City Newspaper Archives - 4/2008

POLITICS: State looking into Paetec Park

Published by Tim Louis Macaluso on Apr 09, 2008
A spokesperson for the New York State Comptroller's Office says that an audit of Paetec Park's financial morass is under consideration.

"We're still in the preliminary stage," says spokesperson Bill Reynolds. "But yes, we are looking into it. We start by conducting a review of the whole situation to determine the scope of the investigation. Then we conduct the audit, which will take several months to complete."

Reynolds said the initial review does not guarantee that a full-blown audit will be conducted.

City Corporation Counsel Tom Richards said in an interview with City that the state's examination would not impact the lease with the Rhino's new owner.

The city's lease with Rob Clark is different than the one the city had with former owners Steve Donner and Frank DuRoss. Under that lease, the city owned the land on which the $32 million stadium is built, and leased it to Donner and DuRoss for $1 annually. Donner and DuRoss owned the stadium until the city took possession in February, after the owners defaulted on a loan.

The new 15-year lease with Clark is also for $1 annually, Richards said, but it is for both the land and the stadium. Clark is responsible for maintenance and repairs to the stadium and the grounds.

The new lease is better for the city because it is more straightforward, Richards said. "It's a more conventional and less complicated lease," he said.

But some City Council members are concerned about the terms of the new lease, and about Clark's finances. At a meeting last week, Councilmember Adam McFadden asked that Richards brief council members about the lease in much greater detail. City Council is set to vote on the lease on Tuesday, April 15.

"I keep hearing that his father has money," McFadden said of Clark. "But what assurances do we have that he is not going to run into the same problems?"

There are no guarantees that Clark will succeed, Richards said, but protections are in place to help prevent a repeat of the Donner-DuRoss scenario.

A $4 million state grant to build sky boxes will not go to Clark, Richards said. Instead, the city will receive the funds and have the improvements made to the stadium. But Clark, Richards said, is responsible for all advertising and promotions, including naming rights for the park with Paetec.

And Clark will have to fill seats at the stadium on those nights when the Rhinos are not playing.

"That stadium has to be used as much as possible to be successful," Richards said. "You might think of the Rhinos as the anchor tenant, and I think Clark knows that."