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Court upholds corporation oversight

ALBANY — A New York court has upheld state oversight of a not-for-profit local development corporation that challenged its designation as a public authority subject to state audits, reporting and board member training.

The Appellate Division justices, agreeing with a lower court, have denied the appeal of the Griffiss Local Development Corp., which was established to redevelop the former Griffiss Air Force Base in Oneida County.

The Authority Budget Office was established in 2005 to improve oversight of quasi-public authorities created by municipalities and which may provide tax breaks, charge fees and borrow money.

The court rejected Griffiss’ contention the definition of an authority is unconstitutionally vague, finding its close relationship with the county and its purpose in assisting municipal redevelopment efforts constitute the type of entity lawmakers intended to cover.