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Thread: LIDA tables Lucas James project application vote until April meeting

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    LIDA tables Lucas James project application vote until April meeting

    At its March 14th meeting, the Lancaster Industrial Development Agency (LIDA) held a public hearing on an IDA application presented by Lucas James.

    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 site into a mixed use eight apartment / retail complex. A project worthy of rezone and development and bringing tax dollars to the town.

    When the Lancaster Industrial Development Agency membership took office in 2022, its focus appeared to be in taking the agency in another direction, ensuring Lancaster IDA’s met the criteria for IDA approval and were in town / resident best interests over that of the developer / builder best interest – and job creation was paramount. Hopefully that mission is still alive. The Broadway-Bowen Lucas James mixed use project appears to fall short of meeting IDA criteria for receiving tax incentives.

    LIDA tabled the vote until their April meeting allowing residents unable to attend the 4 pm meeting the opportunity to view the livestreamed meeting recording and submit written comments. It would also allow LIDA to ‘take a hard look’ at the public hearing comments already presented before rendering its decision.

    Individuals who intend to submit written comments to LIDA should visit the livestreamed recording as the hearing became quite contentious as to whether the apartment / retail development meets industrial / commercial guidelines, or whether it takes LIDA to a new, relaxed ‘economic development’ operation as suggested by Mayor Ruda – and where job creation is welcomed, but no longer of primary concern.

    Economic development is vital for town revenue and should be encouraged. Not all development is in the best interest of the community and deserving of public subsiding through taxpayer funded tax abatements.

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    Member gorja's Avatar
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    Originally posted by Lee Chowaniec:
    Economic development is vital for town revenue and should be encouraged. Not all development is in the best interest of the community and deserving of public subsiding through taxpayer funded tax abatements
    I agree.

    I also agree that the adjacent competitors of the retail coffee shop didn't receive like tax breaks and the job creation is minimal.

    My bone is that the IDAs were not just created for Industrial development alone. They were created to foster economic development as it states on that state site.
    I perfectly understand each member voting as they feel is in the best interest of the taxpayers. Their vote should be how in their mind they think is the right economic development to provide tax breaks.

    An example - Premier Dog Sports Center is not an industrial development project but it brings in people from all over for their weekend dog trial events. They're using our restaurants and shops etc.
    Just my humble opinion

    Georgia L Schlager

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    Quote Originally Posted by gorja View Post
    I agree.

    I also agree that the adjacent competitors of the retail coffee shop didn't receive like tax breaks and the job creation is minimal.

    My bone is that the IDAs were not just created for Industrial development alone. They were created to foster economic development as it states on that state site.
    I perfectly understand each member voting as they feel is in the best interest of the taxpayers. Their vote should be how in their mind they think is the right economic development to provide tax breaks.

    An example - Premier Dog Sports Center is not an industrial development project but it brings in people from all over for their weekend dog trial events. They're using our restaurants and shops etc.
    Just my humble opinion

    Thank you for sharing. That helps people like me understand why LIDA member Ruda admonished the LIDA Chair when declaring it was a shame that she had to educate him on why Industrial Development Agencies were established and what their purpose is.

    Established in 1967, and continuing to today, they have been named and recognized as Industrial Development Agencies. It appears by state guidelines they have transitioned from industrial / commercial project tax exemption eligibility to much more.

    Case in point, the Broadway-Bowen 8-apartment-retail complex. I was mistaken in stating it did not meet today’s eligibility because it did not meet 33% project value in retail. The reverse is required, not exceeding 33% in retail project value. According to VOL Mayor Ruda and Village of Depew Mayor Peterson the project is eligible for an IDA – a five-year PILOT (Payment in lieu of taxes) amounting to $275,000, sales tax abatement on materials & equipment of $95,935, and mortgage tax recording abatement of $17,625; totaling $388,560.

    26.7% of a $2.91 million project cost in incentives for an apartment-retail complex in an area that is not underserved, brings in a few competing retail jobs, is not a destination place, etc. This is the criteria we are now setting for IDA eligibility and taxpayer funded tax incentives – based solely on ‘economic development’ language.

    Has a municipality IDA no autonomy in deciding its purpose, its mission to determine IDA eligibility before handing out public funds. There is a schism on this board and its purpose will soon be defined.

    When LIDA consultant Paul Leone declared at their recent meeting that IDAS were created in 1967 for ‘Economic Development’ and jobs were welcomed but not of primary concern, that was a 180 coming from his mouth. Using his Inplan model he would speak of the importance of job creation, spin off from other businesses, overall town tax revenue gains, etc.

    Now mixed-use apartment-retail developments are eligible for IDAS. The apartment portion as well. Why not only the retail portion? Oh, because ‘big brother’ says so.

    66% of American families report living paycheck-to-paycheck, many declare with maxed out credit cards. Are they expected to contribute to corporate welfare? An IDA that earlier professed it would hold the line on approving only IDAS that had merit and in the best interest of the community and taxpayer, appears to now have members widening the goal posts on ‘economic development’ eligibility.

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