said. "You could begin booking conventions today."
Prozeralik said he arranged last week's meeting in an attempt to end the stalemate that has stifled development throughout the Elia administration.
"I didn't do it to build up Eddy Cogan or NFR," he said. "I did it because this city is in a lot of trouble."
The administration's unwillingness to work with the city's chosen developer is troubling, Prozeralik added.
"Only in Niagara Falls could something like this happen," he said. "I'm sick and tired of it."
Anello said that, while the council has no power to enter into negotiations with potential developers, in this case, NFR already has a binding agreement with the city that was ratified by council in 1997.
"They've reported to council from time to time since then, and it seems appropriate for them do so now," he said. "We have a legal contract with these people just like we have with the unions."
In February, after Elia rejected a proposal from soft drink manufacturer Red Bull North America to stage an X Games-type snowboarding event here, Anello set up a meeting between the council and company representatives that ultimately led to the mayor changing her mind on the issue.
Anello said he is particularly interested in the proposed summer festival, which would feature carnival rides, band concerts, fireworks and more than 100 kiosks for vendors selling food, souvenirs and antiques. The festival would provide a much-needed shot in the arm for the city's moribund tourist district, he said.
"The only thing we've had on the mall in the last 10 years is the people from TeleTech out there smoking cigarettes on their breaks," he said. "Now most of them are even gone."
The proposal at least deserves to be discussed in a public forum, he added. "What's the downside on this?" Anello asked. "If there is one, the people deserve to know about it and, if there isn't, they should know that too."
Maziarz agreed. "I've looked at the proposal and don't see how anyone could be opposed to it," he said. "Of course, nothing is easy when it comes to Niagara Falls city government."
Prozeralik said Elia's rejection of the festival, when she recently promoted the construction of a miniature golf course on the West Mall, doesn't make any sense.
"This would put 1,000 young people to work for the summer, give visitors something to do here and create some excitement. On top of that, it wouldn't cost the city a dime," he said. "If you're going to OK putt-putt golf, why would you say no to this?"
The administration's latest attempt to stifle development here is symptomatic of the way the city has been run for decades, he added.
"We've had nothing but incompetence and corruption in government here for the last 30 years," he said. "It's got to stop."
| Niagara Falls Reporter | www.niagarafallsreporter.com | April 30 2002 |