Buffalo Mayor Byron Brown
BUFFALO, NY - Buffalo Mayor Byron Brown, the City of Buffalo, and others are being sued by an out-of-state developer who accuses them of corruption and racketeering.
A housing developer from Cleveland claims the mayor, Council Member Demone Smith and others conspired to kill the company's project to build affordable housing in the city's Masten District.
The lawsuit, filed by NRP Corp., claims that Mayor Brown and Councilman Smith told the company that unless it hired a Buffalo development company run by a supporter of the mayor, that the city would kill the project despite a contractual agreement with the Cleveland company.
Reverend Richard Stenhouse, who is also named as a defendant in the suit, runs the company the Mayor allegedly wanted NRP to hire. NRP claims that, two years ago, after refusing to hire Rev. Stenhouse, the project fell apart.
Although the lawsuit alleges criminal behavior, it is only a civil suit for monetary damages. We asked the lawyer for the developer why, if they believed there was criminal activity, they didn't first go to the FBI. The lawyer told us it was his understanding the authorities had already approached the developer.
We were able to confirm from a source that the FBI did inquire about the issue, but it's unclear if it ever went any further.
The mayor has repeatedly said the city stopped the project because NRP insisted insisted it build 30-year, rent-to-own homes, which the mayor and other found objectionable.
MAYOR: These allegations are completely untrue. This is a lawsuit from a Cleveland developer, and we plan on vigorously defending it in court.
REPORTER: When you say untrue, specifically, did you or anyone from your staff, or council, or from City Hall tell this company that they had to hire Reverend Stenhouse?
MAYOR: The claims in the lawsuit are untrue, and we look forward to defending it in court.
REPORTER: Did you at any time tell anybody from this company that they could not have the project if they did not hire Reverend Stenhouse?
MAYOR: No. I did not tell anyone in the company that. Um, absolutely not.
2 On Your Side also caught up with Council Member Smith, who offered little information, citing the need to keep quiet during he pending lawsuit.
SMITH: The charges from this out of state developer, who was trying to do 30-year rent-to-owns, are completely false.
REPORTER: Did you, the mayor, or anybody else you know urge this company to hire Reverend Stenhouse?
SMITH: You see, and this is where I can say only so much because we have retained a counsel, I won't be able to win this case right here today. I'm going to wait for my day in court.
REPORTER: Is it correct that you or the mayor or somebody else urged them to hire Reverend Stenhouse?
SMITH: No. Like I said, no. And I can only go so far, but, no.
We visited the church of Reverend Stenhouse, but we're told he would not comment.
Both Mayor Brown and Council Member Smith said they were not questioned by the FBI.