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HEADLINE: STATE PROBING CLAIMS OF SUBSTANDARD PAY AT PROJECT

BYLINE: THOMAS J. DOLAN; News Staff Reporter

BODY:


State labor officials are investigating complaints that builders are paying substandard wages to employees working on the $ 40 million redevelopment of Frederick Douglass Towers housing project.

Several construction union leaders claim that non-union workers involved in the redevelopment are receiving $ 12-$ 14 an hour without benefits, about half the state's standard wages for public works projects.

According to state law, construction workers on public works projects are entitled to the "prevailing wage," which usually equates to the union scale, plus benefits. "I went over to the site myself and discovered that they are not paying the prevailing wage," union organizer Gerald H. Franz said. Franz, who represents the International Union of Operating Engineers Local 17, said he has alerted state and city officials.

The redevelopment is expected to raze most of the high-rise housing project and transform it into 160 privately-owned town houses. Phase one began earlier this summer when workers demolished two of the 12 apartment towers located at 22 Jefferson Ave.

Funding for the first phase includes $ 14 million in federal, state, city and private money.

When completed, the state-owned property is expected to be turned over to a private partnership, but it will be operated by the Buffalo Municipal Housing Authority.

However, some union leaders question the housing authority's role in the redevelopment, and complain that officials may have arranged a "paper sale" of the property to a private developer, who is being permitted to pay substandard wages for public projects.

Documents show the authority sold the site Dec. 27 for $ 1 to a partnership that includes several housing authority officials, among them Executive Director Sharon M. West.

West, who could not be reached to comment, is listed on one document as president of the general partnership representing the new redevelopment group.

"It looks to me like they're playing dirty pool," Franz said. "I don't see how this gets them out from underneath the prevailing wage law."

Also criticizing the project was Council Member at Large Charley H. Fisher III.

"I can't understand how this could be happening in the year 2000," Fisher said Friday. "This kind of situation will not be tolerated in Buffalo under my watch. I will do everything in my power to avoid these kinds of situations."

Fisher, who also questioned workers at the project site regarding their wages, said he has complained to top city officials about the case.

"I have confidence the Department of Labor and the city administration will look into it. . . . I trust them. . . . Both promised that they would look into the matter," Fisher said.

A spokesman for the state labor department confirmed that the matter is under investigation, but said officials would have no comment.

Also unavailable to comment was David A. LoTempio, the attorney representing the new owner of the redevelopment partnership, Frederick Douglass Associates.

LOAD-DATE: August 21, 2000