06/29/09: NYS Comptroller Dinapoli Audits Niagara Falls Rainbow Place Mall Development Plans

Original YNN Buffalo Air Date: 06/29/09
Niagara Falls’ Rainbow Place Mall has lost a lot of its color over the years and efforts to redevelop the landmark have fallen flat.
“The difficulty was the city of Niagara Falls did not have an alternative strategy for economic development that was in place at that time. We’re in the process of correcting that,” Mayor Paul Dyster
Now the state is stepping in. New York Comptroller Thomas DiNapoli released details on an audit of economic development agreements between the city and two major developers: Niagara Falls Redevelopment and Rainbow Square Limited Partnership.
“Our audit found that the city’s contract with RSLP did not protect the city if the developer failed to rent the rental space or achieve minimum performance standards,” said DiNapoli.
City officials signed off on this economic redevelopment project back in 1981 entering a 75 year lease to develop 140 acres. Part two of the city’s redevelopment project kicked off in 1997 with a minimum $110 million dollar developer investment. The problems came when the projects started to falter.
“In 2003 the city amended the agreement with NFR allowing the company to purchase property directly from the owners. Giving the city very little recourse should the developer fail to meet benchmarks or complete the projects,” added DiNapoli.
While Comptroller DiNapoli released his audit on how to improve future economic development, he’s not saying just how much money was lost in the projects. Both DiNapoli and the Mayor Dyster agree there’s a need to have an economic development director with an eye on city projects at all times.
“Mayor Dyster is doing what needs to be done to make sure Niagara Falls uses past lessons and the difficulties of the past to plan for future progress,” said the Comptroller.
Mayor Dyster says USA Niagara is already working on the Rainbow Place Mall to demolish the former winter garden structure and improve it from the inside out.
“That’s going to open up for the first time a pedestrian friendly phase to the Rainbow Mall. Which won some awards not for exterior, but interior design at the time that it was originally opened,” said the mayor.
Niagara Falls city planners say they hope to restore the mall to its hallmark in history.