CITY OF LOCKPORT: Flight of Five project set back

Local News

July 25, 2008

By Joyce Miles<br><a href="mailto:milesj@gnnewspaper.com">E-mail Joyce</a> The Lockport Union-Sun %26 Journal Fri Jul 25, 2008, 01:25 AM EDT

One thing blocks Mayor Michael Tucker’s quest to quickly lay hands on the tools needed to put the Flight of Five canal locks back in working order.

It’s state law, and Canal Corp. Executive Director Carmella Mantello says it’s unyielding.

Tucker had an unhappy meeting with Canal Corp. officials this past Tuesday in Albany, where he learned the temporary ownership device he’s been seeking for the old canal locks, an occupancy permit, can’t be had on terms that will satisfy lenders.

He wants the city to borrow money, up to the amount it’s been granted by the state and federal governments, so that the restoration project can advance to construction stage.

The city can’t borrow money to fix something it doesn’t have an ownership interest in, however, so it asked the Canal Corp. for an occupancy permit of indefinite length to satisfy the bond market.

Canal Corp. insists it can’t grant an indefinite permit and is in fact barred by state law from doing so.

According to Tucker and Mantello, the city and Canal Corp. agree on all aspects of a draft permit except for inclusion of the phrase “revocable with 30 days notice.”

Mantello says the phrase is unalterable and Tucker says it’s impossible.

“We can’t bond what we don’t own, and we can’t go much further with the project, this year at least, without money,” Tucker said.

The Flight of Five restoration project calls for preserving the more-than-150-year-old lock series and putting at least a few locks back in operation as a visitor attraction. The estimated cost is $7 million to $10 million.

The city previously received grant pledges totaling about $4 million, but the money is being paid out in installments over a roughly five-year period. Work eventually will come to a halt until there’s cash on hand, Tucker said — and the restoration committee hasn’t wanted to seek private grants, either, without some proof of temporary locks ownership.

According to Mantello, an occupancy permit would fit the bill, as it gives the city temporary use of state lands, but state canal law says only revocable permits can be issued.

“We have no authority to issue non-revocable permits,” she said. “I know Mayor Tucker needs greater security than is offered in a permit, but these are canal laws and very strict real property laws.”

The city leasing canal property is its only other alternative for landing temporary rights over the Flight area. It’s the alternative that Tucker had avoided earlier this year, because the process was described to him as lengthy and arduous.

Among other things, terms of the Public Authorities Accountability Act require authorities like Canal Corp. to obtain an independent, fair-market value appraisal of the good being leased. Then, if the Canal Corp. and City of Lockport came to an agreement on terms including rent, the agreement would have to be approved by the attorney general and state comptroller’s office as well.

And an appraisal of the Flight area has to be obtained whether the city wants to lease it or occupy it by permit, Mantello said, because the appraisal drives the annual permit fee or rent. In either case, by law, it’s to be 10 percent of the appraised value.

The lack of temporary ownership means the original Flight restoration timetable, calling for project completion in summer 2009, can no longer be met, Tucker said.

Canal Corp. remains “completely supportive” of the project, Mantello said. Engineering conflicts between project champions and the agency — basically, how to restore function to the old locks without compromising modern, parallel locks E35 and E35 — are being worked through, she added.

Contact reporter Joyce Miles at 439-9222, ext. 6245.

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