Lancaster IDA questions draw ire

[Lee Chowaniec]

At the recent Lancaster Town Board meeting, the writer asked several questions and make comments regarding n the Lancaster Industrial Development Agency (LIDA) that appeared to rankle Supervisor Robert Giza.

Lee Chowaniec: “When I asked this board several months ago whether it had any say in the operation of the LIDA, I was told it did not. Yet, this board by resolution will appoint Steven P. Hoffman of the Village of Depew as a member of the LIDA Agency, as recommended by said agency. Help me to understand why the LIDA needs your approval when you claim that the town has no say in the LIDA operation?”

Supervisor Robert Giza: “There was a question about that before. I don’t know but maybe you could tell us the mumbo-jumbo (to Attorney John Dudziak) but there is no connection.

Chowaniec: “So then it’s just a formal courtesy. You don’t have to?”

Supervisor Giza: “Correct.”

In resolution #5, you will be appointing Steve Hoffman to the LIDA. What I know of Steve Hoffman is that was a former Depew police officer (Captain) who at one time had a lawsuit against the village and was awarded some money to make the problem go away. He is now Mayor of the Village of Depew and I know of him as a businessman operating Decks Unlimited and as a developer operations manager. Is he still working for a developer?

Supervisor Giza: “I don’t know whether he is still involved in that or not. I don’t know why you feel he should not be on the LIDA.”

Chowaniec:”I have to ask if he is all of the above why I should not feel that this could be a conflict of interest. The board should be looking into his credentials.”

Chowaniec: “Then I would like to ask how does one qualify for an IDA position? In fact, how does one become aware that a position is available? Is it posted somewhere, in Town Hall or elsewhere?”

Supervisor Giza: “I don’t know if it’s made public. We try to get a diverse board makeup.”

Chowaniec: “But is it posted anywhere because when I looked at the communication that was in the agenda packet, Steve Hoffman was recommended as a candidate for the position and would be a good candidate. Were there other individuals that applied for the position and we just did not hear about them? Which leads me to ask…

Supervisor Giza: “We are not paid positions. None of the LIDA board members get paid.”

Chowaniec: “I did not ask that, but I am glad you made that point. I know that but it is good for others to hear and know that. The consultants to the LIDA board do get paid, like an outside consul, the Town Attorney and the Town Assessor. Now, the LIDA board I made up of a Chairman, vice Chairman, Secretary, and I believe three other members. Is that correct?

Supervisor Giza: “I am the Chairman.”

Chowaniec: “Who is the vice-Chair?

Supervisor Giza: “Vice-Chair I believe is Jim (unintelligible).”

Chowaniec: “The LIDA website needs to be updated as it does not list current board members. It is important to know who they are as Robert Benzel’s name was brought up at a meeting and he was referred to as vice Chair. He is not vice chair now but serves now as consultant.”

Supervisor Giza: “Robert (Benzel) doesn’t get paid.”

Chowaniec: “That’s right. I don’t see consultant Paul Leone’s name on this year’s appointed list.”

Supervisor Giza: “Paul serves as consultant. He is not a board member. He does not get paid either.”

Chowaniec: “Why was Mr. Leone’s missing from the 2011 Organizational Meeting appointee list?”

Supervisor Giza: “I don’t know that it has to be (on the list).”

Chowaniec: “At the work session meeting, you spoke on the several businesses that are coming into Lancaster in the near future…”

Supervisor Giza interjected: “We are doing quite well. We are probably doing more projects than any other municipality in the county. You can criticize the board, incite the fear, but the LIDA board is really being run right. They are creating hundreds of jobs in Lancaster. Be careful you don’t criticize the board because these guys are fragile, they are volunteers.”

Chowaniec: “Did you hear one criticism from me regarding the (LIDA) board?”

Supervisor Giza: “No, but I am saying…”

Chowaniec: “I hear about all the businesses coming in, but at the same time I have to ask whether they will all be getting IDA considerations?”

Supervisor Giza: “Some are.”

Chowaniec: “How much of an LIDA consideration will Olive Tree be getting?”

Supervisor Giza: “It will be based on the break in sales tax they will be getting for the equipment they purchase in the expansion.

