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Thread: IDA tax breaks cost too much.

  1. #1
    Member cheekman's Avatar
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    IDA tax breaks cost too much.

    Great article in the news on tax breaks. So guys like pegula, jacbobs, new era, cary baby carl, and now another one Hamister Group seeks tax break for Falls hotel but the small guy forget it.. Guys and companies like these big shots are looking to make more money off the taxpayer and make more money for themselves. But the little guy gets screwed.. BS...

    Rebecca and Peter McCauley spent four months trying to land tax breaks for their $1 million project to turn a vacant Main Street building into a couple of apartments and some ground-floor commercial space.

    They succeeded. But in the end, they just ended up spinning their wheels.

    The McCauleys succeeded in the sense that the Erie County Industrial Development Agency in December approved a $35,000 sales tax break for the Orchard Park couple’s project, after a lengthy debate among board members that started in November and dragged on for more than a month.

    But it all ended up for naught when the McCauleys started jumping through all the hoops the IDA requires for businesses that win tax breaks. BS
    The McCauley’s soon figured out that accepting the breaks would end up costing them more than they’d save by accepting the tax breaks. So late last month, the McCauleys told the IDA ‘Thanks, but no thanks,’ and walked away from their modest incentive package.

    “They do a fantastic job with large projects,” Rebecca McCauley said. “But they are not ready to fulfill their adaptive reuse policy with small projects. They’re not used to doing this kind of project.”

    That became clear to the McCauleys when they started doing the math. To get the tax break, the IDA required the McCauleys, as it does all companies receiving incentives, to provide insurance that would protect the agency from lawsuits. For bigger companies or developers, that requirement isn’t a big deal because they already have similar coverage.

    But for the McCauleys, who didn’t, purchasing that coverage would cost them about $30,000. And when they added in the $8,500 in administrative and legal fees they’d owe the IDA, the McCauleys were facing a $38,500 expense, just to get a tax break worth an estimated $35,000.

    In other words, accepting the tax break would cost them $3,500.

    “I really did want that sales tax incentive. It would have made my payback much quicker,” McCauley said. “But there was just no getting around it.”

    Steven Weathers, the IDA’s president, said the agency should be doing a better job explaining the costs and the process to companies that are new to the incentive hunt. CB Carl is not new to the hunt.As Buffalo’s revival continues, McCauley thinks such small, so-called in-fill projects like hers will become more common. She thinks the IDA should come up with new policies to help accommodate projects of $1 million or less. yes she learned a lot ..“I learned a lot. Now I know exactly how the agency works,” she said. “I hope it helps them with the next project that comes along of my size.” honey you are not the right person to get a tax break in this area,

    Now the other one..Hamister ..Hamister asks Niagara IDA for tax break for Niagara Falls hotel. Besides the property tax incentives, Hamister wouldn’t have to pay any sales tax on building materials or furnishings and equipment for the hotel, nor would the company have to pay any mortgage recording tax. In all, the IDA staff calculates that the deal would save the company more than $4.2 million over the coming decade.
    Same guy who took the indoor football team elsewhere and would have moved the Sabres had the sale gone through thanks to his buddy Giambra.

    http://www.buffalonews.com/city-regi...hotel-20150211
    God must love stupid people; He made so many

  2. #2
    Tony Fracasso - Admin
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    Great article in the news on tax breaks. So guys like pegula, jacbobs, new era, cary baby carl, and now another one Hamister Group seeks tax break for Falls hotel but the small guy forget it.. Guys and companies like these big shots are looking to make more money off the taxpayer and make more money for themselves. But the little guy gets screwed.. BS...
    I've been basically saying this all along.

    Along with the scam the IDA's have going.
    But for the McCauleys, who didn’t, purchasing that coverage would cost them about $30,000. And when they added in the $8,500 in administrative and legal fees they’d owe the IDA, the McCauleys were facing a $38,500 expense, just to get a tax break worth an estimated $35,000.
    No incentives handed out no "fees" for the IDA's to make money.

    How about that. $8500 in legal fees for a $35,000 tax break.



    Lower taxes across the board for everyone not just a select few.

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