Attorney Elliot Raimondo (center) talks with members of the Jamestown Local Development Corporation during its March 15, 2023 meeting

UPDATE: The Jamestown Local Development Corporation will not be discussing the ARPA grants awarded to Jamestown Skate Products and It’s Your Day at its monthly meeting following an update sent this morning that removed that item for tonight’s agenda. 

City officials are expected to offer an update Wednesday afternoon on the question of whether or not the Jamestown Local Development Corporation (JLDC) violated federal guidelines by approving economic development funds for projects tied to sitting board members.

Among the items on the JLDC meeting agenda for this month is a “discussion and decision regarding the ARPA grants awarded to Jamestown Skate Products and It’s Your Day.”

• VIEW JLDC APRIL 2023 AGENDA

Jamestown Skate Products is owned by JLDC Board Member Pete Schiera and was approved for a $15,000 grant in October through the JLDC Downtown Small Business Evolution program. It’s Your Day wedding planning service was approved for a $64,000 grant in February from the JLDC’s Building Acquisition & Business Expansion program. The owner of that business is the spouse of JLDC Board Member Jeffrey Russell, who also serves on the Jamestown City Council.

A third grant was also approved by the JLDC board in February for St. Luke’s Episcopal Church, after the church applied for funding from JLDC Downtown Programming & Events program. That grant application was submitted on behalf of St. Luke’s by employee Rev. Luke Fodor, who also sits on the JLDC board. In all three cases, the board members in question did not vote when it came time to award the funding.

In February, WRFA reported that the JLDC board likely violated its own bylaws and possible even state law by awarding funding to businesses connected to sitting board members, recusals notwithstanding. JLDC bylaws – which govern how the corporation must function – prohibit the awarding of loans or grants for any business in which a sitting board member (or immediate family member) owns a material interest. The JLDC board may have also violated Article 18 of the State General Municipal Law, which prohibits municipal officers from receiving public money they oversee and that “there are no exceptions for when an individual discloses his or her interest, recuses him or herself or abstains from the discussion or vote on a matter.”

The coalition, based out of St. Luke’s Episcopal Church, is working with Buffalo-based Journey’s End Refugee Resettlement agency, which is now operating a satellite office in donated space at St. Luke’s.

Reverend Luke Fodor said the coalition is working with two groups of people, “Both asylum seeking folks and refugees. There’s a distinction between the two groupings of people. Those who are asylum seeking have entered the country and asked for asylum based upon some exigency in their home countries. Legally crossed and presented themselves to the border guards and then been released under their own recognizance. That’s the legal process in the United States. And then they are then allowed to go where they want.”

Fodor said the asylum seeking families are from Colombia with the refugee families that came from Congo being in Jamestown for about a month.

He said asylum seekers in the United States cannot get a work permit for at least a year, “….or a limited resource of public assistance and that even is a difficult process to navigate. And then the refugees are able to come into the country because of the process they were brought into. They’re able to get public assistance and then also to get right into the workforce as long as they have the language skills and right placement.”

Fodor said while at least one refugee from the Congo has found employment, the asylum seekers from Colombia are dependent on help from the community to meet needs like food access, rent payments, and more.

Jamestown Public Market Director Linnea Haskin said the people from Colombia are offering food on Sundays at St. Luke’s Church from 11:00 a.m. to 1:00 p.m., “But then they also hope to open a stand at the Farmer’s Market where they will be offering empanadas, arepas, and all of their delicious salsas. And so, for a donation of a minimum of $10, but whatever you can offer, you then get a delicious meal. And that money goes through the fund at St. Luke’s that we then utilize to purchase things that the family needs.”

Financial donations can be made to the New Neighbors Coalition fund set up at the Chautauqua Region Community Foundation by visiting https://www.crcfonline.org/. St. Luke’s Episcopal Church is also accepting donations through a paypal donation page at: http://bit.ly/3IH1Lxj

For more information, follow https://www.facebook.com/NewNeighborsCoalition/

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.

Reverend Luke Fodor of St. Lukes Episcopal Church along with Irish musician, poet and storyteller Mícheál Ó Súilleabháin talk with WRFA’s Anthony Merchant all about the upcoming Welcoming the Wisdom of St. Patrick event going on at St. Lukes on March 15th

stlukesjamestown.org
www.owenandmoley.com

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

The vast majority of board members who serve on the Jamestown Local Development Corporation (JLDC) have not received any training that’s required under state law.

