NORTH TONAWANDA, N.Y. — Editors note: Some of the North Tonawanda boathouses sit on private property and are therefore neither city leaseholders nor part of the leaseholder negotiations. The 25 boathouses referred to in this report sit on what is known as the Weatherbest Slip, which is located in the northern-most section of boathouse row.
It’s déjà vu for North Tonawanda city government.
Back in November, a 2 On Your Side investigation found that the Republican majority on the Common Council cut the budget for the mayor's office in half, eliminating the mayor's secretary. The move was made behind closed doors, in violation of state law.
"Under New York State's Open Meeting Laws, public business is supposed to be conducted in public," said lawyer Paul Wolfe, an expert in Open Meetings Law.
A month later, in December, a similar behind-closed-doors move. This one resulted in a sweetheart deal for some prime riverfront land.
The council approved a new lease for the renters of these 25 properties, old boathouses. This area is known as the Weatherbest slip. The lease-holders get use of the land, plus city water service and trash collection for the bargain price of just $950 a year.
"I've been off the Waterfront Commission for eight years, and now it's only $950?" North Tonawanda resident Beverly Loxterman asked.
Loxterman was the chair of North Tonawanda’s Waterfront Commission way back in 2007, when the lease was raised to $950. She went before the council to say city taxpayers are getting ripped off.
"You cannot get a slip for four months for less than $1,200 to $1,500. So, to have a lease for a boathouse for a whole year for $950 is an embarrassment, and the city could really use that money," she said.
The North Tonawanda Common Council crafted a new lease deal for the slips. The first year stays at the same annual price, $950. But the new deal is for five years instead of one, with just a 2 percent increase each of the following years.
And the discussion on this all took place in a private Executive Session.
After the next public Common Council meeting, 2 On Your Side's MaryAlice Demler asked Council President Bob Pecoraro why the lease was hammered out behind closed doors.
“We were advised it's the best way forward because of the potential lawsuits that the city could find themselves in," was Pecoraro’s response.
Attorney and Open Government expert Paul Wolfe, Esq. watched the entire video of the Common Council meeting where the Council went into Executive Session.
"You cannot go behind closed doors to talk about what may be a legal issue,” Wolfe said.
“Just about every issue the council votes on could be a lawsuit, so that can't be the standard for going behind closed doors," he added.
Wolfe said the Open Meetings Law also requires that the council state the exact reason why the body is going into Executive Session. That did not happen in this case either.
“I am disturbed at the manner in which they are doing things. I think it's totally wrong, and I think it needs correction," former North Tonawanda Mayor Dave Burgio said.
He was also at that December council meeting. He served as mayor from 2002 through 2006. He said back then, he wanted to end the lease deal and return that prime riverfront property to the public. He and others were allowed to speak at the December council meeting, but only after the negotiating was over.
"It's city-owned property,” Burgio said.
“The normal populace should be able to go down there and use it to their advantage, any which way they want to, as a park. It's not open to them as a park," he said.
You may be wondering, who's been on the receiving end of this very nice lease deal? Through a Freedom of Information request, we got the list of the boathouse owners, and we asked the former mayor about it.
"Number one, they're all connected people. A majority of them are connected people to city government or someone related to city government,” Burgio said.
"Former Mayor Pappas was in it, his son, firefighters, police officers are in there. I mean, give me a break!" Burgio added.
Added current North Tonawanda mayor Austin Tylec: "I mean, personally, I don't think this is a benefit to the public."
Then-Councilman-at-Large and Mayor-elect Austin Tylec, the sole Democrat, spoke out and voted against the new lease deal. The four Republican councilmembers voted in favor. The deal was done.
Under the new five-year deal, boathouse owners are also protected. If the city decides to take this land and develop it, the city must pay each leaseholder the assessed value of their boathouse, totaling over $100,000.
"Really, going from one year to five years, it’s a substantial change, offering to pay over $100,000 out of tax dollars, so we could acquire the area that is public land. I mean, it's just, it's nuts," Mayor Tylec said.
Maybe, but now it’s signed, sealed and delivered: a secret deal that benefits only a few, put together behind closed doors, away from the public.
"The public has a right to know. The public has the right to comment. The public has the right to criticize because the public put them in office, voted them in. Their responsibility is to that public," Burgio said.