NIAGARA FALLS, N.Y. (WKBW) — Niagara Falls Redevelopment has threatened legal action against the city of Niagara Falls for failing to pay its $4 million piece of the Centennial Park settlement.
In early June, the city council voted to agree to a property settlement with Niagara Falls Redevelopment.
The settlement would, among other things, "donate" 907 Falls Street to the city so that it can build its $220-million Centennial Park stadium concept. It will also rezone properties owned by NFR that are East of 907 Falls Street so that NFR can develop its $1.5-billion Niagara Digital Campus data center.
While the settlement lists the property as a "donation," it will still cost $4.029 million, as a "reimbursement of costs and expenses incurred by NFR in connection with the Donated Property," but as of July 29, the city still hasn’t paid that fee.
WATCH: Niagara Falls and NFR agree on settlement for city-owned arena and NFR data center
"This council has been confusing me and the entire city of Niagara Falls since they were sworn in in January," Mayor Robert Restaino said.
Restaino told me that the city council has voted twice against using the money in the city fund balance to pay the bill.
"Not the general fund, that’s taxpayers’ money," Councilwoman Bridgette Myles said.
Restaino pushed back against the idea that the money in the general fund is "taxpayer money." He told me that less than one-third of city income has come from property taxes, making the fund balance a mix of several other tax and revenue streams.
WATCH: NFR threatens legal action against Niagara Falls for failing to pay $4M arena settlement fee
Still, Myles feels the NFR payment should instead come from the city’s share of state tribal funding from the Seneca Nation gaming compact.
"It’s a separate pot coming from the casino and casino revenues," Myles said.
As a yearly income typically used on other expenses, Restaino feels using tribal funds would take away from the city, specifically, the police force.
"As a result of using this funding, we are no longer in a position to make that acquisition for new police vehicles," Restaino said.
"I know tribal funds are used for capital projects, but the police department and fire department, they received a lot of equipment last time, so they should be okay for right now," Myles said. "I don’t see how it would hurt to use tribal funds versus the general fund balance."
The council will vote again Wednesday, this time on whether to use those tribal funds. Despite the mayor’s concerns, Myles feels this time the vote will be passed.
"My colleagues are very strong on having this come out of the tribal funds versus the general fund," Myles said.
"It will either end this crazy situation or invite us back into court," Restaino said.
Lawyers representing NFR declined to provide any comment in response to this story.
You can read the letter sent to the city here:
Spitzer Settlement Sum Demand Letter 07 20 2026 (2) by derek.heid
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