Developments in suit against mayor

BUFFALO, N.Y. (WIVB) - Buffalo Mayor Byron Brown is coming out swinging as he fights a multi-million dollar lawsuit involving corruption allegations.

Mayor Byron Brown is now accusing a Cleveland-based developer of trying to extort money from the city. Buffalo attorney Daniel Oliverio says Reverend Richard Stenhouse, a political ally of Brown's, no longer faces the prospect of possibly having to pay up in a lawsuit accusing him and city officials of racketeering.

The lawsuit stems from a project to build 50 new rental homes on the city's east side and a developer, Cleveland-based NRP, contends he had the contract until the hiring of a Reverend Stenhouse became an issue. Mayor Brown denied the allegations in an interview last year, saying the cancelation was more about NRP's insistence on collecting rents, on a rent-to-own basis, for up to 30 years.

"We thought, to put people in a rent-to-own situation for 30 years, was wrong," said Brown.

NRP sued Mayor Brown, Reverend Stenhouse, Masten District Councilmember Demone Smith, and Deputy Mayor Steve Casey for more than a million dollars. NRP has now withdrawn its claim against Reverence Stenhouse.

Oliverio stated, "The plaintiff filed a voluntary withdrawal of the lawsuit against the Reverend Stenhouse, our client, and therefore the Reverend Stenhouse is out of the action, and can go back to doing what he does best, and that is, serving the community."

Reverend Stenhouse and the Jeremiah Partnership might be out of the lawsuit, but sources say NRP did not walk away from them empty-handed, agreeing to a substantial settlement with the Jeremiah Partnership's insurance carrier.

The project was eventually scrapped as the case continues in court. Oliverio said it could have been a boost to a neighborhood that could use some help.

"It is unfortunate that ultimately the contract was not consummated between the parties. It probably would have been a good thing for the Eastside of Buffalo, and the neighborhoods where these particular lots were," said Oliverio.

Mayor Brown is trying to get the remaining case dismissed, accusing NRP of trying to extort money from the city over a failed housing project.

News 4 contacted attorneys for the mayor and the Cleveland contractor to confirm the settlement, but we are told there is a confidentiality clause barring them from discussing it.