That’s according to information provided by the State Authorities Budget Office, which is responsible for making public authorities more accountable to state law.

According to data from ABO, eight of the nine current JLDC board members – including mayor Eddie Sundquist – have yet to participate in the required state training that focuses on a board member’s legal, fiduciary, financial and ethical responsibilities. Under state law, all board members of local authorities like LDCs and IDAs must receive the training within a year of joining a board.

Sundquist said his office has been working with the State Compliance Office on the issue, “Where they’re well aware of the situation and they talked to us about what things need to happen. Number one, they gave us some additional dates for fiduciary training, which we found out is actually required for public authorities. And, unfortunately, with COVID, a lot of that went to the wayside for quite a period of time, but we want to make sure we’re compliant and doing the things that we need to do.”

JLDC serves as the lending arm of city government and, in 2022, the Jamestown City Council authorized it to oversee and appropriate neary $9 million in federal American Rescue Plan Act money aimed at economic development. As a result, the JLDC was given more appropriating power than at any other time in its 42-year history.

Besides Mayor Sundquist, other board members who reportedly have not completed training include the three board members who applied for federal grant money administered by JLDC.

As WRFA reported last week, JLDC board members Pete Scheira and Luke Fodor each applied for and received American Rescue Plan grant money for businesses or organizations they have a material interest in. Additionally, the wife of city councilman and JLDC board member Jeff Russell also applied for and received funding. In all three cases, the board members in question did not vote for their respective grant award, but both the JLDC bylaws and state laws have conflict of interest rules that appear to prohibit JLDC from awarding funding to entities that board members own a material interest in.

Only council president Tony Dolce is listed as recieving training, but that was in 2012 – over 10 years ago.

By comparison, five of the seven members of the Chautauqua County Industrial Development Agency have received state training, with two of those being in recent Pandemic years and two who have yet to receive training, having only joined the board within the past year.

In response to the likely violation of JLDC bylaws, Mayor Sundquist has said it was the city’s legal interpretation that the conflict of interest rules did not apply because JLDC was only acting as a pass-through agency for the federal money and did not receive it directly.

He said the U.S. Treasury Department is who oversees the ARP funds, “They’ve actually gotten rid of their staff that focuses on compliance in the Treasury Department, so it’s been a challenge for us to try to figure out what’s the proper way to do things when it comes to this federal funding. So, we’re working through that process, we’re going to be talking to the JLDC board about what we have found out through this process of working with the state and working with some of our federal partners because we really want to have that public discussion of what happened and where do we go from here.”

The mayor has also said the city is continuing to look into the conflict of interest situation and will work to rectify it should either state or federal officials verify it was not allowed.

Editors Note: A previous version of this article indicated Jeffrey Russell applied for a grant. That was incorrect and it was his spouse who filed the application for her business.

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.

The JLDC Board of Directors during its most recent meeting in February. The JLDC is comprised of elected city officials and community stakeholders and is considered the economic development lending arm of the city.

JAMESTOWN – Last year the Jamestown Local Development Corporation (JLDC) became one of the most powerful government agencies in Chautauqua County when the city of Jamestown charged its board with appropriating nearly $9 million in federal American Rescue Plan Act (ARPA) moneys aimed at economic development, primarily to assist businesses and organizations impacted by the COVID-19 Pandemic. Another $2.9 million in ARPA funds was appropriated to JLDC to assist with residential property improvements and to also update city code.

• REVIEW ALL CITY ARPA SPENDING TO DATE

All that funding is also required to be spent in a relatively short period of time – just under four years and counting. As a result the JLDC is busier now compared to any other time in the 40+ years of its existence.

But in the haste of getting millions of dollars out the door the JLDC board appears to have run afoul of its own bylaws by awarding moneys to businesses directly connected to two of its members.

Jeffery Russell

One of those businesses is It’s Your Day wedding planning service which received a $64,000 grant from the JLDC Building Acquisition & Business Expansion program, funded by ARPA money. The owner of that business is the wife of JLDC Board Member Jeffrey Russell, who also serves on the Jamestown City Council. Russell joined the JLDC board at the start of 2022.

The other business is Jamestown Skate Products. That business is owned by JLDC Board Member Pete Schiera, who was appointed to the board as a city at-large representative in 2020. Jamestown Skate Products received a $15,000 grant through the JLDC Downtown Small Business Evolution program, also funded with city ARPA money.

