Source: Buffalo News (New York)
Allowing a private developer to run part of the Hyde Park golf complex was in the city's best interest, a lawyer told a judge Thursday in arguing the move helped to avoid foreclosure on a golf dome on the property.
Frank P. Scaletta of Niagara Falls is suing the city to nullify a June 10 agreement with Greater Niagara Sports Group.
Scaletta claims the city awarded the golf complex lease to Greater Niagara without following the required procedure. About 10 golf course supporters attended the hearing before State Supreme Court Justice Richard C. Kloch in the Niagara County Building.
Hyde Park, purchased with money donated by former resident Charles B. Hyde in 1921, includes an 18-hole and two nine-hole golf courses. Under the city plan, the nine-hole courses, called the "Red Nine" and "White Nine," would be turned over to the local sports company, which is affiliated with the nonprofit First Tee program.
Scaletta's lawsuit, prepared by Niagara Falls attorney Edward Perlman, accuses the city of violating a state law that requires a City Council to approve any sale or lease of municipal land by a three-fourths vote. The suit also claims the agreement violates the City Charter, which would have required more public involvement.
The agreement, proposed by Mayor Vincenzo V. Anello, was approved, 3-2.
Kloch pointed out that a law passed in 1916, three years after the section cited in Scaletta's suit, allowed a city's charter to supersede the state law.
"The charter allows the mayor and Council to act on the best interests of the city," City Corporation Counsel Ronald Anton said.
The city, he added, does not consider the agreement a lease but a management contract under a development program to improve and keep the dome and golf courses going.
Although Councilman Lewis "Babe" Rotella voted against the agreement -- stating in his affidavit that no evidence indicated the decision was made in the best interests of the city -- the majority of the Council believed otherwise as evidenced by their approval of it, Anton said.
"There certainly was a finding of best interests," Anton said. Those circumstances include a pending foreclosure of the former golf dome, and the city's loss of $300,000 on the golf course each year, as well as the deteriorated state of the courses.
The agreement gives Greater Niagara rights to operate in the park for up to 30 years, with plans to build a hotel on the site of the clubhouse. Because the city can get out of the agreement only if the developer doesn't fulfill certain upgrade requirements, the deal is a lease, Perlman maintained.
Richard Sullivan, attorney for Greater Niagara, contends that the agreement provides for joint operation of the property, with the city setting seasonal golf rates for residents and capping daily rates.
Greater Niagara would be able to set the rates only for nonresidents.
The company is set to take over the Red Nine on Jan. 1 and the White Nine on Jan. 1, 2006.
Kloch said he saw a host of problems in the last phase of the plan, which includes building a hotel on the clubhouse site. He promised a speedy decision.