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Town of Massena hires Syracuse firm to help set up data center regulations

Posted 10/28/26

MASSENA -- The town of Massena has secured the services of Hancock Estabrook LLP from Syracuse to assist the town as they navigate data center regulations and site plan reviews, but some residents …

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Town of Massena hires Syracuse firm to help set up data center regulations

Posted

MASSENA -- The town of Massena has secured the services of Hancock Estabrook LLP from Syracuse to assist the town as they navigate data center regulations and site plan reviews, but some residents are questioning the price tag. 

The resolution calls for paying partners $400 per hour and associates $300 per hour. 

An escrow account, funded by NYDIG to assist the town in its review process, currently holds $250,000 as part of an agreement between the town and NYDIG.

 Under the agreement, funds can be used to cover related expenses to the proposed project at the former Alcoa East site where NYDIG hopes to expand operations, including but not limited to legal counsel, environmental reviews, engineering reports and other facets of the project. 

In the event the funds are fully expended, NYDIG officials said they would add additional funds to the escrow account.

Despite those funds set aside for such expenses, members of the public questioned just what role town attorney Eric Gustafson has played in the town's review process. Others questioned how his time would be managed as he also handles regular town business. 

Though some suggested Gustafson would be receiving two paychecks, officials confirmed the escrow account would function as a reimbursement for his time as opposed to secondary income.

Ultimately, the escrow account is in place to ensure the town is not using taxpayer funds to conduct legal, environmental and engineering reviews throughout the process. 

While the town board met last week, Planning Board officials said they previously recommended bringing Hancock Estabrook into the fold to assist with reviews. 

Planning Chair Vance Fleury said he and Planning Board members wanted to ensure they followed the town's code exactly as written. 

Town officials previously had a multi-year moratorium in place on data centers to allow Gustafson and town officials to review, update and modify town code. 

The changes governed a wide range of issues raised in the process, including site plan reviews, environmental concerns and a number of other factors that were raised by both board members and members of the public. 

Former Massena Village Department of Public Works Superintendent Hassan Fayad questioned planned payouts to Gustafson for his involvement in the process that Hancock Estabrook has been retained to do. 

Fleury told attendees Gustafson would be paid from the escrow account for "anything he does for the planning board related to this (NYDIG) project only." 

The idea of Gustafson being compensated through the escrow fund drew many questions though, including from Fayad. 

"Is this not a town business?" he asked. 

Fleury confirmed it was but reiterated Gustafson would be "paid for his involvement." 

Fayad then questioned who approved the matter, a question Fleury was unable to answer. 

"I wish he was here to answer that," Fleury said. 

Fleury said it was a matter of trying to bring in "the right, professional people" to assist the town and Planning Board in the process. 

"Eric has worked with Hancock to bring them aboard. It is not uncommon. I know you’re kind of throwing up a lot of opposition to him being paid, but the same way with Air Products. When they came in, they set up an escrow. He was paid out of the escrow for the planning board involvement," Fleury said. 

While others questioned the escrow agreement, Fleury said it likely came down to the scale of the project and undertaking of the town and Gustafson. 

Fleury told attendees at last week's meeting the Planning Board had fielded a number of concerns about retaining outside counsel, engineering consultants and an environmental firm to assist in reviews. 

He said the board made the concerns known to the town board, which eventually led to the hiring of Hancock Estabrook. 

Fleury said the law firm has environmental specialists on staff as well to streamline work. 

Deputy Supervisor Sam Carbone, who ran the town board meeting in Supervisor Ray Lancto's absence, confirmed a motivating factor for bringing in Hancock Estabrook was their in-house staff. 

"They have everything in house that we could need and to help them through the process we are undertaking. They have their own specialists in house for environmental reviews, they know how the SEQR process works and have a history of working on projects of this scale with great success. They're a great asset," he said. 

Still, the idea didn't sit right with Fayad and a number of other town residents. 

Fayad mentioned his time as DPW superintendent, saying the village had one attorney to cover every department. 

"The village DPW had four sub departments, that being the general fund, the water, sewer, and garbage. Any issue that pertained to any of them, that attorney would take on without any additional funding," he said. 

Fayad commented the same was true of the Fire Department, Police Department and Joint Recreation. 

“Was it a $5 billion project?” Fleury asked.

"No but it was a $16 million budget every year. I had it for 30 years," Fayad said. 

Despite opposition in the planning meeting, town board members moved forward with the agreement by a 3-1 margin. 

Supervisor Lancto was absent, while Board Members Jared Hollander, Adrian Taraska and Deputy Supervisor Sam Carbone voted in favor. 

Board Member Kristy Baker-Dubrey was the lone no vote.