Jamestown Local Development Corporation meeting (March 15, 2023)

The Jamestown Local Development Corporation has released American Rescue Plan funding it had been holding back for two businesses pending counsel on whether the appropriation of those funds had violated federal law.

The JLDC Board had approved a $64,000 Building Expansion & Business Acquisition program grant for It’s Your Day wedding planning service. The owner of that business is the wife of JLDC Board Member Jeff Russell, who also serves on Jamestown City Council.

The other grant is $15,000 from the Downtown Small Business Evolution program for Jamestown Skate Products. That business is owned by JLDC Board Member Pete Scheira.
In these instances, the board members in question either recused themselves or did not attend the voting session. However, the JLDC by-laws state that no funding will be awarded to any business where a board member owns a material interest.

There was a question of whether the awards violated State conflict of interest rules for municipal officers or federal rules.

Jamestown Mayor Eddie Sundquist said his administration had reached out to the U.S. Treasury Department on the matter for guidance, but they had disbanded their Help Desk, so they then reached out to Congressman Nick Langworthy‘s office, “And (they) confirmed that the use of those funds is appropriate. You know, we did it in good faith in order to support these businesses, using funds that were technically not JLDC’s funds. They’re separate federal funds being given for a recovery purpose. And so those funds have been completed and have been given out. We’ve gotten the permission, or the consultation, from his office that those are appropriate uses of those funds.”

Prior to receiving that information, the JLDC board had declined to make any motion to revoke the funding in question.

Jamestown Local Development Corporation meeting (May 17, 2023)

A second round of $35,000 in downtown business grants were approved by the Jamestown Local Development Corporation board on Wednesday.

Grants Manager Tim O’Dell said the awards came from the Downtown Small Business Evolution fund.

He said Nouveau Beauty Aesthetics has been awarded $8,000 toward a $27,000 project to purchase new equipment that the businesses said will help sales increase by 20% based on the new services that will be available to customers.

Lisciandro’s Restaurant will receive $5,000 toward a $15,548 project to put in new floors and booths.

Sandees Bakery will use the $10,000 grant for the $19,760 purchase of a new meatball machine which will help with catering needs.

The Beer Snob has been granted $7,000 toward a $14,900 purchase of a three-door fridge to improve to-go purchases of beverages.

Art Cloth and Craft has received $5,000 toward the $8,000 purchase of sewing machines to use to create goods for the store in addition to use the machines for classes.

The JLDC board also approved three Fund for Downtown Programming requests.

The Reg Lenna Center for the Arts received $21,160 for three summer concert events that include a block party. The concerts receiving support include Lez Zeppelin on June 17, Vixen on July 9, and the block party with Uncle Ben’s Remedy on July 27.

Ballgame Heroes were approved up to $29,500 for a Trading Card Buffalo Bills Signing Show with Andre Reed. The event would include a VIP party on September 15 followed by a signing event on September 16. Owner Starr Ryder said the funds would be used toward Mr. Reed’s talent fee as well as to purchase merchandise that attendees could buy to have signed.

Collaborative Children’s Solutions also was approved $15,000 for a Winterfest event that will take place from 12:00 to 6:00 p.m., Saturday, December 2 ahead of the annual Christmas parade. Organizer Pat Smeraldo said he’s working out details still but the event could include an outdoor synthetic ice rink, live music, Christmas village, ice sculptures, and more.

Jamestown Local Development Corporation meeting (March 15, 2023)

Two grants approved by the Jamestown Local Development Corporation Board that raised questions of whether the board violated its by-laws are now on hold.

Jamestown Corporation Counsel Elliot Raimondo, who is also now the legal counsel for JLDC, said he is still awaiting guidance following conversations with the state and federal government, “We are waiting for that guidance before I make a final opinion on the federal aspect of it. And as much as the prior votes were concerned, we did follow general municipal law, which is what city council uses, whereby recusals happen and votes were then taken place, so I don’t find that we did anything not above board in that respect.”

Raimondo did issue the opinion and recommendation that St. Luke’s Episcopal Church be allowed to retain the $9,500 they received in Downtown Programming Funds for a fundraising concert as JLDC Board member and Church Reverend Luke Fodor is an employee of the church and not an owner.

The other two grants that Raimondo recommended not be disbursed until federal guidance is received include a $64,000 Building Acquisition & Business Expansion program grant for It’s Your Day wedding planning service. The owner of that business is the wife of JLDC Board Member Jeff Russell, who also serves on Jamestown City Council.

The other grant is $15,000 from the Downtown Small Business Evolution program for Jamestown Skate Products. That business is owned by JLDC Board Member Pete Scheira.

In all three instances, the board members in question either recused themselves or did not attend the voting session. However, the JLDC by-laws are clear in stating that no funding will be awarded to any business where a board member owns a material interest.

Not only did the awards appear to violate JLDC by-laws, but also state conflict of interest rules for municipal officers, and potentially federal rules as well.

