The New York State Authorities Budget Office announced it has censured the boards of directors of 13 public authorities for persistent failure to comply with state law.
The authorities receiving the letter are: Bolton Local Development Corporation; Corinth Industrial Development Agency; Fulton County Center for Regional Growth; Fulton County Economic Development Corporation; Joseph Davis State Park Local Development Corporation; Mechanicville Community Development Agency; Mount Vernon Urban Renewal Agency; Olean Local Development Corporation; Olean Urban Renewal Agency; Otsego County Development Corporation; Tompkins County Area Development; Village of Chittenango Local Development Corporation and West Brighton Community Local Development Corporation.
See http://www.abo.ny.gov/enforcement/enforcement.html for copies of the letters.
The censure letter, which was sent to the individual directors of each authority, was issued due to the collective failure of the directors to take appropriate action when the authority was previously warned that it was out of compliance with state law. Those prior warnings constitute reasonable evidence that the board was made aware of this situation.
David Kidera, director of the ABO, said “the board members of these 13 authorities were given every opportunity to comply with state law. We were compelled to take this enforcement action when directors neglected their legal responsibilities over several years and failed to respond adequately to previous warnings issued by our office. “
The censure becomes part of the public record and disclosure of the letter may be required by federal securities law, should the authority enter the bond market in the future.
This brings to 38 the number of authorities censured by the ABO for persistent non-compliance since October 2011.