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Hochul raised $35k from Buffalo Billion contractors now under investigation

Campaign finance records show that in early August 2014 Lieutenant Governor Kathy Hochul brought in more than $35,000 from at least eight people and businesses named in subpoenas in the investigation into Governor Andrew Cuomo’s Buffalo Billion initiative. The donations coincide with a private fundraiser Hochul held at a Buffalo law firm, suggesting that numerous beneficiaries of the Buffalo Billion program all gathered with Hochul in Buffalo to donate to her and Cuomo’s campaign.

On August 4, 2014, Hochul told a central New York newspaper that she was going to make economic development a major focus of her campaign as Cuomo’s running mate. “I have a good handle on economic development issues for sure from my time in Congress, so we’ll be laser focused on that issue,” Hochul told Canandaigua’s Daily Messenger.

Photo via Giancarlo's Restaurant Instagram
Photo via Giancarlo’s Restaurant Instagram

The next day, Hochul held a fundraiser at the headquarters of Buffalo law firm Phillips Lytle LLP, and, over the following two days, Hochul’s fundraising committee reported $333,741 in donations, more than any other three-day stretch in her campaign. Tens of thousands of dollars of the contributions during that period came from people and businesses that had benefitted from Cuomo’s economic development programs, including the Buffalo Billion.

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Paul Ciminelli and Ciminelli Real Estate’s conflicted Buffalo Billion roles

Though much of the reporting around Andrew Cuomo’s Buffalo Billion project has focused on Buffalo construction firm LPCiminelli, relatively little attention has been paid to another major beneficiary of Buffalo Billion spending: Ciminelli Real Estate.

Owned by Paul Ciminelli, the brother of LPCiminelli chairman & CEO Louis Ciminelli, Ciminelli Real Estate has been involved in four Buffalo Billion projects to date, three of which were awarded while its executives held governance positions at state agencies and donated generously to Governor Cuomo’s campaigns.

While these projects were procured by Fort Schuyler Management Corp (FSMC), a non-profit affiliate of SUNY Polytechnic, their funding came from Empire State Development. Ciminelli Real Estate’s president, CEO, and sole owner Paul Ciminelli sat on the Empire State Development board from 2010 through 2014. The land for the SolarCity project was sold to Fort Schuyler by the Buffalo Urban Development Corporation, where Ciminelli Real Estate Executive Vice President Dennis Penman is vice chair.

Though Ciminelli recused himself from votes that benefitted his and his brother’s companies, he did not leave the room during the deliberation and voting process. Penman raised his affiliation with Ciminelli Real Estate, but was permitted to participate in voting and discussion without recusing.

Neither executive disclosed their participation in LPCiminelli’s bid to the boards they sat on as they were making decisions on the project.

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