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Common Council's reductions to the Dunkirk Local Development Corp. could put the agency in jeopardy in 2021. According to Rebecca Wurster, city planning and development director, at least $15,000 is needed for operating costs.
"If the council does not approve the additional $15,000, this board will have to think about what happens to those properties in the future," Wurster said. "My biggest concern is that the DLDC's operating account doesn't get that money and the operating account runs out and then we can't pay the taxes and then the DLDC goes into foreclosure with these properties and the city doesn't want to take them on; it just looks irresponsible on all levels."
On Dec. 1, Common Council approved a budget that reduced funding for the arm of the city by $45,000. It is one of the four vetoes by Mayor Wilfred Rosas.
At the quarterly DLDC meeting last week, Wurster said the agency has five different accounts. However, that doesn't mean that the organization can pull funds from different accounts to replenish their operating account.
"These are encumbered funds and what that means that they're restricted to inside specific accounts that they are reserved for specific debt to the liabilities for the future," Wurster stated.
These accounts include the festivals, farmers market, dog park, its loan and operating funds. "Those funds are allocated to those things already," Wurster said. "So when we say there's $80,000 in our festivals account that doesn't mean $80,000 to just move around wherever. We've had past donations for festivals and events and those funds are already earmarked for next year."
Properties are a big part of the agency and the $15,000 covers the taxes, insurances and legal fees for the seven properties owned by the DLDC.
"That's really important for economic development because when working with a developer it's just easy for a DLDC to work with the property and work with the developer to transfer that property," Wurster said. "It's not necessarily hard if the city owns it, but it makes it easier and more accessible for developers."
Wurster went on to note the city cannot accept large donations that are given to the festivals, events and the farmers market. "That is why the DLDC is so important to continue to run," she said.
Dunkirk Common Council meets tonight and is expected to override the four vetoes, including the DLDC funding, announced by Rosas.