March 14, 2023, Lancaster IDA meeting

[Lee Chowaniec]

When the Lancaster Industrial Development Agency board membership took place in 2022, its focus appeared to be taking the agency to another direction – to separate itself from sharing town services and technology, developing its own record keeping / technology systems, and ensuring IDA’s met the criteria for IDA approval and were in town / resident best interests over that of the developer / builder best interest.

The contentious March 4th LIDA meeting was rife with discussion regarding applicant eligibility. Lancaster Village Mayor Lynn Ruda and Village of Depew Mayor Kevin Peterson were of the mind that LIDA mission was to extend development tax credits beyond strict industrial and commercial development, rather economic development in general,

Speaking on the IDA’s commitment to approving only tax abatements on projects of merit, LIDA Chair Kevin Lemaster asked for a motion to table the vote on the applicant’s petition allowing residents unable to attend the meeting the opportunity to submit written comments for board consideration. The board unanimously voted approval to table the vote to the April meeting.

Lucas James purchased the former Desiderio’s Restaurant at the intersection of Broadway and Bowen in the Town of Lancaster. The restaurant suffered significant fire damage in 2017. Mr. James received rezone and site plan approval from the town to develop the property into a mixed use eight apartment / retail building with gas / retail service.

Project Attorney Alessi addressed the board and declared Mr. Lucas need an IDA tax incentive (mortgage tax, material sales tax, PILOT inducement) in order to move forward with his project. Mr. Lucas was asked by Lancaster Town Board member Robert Leary why in all the time they had worked together in getting him a rezone and site plan approval on this worthwhile project he never indicated his project was only possible with receiving an IDA approval.

Lucas responded that it would not have benefited him then, and in fact that he had the funds to complete the project and was committed to do, but he would have to scale back on the quality of the materials – like not putting in granite countertops, upscale cabinets, upscale flooring, etc. in the apartments.

Also discussed was the project falling short of meeting the criteria of spending 1/3 of project funding on retail. Close, but more like 70-30%.

Mayor Ruda reminded her fellow members that if Mr. Lucas did not receive the tax incentives he would not be able to build the project as he envisioned.

The public will have the ability to weigh in and opine whether the applicant is justified in getting tax abatements (public tax money) to meet his objective. Should public money be used in this endeavor? Does this application meet LIDA’ s Mission Statement and Performance Measurements?

Town of Lancaster Industrial Development Agency

2022 Mission Statement and Performance Measurements

https://www.lancasternyida.com/resou...2022/file.html

[gorja]

In my view, it seemed that the two mayors were trying to get the point across that the IDA wasn't just for extending tax credits for industrial development.
That as it states on the state website - economic devlopment

Industrial development agencies and authorities (IDAs) are established under the General Municipal Law and the Public Authorities Law to foster economic development in specific localities.

https://www.tax.ny.gov/bus/st/ida.htm

[Lee Chowaniec]

In my view, it seemed that the two mayors were trying to get the point across that the IDA wasn't just for extending tax credits for industrial development.
That as it states on the state website - economic devlopment

https://www.tax.ny.gov/bus/st/ida.htm

As a former resident of Depew for 29 years, 21 of them years in the Township of Lancaster, I well understand the positions of the Mayors of the Village of Lancaster and Depew to focus on a broad brushstroke to redefine economic development as stated in the document you presented, as they are limited to new development coming into the Villages, and a limited revenue stream.

That said, I have to question whether the Lancaster IDA has autonomy (independence) to establish its own mission statement and criteria for distributing taxpayer revenues to assist development (whatever that now means), and which often turns out to be nothing more than corporate welfare.

Case in point, the Lucas James Broadway & Bowen mixed use project. The town assisted Mr. James in getting proper zoning (rezone) and approved his site plan. An excellent project.

Mr. James appeared before LIDA at a public hearing with his attorney. His attorney declares Mr. James cannot complete his project without LIDA approval and the tax incentives that ensue.

James’ attorney is asked if the project meets the criteria where 1/3 of the project’s construction cost and value (apartment / retail development) comes from retail. The attorney says it does when in fact it does not – only 28-30% *

Mr. James is asked why he never made it known when he was before the town for project approval that his project was based on LIDA assistance. Mr. James admitted that he was committed to developing the project, has the funds to do so, but if he didn’t get LIDA approval he would have to cut back on his apartment complex spending - by cutting back on upgraded cabinetry, countertops, flooring, etc.

When a LIDA member remarked that Mr. James admitted the project would be developed whether he got the LIDA approval or not, Mayor Ruda interjected that he would not be able to complete the project as designed. Was she declaring that this ‘economic development’ merited approval? Is this where we are now headed? That taxpayers should be contributing to enhancing Mr. James’ project.

The Lancaster Industrial Development Agency (LIDA) spoke all last year on changing direction, redefining its purpose of looking out for the taxpayer, issuing a new mission statement. Mayor Ruda was on the LIDA Governance Committee and committed to merit based projects only getting assistance. What direction is this board now taking?

*If the James project is only 30% retail, shouldn’t he only be eligible for tax credits on that portion of the development? Are we now going to subsidize apartment development? Where are we going under this new ‘economic development’ umbrella.

If an individual homebuyer can only afford to spend x dollars on a new home, wants to spend x dollars in upgrades but doesn’t have the money, where does he or she go to get tax breaks to help make that happen?