COMIDA endorsed by NY Greens

[ROSAPHIL]

for your consideration:
===========================
> NY State Greens endorse COMIDA changes (David Levner , Sun 20:23)
> To:
> nygr...@lists.panix.com
>
>
> Friends,
>
> The NY State Greens Coordinating Council has passed the Genesee
> Valley/Rochester Greens' motion to endorse their coalition's proposed
> improvements to County of Monroe Industrial Development Authority (COMIDA).
> The motion passed by consensus.
>
> The motion passed on Friday 1/23/98 using our new process for passing motions
> by consensus without a face-to-face meeting. Everyone on the council
> responded positively.
>
> David Levner
> NY State Greens Clearinghouse Coordinator
> lev...@panix.com
>
> ----------------------------- Start of motion -----------------------------
> Title: Endorsing the COMIDA improvements
> Date of motion: 1/21/98
>
> Dave Atias has sent us all a proposal to improve the County of Monroe
> Industrial Development Authority (COMIDA). I have reproduced it at the
> end of this e-mail.
>
> I move that we endorse this proposal.
>
> David Levner
> lev...@panix.com
> 718-897-1448
> ------------------------------ End of motion ------------------------------
>
> New and Improved COMIDA
>
> The purpose of COMIDA (County of Monroe Industrial Development Association)
> is to invest in our community. The problem is that very often our investments
> have not generated the intended return, good and plentiful jobs. Too many
> COMIDA decisions have resulted in Corporate Welfare . . . government money
> given to corporations without commensurate public benefit. In the tenor of
> our time, we must stop welfare as we know it. Tax abatements are not a right.
> When they are granted to some, the rest of us pay more taxes. Therefore,
> Metro Justice and the Genesee Valley / Rochester Greens offer the
> recommendations shown below to improve COMIDA's operations. We invite public
> discussion and modification. In order to implement these changes, the law
> should be changed where needed.
>
> We believe the problems have arisen because of a one-sided view of community
> (an over-concern about business). We believe that labor, tax payers, as well
> as business and others, constitutes a more well-rounded view of community. At
> the same time, there has only been pro forma concern about jobs, as well as a
> disrespect for the law. That is why COMIDA did not hold three corporations to
> their commitment of creating at least 25 jobs each. That is why COMIDA
> recently gave Wegmans a big tax break even though New York State now prohibits
> such aid for retailers.
>
>
> Requirements for Tax Abatements
>
> A. Proof That Public Financing Is Necessary
> There is simply no reason to subsidize corporations to build in Monroe County
> when they are planning to do so anyway. On the other hand, if a tax abatement
> is needed to encourage a corporation to move or expand here, it should be
> granted. However, the burden of proof is on each corporation and COMIDA.
> Absent compelling evidence that tax abatements are necessary, they must not be
> granted.
>
> B. No Tax Abatements for Retailers
> The tax abatement granted to Wegmans for their new Pittsford Plaza mega store
> was outrageous. New York State law now precludes tax abatements for
> retailers, and with good reason. COMIDA should not search for legal loop
> holes that were never intended.
> Jobs
>
> A. Livable Wages and Prevailing Wages
> In order to qualify for tax incentives, corporations should not simply
> provide low paying jobs with few benefits. Corporations should not be given
> public money without generating commensurate public benefit. They must
> provide full time jobs that are not temporary. They must pay at least livable
> wages with health care and other benefits. Livable wages are what the federal
> government says are needed for a family of four in our area. Construction
> jobs must also pay prevailing wages plus full benefits.
>
> B. Number of Jobs
> A fair approach to corporations and the community is to base the number of
> required jobs on the size of the benefits. Currently, corporations that
> receive Manufacturing Tax Incentive (MTI) benefits must generate at least 25
> jobs regardless of the size of the tax abatements. This may be too difficult
> a threshold for small corporations that receive small tax abatements. This
> may be too easy a threshold for large corporations that receive multi-million
> dollar benefits.
>
> There should be a job requirement associated with all tax abatements, not
> just the MTI program.
>
> COMIDA must consider the number of jobs that would be lost, by other local
> corporations, due to a new project. The law now requires it. Nevertheless,
> the new sports complex at MCC was approved even though it will affect existing
> local sports arenas. It is the total number of jobs in Monroe County that is
> relevant.
>
> C. Corporations That Do Not Create The Jobs They Promised
> Some municipalities require that the promised jobs are put into effect before
> tax abatements are implemented. This policy is worthy of consideration.
>
> Alternatively, we note that local individuals and corporations are required
> to pay their property taxes by specified dates. If they are delinquent, they
> are charged 1.5% interest per month for six months. After that, specific
> arrangements are mutually agreed-upon. If corporations are delinquent in
> creating the number of jobs that they promised, they could be treated as
> above.
>
> D. Flexibility in Granting Tax Abatements
> All people are created equal, but not all corporations or jobs. The
> community of Monroe would benefit more from some than from others. COMIDA
> should be more prone to grant abatements when the corporations:
> Hire people for full time non-temporary positions
> Hire individuals moving from welfare into the work force
> Hire ex-offenders who are seeking a second chance
> Hire Monroe County residents
> Locate in Rochester or the inner towns
> Have good records on EEO, environmental protection and labor relations
>
> Quality Processes
>
> A. Members of COMIDA
