Response to the Buffalo News report you alluded to GC.
I did not take Poloncarz’s remarks as a shot at the current LIDA organization, but at the previous board make-up where Ruda played a significant role in influencing the LIDA approval of Sweeny and James mortgage / sales / PILOT tax breaks – and especially when both developers initially declared that one way or the other their projects would take place.
I would hope, and I believe that the current Lancaster Industrial Development Agency (LIDA) will follow Poloncarz’s lead as reported in the BN: "I do not support giving tax breaks for new-build market-rate housing," said Erie County Executive Mark Poloncarz, an influential member of the Erie County Industrial Development Agency board of directors.
"While we need more housing in our country and region, any tax break for market-rate housing, including luxury housing, is unacceptable," Poloncarz said. "Those projects will get built without a tax break being provided because there is sufficient demand for the housing."
Lancaster
Last year’s LIDA board approved tax breaks for two mixed-use upscale, market rate apartment / retail complexes for two developers by a 5-2 vote – LIDA Chair Lemaster and board member Leary cast the two ‘no’ votes. This year’s 5-member board appears to have taken a view / direction – one that favors Poloncarz view, especially when the project is not readapted, but developed on shovel-ready ground.
Historically, IDAs have generally not provided such incentives, or helped projects that are more than one-third retail in nature. The policies were based on the idea that those projects typically don't spur as much new spending and spinoff development as the commercial or industrial projects that IDAs were originally formed to encourage.
Indeed, that was part of a debate among Lancaster IDA board members before they approved assistance for a couple of recent projects by Lucas James and Tommy Sweeney. The projects ultimately received tax breaks.
The trend conflicts with the policy for the Erie County IDA, the region's biggest, where Poloncarz has been adamant about the need to justify the provision of tax benefits, especially when there's little job growth or a company isn't at risk of relocating.
The Sweeny and James projects were not worthy of IDA tax breaks IMHO. I believe this board would have acted differently and more fiscally responsible in protecting the best interests of its taxpaying community. At least I would hope so, as the outcome is always dubious when you have business / special interest types and politicos sitting on LIDA boards.