Lancaster Agency Grants Tax Breaks (again)

[shortstuff]

According to the Buffalo News this morning the Lancaster IDA has given another entity a tax break that resides in the "enhancement zone."

"The Lancaster Industrial Development Agency voted Tuesday to grant tax breaks for an expansion of the Olive Tree Family Restaurant.

The restaurant plans to expand the waiting area and dining room and hire 10 new full-time employees as part of the estimated $900,000 project."

Well, first of all if my memory serves me correct I thought restaurants was one business that did not fall under the Industrial criteria.


It further states in the news, "The vote came three weeks after the Erie County IDA refused to grant tax breaks to two restaurants that developer Roco Termini wants to build in two vacant Buffalo buildings. Town development officials said the IDA normally cannot grant tax breaks to restaurant and retail projects, but the Olive Tree is eligible to receive them because it is located within the town's enhancement zone."

Now, I do have a problem with this because it stated in the news that the Olive Tree is doing well and they have not threatened to leave the area if they did not receive this abatement according to Bob Giza. So the question remains, then why did they get this abatement when there are other businesses in Lancaster that could benefit as well as fall under the IDA criteria's? We are struggling today in this economy, as we continue to give out IDA's like candy--this will invariably affect the levy as it increases the resident's taxes in the long run....

[gorja]

Originally posted by shortstuff:
So the question remains, then why did they get this abatement when there are other businesses in Lancaster that could benefit as well as fall under the IDA criteria's?

Isn't that the Lancaster Democratic party friends and family restaurant?

[shortstuff]

Yes, you are correct. One could look into the contributions to see for sure. The point is when do you draw the line, continuing to give tax breaks when it really is not necessary is wasteful to me. These businesses then rely on the breaks and then it becomes self fullfilling~~the business will depend on it and want it for years down the road. Like the Lancaster Airport and the 3 IDA's they have received and now expect more tax breaks as they continue to not pay their town tax that you and I will have to supplement as it widens the levy gap. Does this make sense? No vote republican in November.

[gorja]

I agree, Shorty. They give out the tax breaks and the money for those breaks have to come from somewhere. And that somewhere is the pockets of the residential taxpayers. Did you notice in that article, they wouldn't give an amount of the breaks?

[shortstuff]

Yeah, it must be substantial otherwise they would have indicated the amount of the abatement.