Raimondo added that he recommends changing JLDC’s by-laws so that the body operates similarly to City Council under general municipal law.

Following the explanation and update by Raimondo, Mayor Eddie Sundquist, who also serves as JLDC president, asked if any JLDC board member wished to make a motion to revoke the funding for the businesses in question, but none came forward. Most board members in attendance who spoke out agreed that despite what the bylaws indicated, they felt a recusal was all that should have been required, given the ARPA funding was a unique situation for JLDC.

Besides a vote to revoke by the board or the federal agency instructing JLDC that the awards can not be made, the only other way to prevent the awards from moving forward would be if someone brought forward a lawsuit using an Article 78 legal proceeding in State Supreme Court, with a judgement being made in favor of the plaintiff.

Grant Manager Tim O’Dell presents on business grant fund to the Jamestown Local Development Corporation board. (January 18, 2023)

Jamestown Mayor Eddie Sundquist says the city is continuing to look into possible violations of conflict of interest laws, due to the Jamestown Local Development Corporation awarding grant moneys to sitting board members, including one who also sits on the city council.

As WRFA first reported on Wednesday, the JLDC board appears to have violated its own by-laws by awarding federal funding from the American Rescue Plan Act to its own members to assist their personal business interests.

The businesses in question included a $64,000 grant to It’s Your Day wedding planning service from the JLDC’s Building Acquisition & Business Expansion program. It’s Your Day is owned and operated by the wife of city councilman and JLDC board member Jeff Russell. The other business was Jamestown Skate Products, which received a $15,000 grant from Downtown Small Business Evolution program. That business is owned and operated by JLDC board member Pete Scheira. A third violation may have also occurred when JLDC board member Luke Fodor, an employee of St. Luke’s Episcopal Church, applied for and was awarded a $9,500 downtown programming grant for a fundraising concert for the church, scheduled for later this month.

In all three instances, the board members in question either recused themselves or did not attend the voting session. However, the JLDC by-laws are clear in stating that no funding will be awarded to any business where a board member owns a material interest.

Not only did the awards appear to violate JLDC by-laws, but also state conflict of interest rules for municipal officers, and potentially federal rules as well.

The city claims it was aware of the language in the JLDC bylaws, but felt they didn’t apply to grant awards related to ARPA funding since JLDC was only serving as a pass-through agency for that money.

In a statement released Thursday morning, the mayor said all grant awards related to ARPA were made under the knowledge that they were appropriate and legal under state and federal law, and if there are any discrepancies, or actions contrary to state or federal law, the city will work to rectify those issues as soon as possible.

Sundquist also claimed the awarding of the funds were done in “a transparent and public process.” However, while the votes were done in a public setting, they were not 100% transparent.
When it came time for the JLDC board to award the grants in question, there was no advanced notice given to the public, including no mention of the businesses on the official meeting agenda, which does not appear on the city website and is only sent out to media.

Additionally, the official minutes for the respective meetings don’t provide any details on which businesses were awarded funding.

As Sundquist and his staff continue to look into the matter, the New York State Comptroller’s office has informed WRFA it is aware of the situation and is monitoring it as well.

Tim O’Dell

Economic development programs funded by American Rescue Plan monies have created 119 jobs so far in Jamestown.

Department of Development Grants Manager Tim O’Dell, presenting to Jamestown City Council, provided a results summary for 2022 that focused on the Building Property Infrastructure Improvement grant – funded with $1.5 million; the Information Technology program – funded with $300,000; and the Downtown Small Business Evolution program – funded with $200,000; “So, so far, we have 11 economic development projects in the works. So far, $300,000 funds, economic development funds disbursed for the three grants that I mentioned. And, I’d say in spring time we can have an expected big increase in this as many of the BPII recipients and others have to wait until the Spring season to begin their roofing projects and receive quotes and whatnot.”

O’Dell said 10 roofs and 10 buildings also were revitalized by businesses. He said 119 jobs were created and 341 jobs saved as a direct result of the funding for businesses.

O’Dell said $215,730 has been disbursed under the Roof, Sewer, Lateral and Water Line Replacement program, “And that is 12 roofs for the City of Jamestown homeowners and there are also 15 that currently contractors are bidding on. And, essentially, similar to the BPII, once spring time occurs and hits, we’ll expect more and more of these to get done in upwards of 100 roofs. As well as 20 new products and services.”

O’Dell added that the New Business Development and Equipment & Machinery Upgrades programs are currently in the application period, which ends February 24. Other economic development programs that are in progress include the Business Incubator, Workforce Development, Chadakoin River Basin Activation, and Downtown Programming and Events.

Director of Development Crystal Surdyk said a complete report on funds used for downtown events will be provided at the Jamestown Local Development Corporation meeting on Wednesday, February 15.

View – Dept. of Development 2022 ARPA Annual Report