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Saranac Lake LDC cited for not filing reports

SARANAC LAKE — State officials say the Saranac Lake Local Development Corporation has failed to file the necessary financial reports and is out of compliance with state law.

The LDC, which has been leading a downtown revitalization campaign, is one of 124 delinquent authorities that failed to file budget, annual or audit reports by the required deadlines, according to a Wednesday press release from the state Authorities Budget Office. The LDC is one of 58 nonprofit corporations on the list.

The Authorities Budget Office says most of the delinquent authorities have annual reports or audit reports that have remained uncertified and unsubmitted more than 60 days passed the statutory reporting deadline. Some have not certified and submitted a budget report more than 90 days after the reporting deadline.

“Releasing this list publicly constitutes an official warning to the directors and management of these authorities pursuant to Section (6)(2)(f) of Public Authorities Law,” the release states. “The failure to correct this delinquency and submit the necessary reports will lead to additional enforcement action by the ABO.”

The report says the Saranac Lake LDC’s budget report was due Nov. 1, and its annual report and audit report were due March 31, 2016, but none of the reports have been submitted.

LDC Chairman Paul Van Cott, who’s also a village trustee, said he didn’t provide the necessary statements to the organization’s auditor until December, and he’s waiting for the audit report to be completed. He said he reached out to the LDC’s auditor and asked him to complete his work as soon as possible.

Van Cott said the failure to submit the reports on time is due to the fact that the LDC is run by volunteers, all of whom have other, full-time jobs.

“We take our responsibilities very seriously and have been building credibility and momentum for economic development both locally and at the state level,” Van Cott wrote in an email. “Ideally, at some point we can contract for someone to do some of these administrative tasks and relieve some of the burden on our volunteers. Our volunteers already make herculean efforts, and there is much work to do. We need more volunteers to step up and help.”

The LDC’s workload, Van Cott said, includes administering a $300,000 New York Main Street grant it was awarded last year, “getting those projects going, getting new grant applications done, and all of the other work that the LDC does in support of revitalization.”

The state reporting requirements are simple, but they take time, he added.

“Yes, we are out of compliance with state law in meeting a deadline, but we are 100 percent in compliance with state law in terms of keeping our records and doing the good works that LDCs are supposed to do. As volunteers, I am proud of the work the LDC does and the integrity of our organization.”

The LDC receives about $2,500 a year from the village to cover administrative costs, like insurance and stamps, but doesn’t have any paid employees. Its board is made up of volunteers. Van Cott said the organization received about $20,000 in donations, all of which has been used for downtown revitalization efforts, including architect costs for several projects that are underway.

The LDC hasn’t asked for any of the $300,000 from the state yet. Most of that will be paid out as reimbursements once the projects are done, Van Cott said. Roughly $20,000 will be earmarked for a consultant who’s helped implement the grant.

Van Cott offered to show the Enterprise the LDC’s audit report once it’s finished.

In addition to downtown revitalization, the LDC is leading the development of an Arts and Culture Master Plan for Saranac Lake using another state grant. It’s also seeking a National Endowment for the Arts grant to supplement the master plan effort.

Among other things, the LDC has started work on a new grant application for New York Main Street program funds for the restoration of the former Dew Drop Inn, Van Cott said. It’s also working with Franklin County on a possible micro-enterprise grant for Saranac Lake businesses that want to grow and add jobs.

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