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Goyette's actions may cost city $1 million

The Aldenville Commons renovations are at the center of a second Housing and Urban Development audit that revealed improper use of federal funding by the Goyette administration. Reminder Publications photo by G. Michael Dobbs
By G. Michael Dobbs

Managing Editor



CHICOPEE To look at the unfinished gazebo at Aldenville Commons, one wouldn't think it would be the subject of a federal investigation, but it was. Federal auditors have concluded that former Mayor Richard Goyette improperly used federal monies to renovate the Commons in his home neighborhood.

This additional fall-out from the Goyette Administration was revealed last week, when Mayor Michael Bissonnette made public a Department of Housing and Urban Development audit showing the improper administration of more than $4.3 million in Community Development Block Grants.

What is at stake is the possibility of having to re-pay the federal government over $1.1 million.

Goyette was arrested on Nov. 1, 2005 on extortion charges related to accepting illegal cash campaign contributions. According to the audit, "he promised a developer he would intercede on his behalf with the Office of Community Development on a project."

Goyette pled guilty on a two-count indictment.

Bissonnette said he is planning to meet with HUD officials in Boston within the next two weeks to negotiate a settlement that would allow the city to apply the funding to properly designated projects. He is also reorganizing the city's Office of Community Development.

An earlier HUD audit of housing projects in the city had concluded there was mismanagement there as well.

Although Community Development Director Jeanne Kidwell is working for the city, Bissonnette has asked Thomas Haberlin, who has been working on specific economic development projects for the city, to take over the administration of the office for the next 60 days.

Bissonnette said he could not speculate on whether or not the conclusions of the audit could result in additional criminal charges for Goyette nor would he say if Kidwell would be fired. Noting the city had to pay the former assistant city messenger $250,000 in a settlement for his dismissal by former Mayor Richard Kos, Bissonnette said he and the Law Department will carefully review the situation before taking any action.

He said that some city projects have been put on hold until the HUD issues are resolved. HUD audits are not an annual or regular event, he explained and the city has received and used millions of dollars in HUD funding in the past 30 years without a questionable incident.

According to the audit, "the city's office of Community Development did not properly administer more than $4.3 million in public facilities and improvement activities funded through its Community Development Block Grant (CDBG) program. Specifically, conflict-of-interest regulations were violated which resulted in ineligible projects being funded and the improper use of more than $1.1 million in CDBG funds. The Office of Community Development also did not properly support that more than $4.3 million in CDBG-funded publics facilities and improvement activities met the low-to- moderate-income benefit requirements. Further it did not adequately monitor or provide oversight of CDBG funds provided to the city's Parks and Recreation Department and the Department of Public Works for public works and facilities activities."

The audit results include that Goyette "intervened in the city's normal decision-making process to have these projects [Aldenville Common renovations] included on the city's fiscal year 2005 annual action plan."

Despite what the audit described as "an apparent conflict of interest," city officials allowed the projects to proceed. What made the matter worse is the reclassification of the Aldenville neighborhood to meet the federal guidelines for where the money could be used.

Goyette rejected the Park and Recreation Department's proposal for improvements to Sarah Jane Sherman Park and Nash Park in order to renovate Aldenville Commons, according to the audit. Park and Rec officials had only recommended a new sign and flagpole for the Commons, while Goyette wanted a new gazebo, reconstruction of streets including the one on which he lived new sidewalks and tree plantings. Goyette put forth all of these projects without a written proposal.

According to the audit, the city did not "have clear project specifications; the written specifications included a gazebo that was not included in the drawings when the city rebid the project."

The city also added $121,968 in additional construction work for Aldenville Common and Rivers Park without going out for bid, the audit reported.

Speaking of the audit's result, Bissonnette said, "Unfortunately, the other shoe has dropped and amateur hour is over."