THE ASSEMBLY

STATE OF NEW YORK

ALBANY

RICHARD L. BRODSKY CHAIRMAN

Committee on
Westchester County Corporations, Authorities and Commissions

June 9, 2010

David Kidera
Director
State of New York
Authorities Budget Office
PO Box 2076
Albany, NY 12220-0076

Dear Mr. Kidera,

For the past weeks, The Committee on Corporations, Commissions, and Authorities have been
engaged in an inquiry into certain actions by the Fulton County Economic Development
Corporation and associated entities. Initially, three issues were of concern. These were the
apparent payment of large sums to those employed by or affiliated with these organizations, their
scope and purposes, and their assertion that the reforms enacted in the Public Authorities Reform
Act of 2009 did not apply to them.

With respect to the first issue, it appears that hundreds of thousands of dollars were paid in what
may be "bonuses" attached to certain real estate transactions. It is unclear whether such
payments are legal, consistent with existing policy or practice, were done in secret, were
approved by the appropriate Boards and officers, and are in the public interest.

With respect to the second issue, there is evidence, preliminary at best, of inappropriate or illegal
corporate purposes for at least one of these entities.

With respect to the third issue, it appears that these entities assert that they are not subject to the
requirements of PARA.

My office has made numerous written and verbal requests for information and explanation,
carefully noting that such information was needed to form a final opinion on these matters. With
the exception of two brief non-substantive conversations with a Ms. Michele Merola, who
identified herself as retained counsel, and Mr. Brian Hanaburgh, who referred me to Ms. Merola,
we have been unsuccessful in receiving any responses.
The Committee will be taking further steps shortly.

As you know, PARA Section 2 authorizes the Authority Budget Office to commence a "formal
investigation" into actions by state authorities that may be in violation of that law, and to
recommend the suspension or dismissal of Board members as the facts may justify. The ABO is

ALBANY OFFICE: Room 422, Legislative Office Building, Albany, New York 12248 (518) 455-5753
DISTRICT OFFICE: 5 West Main Street, Ste. 205, Elmsford, New York 10523 (914) 345-0432
EMAIL: brodskr@assembly.state.ny.us
also empowered to receive and act on complaints which may in turn also lead to suspension,
dismissal or other appropriate action.

Please consider this letter to be a request for an immediate and in-depth "formal investigation" of
the actions of these entities, including but not limited to the three areas I outlined above. If, as I
believe to be the case, these events and decisions actually occurred, then the remedy of
suspension or dismissal would be, in my judgment, appropriate. I would add that the complete
stonewalling by these entities, if approved by Board members, is further evidence of unfitness to
serve.

I look forward to your early reply.

Best wishes,

Richard Brodsky