City records obtained by the Reporter reveal that the Niagara Falls Corporation (NFC) a not-for-profit, city-owned entity has become a giveaway operation with the majority of its money being given to big corporations.
In fact, one man, hotelier Faisal Merani has gotten more than half of the NFC grant money, more than $1 million, during the last four years.
The NFC was created to “foster business, industrial and employment retention, and development in Niagara Falls,” according to an audit report by Bonadio and Company LLC.
The NFC has been funded from Seneca casino money. Since Mayor Dyster took office, the NFC gave $2,241,720 in grants and $570,000 in loans.
Prior to Dyster taking office, the NFC made small loans and was set up to fund itself like a bank, using interest earned to fund more loans.
Dyster began a push to use Seneca gaming money to gift corporations with no expectation of repayment. Grants were said to be based on promises of job creation.
More than half of $2.27 million in grant money went to Faisal Merani, a Canadian developer. Merani and his family own the Holiday Inn on Buffalo Ave., the old Inn on the River and Fallside Hotel on Buffalo Avenue as well as the Days Inn & Suites and the Sterling Inn in Niagara Falls, Ont.
Among other NFC grant recipients were the Rapids Theatre which got $250,000 and Erdco, owned by Lewiston businessman Craig Avery, which received $200,000. Avery was a substantial campaign contributor to Mayor Dyster although Avery told the Reporter he never asked or received preferential treatment because of that.
Other grants went to former Democratic Party leader Michael Rimmen and Michael Lewis, former Chairman of the Niagara Falls City Democratic Committee. He endorsed Dyster and made campaign contributions to him.
During 2011, the NFC made 10 grants and 3 loans and employed director Fran Iusi, who earned $57,000 (with benefits $97, 231), Clara Dunn at $42,436 (with benefits $76,965), and Thomas Tedesco at $38,040 ($71,071). These three cost taxpayers $245,267.
In 2011, the amount of grants given out was $905,000, Total loans was $265,000 for a total of $1,170,000.
Salary costs for in 2011 were 20.96 percent. Each transaction cost $18,866 in salary costs. It cost more in salaries to make the average small grant, than the grant itself. In 2010, with five grants, and one loan, it cost $41,667 for each grant or loan.
This year Mayor Dyster proposed a plan to raise costs at NFC. After Fran Iusi resigned, Dyster opted to hire a new director at $24,000 more than Iusi’s salary of $57,000.
He proposed to hire 29-year-old Zach Casale at a minimum of $70,000 to as much as $81,000 annually.
The Chief Planner for the City, Thomas DeSantis, who’s been with the City for more than 20 years and is responsible for plans and advising the planning board, earns $57,000 a year.
The head of Code Enforcement earns $65,000 a year and is responsible for permits and inspections in the City.
The 29-year-old Casalle is an employee of Largo Capital, a mortgage brokerage owned by Gary Coscia, a campaign contributor to Mayor Dyster.
Casalle also owns the Orchard Grill on Main St. where fund-raisers for the Mayor have been held.
Caselle lives on Mayor Dyster’s street, Orchard Parkway. Casalle benefitted from the Mayor’s taxpayer funded initiative to make Orchard Parkway a historic district.
Among other loans or grants made by NFC was to Sean Webber a campaign contributor of Dyster.
A moving Company owned by city fireman got a grant.
Eddie Jay’s got a grant. Their advertised phone number is no longer active. Shorty’s Restaurant and Mary’s Soul Food both got grants and both went out of business.
The Thunderfalls Ice House, owned by multi millionaire Joseph Smokin Joe Anderson got a $100,000 grant.
Most of the NFC money seems under the control of USA Niagara and goes to help fund projects USA Niagara takes credit for. NFC gave $550,000 to help Merani open a restaurant in his Holiday Inn hotel. USA Niagara gave another $550,000.
Merani got $1.1 million to open a restaurant in a hotel he already owned. The restaurant is called Pepper Tree. Had taxpayers not paid for the wealthy Merani’s restaurant he would have had to use his own money since according to Holiday Inn Franchise officials a full Holiday Inn must have a restaurant anyway. Merani also got $650,000 more for another hotel gift.
$75,000 was given to NFNY Hotel Management to renovate space for a TGI Fridays. USA Niagara gave another $75,000. Taxpayers paid $150,000 to get a chain restaurant that has 920 locations. Normally operations like Fridays pay their own way. |