Although it was ignored in last week's media reports, the Splash Park settlement agreement between Niagara Falls Redevelopment and the city gives NFR exclusive license to 140 acres of land adjacent to the Nabisco Building through 2007.
The parcel, bordered by Niagara Street, Buffalo Avenue, Portage Road and John B. Daly Boulevard, is largely made up of land owned by various government entities, although there are a number of private homes, churches and small businesses. Under the agreement, the city can be called upon to invoke eminent domain in order to acquire private property sought by NFR.
The agreement puts to rest a series of contentious lawsuits filed against the city by both NFR and companies headed by local attorney John Bartolomei that stemmed from Mayor Irene Elia's refusal last year to close a contracted deal on the Splash Park property. NFR will pay the city the $3 million it agreed to in 1997 for the parcel, and then sell it to the Seneca Niagara Gaming Corp. as the site of their permanent casino.
Sources on both sides say the deal is a good one for both the city and the developer. Elia is expected to sign off on it by June 23 despite her often harsh criticism of NFR, they added.
"It's an election year. She can go into it with the shovel in the ground on a $250 million project or she can go in handing the city another two or three years of litigation," one observer said. "What's she going to do?"
While Councilman and mayoral candidate Paul Dyster has expressed reservations about the agreement, a majority of Council members have spoken publicly in favor of it. The agreement must be endorsed by the Council, the Urban Renewal Agency and the mayor before it can go into effect.
Some see Dyster's objections as little more than campaign carping designed to generate newspaper headlines. The candidate faces a four-way race in a Democratic primary in which Councilman Vince Anello and county Legislator Sam Granieri are considered the favorites.
The winner of the race will face Elia in November.
"In four years he hasn't differed with the mayor on any substantive point," said one Democratic leader. "Why now?"
Anello said the agreement will rid the city of expensive litigation and pave the way for continued development in the South End.
"This will immediately create hundreds of jobs in the building trades here and, ultimately, thousands of jobs in the casino itself," he said.
For its part, NFR is required to complete two major construction projects over the next four years, under a strict timeline outlined in the agreement. The developer is obligated to invest at least $24 million on the projects between now and 2005.
The exact nature of the initial project will be announced in August. Quite likely, it will be designed to complement NFR's purchase earlier this year of the former Nabisco property on Buffalo Avenue. In that deal, the developer paid Kraft Foods $3.5 million for the landmark grain silos and more than 250,000 square feet of warehouse and office space. The building has been considered for use as a convention center, and other prospective tenants -- including Bass Pro Shop -- are said to have looked at the facility.
Much of what NFR will do will depend on moves made just across John B. Daly Boulevard by the Senecas, sources said, and the two groups have met to discuss projects that might benefit both parties. A major hotel and a restaurant-entertainment complex are among the projects reportedly being discussed.
Sources say it is doubtful that the Senecas will close the "temporary" casino at the former Niagara Falls Convention and Civic Center, even after the new casino is built. Like its sister city across the river, Niagara Falls, N.Y., will become a two casino town.
| Niagara Falls Reporter | www.niagarafallsreporter.com | June 10 2003 |