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Editor’s note: Niagara County entrepreneur Jesse Gooch is still mad about losing out on his proposal to purchase and renovate the Rapids Theatre. He posted this status to Facebook Tuesday.
I HAVE BEEN SILENT TOO LONG ABOUT THE RAPIDS THEATER COVERUP**
The music business has always been a passion of mine. Since the Theater fell in bankruptcy and became available for public purchase, I immediately did my due diligence to put an offer in. This story can go on for hours, but I’m going to make it short and sweet.
I have been in the Construction contracting business for most of my adult life. I own an operate a fairly large commercial residential painting company, (Painters Plus), I also own J.G. productions and Entertainment, where my biggest endeavor is Thursdays on the Water. I am also a Niagara County Legislator.
With my years of business experience, construction, and hosting one of Western New York largest outdoor free concert series in the summertime, my legislative experience along with my community involvement, the theatre would be a perfect fit for me.
I immediately put together a team. I contacted the URA to set up a tour with my contractors to assess the repairs.
After several months of getting financing in place, researching the history of the building, putting my team together along with my business plan, it was time to submit my proposal.
I created a very in-depth PowerPoint presentation along with letters of intent, tax returns, and all other required items requested by the URA.
The application fee was $10,000. I submitted my application three days before the due date. I came up with an assessment of about $500,000 to do the major repairs along with many cosmetic upgrades and an offer of $200,000 for the purchase of the building.
My plan consisted of all local Niagara Falls and Niagara County employees. We were going to utilize three local Niagara Falls catering companies for our food. My Stage and sound engineer lives in NiagaraFalls and his operated out of the rapids for over 20 years. The NF police were going to do my security, I was focusing on local and community. I have been to many meetings and I know the mayors plan consisted of revitalizing Main Street and bringing in student housing for NU. So I created a plan with former NU alumni students which consisted of hands on apprenticeship training experience, and experiences customized for the students. I also had a plan to do many community events, including an outdoor Juneteenth celebration on the street.
My presentation was elaborate, well thought out, and we had a vision to stay in the building if we won the bid for several decades. We were going to work with the NiagaraFalls music, Hall Of Fame and host their inducted ceremonies annually. We were even going to have a “Winter Blues Fest” in February. We were going to have fundraisers, charity events, and even weddings! I have a letter of intent from a local wedding planner who committed to doing 30 to 40 weddings a year if I was chosen for this project.
I was not planning on initially using Grant money. I wanted to work with local institutions and I have an investor who put up $1.2 million for this project as well. In other words, my Construction was going to be self financed and my construction/painting company was going to do most of the sweat equity, and I was either going to put a mortgage on the $200,000 or pay cash.
We knew we were facing one competitor. They own a popular bar in Buffalo. Although I do not know them, we have many mutual friends. They seemed extremely confident that they were going to win the bid. Basically I didn’t have a chance.
The director of the URA informed me that my proposal and presentation was going to be based on “scoring”, however, she did a very vague description of how the voting members were going to score.
There were a total of five people scoring. One member had to recuse herself as she had affiliations with my legislative position. The other four members were scoring. The members are attached in one of the documents on this post. The mayor was not a scoring member, however he was involved with the presentation process, etc.
Now it is presentation day, April 28th at noon at City Hall. I brought a team of nine members. My marketing director who help set up our PowerPoint, my office manager/bookkeeper, the two people from Niagara University, who were going to add the apprentice program, my sound and stage technician, a historical renovations contractor who I have done business with for years and has years of historical Preservation experience, the owner of Call Associates , who has over 20 years in business doing federal construction, and he was going to be on our Construction oversight committee, my booking agent, and my son who was going to work with me on every step of this project, moving forward.
The presentation was amazing! It could not have went better! One member was glowing and couldn’t contain her excitement. One member had zero interest at all, and the other two I couldn’t get a read. My team said we knocked out of the park. This was on a Wednesday and we were expecting an answer on Friday. Several members of the team said there’s no way they’re going to wait until Friday. They are going to call you tomorrow to tell you that you are the winner.
Friday came I received a call from the business director informing us that we had a great presentation, but the other party scored higher than us and they were going to give them the building. I was in complete shock. I said was my bid less than theirs or higher? She said my bid was higher than theirs. I said OK how much higher? She wouldn’t answer. I said I’m a little confused and shocked that the city would choose a company from Buffalo with no plan to hire anyone locally, who already has a large share of the concert market in Buffalo now you are giving them Niagara and Buffalo? Isn’t that creating a monopoly? On top of it there are rumors that the other party wants to get Free Grant money, do the renovations for free and put in a zero dollar bid. Basically get a free building with taxpayer money to do the renovations, operate it for a little while and then flip it for a massive profit.
Well, it appears the rumors are true because a few days later, it was on all the new stations, and a few local journalist reported that the owners of the rec room are now the owners of the rapids. They did not mention how much they got the building for or who they competed against.
This is where it gets juicy.
It turns out that the winning bid put an offer in of zero dollars using the $10,000 application fee as “their offer”, and went on to say in one of their interviews that they were solely counting on 100% taxpayer-funded Grants to do the renovations for $1.5 million!!
Let that sink in. The URA turn down an offer of a proven local businessman who is going to use his own money for renovations and operations and had an offer $200,000 higher than the other party. They gave it away to an owner that lives in Kenmore, no vested business, employees, or taxes in Niagara County. As opposed to someone who lives in Niagara County pays taxes in Niagara County, serves in NC, lives in NC, and has a business plan that would grow the local economy, and not counting on taxpayer money for the renovations.
I’ve spoke with my team and my legal team and I put together a FOIL (freedom of information law) request to all parties involved. I received a response saying that it would take 21 days for an answer. They responded a week later and said that they need about 60 days.
My request is complex, but also simple. I requested the other parties application, presentation, along with several other pertaining information.
I received a response from the Mayor stating that he has nothing to provide for this request. I have contacted the clerks office asking for an update and I am receiving nothing. I have asked what the next process is in regards to the city moving forward with the other party and I received many mixed signals. The director is keeping it professional and does not want to speak with me. I did an interview with the Niagara gazette for about two hours a month and a half ago. I am being told every week that it is going to be published the following day and it is not been published yet. It is going on two months since my interview. I have had local media news stations ready and waiting to do a full interview with me. My legal team is waiting for me to give them the green light to step in with legal action. 
I have been patient in silent long enough. My request still have not been answered. It’s simple. I am providing my application in this post. I have been very transparent the entire time. The entire process with the URA has not been consistent or transparent. There are many things I am leaving out for legal purposes. I’m sure many of them will be exposed soon. WHAT ARE THEY HIDING?? By the way, they kept my refundable $10,000 check that was supposed to be refunded if the bid was not awarded to us.
This isn’t winning or losing. This is just a request for transparency. Once these answers become public, then I am good with whatever result happens, win or lose
One thing I do know is never give up on your dreams. This has been my dream for many years, to own this historical theater and create something special for the community for many years to come. I will not go out without a fight.
Regards
Jesse Gooch
