Tag: Economy

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 4 months 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 4 months ago

May 15

2023

‘Inappropriate and questionable spending’ at IDA

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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 5 months 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 5 months ago

Apr 3

2023

Report details Tesla’s solar struggles

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Tesla and state economic development officials have long treated activity at the company’s plant in South Buffalo as a state secret. Aside from an annual report listing Tesla’s total investment and employment in Buffalo, company and state officials have been loath to clue the public in on what exactly is going on at the factory. The lack of transparency comes despite a state investment of $959 million to build and equip the plant, on the promise it would spawn a clean energy sector in Western New York. That’s changed with the release of a first-of-its-kind report from a global consulting[...]

Posted 6 months ago

Mar 29

2023

Subsidizing a downtown grocery store … again

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In 2019, Buffalo’s plans for a downtown city block seemed to be the platonic ideal of urban redevelopment: turn an old parking lot into hundreds of units of affordable housing and place a grocery store directly next door. And you could say that’s exactly what the city accomplished. Today, the corner of Ellicott and Clinton Streets — right across the street from the Buffalo & Erie County Public Library — features 201 affordable housing units on one-half of the 2.52-acre lot, and Braymiller Market on the other half, downtown’s only full-service grocery store. But completing that project has come at[...]

Posted 6 months ago

Mar 22

2023

Yet another subsidy for Moog

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The Erie County Industrial Development Agency on Wednesday rubber-stamped nearly $3 million in tax breaks for Moog, the defense contractor based in Elma. It was the 14th round of assistance from the agency since the 1970s. The IDA has now approved $12.8 million in subsidies for six Moog projects since 2006. Moog, a profitable company that netted $155 million last year, has won federal contracts in the past decade totaling more than $6 billion. The company manufactures parts for fighter jets, missile launchers, rocket ships and submarines. Federal contracts make up about half of its total business, while private aviation,[...]

Posted 6 months ago

Mar 20

2023

Moog seeking 14th tax subsidy from IDA

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 Moog Inc., one of Western New York’s largest employers, is a highly profitable company, netting $155 million last year alone. That’s partly due to the billions in federal defense contracts it’s landed over the past decade. Yet time and time again — 13 times since 1973 — Moog has gone before the Erie County Industrial Development Agency seeking — and receiving — millions in tax breaks. It’s received nearly $10 million in subsidies since 2006. The company is headed back to the IDA on Wednesday asking for a 14th round of subsidies. Moog’s request for $2.9 million in sales[...]

Posted 7 months ago