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"Absolutely nuts."
That was how one member of city council characterized the rejection last week by Mayor Irene Elia of a $1 million bailout offered by Niagara Falls Redevelopment. Several members told The Reporter that an earlier, $4 million offer also was rejected by the administration before the council even was made aware of it.
Last week, during a closed-door executive session, NFR honcho Anthony Bergamo made his pitch to the council directly. Also in attendance at the lengthy meeting were Elia, Corporation Counsel Ron Anton and City Administrator Al Joseph.
Bergamo declined comment on the meeting, but off-the-record interviews with three city council members painted an interesting picture of what took place.
"Irene sat there whispering in Al's ear and Al was doing all the talking," one council member said. "It was bizarre."
The council members said they will seek a legal opinion as to whether the council can vote to budget the money for 2001 in order to stave off the massive 27 percent tax increase proposed by the administration.
The $1 million constitutes prepayment on the Turtle and the Convention Center contracts, as well as additional funding for the renovation of Lackey Plaza. Elia's rejection reportedly stems from her philosophical opposition to the use of what she describes as "one-shot revenues" to balance the budget.
"Despite repeated warnings, one-shot revenues have been used time and time again in failed attempts to balance the budget," Elia said recently. "This has sapped our resources and lulled us into a false sense of security."
But city taxpayers would be unlikely to question where the money comes from, so long as it isn't out of their pockets, one councilman said.
"You've got five people on the council who understand the realities of trying to live and do business in this city," he said. "Clearly, Irene Elia does not."
NFR has been a frequent target of Elia's since she ran for office last year. Council members who believe the city should accept the developer's offer questioned her motivation in rejecting it.
"Here's somebody who's trying to give us $1 million, and the city is acting like they're the bad guys. Meanwhile, you have others responsible for a vacant shopping mall, a big hole in the ground and a balloon ride that turned out to be hot air, and these are the things the mayor talks about as positives," one member said. "It makes you wonder what's really going on."
The relationship between the administration and a majority of the council members has been deteriorating for months. That process has accelerated since the tax increase was announced last month.
"We've been told that she's planning to sue us if we override any of her budget vetoes," one council member said. "She said she's getting the 27 percent no matter what we do. Isn't this the core of the democratic process?"
Individually, council members have advanced numerous suggestions for trimming the proposed budget, ranging from the elimination of 20 new city jobs created over the past year to sharing responsibility for Sal Maglie Stadium and the city's library system with the Niagara Falls School District. All have been rejected out of hand by the administration.
Another proposal rejected by Elia involves the privatization of the convention center.
"We spend $1.3 million in taxpayer's money every year to maintain the convention center, and the people of Niagara Falls don't even go there," one councilman said. "If somebody wants to come in and assume that responsibility, why not let them?"
Rejection of the NFR proposal likely will be the first step in the administration's plans to bring a lawsuit against the developer, several council members agreed.
"Our own lawyers have told us that, while the city might ultimately win, a suit like that would stop any development downtown for years," one councilman said. "I'm afraid that's where all this is leading."
Not accepting prepayment on the Turtle was particularly galling to some.
"Look, NFR already owns the Turtle, they've got $100,000 in it," one said. "Why wouldn't you accept the rest of the money up front?"
NFR's earlier, $4 million offer involved extending certain deadlines on construction, but last week's offer contained no extension.
"There are no compromises with this woman," one council member said angrily. "The city is in bad shape financially and this is legitimate money."
"The $4 million would have completely eliminated the need for any tax increase or layoffs," another added. "It should have at least been brought before the council."