> Everyone in Monroe County is affected by COMIDAms actions. Their taxes,
> employment and economic health are affected. Therefore, the entire county
> should be represented on COMIDA. Currently, COMIDA consists solely of
> business people who are Republicans or Conservatives. They are all Caucasian
> and only one is a woman. This composition is much too narrow.
> The COMIDA board should be reflective of the broad spectrum of interests in
> the community. In addition to the current constituencies, COMIDA should have
> representatives from organized labor, the state's local unemployment office,
> other political parties, people of color, women, town government and school
> boards.
>
> B. Term of Office
> Currently, each COMIDA member is appointed by the County Executive, and
> serves at the Executive's pleasure for an indefinite period of time. By this
> process, COMIDA has become entrenched with one point-of-view.
> COMIDA is more likely to be fair, creative, responsive and active if half
> their members are appointed shortly after the election of half the County
> Legislature. COMIDA members should be limited to one four year term in
> office.
>
> C. Environmental Impact
> Currently, the State Environmental Quality Review (SEQR) is treated by COMIDA
> simply as a pro forma legal requirement. The environment needs more
> protection! One or more board members should be designated as the
> environmental advocate(s). They should be personally committed to the
> environment, and be intimate with the goals and processes of SEQR.
>
> D. Bench Mark Competing Communities. Develop Mutually-Beneficial Strategies
> COMIDA continually says we must compete with other communities, citing an
> extravagant offer made in Texas, and other isolated situations. Conveniently
> neglected are other instances, such as Detroit and Indianapolis, where
> communities required that corporations live up to their promises.
>
> Corporations have foisted competition on us in order to attract them.
> However, we should not engage in a race to the bottom, where we and other
> communities offer ever-increasing tax breaks. Moreover, with which
> communities are we realistically in competition? What are the issues, how do
> we compare, and what steps are we taking to cooperatively develop benefits
> that all communities can offer?
>
> A more business-like approach is needed regarding competition. COMIDA should
> identify the principle communities with which we are realistically in
> competition. Bench marking studies should be conducted to ascertain where our
> benefits are better and worse than others. COMIDA should work cooperatively
> with these other communities so that we all offer fair incentives. Regional
> IDAs should be seriously explored.
>
> E. Change Emphasis From Tax Breaks to Our Area's Strengths
> COMIDA said it is in a defensive position because of high New York State
> taxes. Yet industry surveys as to why corporations locate in specific areas
> consistently rank taxes in the middle of a list of reasons. Moreover, some
> COMIDA corporations identified what is really important to them, and it is not
> taxes. Giltspur/Cottrone said it wanted to be close to its customers which
> are mainly in Rochester. ABB Instrumentation said it wanted its current work
> force which produces sophisticated instruments more than it wanted the cheap
> cost of its Mexican alternative. Amarel Precision wanted to be close to where
> it was born in Fairport. Wegmans and all other retailers must locate here if
> they want to do business here. Moreover, our area offers many benefits as
> well, which COMIDA neglects. Well-known ones include a highly educated and
> motivated work force, excellent public schools, six colleges and universities,
> excellent cultural, skiing, golfing and lake activities.
>
> COMIDA should listen more carefully to what corporations really want, and not
> simply throw money at a problem.
>
> COMIDA Board Meetings and Public Hearings
> Board meetings and public hearings are treated as a pro forma requirement by
> COMIDA. The burden is on COMIDA officials to show that they are truly paying
> attention to statements from the public, considering arguments on their merit,
> and not making up their mind a priori.
>
> The agenda should be prepared 24 hours ahead, although minor modifications
> are OK. It should be distributed to the media and known interested parties.
> Public hearings should be at a time convenient to local working people.
> Minutes should be written for public hearings. Currently, this is only done
> at the board meetings. Minutes should be mailed to the media and everyone in
> attendance.
>
> For each project application, a written summary of pertinent facts should be
> provided to COMIDA members and to each person in attendance. At a minimum, it
> should include estimates of the:
> 1. Abatements of sales tax, property tax, and mortgage recording tax
> 2. Bond amount (or capital expenditure) and interest savings due to tax
> abatements
> 3. Number of jobs the corporation commits to create, and their plan for
> achievement
> 4. Specifics on each point noted above in "Flexibility in Granting Tax
> Abatements"
>
> Currently, people who are against an application are required to speak first,
> and are not permitted to ask questions. This is inherently wrong since they
> do not fully know about a proposal until after it is presented. People in
> favor of a proposal should speak first. Individuals who may be against it
> should be permitted to ask questions, obtain answers, and then have the option
> of stating their views.
>
> COMIDA's Attorneys
> Some corporations that received tax abatements from COMIDA, were soon
> afterwards represented by COMIDA's law firm, concerning the same property,
> when the corporations sought assessment reductions from the town of Henrietta.
> We believe this entangled relationship should be avoided. One way of doing so
> is for COMIDA's attorney to be their own employee, just as the City's and
> County's attorneys are employees.
>
>

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