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CUOMO ASKS SCHOEPFLIN TO RESIGN

ANALYSIS By Mike Hudson

Drastic differences in the treatment of those applying for grants and loans to open taverns and restaurants along the state-created Third Street "Entertainment District" may be one of the reasons Governor-elect Andrew Cuomo asked for the resignations of top officials of the USA Niagara Development Corp. Friday, including the agency's director, Chris Schoepflin.

"It's an incoming governor's prerogative to ask for the resignation of anyone associated with the previous administration," said state Sen. George Maziarz. "Gov. Spitzer didn't do it and neither did Gov. Paterson, but there are precedents for it."

Schoepflin's dismal tenure at the agency has resulted in a net job loss for the private sector in Niagara Falls, as state and quasi-governmental agencies such as the Niagara Tourism and Convention Corp. and Niagara County Community College have gobbled up prime downtown properties, taking them off the tax rolls and shifting the tax burden onto beleaguered homeowners and businesspeople here.

He oversaw the "redevelopment" of Third Street, which resulted in numerous businesses closing down as a result of the street narrowing that eliminated much of the parking, tore down the Wintergarden, and created the empty plaza jokingly referred to as Old Falls Street here. The Third Street project resulted in an investigation by the county District Attorney's office after a Niagara Falls Reporter expose revealed that the state agency had spent $35,000 for a decorative wall on private property belonging to the Niagara Gazette newspaper.

On the West Pedestrian Mall in front of Maid of the Mist owner James Glynn's Comfort Inn hotel, Schoepflin's agency spent $7.9 million to improve the frontage by repaving the brick walkway, building a decorative fountain, and buying out vendor leases that competed with the hotel's retail operation. As a member of USA Niagara's advisory board, Glynn presumably approved of the improvements.

The underutilized and oddly named Conference Center Niagara Falls is another of Schoepflin's projects. Formerly known as Falls Street Faire, USA Niagara spent $18.8 million on renovations. Yet another project embraced by Schoepflin was Carl Paladino's refurbishment of the former United Office Building. USA Niagara pumped millions into the project, and is now the primary tenant of the building.

USA Niagara has had three CEOs since its creation by Gov. George Pataki in 2002. Sources told the Reporter this week that, while Schoepflin is expected to reapply for the position he has held with so little distinction in recent years, former state assemblywoman Francine Del Monte also covets the job, and the $100,000-plus a year salary and benefit package that accompanies it.

Niagara Falls Reporter www.niagarafallsreporter.com Dec. 21, 2010