Chowaniec: “The reason for the questions is not to criticize the LIDA but to get information and disseminate it so that the public reviews and says, “Is this the good old boys club running the LIDA. Is it only for business people…

Supervisor Giza: “I just told you we have a broker, a construction company owner, …

Chowaniec: “Those are business people. All I am asking is whether you have to be a business type to sit on the board?”

Supervisor Giza: “We have a shop operator, an individual who owns a small business,…

Chowaniec: “But it’s not a prerequisite (to be a business type) to be on the LIDA?”

Supervisor Giza: “The owner of the New York Store, he’s on the board. I don’t know. I don’t know what you are getting at.”

Chowaniec: “What I am asking you is whether it is a prerequisite to be a business person to be a member of the LIDA board?”

Supervisor Giza: “No, Joe Ahrens is not.”

Chowaniec: “That’s all I was asking.

Supervisor Giza: “I am on the LIDA board and I am not a business person.”

Chowaniec: “Well, you are a politician, as is your new appointee Mr. Hoffman. I am asking questions as to whether any position influences decisions on LIDA application approvals. That is why I asked whether Mr. Hoffman still has developer/development involvement. Just looking for answers so when someone asks or says something that is incorrect, they will get the right information. We are not here to criticize. Give us a credible answer and we are gone.

Comment

The intent was to gather information on the relationship between the Town Board and the LIDA, the process of appointing LIDA members and recipient qualifications. A female applied for a LIDA membership last November. She learned of the opening from going to LIDA meetings. She was told by the Supervisor that it was time a female got appointed to the LIDA and he had the credentials to serve. She not only was not chosen for that opening but was unaware of the availability of the recent opening. The Supervisor (Chair of the LIDA) never did say how or whether position availability was posted and/or published did he?

Looking at the Municipal IDA category, the 80 properties have an exemption of $172,657,664 which is 5.54% of the assessed value of the whole town.

If I understand the report correctly $172,657.67 * 8.11= $1,400,253.70 exemption for LIDA properties. The Payment in Lieu of Taxes for the LIDA properties will be $512,214.79. So I guess, we are subsidizing $1,400,253.70 - $512,214.79 = $888,038.91 for the town taxes.

In the Lancaster school district, the LIDA has 68 properties with an equalized value of $154,378,260. $154,378.26 *$14.67 school tax rate = $2,264,729.07 school tax exemption LIDA properties. $2,264,729.07-$1,250,000 (PILOTs) = $1,014,729.07 school taxes being subsidized by the rest of us taxpayers.

$1,014,729.07 school tax exemption + $888,038.91 town tax exemption= $1,902,767.98

It boggles the mind of those on low/fixed incomes who are called on to make sacrifices to live within their budgets to hear of businesses receiving tax breaks when they:

• Are not threatening to leave the area – numerous applicants,

• Are expanding a lucrative business and creating a handful of part time jobs where wages are minimal and benefits are lacking – Olive Tree,

• Where IDA’s are granted and there is no job creation and so stated on the LIDA application – Lancaster Airport, Inc.,

• Where the town has no “clawback” provision to recoup exemption incentives when the business does not meet its job creation obligations.

How dare the peasants ask questions?

[WNYresident]

Your all being crapped on.

Only people who benefit are the developers making the money on the builds and the politicians who get support from these people.

VOTE THEM OUT.

[shortstuff]

At the recent Lancaster Town Board meeting, the writer asked several questions and make comments regarding n the Lancaster Industrial Development Agency (LIDA) that appeared to rankle Supervisor Robert Giza.

Lee Chowaniec: “When I asked this board several months ago whether it had any say in the operation of the LIDA, I was told it did not. Yet, this board by resolution will appoint Steven P. Hoffman of the Village of Depew as a member of the LIDA Agency, as recommended by said agency. Help me to understand why the LIDA needs your approval when you claim that the town has no say in the LIDA operation?”

Supervisor Robert Giza: “There was a question about that before. I don’t know but maybe you could tell us the mumbo-jumbo (to Attorney John Dudziak) but there is no connection.

Chowaniec: “So then it’s just a formal courtesy. You don’t have to?”

Supervisor Giza: “Correct.”

