Updates from the Committee on Corporations, Authorities and Commissions

Assembly Committee Opens Inquiry into Extraordinary Compensation Paid to Executives of the Fulton County Economic Development Corporation and the Crossroads Incubator Corporation
June 1, 2010

Based on evidence of extraordinary payments and a refusal to comply with the recently enacted Public Authorities Reform Act of 2009, which became effective March 1, 2010, Assemblyman Richard Brodsky (D-Westchester), Chairman of the Assembly Committee on Corporations, Authorities and Commissions, has opened an inquiry into the Fulton County Economic Development Corporation and the Crossroads Incubator Corporation.

As part of its oversight activities, the Committee has contacted top-level executives at both local authorities to make a request for documents relating to the reported six-figure bonuses received by some members of the authorities. Assemblyman Brodsky has also asked for clarification regarding the authorities’ refusal to comply with PARA. In an effort to promote fiscal transparency and accountability, the Assemblyman has sent a letter to the Board of both authorities requesting:

  • A copy of your constituting documents including but not limited to your article of incorporation and by-laws
  • A copy of your annual reports for the past 5 years
  • A complete schedule of compensation for the past 5 years
  • All documents concerning the payments of extraordinary compensation to any persons in the past 5 years including but not limited to Board actions
  • All documents related to a policy or practice that may permit or authorize such payments, including but not limited to Board actions
  • All statements, opinions, or documents related to whether the Public Authorities Reform Act of 2009 applies to Fulton County Economic Development Corporation and the Crossroads Incubator Corporation

“We will continue our oversight activities, even though PARA became effective March 1. Any failure to comply will be carefully reviewed,” stated Assemblyman Richard Brodsky.

A copy of the letter that was sent to every Official and Director of both authorities is attached.