NIAGARA COUNTY: No word on IDA ousters

Local News

April 7, 2007

BY Jill Terreri The Lockport Union-Sun %26 Journal Sat Apr 07, 2007, 11:33 PM EDT

Membership of Niagara County’s most controversial board won’t be changing anytime soon.

Democrats and certain members of the public have demanded the Legislature change the makeup of one of the county’s most influential economic development engines — the Industrial Development Agency.

And while Majority Leader Richard Updegrove, R-Lockport, indicated early last week the Legislature’s powerful majority caucus would consider at least one deletion from the board at a closed meeting Saturday, no decisions were made.

“We’re using IDA board members in this political game,” said Legislature Chairman Clyde Burmaster, R-Ransomville, following Saturday’s caucus meeting.

Burmaster said no indiscretion on the part of the board has been proven and any move to unseat members without a judicial ruling or an opinion from a state authority would be punishment for past behavior and would not correct any current problem.

He also said the 14-member GOP-led majority caucus has a wide range of opinions on the subject and plans could change before the Legislature’s next meeting.

He said at this point, the controversial tax-break package for a Somerset power plant could only be reversed by a judge, not the IDA board.

If a state Commission of Investigation inquiry reports wrongdoing by the board, “then yes, absolutely, you’ll see some swift action,” he said.

The nine-member volunteer board has found itself at the center of a controversy surrounding tax breaks for AES Somerset, a power plant on Lake Ontario in the northeastern end of the county. The Town of Somerset, the Barker School District and the county are suing the IDA over the deal. Questions have arisen over how the agreement, which allows the power plant’s owner to pay lowered payments in lieu of their normal property tax bill, was approved and what the it contains.

The power plant is not required to make investments or hire more staff in order to receive the tax breaks, though its principals have said they plan to make improvements.

The state Commission of Investigation is conducting an inquiry, according to Minority Leader Dennis Virtuoso, whose caucus requested it.

Burmaster said he has not yet been interviewed by the commission’s investigators and does not know anyone who has.

Without success, the Democrats have asked their colleagues to support IDA Chairman Henry Sloma’s removal during at least the last three Legislature meetings, and they’ve sought IDA Board Member Thom Kraus’ removal for the last two.

“I would say that we’ll continue to make an issue of this,” said Legislator Harry Apolito, D-Lockport. “It’s awful scary to think about them doing it again.”

Sloma was targeted because he helped orchestrate the AES deal, but Kraus was added without any specific reason, other than the fact that the county attorney, Claude Joerg, wouldn’t allow the same resolution more than three times, citing rules of the Legislature, so the Democrats were forced to change it up, Apolito said.

Both Kraus and Sloma are registered Independence Party members but they have ties to Republicans.

Legislator Renae Kimble, D-Niagara Falls, doesn’t agree with Joerg’s assessment of the rules of the Legislature, saying that because the IDA board is appointed by the Legislature, a removal of any of the members should be able to be discussed any time.

“I’ve never known that a board that serves at our pleasure is ever a done deal,” Kimble said. “We need to stop kowtowing. We’ve gotten rid of people for less.”

At the last Legislature meeting, held Tuesday, after the Democrats’ motion to remove Kraus — they were prohibited by Joerg from asking for Sloma’s removal again — Republicans caucused and then moved the motion be tabled until the next meeting, set for April 16.

It was then that Updegrove told reporters that his caucus might present “a name” of an IDA board member they wish to remove at the next meeting.

“That’s their prerogative,” Sloma said last week.

While no decisions were made Saturday at the Republicans’ caucus meeting, another closed-door strategy session is planned for this Saturday, three days before the next Legislature meeting.

Members of the public and Democrats also have asked that Sloma appear before the Legislature to answer questions about the AES deal but that has not happened and does not seem likely.

When William Ross was Legislature chairman the meeting was scheduled and then canceled because legislators couldn’t make it.

When Burmaster was installed as chairman, he asked Sloma to appear but was told by IDA officials that Sloma’s appearance wasn’t prudent because the county and the IDA were engaged in a lawsuit about the deal.

Contact reporter Jill Terreri

at 282-2311, ext. 2250.

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