In resolution #5, you will be appointing Steve Hoffman to the LIDA. What I know of Steve Hoffman is that was a former Depew police officer (Captain) who at one time had a lawsuit against the village and was awarded some money to make the problem go away. He is now Mayor of the Village of Depew and I know of him as a businessman operating Decks Unlimited and as a developer operations manager. Is he still working for a developer?

Supervisor Giza: “I don’t know whether he is still involved in that or not. I don’t know why you feel he should not be on the LIDA.”

Chowaniec:”I have to ask if he is all of the above why I should not feel that this could be a conflict of interest. The board should be looking into his credentials.”

Chowaniec: “Then I would like to ask how does one qualify for an IDA position? In fact, how does one become aware that a position is available? Is it posted somewhere, in Town Hall or elsewhere?”

Supervisor Giza: “I don’t know if it’s made public. We try to get a diverse board makeup.”

Chowaniec: “But is it posted anywhere because when I looked at the communication that was in the agenda packet, Steve Hoffman was recommended as a candidate for the position and would be a good candidate. Were there other individuals that applied for the position and we just did not hear about them? Which leads me to ask…

Supervisor Giza: “We are not paid positions. None of the LIDA board members get paid.”

Chowaniec: “I did not ask that, but I am glad you made that point. I know that but it is good for others to hear and know that. The consultants to the LIDA board do get paid, like an outside consul, the Town Attorney and the Town Assessor. Now, the LIDA board I made up of a Chairman, vice Chairman, Secretary, and I believe three other members. Is that correct?

Supervisor Giza: “I am the Chairman.”

Chowaniec: “Who is the vice-Chair?

Supervisor Giza: “Vice-Chair I believe is Jim (unintelligible).”

Chowaniec: “The LIDA website needs to be updated as it does not list current board members. It is important to know who they are as Robert Benzel’s name was brought up at a meeting and he was referred to as vice Chair. He is not vice chair now but serves now as consultant.”

Supervisor Giza: “Robert (Benzel) doesn’t get paid.”

Chowaniec: “That’s right. I don’t see consultant Paul Leone’s name on this year’s appointed list.”

Supervisor Giza: “Paul serves as consultant. He is not a board member. He does not get paid either.”

Chowaniec: “Why was Mr. Leone’s missing from the 2011 Organizational Meeting appointee list?”

Supervisor Giza: “I don’t know that it has to be (on the list).”

Chowaniec: “At the work session meeting, you spoke on the several businesses that are coming into Lancaster in the near future…”

Supervisor Giza interjected: “We are doing quite well. We are probably doing more projects than any other municipality in the county. You can criticize the board, incite the fear, but the LIDA board is really being run right. They are creating hundreds of jobs in Lancaster. Be careful you don’t criticize the board because these guys are fragile, they are volunteers.”

Chowaniec: “Did you hear one criticism from me regarding the (LIDA) board?”

Supervisor Giza: “No, but I am saying…”

Chowaniec: “I hear about all the businesses coming in, but at the same time I have to ask whether they will all be getting IDA considerations?”

Supervisor Giza: “Some are.”

Chowaniec: “How much of an LIDA consideration will Olive Tree be getting?”

Supervisor Giza: “It will be based on the break in sales tax they will be getting for the equipment they purchase in the expansion.

Chowaniec: “The reason for the questions is not to criticize the LIDA but to get information and disseminate it so that the public reviews and says, “Is this the good old boys club running the LIDA. Is it only for business people…

Supervisor Giza: “I just told you we have a broker, a construction company owner, …

Chowaniec: “Those are business people. All I am asking is whether you have to be a business type to sit on the board?”

Supervisor Giza: “We have a shop operator, an individual who owns a small business,…

Chowaniec: “But it’s not a prerequisite (to be a business type) to be on the LIDA?”

Supervisor Giza: “The owner of the New York Store, he’s on the board. I don’t know. I don’t know what you are getting at.”

Chowaniec: “What I am asking you is whether it is a prerequisite to be a business person to be a member of the LIDA board?”

Supervisor Giza: “No, Joe Ahrens is not.”

Chowaniec: “That’s all I was asking.

Supervisor Giza: “I am on the LIDA board and I am not a business person.”

