$1.4 Billion Buffalo Bills Stadium Lawsuit Delayed Until After Election

By Dan Murphy 

A lawsuit filed by four New York State residents against the taxpayer funded plan to build a $1.4 Billion stadium in Buffalo for the Buffalo Bills will not be ruled on until after Election Day 2022, after NY State has requested a 30 day extension to respond to the lawsuit. 

This case is a challenge to the constitutionality of law adopted by the Legislature and Governor Kathy Hochul after they appropriated $600 Million in the State Budget for a new stadium in Buffalo, and authorized $250 Million in funds from Erie County to help pay for the construction. The public funds would be passed through the State’s Urban Development Corporation.

Citing Article VII, Section 8.1 and Article VIII, Section 1of the New York State
Constitution, Plaintiffs challenged the constitutionality of the use of State and County funds in aid of the private undertaking.

The total cost of the stadium is estimated at $1.4 Billion, with $850 Million coming from taxpayers. The owner of the Buffalo Bills is Terry Pegula, who has a worth estimated at $5 Billion. 

If the funding plan goes through, the NFL will loan Pegula $200 Million and Pegula will fund the remaining $350 Million. 

Westchester resident Tony Futia is among the four who filed the suit. “Clearly, and without doubt, the New York State Constitution prohibits the giving or lending of State and County money “in aid of any… private corporation … or private undertaking ….” Article VII, Section 8.1 and Article VIII, Section 1. There are no exceptions. No State or County money can be appropriated for any project or undertaking if any part of that appropriation will aid – i.e., help, a private corporation. A private corporation is, by definition, a corporation organized for the profit of its members or in which the entire interest is not held by the state,” states the Memorandum of Law filed by the four New Yorkers.

The legal papers also point out that “the public funds are to be used in aid of a private corporation in the non-essential business of enterainment, including entertaining people from states other than New York."

Bob Schulz, one of the plaintiffs in the lawsuit said, “The State of New York is a Constitutional Republic. The power of elected officials is limited by the will of the People as expressed in the State Constitution. Elected officials often step outside the boundaries drawn around their power. By appropriating $600M in state funds, and authorizing $250M in county funds to aid the Buffalo Bills, Gov. Hochul and the Legislature have violated provisions of the Constitution that prohibit the use of public funds in aid of private undertakings. We are asking the Court to invalidate those appropriations.”

Polling has consistently found more than 60% of New Yorkers opposed to using taxpayer dollars for the new stadium. 

Governor Hochul has been criticized for pushing through the expenditure, including accusations of benefits from the new stadium going to her husband William Hochul, who is general counsel and senior vice president at Delaware North, the Buffalo-based hospitality giant that has operated concessions at the Bills stadium for the past 30 years. Media reports state that while no hospitality contract has been concluded, Delaware North’s history with the Bills puts them in a favorable position.