Open Letter to Erie County Legislators

(We recently sent this letter to our Erie County Legislators, as well as Al Culliton, Chief Operating Officer, Erie County Industrial Development Agency, Governor Andrew Cuomo, and Erie County Executive Chris Collins.)

Dear legislators:

As leaders in the local community we are writing to express our support for ensuring quality job provisions on economic development assistance provided by the Erie County Industrial Land Development Corporation (ILDC), a subsidiary of the Erie County Industrial Development Agency (IDA).

We are deeply disturbed by the fact that County Executive Collins is accusing your honorable body of killing jobs and is spreading this false narrative with the media. We are writing to provide a few facts and to re-center the discussion on the need for comprehensive reform of local and state development programs to ensure that public financing (whether through interest free bonding or tax breaks) results in the creation of quality jobs for local residents.

On January 31, 2008, the provisions of the New York State General Municipal Law that permit

IDAs in New York State to provide tax-exempt revenue bond financing for civic facility/non-profit projects expired and have not been renewed. The elimination of the ability of IDAs to provide such financing was due to the longstanding failure of IDAs across the state to provide a strong return on the public’s investment.

With IDAs unable to grant assistance to important civic facility projects, subsidiaries much like the Erie County ILDC began to take on this function in many areas across the state. In fact, since January 2008, over 20 new agencies have been created, and several existing agencies have resumed their financing activity. Most of these new agencies are shadows of their sponsoring IDAs; they have the exact same staff and board as the IDA and operate out of the same buildings. Consequently, the shadow agencies are susceptible to the same flaws of IDAs, and should be subject to reform measures similar to the ones being proposed for IDAs – increased transparency and accountability as well as high road labor and environmental standards.

The Erie County Legislature is to be commended for incorporating key reform provisions into the resolution it passed in July of 2009 regarding ILDC financing. Of particular note is the Legislature’s inclusion of a prevailing wage provision for construction as well as requirements regarding ILDC Board representation.

Rather than stripping the ILDC of any of these reforms, we would recommend that you expand upon provisions guiding the ILDC’s public financing to ensure that the ILDC uses its powers to even more aptly support job development and general prosperity, by including increased disclosure provisions for example.

That said, we do also want to explicitly express our support for the quality job provision that your body did include in its 2009 resolution authorizing the ILDC to do civic facility financing.

Mr. Culliton and others from the IDA have told you that the inclusion of prevailing wage will increase project costs by over 25%, citing a Center for Government Study report commissioned by the state’s IDAs.

This and other studies have been widely criticized for their flaws in approach. Studies have found that prevailing wage laws can enhance state tax revenues, industry income, and non-wage benefits for workers; lower future maintenance and repair costs; reduce occupational injuries and fatalities; and increase the pool of skilled construction workers—to the benefit of both the public and the construction industry. Productivity among construction workers paid prevailing rate is 20% higher than that of lower paid construction workers. And, most importantly, payment of prevailing rate protects the residents of Erie County from hidden taxpayer costs associated with low wages.

In conclusion, it is important for the legislature to put measures in place that will ensure that the ILDC lives up to its mission to create jobs and further general prosperity.

We support the Erie County Legislature’s 2009 resolution. We urge you to make it stronger, not weaken it.

Sincerely,

Allison Duwe, Executive Director - Coalition for Economic Justice

Sam Magavern, Co-Director - Partnership for the Public Good

Lou Jean Fleron, Director - Workforce, Industry, and Economic Development - Cornell University, ILR

Aaron Bartley, Executive Director - PUSH Buffalo

L. Nathan Hare, President/CEO - Community Action Organization of Erie County, Inc.

Rev. Mark Blue - Second Baptist Church

Dorian Gaskin, Vice President - Outsource Center

Rev. Dan Schifeling - Church of the Nativity

Rev. Eugene Pierce - WNY Outreach Ministries

Bruce Fisher, Director - Center for Economic and Policy Studies

Rabbi Alexander Lazarus-Klein, Temple Sinai

Karima Amin, Director - Prisoners are People Too

Susan M. Davis, Associate Professor - Department of Economics and Finance, Buffalo State College

Bryon McIntyre, Board President - Citizen Action of Western New York

Jim Anderson, Board President - Western New York Peace Center
Rev. M. Bruce McKay, Pilgrim-St. Luke’s UCC

Rev. Jeff Carter, Ephesus Ministries

(Organization for identification purposes only)

Faith in Action Week Concludes

We make New Years resolutions for many different reasons. Some of us need the structure of goals to keep us on track, while some of us set our sights high to give ourselves something to work towards. At the core of most new years resolutions, however, is the principle that we can do better. It's the idea that we are better, and that if we set our hearts to it, we can be better than we have been in years past.

It has been in that spirit that faith leaders from across Buffalo took their struggle for justice to City Hall this week, encouraging Common Council members to sign a New Years resolution pledge to remain committed to a Community Benefits Agreement in 2011. In an exciting 5-day period, over 20 faith leaders and congregation members visited with members of the Common Council, engaging them in discussion on the continued need for a CBA to be a foundation for the Canal Side development project.

