Audit: Business in Buffalo City Hall owes over $100K in unpaid rent

According to the audit, the city is supposed to receive $2,150 per month in rent from the deli.

BUFFALO, N.Y. (WIVB) - A local business owes tens of thousands of dollars in late rent payments to the City of Buffalo while using space in Buffalo City Hall, according to an audit.

This audit was done by the City Comptroller's Office. It says the operator of the cafeteria in Buffalo City Hall owes the city more than $100,000 in late rent payments.

Sue's NY Deli serves many city workers breakfast and lunch in the basement of City Hall.

According to the audit, the city is supposed to receive $2,150 per month in rent from the deli. But, auditors say rent has not been paid in over four years, since March 2020, when the pandemic hit. Sue's has been operating with an expired contract with the city and owes more than $103,000 in unpaid rent.

"Late last year based on the staff looking at other contracts specifically revenue generating contracts it just was an inquiry of wait-a-minute, we haven't received a payment, we noticed we haven't received a payment for this particular account in quite a while," Buffalo Comptroller Barbara Miller-Williams said. "Without a doubt I was surprised because that's a significant amount of money it is the time period, it is excessive for a contract which had been fulfilled had been renewed and there was no authority to renew it again I was definitely surprised."

Miller-Williams says this audit is not a reflection on the quality of the deli. She says she would prefer to see if there's another vendor that could take over the cafeteria. And, it appears that process is already underway -- a city spokesperson says a request for proposals was issued two weeks ago to see if a new food service provider will be brought in.

The Department of Public Works still hasn't made any decisions on what to do with those unpaid rent payments.

News 4 has called Sue's NY Deli for comment on the unpaid rent payments, but we have not heard back.

Statement from Council Member Mitch Nowakowski:

"The operators of Sue’s are wonderful people, but there is a lack of a contract. Nothing is free and there is also concern and there needs to be accountability with our Department of Public Works to ensure that City of Buffalo contractors, like the Marina audit last year and NY Sue’s Deli in City Hall, are paying their share of the contracts to the taxpayers and the city.

I look forward to having this item be further discussed in my Finance Committee Meeting on July 2 at 10 a.m. and I want to thank the Comptroller and her office for their work in this audit.”