Chowaniec: “Well, you are a politician, as is your new appointee Mr. Hoffman. I am asking questions as to whether any position influences decisions on LIDA application approvals. That is why I asked whether Mr. Hoffman still has developer/development involvement. Just looking for answers so when someone asks or says something that is incorrect, they will get the right information. We are not here to criticize. Give us a credible answer and we are gone.

Comment

The intent was to gather information on the relationship between the Town Board and the LIDA, the process of appointing LIDA members and recipient qualifications. A female applied for a LIDA membership last November. She learned of the opening from going to LIDA meetings. She was told by the Supervisor that it was time a female got appointed to the LIDA and he had the credentials to serve. She not only was not chosen for that opening but was unaware of the availability of the recent opening. The Supervisor (Chair of the LIDA) never did say how or whether position availability was posted and/or published did he?

Looking at the Municipal IDA category, the 80 properties have an exemption of $172,657,664 which is 5.54% of the assessed value of the whole town.

If I understand the report correctly $172,657.67 * 8.11= $1,400,253.70 exemption for LIDA properties. The Payment in Lieu of Taxes for the LIDA properties will be $512,214.79. So I guess, we are subsidizing $1,400,253.70 - $512,214.79 = $888,038.91 for the town taxes.

In the Lancaster school district, the LIDA has 68 properties with an equalized value of $154,378,260. $154,378.26 *$14.67 school tax rate = $2,264,729.07 school tax exemption LIDA properties. $2,264,729.07-$1,250,000 (PILOTs) = $1,014,729.07 school taxes being subsidized by the rest of us taxpayers.

$1,014,729.07 school tax exemption + $888,038.91 town tax exemption= $1,902,767.98

It boggles the mind of those on low/fixed incomes who are called on to make sacrifices to live within their budgets to hear of businesses receiving tax breaks when they:

• Are not threatening to leave the area – numerous applicants,

• Are expanding a lucrative business and creating a handful of part time jobs where wages are minimal and benefits are lacking – Olive Tree,

• Where IDA’s are granted and there is no job creation and so stated on the LIDA application – Lancaster Airport, Inc.,

• Where the town has no “clawback” provision to recoup exemption incentives when the business does not meet its job creation obligations.

How dare the peasants ask questions?

Great questions you asked Lee regarding the LIDA applicant process. I find Mr. Bob Giza's lack of information regarding the vacancy process and the qualification process a bit strange since he has been on the IDA board for 16 years as the "Chair." Does one after all these years not learn themself regarding the process in which they operate? On the job~~one continually learns, I feel like Mr. Giza just says yes to everything without doing his due dilegence.

I think that Mr. Giza should rethink his position regarding previous applicants and whether all procedures were done properly. I also feel that a "clawback" clause should be implemented because the airport would be one entity that should be revisited. I also feel that a business that is doing very well should not be the recipent of tax abatements.

I really like your equation scale, it puts things into perspective. Great Job Lee! That is a lot of money out of our pockets. We need to start revisiting these handouts.

Also, Paul Leone does get paid, not through the LIDA but he does collect a paycheck as a consultant.

[gorja]

Great questions you asked Lee regarding the LIDA applicant process. I find Mr. Bob Giza's lack of information regarding the vacancy process and the qualification process a bit strange since he has been on the IDA board for 16 years as the "Chair." Does one after all these years not learn themself regarding the process in which they operate? On the job~~one continually learns, I feel like Mr. Giza just says yes to everything without doing his due dilegence.

I think that Mr. Giza should rethink his position regarding previous applicants and whether all procedures were done properly. I also feel that a "clawback" clause should be implemented because the airport would be one entity that should be revisited. I also feel that a business that is doing very well should not be the recipent of tax abatements.

I really like your equation scale, it puts things into perspective. Great Job Lee! That is a lot of money out of our pockets. We need to start revisiting these handouts.

Also, Paul Leone does get paid, not through the LIDA but he does collect a paycheck as a consultant.

I agree, shortstuff, Lee did a great job. I always wondered what happened to the person who applied for the LIDA vacancy, last November. I guess that person political views did not coincide with the chairman's.
Right now. I think the only way a vacancy is known is through the exiting person's resignation letter in the communications.
I think all board (LIDA, Planning, Zoning etc) vacancies should be posted on the Lancaster website.

