Buffalo Company Calls on U.S. Attorney to Probe Case

Contractor Says Crooked "Pay-to-Play" Culture Alive and Well in New York State

Buffalo--February 15, 2016 ... The Buffalo contractor who was awarded the $20 million Canalside Skating rink contract -- before being controversially replaced by a rival firm that donated lavishly to the campaigns of Gov. Andrew Cuomo and Lt. Governor Kathy Hochul -- today called on U.S. Attorney Preet Bharara to probe the circumstances of her case.

In a letter recently sent to the U.S. Attorney, Rosanne DiPizio, CEO with Dreamco Development Corporation and acting CFO and project manager with DiPizio Construction, who completed nearly 50 percent of the Canalside project before being wrongly terminated, in part, because she warned leaders of major design flaws and budget problems, wrote that she has experienced the backlash and unfairness of New York's rigged "pay-to-play" system firsthand and welcomes federal "efforts to shine a light on, and more importantly, prosecute New York's crooked and systematic practice of rewarding high-end donors and friends of the political class." (Letter is below).

"I have long maintained that poor planning, improper budgeting and incompetent management and oversight on the part of ECHDC, Empire State Development Corp. and Gov. Cuomo's appointees led to construction delays," DiPizio writes. "I also believe that the company was made to be a scapegoat so that the state agency could hire a firm that played by Albany's unspoken rules involving campaign kickbacks."

DiPizio has been an outspoken critic of Erie Canal Harbor Development Corporation Board President Thomas Dee and Empire State Development Regional Chairman Sam Hoyt, appointees of Gov. Andrew M. Cuomo, for unfairly and unilaterally terminating her family's construction company -- in business for 37 years with an impeccable reputation and record of results.   DiPizio and her family owned business won the contract to build the Canalside rink in 2012. After being wrongly blamed for delays, the contract was given to Pike Construction. DiPizio is currently suing the ESD, ECHDC and its leaders for blaming her for the project's delays and tarnishing her company's reputation.

DiPizio's concerns coincide with reports that the Buffalo Billion revitalization program has come under scrutiny by U.S. Attorney Preet Bharara's office apparently over how contracts have been awarded in the region.

The Honorable Preet Bharara

U.S. Attorney for the Southern District of New York

Office of U.S. Attorney

One St. Andrews Plaza

New York, N.Y. 10007

February 11, 2016

Dear Mr. Bharara:

I have read and closely followed your efforts to root out corruption in New York State, and I am particularly interested in reports that your office is looking into the potentially improper awarding of contracts associated with the so-called "Buffalo Billion" program.

As a small business owner whose family-owned construction company has been a respected employer in Buffalo for 37 years, without incident, I welcome your efforts to shine a light on, and more importantly, prosecute New York's crooked and systematic practice of rewarding high-end donors and friends of the political class. From my perspective, it sure looks like a "play-to-play" culture is alive and well in New York.

I have experienced the backlash and unfairness of this rigged system firsthand: I was wrongfully terminated from a $20 million contract to build the Canalside Ice Rink after winning the job in 2012 from the Erie Canal Harbor Development Corporation and Empire State Development through a competitive bidding process. Unfortunately, I was made a scapegoat by ECHDC and ESD leaders -- notably ECHDC Board President Thomas Dee and ESD Regional Chairman Sam Hoyt, appointees of Gov. Andrew M. Cuomo -- who, after tarnishing my family's reputation, subsequently gave the contract to a company whose executives have donated generously to Gov. Cuomo and others throughout this region.

I have long maintained that  poor planning, improper budgeting and incompetent management and oversight on the part of ECHDC, Empire State Development Corp. and Gov. Cuomo's appointees led to construction delays. I also believe that the company was made to be a scapegoat so that the state agency could hire a firm that played by Albany's unspoken rules involving campaign kickbacks.

Adding to the injustice, unfairness and absurdity of this situation, the ECHDC board members just this week, on February 8, 2016, ratified Dee's decision to terminate the contract -- nearly 3 years after he acted unilaterally.

Although the Canalside project is not technically part of the Buffalo Billion, the circumstances (and the players) of my situation and other major public projects in this region are almost identical to reports that I have read and heard. I ask that you probe the circumstances of my case as they may very well have striking parallels to the larger culture of corruption that is plaguing Albany and efforts to turn around the City of Buffalo.

While Buffalo needs to be revitalized and is poised for a rebirth of sorts, I am personally saddened that Buffalo's opportunity for a turnaround is being undermined by incompetence and corruption.

A true economic turnaround can neither happen under the current cloak of corruption hanging over the city nor under the current leadership at the ESD, ECHDC or under this governor's leadership as it now exists.

I have tried to expose these leaders through the courts, but as you can imagine that is taking time and significant financial resources, which leaders here seem all too happy about, as they divert millions of taxpayers dollars to politically-connected outside counsel, Phillips Lytle LLP.

My case is a classic David versus Goliath scenario, and I don't know where to turn. I welcome the attention of your office.

Sincerely,

Rosanne DiPizio

DiPizio Construction and Dreamco Development

CC: Members of the New York State Press