Lawsuit over canal side funding dismissed

BUFFALO, N.Y. (RELEASE) - New York State Supreme Court Justice Frederick Marshall on Thursday handed down a decision in a lawsuit regarding the use of New York State Power Authority (NYPA) funds for the Canal Side project.

The suit had been filed in late July, 2010 and had sought to block the disbursement of $3.7 million in annual payments to the Erie Canal Harbor Development Corporation (ECHDC) over a period of 20 years. The judge found that the plaintiffs lacked standing to maintain the action, and had not filed the suit within the applicable statute of limitations period.

“This is a tremendous win for our community,” said Erie Canal Harbor Development Corporation Chair Jordan Levy. “These funds are the key to the revitalization of our waterfront, and their loss would have dealt a devastating blow to Western New York.”

The funding is comprised of two streams: $4.7 million annually from the Niagara Relicensing Settlement and $3.7 million annually as part of an Industrial Incentive Award, and will be used to leverage a total of $105 million in bonds that will be used by ECHDC for waterfront revitalization efforts on Buffalo’s waterfront.

“Our community can now move forward,” said ECHDC President Thomas P. Dee. “This decision marks a turning point for the Canal Side project: we have a vision, a plan, and now the guaranteed funding to ensure the development of a first class waterfront that will be enjoyed by generations to come.”