Paul Leone's salary is the Lancastetr IDA budget for 2011.
Consultant Fees - Leone 7,200 10,800 10,800 10,800 10,800 10,800
Those numbers are for the years 2009-2014.
http://www.lancasterny.com/LIDApdfs/...et-Adopted.pdf

[shortstuff]

I agree, shortstuff, Lee did a great job. I always wondered what happened to the person who applied for the LIDA vacancy, last November. I guess that person political views did not coincide with the chairman's.
Right now. I think the only way a vacancy is known is through the exiting person's resignation letter in the communications.
I think all board (LIDA, Planning, Zoning etc) vacancies should be posted on the Lancaster website.

Paul Leone's salary is the Lancastetr IDA budget for 2011.
Consultant Fees - Leone 7,200 10,800 10,800 10,800 10,800 10,800
Those numbers are for the years 2009-2014.
http://www.lancasterny.com/LIDApdfs/...et-Adopted.pdf

Well there you go, thanks gorja. I knew he got paid. So Bob Giza blatantly lied. Well it is not the first time.

[WNYresident]

Well there you go, thanks gorja. I knew he got paid. So Bob Giza blatantly lied. Well it is not the first time.

If he didn't lie and it just "slipped his mind" maybe it's time for him to step down.

[hawkeye]

Let's look at Paul Leone and his connection to the Supervisor Giza. The fact that Mr. Leone owner of the Plaza that the Democrated headquarters for the last few years on Broadway across the street from D. & L Plaza next to Mc Donalds and as told to me the rent is free? Also Mr. Leone is on the Board of Southeast Works in Depew and was force in trying to get the Village of Depew to get the old library to Southeast Works. One only has to ask how connect he is to the Olive Tree Rest. let's look under a few more rocks and more snakes will come out!!!!!!

[shortstuff]

Oh, well hawkeye that is interesting. So perhaps it was Paul Leone that wants the Mayor of Depew Mr. Steve Hoffman on the board......hmmm now it appears that "conflict of interest" might becoming more clear.

Giza states Paul does not get paid when in fact he does, proof is in the pudding. Paul gets free rent...hmmm

[hawkeye]

Paul gave the Democrate's free rent and also the Mayor of Depew free rent in the elections in Depew !!!!!! Leone has construction company and deals with the Town in the pass and at this time something is in the works. No Conflict of interest. Maybe the Fence company might have something to do with it. Look for the snakes they are all around the Town and in Depew.

[Ace22]

Paul gave the Democrate's free rent and also the Mayor of Depew free rent in the elections in Depew !!!!!! Leone has construction company and deals with the Town in the pass and at this time something is in the works. No Conflict of interest. Maybe the Fence company might have something to do with it. Look for the snakes they are all around the Town and in Depew.

I believe by Paul Leone, you mean John Vissone...completely unconnected and not related. He is the listed property owner of the plaza you're mentioning and many others. Very reputable man and former principal at Lancaster High School. Do a little research before you start mixing people up. You're starting to remind of George W. Bush.

[gorja]

I believe by Paul Leone, you mean John Vissone...completely unconnected and not related. He is the listed property owner of the plaza you're mentioning and many others. Very reputable man and former principal at Lancaster High School. Do a little research before you start mixing people up. You're starting to remind of George W. Bush.

I'm finding 2 properties listed at 5150 Broadway on the Lancaster ORPS site and the Erie county real property site. One property listed as fast food is owned by McDonald's Corp. The other property listed as Neighborhood shopping center is owned by Centurian Development LTD

[WNYresident]

For how many years have these same group of people been running lancaster?

[shortstuff]

Too damn long res....too many years to count

[Lee Chowaniec]

Well there you go, thanks gorja. I knew he got paid. So Bob Giza blatantly lied. Well it is not the first time.

Supervisor Giza did not lie. I screwed up. I listened to the recording last night again and heard Mr. Giza say that Paul Leone did get paid when I asked why he was not listed on this year's appointed list and whether he received compensation for his counsel.

I apologize to the Supervisor for not correctly catching what he said at the meeting.

I truly appreciate when people pick up on the errors and hold me accountable.

[hawkeye]

I bad!!!!!!!! just pass on the information that one told me, talk to my source