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Thread: Hamburg IDA is one example of why DiNapoli has been pushing for reforms

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    Lightbulb Hamburg IDA is one example of why DiNapoli has been pushing for reforms

    Local Government Data Expanded on Open Book New York

    Open Book New York has been expanded to give New Yorkers increased access to local government financial data. Users can now download entire data sets at one time, where before there were limitations. “New Yorkers can now access nearly two decades worth of local government financial data in a matter of moments,” said Comptroller DiNapoli. “Whether you want to know how much money was paid to plow the streets in your community or if you want to know how much money was received in property taxes for a neighboring town, you can access all of this information, and more, on Open Book New York.”
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    IDA's help big business rip off home owning tax payers by shifting burden.


    Hamburg IDA is one example of why DiNapoli has been pushing for reforms


    Information that some companies in Hamburg have not gotten large enough tax breaks, while others have gotten too much, should raise serious questions not only among officials but in the general public.

    The Hamburg Industrial Development Agency is one among several local IDAs that have come under the scrutiny of the state comptroller’s office. In this case, an audit focused on the Hamburg IDA’s project approval and monitoring found that 21 businesses were overbilled by $17,870 for payments in lieu of taxes, or PILOTs. Another 25 were underbilled by a total of $38,850.

    Moreover, the audit determined that the IDA needed to develop a policy to recapture financial assistance given to companies that do not reach job creation goals.

    Any time the public is being asked to help a business expand there should be conditions. If they are not met, there should be consequences. State law allows IDAs to claw back tax breaks if projects fail to reach 80 percent of their job and investment projections.

    But the Hamburg IDA board has decided that it will stick with its current policy and not try to recapture benefits that have already been awarded because, officials say, the changes the state wants make them “uncomfortable.”

    Too bad.

    Erie County’s local IDAs often play fast and loose with taxpayer money, offering gauzy justifications for their giveaways. Think FedEx, where millions in tax breaks was believed earmarked for creating hundreds of jobs in Hamburg. The final job count is about 32. This use of public dollars is a public concern.

    State Comptroller Thomas P. DiNapoli has released annual industrial development agency audits for several years and has pushed for much of that time for the State Legislature to reform IDA practices. The legislation was finally passed by both the Assembly and Senate.

    DiNapoli’s IDA reforms include more uniformity with project agreements and initial applications so that communities have a better idea of what the agencies are looking for when handing out tax breaks and, importantly, what the community is on the hook for and what the companies are promising.

    The standard application form would include more information than is required now and allow the actions of IDAs across the state to be more closely monitored and compared.

    The comptroller deserves credit for sticking with the fight. Next up for the Legislature should be measures limiting each county to a single, countywide IDA with increased accountability and tighter rules over which projects are eligible for tax breaks.
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    In Lancaster - when it was learned a building owned by Ecology and Environment was not being used for its stated IDA purpose - nothing was done.

    It wasn't being used for "Research" nor did it have the number of workers it was supposed to have - in reality workers were laid off and the building was all but vacant.

    Yet for years they received tax breaks and incentives - they didn't pay their fair share of taxes !

    After the Town Board was informed of these facts
    - no actions were taken to enforce their IDA agreement
    - no actions were taken to recover unwarranted tax breaks !

    Why ?

    Because the past head of our IDA chose not to take action - our Town Councilmen chose not to take action !

    Why - was it because their "Party/Committee" was still getting financial support from them ?

    Why would they not want to help lesson the burden for average home owners ?

    Did I mention the Head of the IDA was also the Town of Lancaster Supervisor ?
    #Dems play musical chairs + patronage and nepotism = entitlement !

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    Member gorja's Avatar
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    Does our current Lancaster IDA have a clawback clause? Our IDA gives tax breaks for market rate apartments with a golf course. What sense does that make?

    Georgia L Schlager

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