As City and Developer Negotiate Behind Closed Doors Over Centennial Park Project, Niagara Falls Taxpayers Await the Bill

     A long-fought battle in downtown Niagara Falls has entered a quieter phase, but the stakes for local taxpayers may be higher than ever.

     For more than two years, the City of Niagara Falls and a private development firm known as Niagara Falls Redevelopment (NFR) have been locked in a legal and political conflict over the future of a multi-million stretch of land near John B. Daly Boulevard, directly across from Seneca Niagara Resort & Casino. At the heart of the dispute are two dramatically different visions for the same property. Mayor Robert Restaino’s proposed $250 million Centennial Park arena and events campus and NFR’s proposed $1.5 billion Niagara Digital Campus data center project.

     Now, under the supervision of New York State Supreme Court Justice Deborah Chimes, both sides are engaged in court-ordered mediation aimed at resolving three separate legal disputes. While public rhetoric has cooled and both camps have signaled optimism about a possible agreement, many details remain confidential. What is clear is that the financial burden of any settlement, and whichever project ultimately moves forward, will fall squarely on the shoulders of Niagara Falls taxpayers outside funding materializes—as state officials have indicated they won’t engage in funding discussions while litigation is ongoing.

The Mayor’s Vision: Centennial ParkArena and Events Campus

     Mayor Restaino has championed Centennial Park as a transformative public project designed to re-energize downtown Niagara Falls and reposition the city as a year-round destination for sports, concerts, conventions and community events.

     The plan calls for construction of a roughly 7-8,000 seat multi-purpose arena on approximately 10 acres of land currently owned by NFR near the intersection of 10th and Falls streets. The site once served as 10th Street Park. In addition to the main arena, the Centennial Park proposal includes:

-An events campus with open green space.

-Outdoor performance and gathering areas.

-Retail and hospitality components intended to complement nearby tourism assets.

-Parking facilities and supporting infrastructure.

-Public amenities designed to connect the site with surrounding downtown corridors.

-A secondary arena for smaller events.

-A seasonal splash pad/ice rink,

-A rock climbing wall.

-A rooftop entertainment space.

     City officials have described the project as an investment that could attract minor league sports franchises, regional tournaments, concerts and special events that currently bypass Niagara Falls. Supporters, and Mayor Restaino, argue the arena would generate secondary economic activity in nearby restaurants, hotels and retail establishments.

     The estimated cost of the project has been pegged at approximately $250 million. While the administration has pursued state and federal support, no binding commitments have been finalized. Complicating matters further is that state leaders have made clear they are reluctant to consider significant funding while the city remains embroiled in active litigation over the property.

     In the meantime, planning, design and legal expenses have already accumulated, raising concerns about sunk costs if the project stalls or is abandoned.

The Competing Proposal: Niagara Digital Campus

     Niagara Falls Redevelopment has its own ambitious plan for the same property, proposing a $1.5 billion data center complex known as the Niagara Digital Campus. The project would include:

-A large-scale energy-intensive data center campus.

-Advanced computing and server infrastructure.

-High-capacity electrical and fiber connectivity.

-Supporting utility upgrades and technical facilities.

-Ancillary commercial development tied to technology operations.

     NFR claims the Niagara Digital Campus would generate significant private investment in the city and create hundreds of jobs. Company representatives have stated that construction alone would produce substantial employment opportunities while long-term operations could support a mix of permanent technical, maintenance and security positions. Debate among public officials and residents have referenced hundreds of direct and indirect jobs, though critics have questioned how many would be high-paying local positions versus specialized roles requiring outside expertise.

     Data centers typically employ fewer permanent workers than large entertainment venues but can produce stable tax revenue if structured properly. It would also be one of the few businesses in downtown Niagara Falls not dependent on tourism.

     The legal battle: eminent domain and ownership claims

     The conflict escalated when the city initiated eminent domain proceedings in an effort to forcibly acquire NFR’s land for Centennial Park.

     Initially, the city offered NFR $4 million for approximately 10 acres of property. Public records show that NFR purchased the land years ago for roughly $1.42 million. However, NFR has suggested the property’s current market value, especially given its proximity to the casino and tourism corridor, could be as high or exceed $20 million. After all, property is worth as much as the next person is willing to pay for it.

     City officials have also advanced a separate legal argument that five of the 10 acres may still belong to the city because NFR allegedly failed to secure proper state approvals when it originally acquired the former 10th Street Park site.

     In total, three legal disputes are currently under mediation:

1. Two cases connected to the city’s use of eminent domain.

2. A third case involving a Freedom of Information Law request filed by NFR seeking documents related to Centennial Park design work.

     While the court has instructed both parties to avoid public commentary on mediation details, Mayor Restaino has publicly stated that the city is working toward resolution and hopes to provide updates soon.

     What remains unclear are the terms of any potential settlement—and the price tag.

What could it cost taxpayers?

     Land acquisition alone could cost millions. Although the city’s formal offer was $4 million, earlier administrative estimates suggested a possible cost closer to $7 million. If NFR’s higher valuation arguments gain traction in negotiations or litigation, the number could rise substantially.

     Beyond purchase price, taxpayers face several likely bills their likely to bear the brunt of (one way or the other):

-Legal expenses from prolonged court proceedings (after all, it’s not coming out of Mayor Restaino’s paycheck).

-Design and consulting fees already incurred.

-Infrastructure improvements needed for either project.

-Bond financing costs if the arena moves forward.

-Potential incentives or tax arrangements tied to the data center.

     If a settlement involves the city abandoning eminent domain in exchange for concessions, taxpayers may still shoulder costs indirectly through infrastructure upgrades or revenue-sharing adjustments.

     Adding to the pressure is the state’s position. Without resolution of the property dispute, Albany has shown little appetite for discussing major funding packages. This leaves the city in a precarious position: proceed with a publicly financed arena at significant local expense or negotiate a compromise that could alter the scale or structure of development.

Political Tensions and Transparency Concerns

     The dispute became a flashpoint during the most recent City Council election cycle, with candidates staking positions on the arena, the data center, or the broader issue of eminent domain.

     Some council members have expressed cautious optimism about mediation but emphasize that any agreement must come before the council for approval. Others remain firmly opposed to the use of eminent domain in this case, arguing that the city should negotiate rather than litigate with private landowners.

     Former elected officials have raised concerns about negotiations occurring behind closed doors in a private court setting, arguing that residents deserve transparency on decisions that could obligate millions in public funds.

The Broader Question: What is the Real Return?

     Beyond the courtroom and council chambers lies a fundamental economic question: what development path offers the greatest long-term benefit to Niagara Falls residents?

     The arena concept hinges on tourism growth, event bookings and spillover spending. Its success would depend on consistent programming, regional draw and competitive positioning against larger markets like Buffalo and Toronto.

     The data center proposal promises private capital and technology infrastructure but raises questions about job quantity, energy consumption and community integration.

     At stake is not just a parcel of downtown land, but the fiscal trajectory of a city that has long sought a breakthrough project capable of reshaping its economic future—only to fail time and time again.

     Regardless of which way it goes, we will see if this results in more of the same.

Promotional Content

As City and Developer Negotiate Behind Closed Doors Over Centennial