Articles for J. Dale Shoemaker

Feb 14

2023

IDA subsidizing more market-rate housing

Under normal circumstances, market-rate housing is supposed to conform to the forces of the free market: A developer buys a piece of land, builds housing, and sells or rents it for a price that recoups their costs and turns a profit. But in Niagara County, the Industrial Development Agency is poised to subsidize two market-rate apartment complexes — a total of 90 units — to the tune of $3.9 million. In one project, the proposed IDA subsidy would cover 22 percent of the building costs. That project would create zero jobs. In the other, the subsidies would cover 44 percent[...]

Posted 2 years ago

Feb 9

2023

Niagara IDA ups its subsidies for fast food eateries

The Niagara County Industrial Development Agency on Wednesday doubled down on two projects its leaders claim will convince tourists to spend their vacation dollars in Niagara Falls rather than across the border. Those projects? Two fast food restaurants, a Moe’s Southwest Grill and an A&W. The IDA had previously signaled it would offer tax subsidies to those projects — a total of $172,000 in property and sales tax breaks — and made those offers official at its monthly meeting Wednesday morning. That alone drew the ire of local politicians, namely state Sen. Sean Ryan, who’s pledged to reform IDAs across[...]

Posted 2 years ago

Feb 8

2023

Report: Tax breaks costing schools big money

Public schools across the state are losing out on close to $2 billion a year — and probably a whole lot more — because of tax breaks given to corporations by economic development agencies. That’s among the conclusions of a study released today by Good Jobs First, a national research group that tracks economic development subsidies. The report said tax breaks affecting schools in New York far outpace those in other states. That lost revenue has prompted state lawmakers, including Sen. Sean Ryan, to propose legislation that would prohibit economic development agencies from abating property and sales taxes that are[...]

Posted 2 years ago

Jan 27

2023

Bills target alleged abuses by IDAs

State lawmakers plan to introduce legislation this spring that would close a loophole that allows industrial development agencies to grant tax breaks to restaurants and other retail businesses — thanks in part to what they perceive as abuses in Niagara County. The state banned tax breaks for retail projects, including restaurants, a decade ago. But they left in exceptions for tourism projects and retail establishments in so-called “distressed areas” with high poverty and high unemployment. The new proposed legislation is sponsored by Sen. Sean Ryan, the newly-appointed chairman of the Commerce, Economic Development, and Small Business Committee, and Assemblyman Jonathan[...]

Posted 2 years ago

Jan 26

2023

‘Weak’ relocation clause in Bills’ lease

The Buffalo Bills would have an easier time abandoning their new stadium in Orchard Park for another city than any of the other teams playing in subsidized stadiums built for NFL franchises in recent years, Investigative Post has found. Four NFL stadiums have been built with public assistance since 2014: Levi’s Stadium for the San Francisco 49ers, U.S. Bank Stadium for the Minnesota Vikings, Mercedes-Benz Stadium for the Atlanta Falcons, and Allegiant Stadium for the Las Vegas Raiders. Like the Bills draft lease, those agreements require teams in those stadiums to pay back the taxpayer’s investment in the event they[...]

Posted 2 years ago

Jan 23

2023

Another subsidized tenant for STAMP

A remote industrial park in Genesee County will soon have its second tenant: Edwards Vacuum, a company that manufactures equipment used in the semiconductor industry. But luring Edwards Vacuum, a British company, to the Science, Technology and Advanced Manufacturing Park, or STAMP, has come at a cost: $39.2 million in taxpayer subsidies. That’s in exchange for 600 jobs over the next decade, with 343 being hired in the next three years. And that’s just the beginning. In addition to $22 million in subsidies from Empire State Development, New York’s economic development arm, and $17.2 million in property and sales tax[...]

Posted 2 years ago

Jan 19

2023

Tax breaks for fast food in Niagara Falls

A fast-food franchise developer is looking to bring an A&W and Moe’s Southwest Grill to downtown Niagara Falls — and is seeking $172,000 in tax breaks to do it. IDA subsidies are available only to projects that would not be economically feasible otherwise. But the developer told Investigative Post he doesn’t need the tax breaks from the Niagara County Industrial Development Agency to proceed. “This is a little help, but we are able to do it without it as well,” said Muhammad Shoaib, the franchisee and developer. The subsidies he’s seeking have also drawn criticism. “Business subsidies are bad, but[...]

Posted 2 years ago

Jan 11

2023

Tesla’s solar factory in Buffalo fizzles

When Gov. Andrew Cuomo announced plans in 2013 for what is now Tesla’s factory in South Buffalo, he pitched it as a cornerstone of the “clean energy revolution” and a new high-tech industrial sector for Western New York. The project would create not only more than 1,400 direct jobs, but spin-off development that would provide a supply chain employing thousands of additional workers. Cuomo proclaimed the project a “game-changer.” Fast-forward to today. Less than one-quarter of the workforce at the Tesla factory is engaged in solar-related manufacturing. That work was suspended altogether for at least six months last year.  Podcast:[...]

Posted 2 years ago
Investigative Post