LIDA forgave $150,000 loan VLCDC

[shortstuff]

A different perspective

Economic development agencies are here to stay, like it or not.

If Lancaster or the other four towns did not have their own Industrial Development Agencies (IDA), the towns would be subjected to the whims and handouts of the Erie County Industrial Development Agency (ECIDA), or worse the state’s development programs.

If the state had no development agency, other states would eat our lunch in attracting businesses into their states. Mr. Poloncarz and/or Governor Cuomo would love to pick up the $1.2 million the LIDA has in its fund balance and is the reason both county and state agencies are putting more and more restrictive limits on how the agency can spend its own money – not taxpayer money.

The mission statement presented and the LIDA’S function to provide economic assistance has nothing to do with the funding that was presented to the Village of Depew to update the Fireman Park gazebo, nor the forgiveness of the Village of Lancaster loan of $150,000 that came out of the coffers of the LIDA. Again, both actions taken with no cost to the taxpayer as the LIDA is spending its money earned through brokering approved development projects. Don’t confuse the one entity with the other.

To equate the workings of the LIDA to that of the administration prior to Supervisor Fudoli taking over his LIDA leadership is disingenuous. Under Giza many more PILOTS were issued, and for undeserving projects such as retail, successful businesses that were not positioning their need on the threat of leaving and should not have qualified for an IDA, for three IDA’S for the Lancaster Airport expansion with no job creation stated on the application and over $15 million in grant monies received from the FAA and the state, etc.

Fudoli changed the direction of the LIDA were less than half the application grants involve PILOTS and where many applicants who formerly were eligible for an IDA are no longer eligible for approval.

The LIDA now uses an IMPLAN Pro software modeling economic impact analysis program to measure new investment in the Town of Lancaster. It is a widely accepted software application and an industry standard for economic impact modeling measuring employment and salary impacts and facility output on the community for a given project - a much more credible process for determining project merit.

You make not like the idea of an economic development agency in any light, but they are here to stay; a necessary evil to some.

Good post, I agree with what you provided here Lee.

Graber has no business being on that LIDA board, Frank should have been re-appointed.

[gorja]

Originally posted by gorja:
It seems like our Lancaster IDA assists hotels hear, as well

"hear" should be "here", sorry

[gorja]

I agree the LIDA should exist but the give-aways to hotels citing "tourism". Is Lancaster really a tourist destination?

[Lee Chowaniec]

I agree the LIDA should exist but the give-aways to hotels citing "tourism". Is Lancaster really a tourist destination?

That is a BS sore point with me as well.

[gorja]

I agree the LIDA should exist but the give-aways to hotels citing "tourism". Is Lancaster really a tourist destination?

It looks like another hotel developer has his handout to the LIDA

[Lee Chowaniec]

It looks like another hotel developer has his handout to the LIDA

Spot on with this post.

The LIDA has put themselves in a position where it would be difficult to differentiate why this developer should not be given like consideration. The tourism location rationalization for approving such IDA is a stretch and crosses the line in many minds.

That said, under this LIDA administration such approvals were conditioned on the petitioner receiving no PILOT (payment-in-lieu-of taxes). It will be interesting how the incoming LIDA administration will analyze the proposal and act.

[4248]

$15 MILLION lost tax dollars - just keep exempting wealthy investors ! (who's names do not appear in the request ?)

The more they exempt - the more they give away - we will have to make up for .

[gorja]

Spot on with this post.

The LIDA has put themselves in a position where it would be difficult to differentiate why this developer should not be given like consideration. The tourism location rationalization for approving such IDA is a stretch and crosses the line in many minds.

That said, under this LIDA administration such approvals were conditioned on the petitioner receiving no PILOT (payment-in-lieu-of taxes). It will be interesting how the incoming LIDA administration will analyze the proposal and act.

Yes, they did a receive a Special PILOT which was equivalent to a 485-b- 10 year term, starting with 50% reduction then a 5% decrease each year. Leone claiming it qualified because it was an Adaptive reuse project.

I thought the Lancaster IDA stopped that BS. Remember Penoras pizza wanted a $17,000 sales tax abatement because they were in an "enhanced zone" and got denied.