In both instances, neither Russell or Scheira voted when it was time to award the money for their respective business interests. In fact, neither was in attendance for the respective voting session when the awarding of the money took place. However, JLDC bylaws – which govern how the corporation must function – prohibit the awarding of loans or grants for any business in which a sitting board member (or immediate family member) owns a material interest (Article VII, Section 5).

WRFA looked into the matter and spoke with Jamestown Mayor Eddie Sundquist, who serves as JLDC board president. He was joined by city development director Crystal Surdyk. The two explained that their interpretation of the law is that the JLDC bylaws only apply in situations when JLDC awards grants or loans from its own funding pool. But because JLDC is only serving as a pass-through agency to administer the city’s ARPA money, the bylaws do not apply. Instead, any business can qualify so long as any board member with a conflict of interest recuses himself or herself from the vote.

That explanation was verified by Russell, who informed WRFA via email that he was told that his wife’s business could still apply for funding, as long as he didn’t vote on the matter.

“Like so many other businesses during Covid my spouse’s was decimated by the mandatory shut downs for those deemed to be non essential,” Russell explained. “Upon submission of her application for ARPA funds I asked for an opinion on the matter. I was advised that the ARPA funds are NOT JLDC funds directly and JLDC is acting as a pass through in the allocation of the funds. I was advised she could apply, but I must recuse myself during the voting session.”

Schiera also explained to WRFA that he was unaware of the stipulation in the bylaws and that it didn’t come up during his application process. Again, he was informed that as long as he recused himself, there was no conflict of interest or impropriety.

While it is true that Jamestown City Council authorized JLDC to administer the ARPA money as a pass-through agency, the same can be said for other federal moneys administered by JLDC, including the federal Urban Development Action Grant, awarded to the city decades ago. In that case, the money was also presented to the city of Jamestown, which authorized JLDC to utilize it as part of its low-interest revolving loan fund for businesses. Whenever money from that fund is appropriated by the JLDC board, it’s required to follow the rules of its bylaws.

Also worth noting is that while the JLDC ignored the bylaws when it came to voting on funds for its own members, it followed the bylaws when it came time to appropriate ARPA funds over $100,000 – which require final city council review and approval.

WRFA did reach out to city attorney Elliot Raimondo via email and asked what the basis was for city’s interpretation that no bylaw violation took place, but he did not respond.

Beyond the likely violation its own bylaws, the JLDC board may have also violated Article 18 of the State General Municipal Law, which prohibits municipal officers from receiving public money they oversee and that “there are no exceptions for when an individual discloses his or her interest, recuses him or herself or abstains from the discussion or vote on a matter.”

There’s also the question of if the awards violated federal law, if the terms of the grant award includes language similar to what is in state law.

There was also a third award of ARPA funding that also created a conflict of interest with a board member. During its most recent meeting, the JLDC unanimously approved a $9,500 grant for a fundraising concert at St. Luke’s Episcopal Church. That funding came from the JLDC Downtown Programming & Events program. Luke Fodor is a JLDC board member and also an employee of the church. When it came time to vote on the project, Fodor recused himself. City officials again contend that was all that was required, especially since Fodor doesn’t own any material interest in the church. But city property owner Tom Andolora recently voiced his disapproval of the matter during this week’s council meeting, via a letter that was read out loud by the city clerk.

“How is it possible that a member of the board can sit there, while the rest of the members vote to benefit the organization he leads? Of course Luke recused himself from the vote. Do the rest of you who are on the JLDC board understand how this looks?”, Andalora asked. “How is it possible that a member of the board can be so brazen as to fill out and sign an application himself? This goes beyond ‘conflict of interest’.”

WRFA did speak with other JLDC board members and asked if they were aware of the bylaw provision that disqualified them from receiving public money they oversee. Council president Tony Dolce, who has a seat on the JLDC board, said he was told a recusal was all that was necessary to avoid conflict of interest. When asked if the bylaws were ever brought up, he said they had not.

WRFA also reached out to Councilwoman and 2023 mayoral candidate Kim Ecklund for this story but she was unavailable for comment. Ecklund also has a seat at the JLDC table because she is the council’s finance chair.

