City manager's letter indicates that Mall Merchants Association's funds have run dry
The proverbial “cupboard” is bare.
That’s the view of City Manager Jason Molino, who, in a letter dated April 10, 2017 and obtained by The Batavian in a FOIL request, indicated to the president of the Mall Merchants Association that the group has run out of money.
“Aside from prior year concerns, the Association’s cash position for the current fiscal year is at a deficit,” Molino wrote. “On April 5th, the City recorded a payroll and payroll taxes transfer for the Association in the amount of $3,285.43. However, mail maintenance fees and revenue to date have only totaled $2,170.67. Therefore, the current cash position for the Association is a deficit of $1,114.76.”
The prior year concerns referred to by Molino are what he estimates as $18,000 in attorney fees and material costs expected to come in for February and March of this year.
“The estimate was based on prior year expenditures and the average of material costs from November through January,” he wrote.
Molino went on to state that the City needs cost summaries for services provided in February and March before it can complete its pre-audit preparation work and “make final payments with remaining cash balances for the prior year.”
Per the 1987 Settlement Agreement between the City and the Mall Merchants Association, the City is required to maintain all Association billing and accounting activities, with the Association’s funds subject to the City’s annual audit.
Molino’s letter paints a bleak picture in terms of the Association’s finances, and could further complicate the parties’ quest to ratify a proposed 11-point settlement framework released to the public in February.
At that time, Molino outlined a “settlement framework” for the City and Mall Merchants Association to end their lengthy dispute over maintenance and operation of the City Centre Mall.
That proposal calls for the City to retain ownership of the downtown facility's concourse, pay 100 percent of capital improvements and take care of mall maintenance and operations.
City Council signed off on the plan and expected the merchants to do the same.
Since then, an attorney for the merchants said the Association would not be agreeing to any settlement that didn’t grant easements for pedestrian and vehicle traffic for each property owner in the mall, and also accused the city of trying to force a settlement by “hoarding” nine foreclosed properties and refusing to pay maintenance fees.
Robert Chiarmonte, president of the Mall Merchants Association, reportedly is out of the area until Tuesday and could not be reached for comment.
However, Madeline Bialkowski, director of the mall, said today that Molino is misrepresenting the Association’s account by exaggerating the attorney fees and material costs for February and March.
“All of our actual bills are supposed to be turned in by next week, and we are asking our attorneys to get us their billing,” she said. “Actual bills will be much less than estimated. There won’t be a deficit once these bills come in.”
Bialkowski added some merchants have made their mall maintenance fees’ payment in advance and that she and her staff of three part-time employees are being paid.
According to documents obtained by The Batavian last month through a FOIL request, the merchants have paid their attorneys $212,056 since starting the litigation against the city in 2009.