04/30/2025
Comment your thoughts below -
Proposal for a Shared Revenue Agreement Between the City of Niagara Falls, NY and New York State
Title: A Shared Revenue Agreement for the State Park at Niagara Falls
Submitted by: Shawn Le Vick, Candidate for Niagara Falls City Council
⸻
Executive Summary:
The purpose of this proposal is to request the State of New York to establish a shared revenue agreement with the City of Niagara Falls, specifically for a percentage of the revenues generated from the New York State-owned Niagara Falls State Park. As one of the premier tourist destinations in the world, the park generates significant income for the state, yet the city, which hosts and supports the infrastructure around the park, receives minimal direct financial benefits from its operations. A shared revenue agreement would provide necessary resources to the City of Niagara Falls, helping fund essential services, improve tourism infrastructure, and support local businesses.
⸻
Background:
Niagara Falls State Park is not only a national treasure but also a major economic engine for the State of New York. Millions of visitors each year come to the park, generating revenue through entry fees, parking, and other attractions. However, while the state benefits greatly from the influx of tourism, the City of Niagara Falls, where the park is located, does not receive a sufficient share of the generated revenue to support the increased demand for city services and infrastructure.
The city’s public services—ranging from public safety, sanitation, infrastructure, and tourism services—are stretched thin as they accommodate the influx of tourists that the state park attracts. In light of the immense contribution Niagara Falls State Park makes to New York State’s economy, the city should receive a portion of the revenue to reinvest into the local community, enhance tourism services, and improve quality of life for residents.
⸻
Proposal:
The City of Niagara Falls proposes the establishment of a shared revenue agreement with the State of New York, specifically regarding the revenues generated by Niagara Falls State Park. Under this agreement, the city would receive a percentage of the revenue derived from:
1. Park Entry Fees: A percentage of the revenue generated from entrance fees to the state park.
2. Parking Revenue: A percentage of parking fees collected at state-owned lots located near or within the park.
3. Tourism-Related Services: A share of the revenue from state-run attractions, souvenir shops, and other tourism-based operations within the park’s vicinity.
The funds generated from this agreement would be earmarked for the following initiatives:
• Infrastructure Improvements: Enhancing city streets, parks, and public spaces that tourists frequently visit.
• Public Safety: Expanding and improving public safety services to ensure that both visitors and residents are safe.
• Tourism Services: Creating and maintaining resources for tourists, including information centers, improved signage, and event programming to attract more visitors year-round.
• Community Development: Funding programs aimed at revitalizing downtown Niagara Falls, enhancing public amenities, and supporting local businesses.
⸻
Rationale:
1. Economic Impact: Niagara Falls State Park is the major driver of tourism for the city. Yet, the revenue from the park’s operations largely benefits the state and does not proportionally contribute to the local community that bears the burden of maintaining infrastructure and services for visitors. By sharing a percentage of these revenues, the city can better manage the influx of tourism while investing in local needs.
2. Improved Quality of Life: The revenue-sharing agreement will help the city meet its needs for essential services, like public safety and infrastructure improvements, allowing for a better living environment for residents and a more enjoyable experience for visitors.
3. Strengthening Local Businesses: Supporting small businesses in the surrounding areas and improving the tourism infrastructure will encourage longer stays and higher tourist spending, which benefits the city’s local economy.
4. Fair Compensation for the City’s Role: The city hosts the park and supports the surrounding infrastructure, yet it does not receive direct financial compensation for the tourism services it provides. A revenue-sharing model is a fair way to ensure that the city benefits from the economic activities generated by the park.
⸻
Implementation:
1. Legislation: A bill will need to be introduced to the New York State Legislature to authorize the shared revenue agreement. This bill will define the percentage of revenue to be allocated to the city, specify the categories of revenue to be included, and determine the process for fund allocation.
2. Revenue Collection and Distribution: The state will be responsible for collecting the relevant fees (entry, parking, etc.). A portion of the revenue will then be transferred to the City of Niagara Falls through a specified revenue-sharing mechanism.
3. Transparency and Accountability: To ensure transparency, the funds received by the city will be accounted for and directed to the aforementioned projects. An annual report detailing the usage of these funds will be provided to both the state and local government.
⸻
Conclusion:
This proposal calls for a shared revenue agreement between the State of New York and the City of Niagara Falls to ensure the local community directly benefits from the tourism-driven revenue generated by Niagara Falls State Park. By fairly compensating the city for its role in supporting this vital state asset, we can invest in improving the city’s infrastructure, public services, and tourism services. This partnership will strengthen Niagara Falls as both a premier destination for visitors and a vibrant community for its residents.
⸻
Next Steps:
1. Advocate for Legislative Support: Mobilize support within the Niagara Falls City Council, local stakeholders, and state legislators to pass the proposed legislation.
2. Public Engagement: Hold public meetings and informational sessions to educate residents and businesses about the proposal and gather support.
3. Collaborate with State Officials: Work with state representatives to craft the legislation and ensure it meets the needs of both the city and the state.
⸻
By implementing this shared revenue agreement, we can ensure that the economic benefits of Niagara Falls State Park are more equitably distributed, helping to create a sustainable, thriving community that benefits both residents and visitors.