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MAYOR'S MALL MOVE TRIGGERS LAWSUIT

By Mike Hudson

Last week, in announcing the planned opening of a nine-hole miniature golf course on the West Mall downtown, Mayor Irene Elia told reporters that "if you like Disney, you're going to love this."

The remark quickly became the stuff of comedy to those who thought invoking the Disney name implied a project more ambitious than a miniature golf course. But had the mayor simply inserted the name of another television show, there would have been no doubt about the veracity of her statement.

"If you like Perry Mason, you're going to love this," she could have proclaimed.

Last week, Thomas Hanna -- who held an exclusive contract to sell souvenirs, postcards, food and beverages along the West Mall, sued the city for breach of contract. The suit claims the city unilaterally canceled his contract in order to strike a deal with local caterer Louis Antonacci, who was named to develop the golf attraction and given the concession business.

Hanna declined comment on the case, but his attorney, Michael Maloney, said Hanna's contract with the city extended through 2004, with an option for another three years.

"We will be seeking substantial damages," Maloney told the Reporter. "The city, as far as we're concerned, didn't have the right to terminate the contract."

In addition to the mall concessions, Hanna also owns Tommy Ryan's restaurant there and, this year, will open a New York-style sandwich shop called American Heroes, Maloney said.

City Administrator Al Joseph -- in a letter to Hanna dated Dec. 6 of last year -- said the contract was being canceled because the city wasn't being consulted on the selection of vendors and services being offered on the mall.

Maloney said the city long ago waived its right to specifically review every individual selling food and merchandise on the mall, leaving the responsibility for those decisions with Hanna.

"On top of that," he added, "they were aware of everything that was going on at the mall because we made regular and timely written reports."

While Antonacci, who is expected to open his golf attraction and concession business in June, is not part of the Hanna suit, some in the legal community say he may find himself dragged into litigation anyway.

"Should Tom Hanna win his suit, Mr. Antonacci would have cause to sue the city for entering into a contract with him when it wasn't legally able to do so," said one top attorney.

Since her landslide victory in the 1999 election, Elia has shown a curious inclination to disregard contracts she doesn't agree with, whether those contracts were entered into by previous administrations or her own.

The city's unions are threatening to sue over proposed changes to workers' health care benefits on the grounds that the benefits are clearly spelled out in the unions' contracts with the city and can only be changed through collective bargaining.

And Niagara Falls Redevelopment's contract with the city has been the focus of near-weekly saber-rattling.

Maloney said he is considering seeking a declaratory judgment that would void the Antonacci contract, a move that would leave the mall with no concession sales at all.

"That might make sense," he said. "Getting a declaratory judgment is a lot faster process than a lawsuit."

The suit itself, however, will remain for the city to deal with.

"Mr. Hanna has had six years of future revenue taken away from him by the city's actions," he said. "That will be at the heart of the monetary damage aspect of this case."


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Niagara Falls Reporter www.niagarafallsreporter.com March 19 2002