Tag: Economy

Jun 9

2023

Tax subsidy reforms stall in Albany

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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 10 months ago

Jun 7

2023

Podcast: How tax breaks deplete school budgets

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Last week, Investigative Post’s J. Dale Shoemaker reported on tax subsidies distributed by industrial development agencies — subsidies that deprive school districts of millions of dollars each year. In this latest episode of Investigative Post’s Reporter’s Notebook, host Garrett Looker sat down with Shoemaker to talk about his months-long analysis into how tax subsidies are affecting school districts. Watch via YouTube or listen as a podcast.

Posted 10 months ago

Jun 5

2023

Feds pause permit for critical industrial park work

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Editor’s note: Investigative Post and the Niagara Gazette share selected stories, including the following report from Mark Scheer, who previously worked for Investigative Post. A federal agency has put a hold on a permit for construction of a piece of infrastructure critical to the development of a sprawling industrial park in Genesee County. An official representing the U.S. Fish and Wildlife Service has informed the Tonawanda Seneca Nation that it intends to take another look at the potential environmental impact of a wastewater pipeline that would connect a 1,250-acre industrial park in rural Genesee County to Oak Orchard Creek and Lake Ontario.[...]

Posted 10 months 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 10 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 10 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 11 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 11 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 12 months ago
Investigative Post

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