In March of 2010, the Buffalo Common Council passed a unanimous resolution to withhold transfer of city-owned land at Canal Side to the Erie Canal Harbor Development Corporation until the ECHDC negotiated a Community Benefits Agreement with the Canal Side Community Alliance. They stood up for Buffalo and Erie County residents, and with a 9-0 vote they made a bold statement that development in Buffalo does not have follow the same tired and failed process. They said that we can and must do better this time.

Since then, we've seen the movement for community engagement in creating a waterfront we can all be proud of grow continue to unfold. We've been able to have a few initial meetings with ECHDC leaders, we've delivered over 1,000 postcards in support of a CBA, and our Canal Side Community Alliance has grown to over 50 members and with a strong list of terms and demands. We've also seen a movement for community involvement in the design process around concepts of "lighter, quicker, and cheaper" grow into a strong force. Together, we've won an amended Modified General Project Plan which has shifted the focus to public infrastructure development and created 3 sub-committees led by community members to study historical, cultural, and environmental concerns.

While the ECHDC remains reluctant to negotiate a Community Benefits Agreement, we know that the Buffalo Common Council is going to need to remain strong in 2011. Some Councilmembers were willing to sign the New Years resolution pledge. However, most echoed the sentiment of new Councilmember Darius Pridgen, who said that we, the community, are going to need to continue making the case for a CBA in order to keep the pressure on them to uphold their 2010 resolution.

It is in this spirit that the Faith in Action week was a great success. We've demonstrated that our commitment to a CBA in 2011 remains strong. Like all New Year's resolutions, however, the easy part is often in making them. The challenging part is then doing the work necessary to fulfill them. Yet within that challenge lies excitement, joy, and empowerment. So here's to the road ahead, and to remaining more committed than ever to winning a Community Benefits Agreement in 2011!

Day 4: Faith in Action Week

The visits continued this Thursday as a total of 8 people made visits to councilmembers. Rev. Dan Schifeling of the Church of the Nativity went with Rev. Faith McCausland from Kenilworth United Church of Christ, Ruth Snyder, co-pastor at Church of the Nativity, and four congregants of Church of the Nativity. And later in the day, Rabbi Alex Lazarus-Klein of Temple Sinai made the rounds at City Hall.

The first group of 7 talked with Ellicott Councilmember Darius Pridgen, Delaware's Michael LoCurto, and Masten's Demone Smith. Like the previous day, Darius Pridgen maintained that re was supportive of the CBA. Michael LoCurto, a strong proponent of the CBA, said that he would remain committed to the CBA. And Demone Smith stated that he was in favor of it.

Rabbi Lazarus-Klein visited with David Rivera, who had signed the pledge the previous day and who showed clear support for the CBA. All councilmembers who were not in received letters from both parties.

Day 3: Faith in Action Week

First pledge signed today by Niagara District Councilmember David Rivera! This afternoon Father Jose Claudio, Lourdes Claudio, and Jose Rodriguez of el Nuevo Camino UCC along with Rev. Bruce McKay of Pilgrim St. Lukes UCC were able to meet with him and secure his New Years Resolution to support a Community Benefits Agreement. They had a great conversation with Mr. Rivera, who has been a supporter of a CBA since the beginning, and it is great to know that he pledged to continue that support in 2011.

The group were also able to meet with South District's Mickey Kearns and Lovejoy's Rich Fontana, who, although supportive, remained reluctant to sign a pledge of support. While Fontana said that living wages and low-income housing were issues that caused friction, Bruce McKay and others were able to remind him that the CBA is really about quality jobs and mixed income housing. Quality jobs have several components, and due to the large tax-payer stake in the project and the incentives that are created by public investment, the public has a right to put conditions on that investment to ensure benefit for all.

Before their visit, Reverend Merle Showers from Niagara Frontier City Ministries had also been to City Hall. He was able to meet with Councilmember Darius Pridgen of the Ellicott District. While Pridgen was aware of issues surrounding the fight for a Community Benefits Agreement, and generally supportive, he was unwilling to sign a pledge. He maintained that community leaders would need to stay strong to make the case for why the Council should not compromise on a CBA. Rev. Showers described the huge sums of money that tax payers had provided to benefit anyone who set up a business there, as well as advantages of the location as reasons why they would owe us a great deal. Rev. Merle Showers also spoke of the importance of a Living Wage, to which Councilmember Pridgen responded with strong support.

Day 2: Faith in Action Week

Tomorrow promises to be a great day, as we have a full slate of visits from faith leaders lined up! Reverend Merle Showers from Niagara Frontier City Ministries, Reverend Mark Blue from Second Baptist Church in Lackawanna, and Reverend Bruce Mckay from Pilgrim-St. Lukes will all be visiting members of the Buffalo Common Council on Wednesday. We will share the updates at the end of the day tomorrow.