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Links Roundup: Inside New York State Edition

October 11, 2012

ABO sends censure letters to Cap Region LDCs

Posted on October 10, 2012 at 3:54 pm by Casey Seiler, Capitol bureau chief

The state Authorities Budget Office is done making nice with three local development corporations that have failed to file necessary reports for multiple years. In the Capital Region, they went out to LDCs in Waterford and Valatie.

Here are excerpts from the letters sent, respectively, to Waterford LDC Chair and Mayor J. Bert Mahoney and Valatie LDC Chair Guy Gamello.

  • “The Village of Waterford Local Development Corporation failed to file Audit Reports for the fiscal years ending 5/31/2010, 5/31/2011, and 5/31/2012 and Annual Reports for the fiscal years ending 5/31/2011 and 5/31/2012. … On August 10, 2012, the ABO sent a letter compelling the board of directors and chief executive officer to justify the authority’s persistent failure to meet the reporting requirements of sections 2800, 2801, and 2802 of Public Authorities Law. In a September 4, 2012 response, you stated that your authority had ‘submitted the required reports.’ The ABO responded, in a letter dated September 10, 2012 that the authority had not, in fact, submitted the required reports and asked that this be corrected by October 1, 2012.”
  • “The Village of Valatie Local Development Corporation failed to file a Budget Report for the fiscal year ending 6/30/2013 and Annual and Audit Reports for the fiscal years ending 6/30/2011 and 6/30/2012. … On August 10, 2012, the ABO sent a letter compelling the board of directors and chief executive officer to justify the authority’s persistent failure to meet the reporting requirements of sections 2800, 2801, and 2802 of Public Authorities Law. In telephone conversations and emails with this Office, a representative of your authority, Steven Kirk, indicated that the corporation would submit the required reports. As of October 1, 2012 the Village of Valatie Local Development Corporation remains out of compliance with the public disclosure, reporting and corporate governance provisions of Public Authorities Law. Accordingly, pursuant to its powers under Section 6(2)(f) of Public Authorities Law, the ABO is sending this official letter of censure to the board of directors of the Village of Valatie Local Development Corporation.”

The ABO decided to move to sending censure letters after no action was taken by Oct. 1. Also censured in this round was the Town of DeWitt LDC in Onondaga County.

David Kidera, the ABO director who signed the letters, said in a statement that “the three authorities were given every opportunity to comply with state law. We were compelled to take this enforcement action because of the boards of directors’ neglect of their legal responsibilities over several years and their failure to respond to previous warnings issued by our office.”

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