Buffalo Billion

Development projects

Sources:

SolarCity

SolarCity is the largest rooftop solar installer in the United States, headquartered in San Mateo, California. Under Buffalo Billion, SolarCity received $750 million in incentives in exchange for building a factory. According to The New York Times, after the factory is complete, SolarCity will create 1,500 new jobs on site; an additional 1,500 new jobs are expected to be created among suppliers in the area.

In mid-May 2016, the New York legislature had planned to take a vote on a measure that would have given an extra $500 million to the SolarCity project. However, legislators pulled back the vote. The New York Times wrote that legislators “hinted they would exercise more oversight of the governor’s banner economic initiative.”

Federal investigation

The federal government is investigating the distribution of Buffalo Billion project money and contracts. The office of U.S. attorney for the Southern District of New York, Preet Bharara, is leading the investigation. As of May 2016, Bharara’s investigation has not led to criminal charges against any individuals.

A handful of people connected closely to each other have dominated the process of planning, building and promoting the majority of Buffalo Billion’s projects. Some include developers who have contributed to Governor Cuomo’s campaign. The New York Times wrote on May 24, 2016:

“…federal investigators’ interest seems to lie less with whether the people of Buffalo will ultimately benefit than with those who already have: a tangle of well-connected players — including developers and frequent donors to the governor — who have feasted on Buffalo Billion money.”

One of these players is LPCiminelli, a prominent developer.

LPCiminelli

In November 2013, the CEO LPCiminelli, Louis P. Ciminelli, hosted a fundraiser for Cuomo three weeks before submitting his company’s bid to the Buffalo Billion program. According to the New York Times:

“… the state’s request for proposals was worded in a way that appeared to exclude all bidders except the eventual winner, LPCiminelli. State officials later said that was the result of a “typographical error.” LPCiminelli is a prominent builder in the city whose chief executive, Louis P. Ciminelli, has generously supported Mr. Cuomo: Mr. Ciminelli and his associates and relatives have given nearly $150,000 to his campaigns over the years.”

Ciminelli personally contributed $96,500 to Cuomo's gubernatorial campaigns.

In late 2014, Cuomo increased the state’s pledge to the SolarCity construction project from $225 million to $750 million. Bharara’s office has issued LPCiminelli a subpoena in the investigation, but LPCiminelli not the target of the investigation.

Although Ciminelli may not have been the target of this investigation, he was arrested for his company's role in the scandal in September of 2016, and indicted in November 2016.

Louis Ciminelli has had legal issues in the past. In 1991 he was listed as a co-defenant in a RICO suit against long time mob controlled LIUNA Local 210 in Buffalo. His name appears with known soldiers and associates of the Buffalo Crime family including Leonard Falzone, Dan Sansanese, Joseph Pieri, Peter Gerace, and Salvatore Caci. The Ciminelli family has been under investigation more than once. In 1986, LIUNA was going to bring suite against against 20 Buffalo area contractors and Ron Fino was told by Buffalo Family underboss Joe Todaro, Jr and consigliere Leonard Falzone that Frank Ciminelli (Louis' Father) was connected and all his companies were "off limits".

It now appears L.P. Ciminelli is being investigated on another possible bid rigging charge involving the Culinary Institute project for Niagara County Community College.

The above association with known crime family members and the recent bribery and bid rigging charges begs the questions: 1. Does the Buffalo Billion Scandal have its roots in organized crime; and 2. If so, how far is their influence on NY state government and expenditures.

Empire State Development Corporation

Federal prosecutors are investigating the Empire State Development Corporation (ESD); specifically, how ESD chose companies to give award fund to for the Buffalo Billion project. The U.S. Attorney's office asked ESD to assist it by providing documentation. To aid in that process, ESD has hired a Washington, D.C. law firm at the rate of $800 per hour. WGRZ asked the U.S. Attorney Bharara to comment about the case, but Bharara declined.

McGuire Development and SUNY Polytechnic Institute

McGuire Development, which was awarded contracts to build a technology hub, donated $25,000 to Cuomo's campaigns. However, Cuomo's office said that the State University of New York (SUNY) and its non-profit was in charge of the bidding process, and the governor's office did not play a role.

The head of SUNY Polytechnic Institute, Alain Kaloyeros, is a point person for Buffalo Billion. On May 4, 2016, media reported that New York Attorney General Eric Schneiderman has been investigating Kaloyeros in a possible alleged "bid-rigging" violation related to the development of a dorm constructed at SUNY Polytechnic. One developer (Columbia) submitted a bid for the dormitory. Both Kaloyeros and Columbia have close ties with Governor Andrew Cuomo; Kaloyeros has served as an advisor and Columbia has contributed a substantial sum of campaign money.

Excelsior Jobs Program

As of June 2016, New York state comptroller Thomas DiNapoli has been conducting a year-long audit of the Excelsior Jobs Program. Within that audit is, DiNapoli's office has been investigating tax breaks that the program gave to companies who participated in the Buffalo Billion program. Two legislators asked DiNapoli to conduct a full audit of all Buffalo Billion spending; DiNapoli declined their request. According to The Buffalo News, DiNapoli is considering reviewing some of the spending that took place within Buffalo Billion.