NIAGARA FALLS, NY (WKBW-TV) - The Federal Bureau of Investigation paid a visit to Niagara Falls city hall on Wednesday regarding a prominent and visible downtown landmark.
"The FBI agents delivered a grand jury subpoena which was related to tax payments made on the one Niagara property dating back to 2004," said Paul Dyster, Niagara Falls Mayor
An FBI spokesperson confirms they were in the falls but didn't give any specifics because of an on-going investigation. The owner of One Niagara also says federal agents stopped by but for an unrelated reason.
Dyster said, "there's been a lot of controversy about this parcel."
It appears the issue surrounds back taxes on the property first owned by buffalo developer Frank Parlato and now by Lewiston Attorney Paul Grenga.
Mayor Dyster says One Niagara owes roughly $2-million in back property taxes, interest and penalties to the city, county and school district.
Grenga doesn't agree claiming the property is unfairly assessed, "the reason the taxes are so high by some unique nuance in the New York State tax law when the former Aqua-Falls development failed the property reverted back to the full assessment when Occidental Chemical owned it."
Grenga says between 2004 and 2008... One Niagara paid $650,000 in real property taxes, which he believes they will get a refund or credit due to the over assessed property.
As for taxes from 2008 until the present they are waiting for a judge to decide.
"All the taxes from 2008-to present are in litigation in NYS Supreme Court cause we were not able to reach an agreement with the city on the resolution on that," Grenga said.