LIDA forgave $150,000 loan VLCDC

[4248]

For years it was brought up at Town Board Meetings to include a clawback agreement. The Chairman/Supervisor B.Giza fought to keep it out. He said things like - "With our economy - it wouldn't be fair" -

Always on the side of those receiving the breaks instead of protecting taxpayers interests.

[gorja]

Business First - IDA Clawbacks common in WNY
Fri, Jan 15th 2016 10:00 am
James Fink
Reporter
Buffalo Business First

A new New York state mandate that all 109 industrial development agencies add a clawback provision before approving tax breaks or incentives may be redundant to what already exists here.

On Dec. 18, Gov. Andrew Cuomo approved the mandate, giving all IDAs six months to comply. Clawbacks mandate that if a company fails to meet job creation or retention projections, it may be responsible for refunding tax breaks and could lose outstanding incentives.

Cuomo's provision is modeled after one crafted by the Erie County Industrial Development Agency and enacted in January 2014. The provision was championed by Erie County Executive Mark Poloncarz.

ECIDA policy states that a company must have created or retained at least 80 percent of job projection totals for incentives to remain in place. Companies are required annually to submit job totals to the ECIDA during the tax break period.

"You have to have a benchmark," Poloncarz said. "You have to have a strict standard."

Clawbacks, while not new, moved to the forefront in recent weeks following the surprise decision by Muller Quaker Dairy to announce plans to close its Batavia plant after just two years.

Muller received tax breaks and incentives from the Genesee County Economic Development Center and Empire State Development to open the plant. Many are urging county and state officials to invoke clawback clauses with Muller.

Virtually all the region's industrial development agencies have clawback provisions in their bylaws.

Michael Bartlett, Hamburg Industrial Development Agency executive director, said his agency will discuss the new law. "It's good to have, but we also have to remember in the business world things happen," Bartlett said.

David Mingoia, Amherst Industrial Development Agency associate director, said the issue will be discussed by the local leadership council. "But we already do a very good job of self-policing ourselves," Mingoia said.

Henry Sloma, Niagara County Industrial Development Agency chairman, said his agency has a clawback provision and companies are monitored. "If there is a plausible reason why certain jobs weren't created, maybe the company shouldn't be penalized," he said. "However, if a company outright misrepresents itself, that's a whole separate thing."

http://www.ecidany.com/news/article/...-common-in-wny

[4248]

Years ago and continually during the years people have asked our Town Board and the Lancaster IDA, "Why don't we have Claw Back clauses" in these sweet deals we give developers and businesses ?

People saw a growing cycle of companies moving when subsidies ran out. Some would actually build or expand a small strip mall in order to receive breaks, special financing and tax reductions on property values. Then when they reached the end of their agreed upon time frame - they move and do it again.

Some Companies like Ecology and Environment received tax abatements and breaks to build a facility on Walden near Ransom Road. Not only did they not hire and maintain the promise job positions - after a few years the building was all but vacant. The IDA and the Town Board was made aware and no actions were ever taken - to this day the building does not come near the employment projections they presented.

American sales is another recent example of these type failures. We gave them financial assistance - tax breaks - property tax breaks and now their leaving.

Millions of dollars have been lost in sales tax, property taxes and so on. People don't realize home owners make up the difference when property tax breaks are given.

If the Town says the have 1billion dollars worth of taxable property - then they give reductions and breaks to businesses - the difference is made up when taxes are assessed among the other property/home owners.
You pay to subsidise these IDA Breaks.

If they continue to give them breaks - we should have some real guarantee of recovery. Not inflated projections of what might happen down the road.
What do taxpaying home owners get in return for these IDA Gifts ?

How much more can you afford ?

[gorja]

I noticed on the agenda for the last LIDA meeting, under "Other business" was this -

Lancaster airport- Appearance by a representative of the Lancaster Airport

What's their latest want?

[4248]

Everyone knows the Airstrip expansion push will come back - again and again until its passed. Town Hall and the Airstrip owner knows its just a matter of time !

The truest statement ever made about this issue was when the Airstrip Operator stated, "We have the local Politicians on our side"

Residents forget - support for residents erodes due to "Political Change" and some people just plain give up the fight.

There is no way the owner will give up after receiving $13 MILLION tax dollars and knowing there is more money to be had.

Regardless of the unfortunate accidents and even a death associated with that airstrip - they will still have the support of Town Hall. The connections with the hidden agenda of "Local Political Families" and the owner will continue. WE have seen this with many Lan Dem supported projects - they just keep coming back.

