Categories for Analysis

Jun 29

2023

Yet another subsidy for local meatball maker

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A West Seneca-based frozen food manufacturer — the rumored maker of Olive Garden’s meatballs — won yet another tax break from the Erie County Industrial Development Agency on Wednesday, its third since 2016. And that’s not counting six previous low-interest loans the IDA has granted to Rosina Food Products dating to 1981. The company manufactures frozen Italian food products, including meatballs, ravioli and pizza toppings. In a unanimous vote, the IDA board of directors approved $749,000 in property, sales and mortgage tax breaks for Rosina. Executives said the company will use the tax breaks to renovate and expand two buildings[...]

Posted 2 years ago

Jun 28

2023

Primary elections: Progressives strike out — again

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So much for the revolution.  Hopes ran high among Buffalo progressives after India Walton won the Democratic mayoral primary two years ago, shocking four-term incumbent Byron Brown. Walton lost to Brown’s well-funded and often vicious write-in campaign in the general election, but the coalition of progressives who supported her seemed poised to start winning smaller elections.  Our City Action Buffalo, or OCAB, played a key role in Walton’s mayoral run. The coalition of progressive activists didn’t run candidates for Democratic Party committee seats last year, opting to fight the party establishment from the outside. It endorsed incumbent Jen Mecozzi’s successful[...]

Posted 2 years ago

Jun 21

2023

Big money in Council races

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The five contested races for Buffalo Common Council seats have attracted an astonishing amount of money, and for good reasons.  For one, the winners will determine whether Mayor Byron Brown will have a friendly majority on the Council for the last two years of his fifth term, or whether he will continue to spar with a bloc of five (and sometimes six) legislators, as he has for the past four years. Second, they will choose the successor to Darius Pridgen as Council president in January. The Council president wields a great deal of power and would become acting mayor, should[...]

Posted 2 years ago

Jun 13

2023

A possible problem with City Hall pay raises

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Buffalo’s Common Council voted 5-to-3 Tuesday to give pay raises to themselves, the mayor, the city comptroller and the nine elected members of the city school board. A commission empaneled by the Council in April recommended the 12.63 percent raises for city elected officials and 87 percent pay raises for school board members. The increases will cost taxpayers $254,410 per year.  The new salaries are as follows: Mayor: $178,518.55 — a boost of $20,018.55. Comptroller: $134,592.85 — a boost of $15,092.85. Common Council member: $84,472.50 — a boost of $9,472.50. Board of Education member: $28,000 — a boost of $13,ooo.[...]

Posted 2 years ago

Jun 1

2023

The false promises of IDA subsidies

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In order for Western New York’s economy to remain stable, economic development officials argue that industrial development agencies need to grant tax breaks and other incentives. “People just aren’t going to build here unless they have incentives to help them to do that,” Mark Onesi, chair of the Niagara County Industrial Development Agency, told Investigative Post last year. “It’s expensive to do business here so we help as many people as we can.” Research, however, refutes those assertions. Economists have found between 75 and 90 percent of jobs created with tax breaks would have happened without the help.  “The system[...]

Posted 2 years ago

May 31

2023

IDA tax breaks cost schools millions

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 Editor’s note: This is the first of two stories on industrial development agencies. Tomorrow, we report on “perverse incentives” and other shortcomings in IDA programs. Any time Susan McGee’s children want to join an activity outside of the classroom — be it sports, music or other extracurriculars — it means one thing: a fundraiser. Raising money for extracurriculars may seem routine for a small, struggling Rust Belt city like Dunkirk, where McGee’s children attend school. But there’s another factor at play: The Dunkirk City School District loses out on an average of $5 million in revenue every year thanks[...]

Posted 2 years ago

May 3

2023

Big shakeup at the besieged OTB

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The embattled Western Regional Off-Track Betting Corp. is finally getting reformed. In a big way. The state public benefit corporation — mired in allegations of malfeasance and subject to multiple critical audits and investigations — saw its entire 17-member board of commissioners terminated Tuesday night, thanks to a budget provision sponsored by Sen. Tim Kennedy of Buffalo and Assembly Member Monica Wallace of Lancaster, both Democrats.  New board members will be appointed and weighted voting instituted to reflect the population of the 15 counties and two cities that in-effect own OTB. That will shift control from mostly rural counties controlled[...]

Posted 2 years ago

Apr 26

2023

Big subsidies for factory rehab in Tonawanda

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A century ago, tusks from thousands of elephants from Africa — dug up from graveyards or collected by hunters — made their way to a Town of Tonawanda factory complex where the Wood & Brooks Company used them to make piano keys. Closed by the 1970s, the factory complex on Kenmore Avenue today is “substantially vacant” according to a developer who wants to rehabilitate two of the property’s dozen buildings into business incubator space and 55 apartments. The developer, Michael Wopperer, has estimated the project will cost $23 million. He hopes to complete the redevelopment by the fall of 2024.[...]

Posted 2 years ago
Investigative Post