Revisiting the Rapids

Sometimes you just need to clear the air.

Business Development Director Morgan Genovese addressed “old business” and gave a complete accounting of the process by which the Rapids Theatre development contract was awarded to Chris Ring and Dale Segal. Republican County Legislator Jesse Gooch has been whining about it on social media ever since.

It came at the end of the Niagara Falls Urban Renewal Agency meeting at city hall Wednesday. Genovese said there were 5 credible inquiries into the Rapids Theatre and two applicants who followed through with complete applications including a $10,000 deposit.

Niagara Falls City Council Chairperson Brian Archie was in attendance as a member of the URA Board. So were councilpersons Jim Perry and Vincent Cauley as well as Mayor Robert Restaino. None of them had a vote on the committee that scored the proposals.

Genovese addressed social media allegations originated by Gooch and perpetuated by Cauley. The terms “scandal and cover up” have been used freely.

On the table, from the beginning, was a $1 million land bank grant to fix the roof and do other improvements. Redevelopment of the 1,800-seat theatre begins with fixing the envelope.

Genovese stood in front of a table with a 6-inch stack of papers she had prepared in response to Gooch’s FOIL request, a fire built on social media with flames fanned by Cauley.

Gooch’s experience was booking 8 cover bands a year for Thursday’s on the Water and a keg party called “Goochfest” which raises funds for charity and has live music.

Genovese said Gooch’s proposal was for his first brick-and-mortar operation with lights, sound and food all to be provided by third parties.

His proposal included a letter from Howard Davis of TamCare services, a Florida-based business promising investment if conditions were met. It offered his “full enthusiastic support” and said he had known Gooch for about a decade. It was a Word document on letterhead but lacked any binding commitment.

“For the record, here are Howard’s tax returns,” Genovese said. “He makes a lot of money but that is not evidence he has a lot of money.”

Genovese said Gooch’s application included multiple loans from every contractor who would be doing work with differing terms for payback. There was also no evidence the wedding vendor mentioned in his application existed.

Meanwhile Ring’s application noted they operated the Rec Room in Buffalo, book the majority of shows at Riverworks and book shows in Rochester and Syracuse. After Dark's Website shows 74 events with some booked into next January.

Gooch has no new shows posted onling but did donate $6,500 from parking fees collected for Thursdays on the Water to the Boy Scouts.

Ring included a letter of credit from a bank committing to $1.3 million in funding with light and sound equipment to be purchased and installed, bars to be moved and a full buildout of a commercial kitchen.

Genovese said 1701 Main St. was included in the proposal by Ring as part of a Phase 2 but that it was still owned by a private entity and execution of that phase is a distance off.

Ring and Segal also included three years of personal and corporate tax returns and came to make a presentation with one other professional.

Genovese told the URA board Gooch showed up with friends and family like it was something different than a professional presentation.

Ultimately, the committee scored the two proposals 84-70 using objective criteria clearly enumerated in the application process. The vote was 4-0 for Ring with one member, Andrea Klyczek, Executive Director of the Niagara County Industrial Development Agency, recusing herself.

Cauley asked few questions but did stay after the meeting for further discussion with Genovese about how grants work. Every project of the Main Street portfolio will have a development fulfillment mortgage, that gives the URA a clawback.

The way state grants work, whether Gooch or Ring is the developer, projects need to be completed and receipts offered before reimbursements happen. 

It is interesting to note that while there has been controversy over the Rapids, the Jenss building across the street is larger by a multiple of almost 30 times but still seems to be under the radar.