[shortstuff]

Tom Geles appeared at the first meeting of the year which was the re-org meeting. He wanted to speak to the board. Was told that he could not, he needed to be put on the agenda. It was put on the agenda, but he nor did anyone else show up. It is my opinion that one of the PILOT's are expiring or has already expired and wants his hand out for renewal. It is just an opinion, why else would they come to the LIDA. It is with great resistance that they not receive anymore funding because they do not has not and will not meet the criteria for any IDA's or abatements.

[gorja]

Lord Amherst hotel renovation in limbo after Amherst IDA turns down extra tax breaks
The renovation of the Lord Amherst Hotel into a high-end boutique hotel is in flux after the developer’s bid for an extra $1.1 million in tax breaks to help cover the expanded scope of the project was turned down by the Amherst Industrial Development Agency on Friday.

The rejection, by a 4-3 vote, raises immediate questions over how the hotel renovation work, which already is well underway, will play out after a narrowly divided IDA board rejected arguments that the hotel qualified for tax breaks because it would be a tourism destination and was located in an enhancement zone that the town has targeted for redevelopment.

http://www.buffalonews.com/business/...reaks-20160318

I guess Amherst isn't the tourist mecca that Lancaster is, eh???

[4248]

[Lee Chowaniec]

Everyone knows the Airstrip expansion push will come back - again and again until its passed. Town Hall and the Airstrip owner knows its just a matter of time !

The truest statement ever made about this issue was when the Airstrip Operator stated, "We have the local Politicians on our side"

Residents forget - support for residents erodes due to "Political Change" and some people just plain give up the fight.

There is no way the owner will give up after receiving $13 MILLION tax dollars and knowing there is more money to be had.

Regardless of the unfortunate accidents and even a death associated with that airstrip - they will still have the support of Town Hall. The connections with the hidden agenda of "Local Political Families" and the owner will continue. WE have seen this with many Lan Dem supported projects - they just keep coming back.

I will agree with you that Lancaster Airport has had a representative at every town board meeting for quite some time. I agree that their intent is to someday get town approval for the airport expansion allowing for jet and aircraft with 49 feet wing spans usage.

They have already received, by their own admission $15 million in federal and state grants for that purpose and their appearance may be nothing more that to get the $6,000 state grant money they feel is owned them or an IDA extension – which they should be denied because their original three ID’S came without job creation.

I disagree with your statement, “Residents forget - support for residents erodes due to "Political Change" and some people just plain give up the fight.”

To my knowledge SACL is very much alive, had great support from residents living throughout the town, especially in the areas that would be impacted by such expansion, and would now have even greater numbers of residents pissed at the town for allowing development to continue in areas they moved into and where they would be impacted by a project that would not serve their needs and best interests and not add anywhere near the revenue that the homeowners provide. The Lancaster Airport sits on 140+ acres, has several buildings and the last I knew was assessed at $1.8 million and paid less than $50,000 in property taxes.

Shortstuff’s post was spot on: Tom Geles appeared at the first meeting of the year which was the re-org meeting. He wanted to speak to the board. Was told that he could not, he needed to be put on the agenda. It was put on the agenda, but he nor did anyone else show up. It is my opinion that one of the PILOT's are expiring or has already expired and wants his hand out for renewal. It is just an opinion, why else would they come to the LIDA. It is with great resistance that they not receive anymore funding because they do not has not and will not meet the criteria for any IDA's or abatements.

The airport expansion was a dead issue under the Fudoli administration. Two board members who no longer serve on the town board attempted to change the code language to make the expansion happen. It didn’t happen under the last administration and I don’t believe this administration will touch it either. This project is not in the best interest of the town as well as the residents; fiscally and considering the adverse impacts associated with it.

[shortstuff]

Lee speaks the truth. SACL had been in communications with local and state agencies all along and will continue to be vigilant.

[4248]

Its good that the residents and SACL stay vigilant and active -

During their campaign - the Dems mentioned a planned increased effort to build out the Genesee/Walden area. Thats includes the Pavement Road/Pleasant View area.

We see on Pleasant View the building of the Cross Creeks subdivision is approaching Pavement Road. These homes will be subjected to low flying airplanes - so will most everything else near the air strip.

So while the expansion of the sir strip may have slowed or seemingly held static - the actual dangers of nearby present and future residents increase. This due to the Town Controllers efforts to keep building their tax base.

Last point: there is still direct personal/political connections between the owner/users of the air strip and our Town Hall Controllers.