WRFA did seek out opinions on the matter from state agencies. The State Authorities Budget Office – which is responsible for making public authorities more accountable – said it could not issue a formal legal opinion on the matter, but did say they do accept complaints for public authorities like JLDC, and do review and investigate those complaints as they come in. The State Comptrollers Office indicated it was aware of the situation and was monitoring, but had no other comment at this time.

Jamestown City Council voting session (January 30, 2023)

Jamestown City Council has approved a final installment of funds to the Senior Citizen Home Improvement Incentive Program.

The additional $377,528 in American Rescue Plan funds will cover any remaining approved applications that could not be funded due to lack of funds in previous rounds.

The Finance Committee had recommended the previous week using $282,856 in ARP funds to make the program whole based on numbers provided by Assessor Lisa Volpe, but Finance Chair and Council Member at Large Kim Ecklund said those figures were incorrect, “So, last week when we went through this she (Volpe) had estimated a $94,000 savings that she approached to us. When I got the final numbers, in talking to her, in talking to the Acting Comptroller, it was provided in error. So, therefore, it had to go back in to make that the $377,000 to bring this whole so that everybody who applied and was accepted and approved will get the project done.”

Total funding for the Senior Citizen Home Improvement Incentive Program now stands at $1.87 million.

Council also approved using $900,000 in ARP funds for water main replacements and street restoration on Roland Road and Juliet Street. The Department of Public Works and Jamestown Board of Public Utilities recommended the work be done after multiple water main breaks on both streets over the decades.

Ecklund said at this point, $26,230,703 has been spent in ARP funds out the over $28 million received.

A resolution for the City to adopt the New York State Climate Smart Communities Pledge was tabled for more discussion. Ecklund said while the pledge allows the city to apply for certain grants, there were some misunderstandings from the public and council that needed to be cleared up, “And I asked specifically if the legal team had looked at it before we signed anything and they had not. So, just to cover our bases and make sure we’re not locked into something that we can’t get out of, if you will, I would prefer the legal team to look at it.”

Council approved several appointments to boards and commissions from Mayor Eddie Sundquist including appointing Thomas Benson of 141 East Virginia Boulevard to serve on the Jamestown Board of Public Utilities Board. He replaces Tamu Graham-Reinhardt who has resigned. They also approved appointing Reverend Luke Fodor to the Jamestown Community College Board of Trustees. He will fill out the unexpired term of Dr. Lillian Ney who also had resigned.

St. Luke’s Episcopal Church Reverend Luke Fodor said discussions on bringing refugees to the area started around 13 months ago with final preparations now happening in order to be ready to accept families in the next couple months.

He said Journeys End Refugee Services in Buffalo has hired Beth Litton to staff the Jamestown site. Litton previously worked in refugee resettlement in Nashville. St. Luke’s Church will provide an in-kind office and meeting space for Journey’s End to do their work.

Fodor said the Unitarian Universalist Congregation of Jamestown has also agreed to serve as a drop off point for new or gently used household items to outfit apartments for new arrivals. Those items can be brought to 1255 Prendergast Avenue. For additional information, contact Home Again Committee chair Janet Forbes via email at jlforbes@hotmail.com

Fodor said commitees have been established to assist with the work to bring refugees to Jamestown and that these committees need volunteers.

The committees include the Executive Committee, Housing, Health & Human Services; Education, Employment, Home Again, and Transportation.

He said those interested in these efforts should attend the New Neighbors Coordinating Committee at 3:30 p.m. today in St. Luke’s Episcopal Church’s Undercroft.

For more information, contact Reverand Fodor at 716-483-6405.

St. Luke’s Episcopal Church and the Jamestown Public Market are teaming up with the Chautauqua Area Potters to host the event from 11:00 a.m. to 2:00 p.m. in the Church’s Undercroft off East Fourth Street.

Father Luke Fodor said the event features thousands of handcrafted bowls by local amateur and professional potters available for the community to obtain through donation at various price points, “So, you can to do your Christmas shopping. You can come with your friends, as well as to have soup that comes with the bowl. So you buy the bowl and then you get soup to go along with the bowl. We’ll also have members of the Chadakoin Chamber Ensemble playing Christmas music on strings for a good portion, about 90 minutes or so.”

Public Market Director Linnea Haskins said the event is a way to highlight food access and food security.

The Empty Bowl Project previously was held in Fredonia for 14 years, with the last two years being held in a parking lot due to the Pandemic.

The money raised at the event will be distributed to food pantries throughout Chautauqua County by Feedmore of Western New York.