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State Comptroller Releases IDA Report

The 109 Industrial Development Agencies in New York state reported providing $751 million in net tax exemptions for local economic development efforts in 2017, up more than 5% from 2016, according to a report issued in May by state Comptroller Thomas P. DiNapoli.

The gap in net job gains created by IDA-sponsored projects narrowed between Upstate and Downstate regions in 2017, according to the most recent data submitted by the state’s IDAs. Through 2017, downstate areas accounted for 51% of the nearly 200,000 total net jobs gained through IDA projects versus 49% gained in upstate regions. The prior year, downstate outpaced the rest of the state with 57% of the total.

“The need for close scrutiny of economic development efforts has never been higher,” DiNapoli said. “My office releases IDA data so New Yorkers can examine if incentives given out to create and retain jobs in their communities are worth it.”

The annual report showed IDAs provided approximately $1.4 billion in total tax exemptions to 4,385 projects in 2017. These exemptions were partially offset by $642 million in payments in lieu of taxes. Both total exemptions and PILOTs increased, resulting in net exemptions of more than $750 million, $36 million, or 5.1 percent, higher than the prior year. In 2016, net tax exemptions were up $20 million, nearly 3%, than in 2015.

In Chautauqua County, there was a total of $13.6 million in tax exemptions, with $1.5 million in PILOTs, for a net of $12.1 in 2017. In 2016, Chautauqua County had $13.5 million in total tax exemptions, but had $5.7 million in PILOTs, for a net tax exemption of $7.9 millions.

Rich Dixon, Chautauqua County IDA chief financial officer, said the information each IDA provides to the comptroller doesn’t capture the essences of what each individual group does. He said each IDA is unique, for instance not all groups have an Al Tech Revolving Loan Fund like the county does. He also said not every state IDA financially supports a PGA golf event like the The LECOM Health Challenge at Peek’n Peak Resort.

“There are a lot of anomalies. Each has their own story to tell,” he said. “Each IDA is different with what they do.”

Dixon also said the county’s PILOT payments are down significantly because of the “mothballed” NRG power plant. He said when the plant was operating, the IDA would receive between $8.2 to $10.2 million a year in a PILOT payment. He said when the plant was shutdown, it was contractually reduced to only $420,000.

By working with other development agencies in Western New York, Dixon said projects have come to Chautauqua County. He said because of the county’s close relationship with Invest Buffalo Niagara the $208 million Athenex project is underway in Dunkirk. He also said the New Flyer project at the former Quality Markets building along Fluvanna Avenue in Jamestown happened by contacting Invest Buffalo Niagara.

“We respond to a lot of request from Invest Buffalo Niagara. They serve a big role and do a good job,” he said. “We also work well with the state. We worked with the state Legislature and they helped us buy land at the Mason Industrial Park. Soon we will be breaking ground there for the Stannard Group. We have great partnerships and things are going well.”

According to the comptroller’s report Through 2017, active IDA projects produced a net total of 198,522 jobs gained since their inception, with nearly two-thirds of projects resulting in net jobs gained. Services, such as retail, health care and recreation, accounted for 50,435, or 25%, of the total net jobs gained, closely followed by manufacturing, 21%, and finance, insurance and real estate, 20 percent.

In 2017, the IDA worked on 46 projects, with an estimated jobs created of 576 and 3,591 estimated jobs retained. In 2016, the IDA worked on 41 projects, with an estimated 312 jobs created and 3,590 estimated jobs retained.

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