Articles for J. Dale Shoemaker

Jun 29

2023

Yet another subsidy for local meatball maker

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 10 months ago

Jun 27

2023

Council nixes grant to downtown grocery

The Buffalo Common Council on Tuesday voted down a request for a $563,000 loan for the Braymiller Market, a downtown grocery store that’s previously received subsidies and other public assistance. The proposed funding drew outcry from some residents who argued that if the city was going to spend COVID-19 relief funding on a grocery store, it ought to support a store on the East Side, rather than downtown. That issue, the lack of supermarkets on the East Side, was highlighted after last year’s attack on the Tops on Jefferson Avenue, which caused the store to close for several months. The[...]

Posted 10 months ago

Jun 9

2023

Tax subsidy reforms stall in Albany

New York state lawmakers were poised to end the 2023 legislative session Friday with no action on a pair of bills that would have drastically reformed the state’s 107 industrial development agencies. Industrial development agencies, or IDAs, are public benefit corporations that have the power to grant property, sales and mortgage tax breaks to corporations who apply for those benefits, often in exchange for creating new jobs. The eight counties of Western New York have 15 IDAs at both the county and municipal levels. One bill, sponsored by Senator Sean Ryan, a Buffalo Democrat, would have barred IDAs from granting[...]

Posted 11 months ago

Jun 1

2023

The false promises of IDA subsidies

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 11 months ago

May 31

2023

IDA tax breaks cost schools millions

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 11 months ago

May 15

2023

‘Inappropriate and questionable spending’ at IDA

A state review of the Chautauqua County Industrial Development Agency has found more than $250,000 of “inappropriate and questionable discretionary spending,” including costly holiday parties and membership to a golf club. Among other issues, the draft review by the Authorities Budget Office obtained by Investigative Post found: The IDA’s chief financial officer, Richard Dixon, was reimbursed $30,600 for use of his personal vehicle and $18,429 for a membership and other expenses at a local golf club. CEO Mark Geise, Dixon and other staff used IDA credit cards to pay for $26,000 in “inappropriate meal purchases.” The agency made more than[...]

Posted 11 months ago

May 10

2023

Subsidies for developer accused of racism

Editor’s note: This is the final of three stories triggered by the filing of a lawsuit Monday that accuses the Clover Group of discriminating against Blacks in the placement of senior apartment complexes. Monday’s story focused on the lawsuit. On Tuesday we profiled Clover’s CEO, Michael Joseph. The Clover Group — the target of a federal lawsuit accusing the company of “racist and illegal practices” — grew its business in Western New York with the help of millions of dollars of tax subsidies and low-interest government loans. The public assistance to the company owned by Michael Joseph, a generous donor[...]

Posted 11 months ago

Apr 26

2023

Big subsidies for factory rehab in Tonawanda

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 12 months ago

Articles for J. Dale Shoemaker

Get our newsletters delivered to your inbox * indicates required