Yet, this $15.5 million project gets
50% off their taxes in year 1,
45% off in year 2,
40% off in year 3,
35% off in year 4,
30% off in year 5
25% off in year 6
20% off in year 7
15% off in year 8
10% off in year 9
5% off in year 10

They were getting $90,000 in taxes from the old motel. $47k school and $43k county/town

[gorja]

Here we go again - Tops Markets
NOTICE OF PUBLIC HEARING

TOWN OF LANCASTER

INDUSTRIAL DEVELOPMENT AGENCY

PLEASE TAKE NOTICE that the Town of Lancaster Industrial Development Agency will hold

a public hearing on January 12, 2016 at 9:00 a.m. at the Lancaster Town Hail, 21

Central Avenue, Lancaster, New York, to consider the following proposed financial assistance

requested of the Agency.

I. Tops Markets, LLC (the ‘Company”) — Request for Agency assistance on a project located

at 5873 Genesee Street, Town of Lancaster to upgrade and improve an existing warehouse

building, including the installation of energy efficient lighting and new equipment, along with the

addition of new warehouse initiatives that will add new product lines not previously stored in the

warehouse (e.g. freezer capacity), with an estimated project budget of $1,500,000.00. The

Company seeks eligible sales tax exemption only through March 10, 2017.

The Agency will present information relative to this project and application at the hearing.

Persons interested may attend and will be given an opportunity during the hearing to make

statements. Also written comments may be submitted to the Agency at or before the hearing.

Additional information can be obtained from and written comments may be addressed to:

Paul Leone, Consultant to Town of Lancaster Industrial Development Agency, 21 Central

Avenue, Lancaster, New York 14086

[Lee Chowaniec]

Here we go again - Tops Markets
NOTICE OF PUBLIC HEARING

TOWN OF LANCASTER

INDUSTRIAL DEVELOPMENT AGENCY

PLEASE TAKE NOTICE that the Town of Lancaster Industrial Development Agency will hold

a public hearing on January 12, 2016 at 9:00 a.m. at the Lancaster Town Hail, 21

Central Avenue, Lancaster, New York, to consider the following proposed financial assistance

requested of the Agency.

I. Tops Markets, LLC (the ‘Company”) — Request for Agency assistance on a project located

at 5873 Genesee Street, Town of Lancaster to upgrade and improve an existing warehouse

building, including the installation of energy efficient lighting and new equipment, along with the

addition of new warehouse initiatives that will add new product lines not previously stored in the

warehouse (e.g. freezer capacity), with an estimated project budget of $1,500,000.00. The

Company seeks eligible sales tax exemption only through March 10, 2017.

The Agency will present information relative to this project and application at the hearing.

Persons interested may attend and will be given an opportunity during the hearing to make

statements. Also written comments may be submitted to the Agency at or before the hearing.

Additional information can be obtained from and written comments may be addressed to:

Paul Leone, Consultant to Town of Lancaster Industrial Development Agency, 21 Central

Avenue, Lancaster, New York 14086

Onerous indeed especially considering past IDA approvals and PILOTS. However, here Tops is seeking only a sales tax exemption and they will most likely get it because other businesses in town have received same approval for renovation/expansion reasons.

Documents have not been posted on the LIDA website yet so we have no idea on whether this corporate welfare move will create any jobs and no Pro Plan diagnostic analysis has been used to determine future revenue benefit to the community.

[shortstuff]

It's a one time thing right, the impact is a loss of future tax revenue.

This is how I think about this stuff, abatements/IDA incentives should serve as a one time "initiative" to meet their one time "need." A continual entitlement IMO is a loss to another business who can/may benefit. I feel we should stick to the criteria set in place & a clawback clause should be part of that guideline/criteria.

[gorja]

In 2011, Tops came sniffing around for a 5 year extension of their tax abatement
http://www.lancasternyida.com/acg/wp...arkets-LLC.pdf

They had a similar request in March 2014 as the one for Tuesday, 1/12/16
http://lancasternyida.com/acg/wp-con...ch-11-2014.pdf page 3

Then, later that year, they came a knocking again for sales tax abatement and a PILOT extension
http://lancasternyida.com/acg/wp-con...ember-2014.pdf

[4248]

I don't believe the Lancaster Industrial Development Agency has ever uphold a claw back agreement. Topps failed to stick to their employment numbers, Ecology and Environment has even had vacant buildings that weren't used as promised.

The purchase and management of the BOCCE Building was a financial disaster - except for the insiders who received paychecks.

The LIDA will keep doing what they do best - gaining their commissions and handing out tax breaks.

Taxpayers will make up any needed tax revenue and the beat goes on. Its what the voters want .

[gorja]

I don't believe our IDA has ever even had a "Claw back" policy to uphold.

[shortstuff]

Does anyone know what happened at the public hearing that occurred this past Tuesday regarding Tops seeking tax exemption?

True gorja, never has one been instituted, and IMO it should be.