State auditors have taken a Niagara Falls-based development agency to task for failing to provide specific details about potential economic benefits from some of its real estate transactions, including the $1.36 million purchase of seven downtown properties that were later sold to private developers for $3.
In an audit released Wednesday, New York State Comptroller Thomas DiNapoli’s office determined that while USA Niagara Development Corp.’s real estate deals complied with requirements under New York’s Public Authorities Law, they were approved with “insufficient” information about the number and types of jobs to be created and potential tax ramifications compared to the value received and the properties’ fair market value.
The findings were part of a broader audit by the state comptroller that determined USA Niagara’s parent agency, the Empire State Development Corp., failed to meet statutory requirements to provide accurate, annual reports of its real estate holdings.
“ESD has to be more transparent about the real estate transactions it makes,” DiNapoli said. “That should start with an accurate accounting of its real estate portfolio and better disclosure explaining the economic benefits to New York’s taxpayers for sales of properties below their fair market value.”
Empire State Development responds
In response…
