A Press Conference in 1 Act:

Location: Behind Waterfront Place Condos

Time: 4:00 PM


Designated “Cast”:

Politician: Eric Gallion

Developer: Roger Cook

Condo Buyer: Harrison Watkins

Foreclosed Home Owner: Jane Piazza

Unemployed Worker: Rachel Wilson

Activist: Eric Walker


Act 1: The Press Conference (Politician, Developer, and Condo Buyer stand next to each other, behind podium)


Politician: “We are gathered here today to celebrate the opening of the Waterfront Place Condos. It has been my honor to pave the way for these condos to be built in a tax-free zone, spurring economic development that only the wealthy can afford. This development is a perfect example of creatively using the Empire Zone program, which was originally intended to promote investment and job creation in poorer areas, to subsidize luxury condos for the entitled elite. Without further ado, I would like to introduce the developer who had the courage to take advantage of these subsidies in the third poorest city in the country when he could have built these condos with his own money.”


(Crowd Boos)

Developer: “Thank you. But with all due respect, I have to cry poverty. Even though my rich development company has saved nearly $1 million in sales tax on building materials alone, I will only make an outrageous profit here, rather than an obscene one.”

(Crowd Boos)

“This will be a great deal for those who can afford to buy one of these luxury condos. And to those who can afford them, these condos are a steal – literally. You will not have to pay your property taxes for seven years. We will give that responsibility to our already over-burdened middle and lower class tax-payers. If the condo buyer next to me had to start paying property taxes immediately, he probably couldn’t afford to buy a $1 million condo, but would have had to have settled for a $700,000 condo. He is entitled to this subsidy, just like everyone else around here. We need more public housing for the rich. I should also add that the electric bills of condo buyers will be subsidized by tax-payers.


Now, I would like to introduce another pioneer who was also brave enough to take advantage of tax-breaks when he certainly can afford to pay his own property taxes.

(Crowd Boos)


Condo Buyer: “I am buying a $1 million penthouse here. Because of your unwitting generosity, I will save tens of thousands of dollars in property taxes every year and hundreds of thousands of dollars over ten years. These subsidies benefitting myself and the other wealthy condo buyers are merely the price YOU and average tax-payers have to pay to promote development. And I think the price you have to pay is worth it – just look at the view I am going to have while I am sitting in my Jacuzzi.


Foreclosed Home Owner: (interrupting) “I just lost my home. It was foreclosed upon. Are there any subsidies available for me so I could keep my home?”


Developer: If you can afford one these condos you can get the subsidy. Units are still available for $1 million.


Politician: Government handouts are not for the likes of you; they are only for irresponsible banks and unaccountable corporations who we deem too big to fail. Instead, I would like to give you the opportunity to help pay for these condos.


Unemployed Worker: I recently lost my job because of the criminal actions of the banking industry. Will this development create jobs or is it just another entitlement for the wealthy?


Developer: Will this development create jobs? Of course it will, but don’t ask us how many or what they pay, because you might not be happy with what you are getting for your money. That brings us to the conclusion of this press conference. Tom Golisano and I have to go to Albany to buy some politicians with your money.

(Golisano and Developer walk off followed by Politician. An activist steps to the podium to speak)



Activist: Hold on. Turns out you aren’t destined for Albany. We have tickets for you to go back to Florida. It’s time for an early retirement. And it’s time for us to get our money’s worth. We need development that can build our neighborhoods, and create quality jobs, health care, and housing for all.


(Crowd Cheers)


We have a better plan for NY than these guys. Stop the subsidies. Let’s start with these IDAs and Empire Zone subsidies.


The Governor is working on a plan to ensure that when IDAs take our money they create good jobs. Call the Governor right now and tell him we want IDA reform. Get out your cell phone now. Call 518-474-8390 and tell Governor Patterson you want IDA reform. That’s 518-474-8390 for IDA reform.

Erie County Legislature Passes Quality Jobs Resolution

Why is Chris Collins against better wages for working families?
Maybe it's the company he keeps.

While Erie County Executive Chris Collins's reelection committee is raking in thousands of dollars in checks from corporations, he is fighting a bill that would make sure Erie County workers get paychecks they could live on. Tell the County Executive to support working families not just big businesses.

Recently, Erie County Executive Chris Collins drafted a resolution to transfer authority to fund non-profit construction projects from Industrial Development Agencies (IDAs) to the Industrial Land Development Corporation (ILDC). Collins's proposal was an end-run around proposed New York State IDA reforms. Collins's ploy would have enabled the ILDC to provide tax-exempt financing of large non-profit capital construction projects without any accountability, transparency, or quality job standards.

Thankfully, good policy trumped bad politics and the Erie County Legislature wisely voted to attach a prevailing wage requirement to non-profit construction projects on Friday, July 24, during a special legislative session. These requirements ensure that economic development dollars are spent in a way that creates quality jobs for local residents.

The common sense reform measures introduced by members of the legislature are a welcome step toward comprehensive statewide economic development reform.

County Executive Collins is refusing to accept the action taken by the legislative body and claims he will continue to pressure lawmakers until he succeeds at eliminating the prevailing rate requirement.

If you would like to tell your County Legislators and Chris Collins that Erie County voters support Quality Jobs in WNY, you can Take Action RIGHT NOW!

What's At Stake?
...

In 2006 legislation was introduced in Albany to bring about comprehensive reform on New York's over 115 Industrial Development Agencies.

Industrial Development Agencies were created in the late 1960's to encourage the retention and growth of industrial, manufacturing, warehousing, and commercial industries.

Essentially IDAs were charged with retaining and creating jobs by offering property and sales tax breaks to business. IDAs were also empowered to offer tax-exempt financing.

However, IDAs have failed to live up to their mission. They have not created quality jobs in our communities but have squandered precious tax dollars on projects that: would have proceeded without tax breaks; have failed to create any jobs; or pirated jobs from another neighboring community. All too often, well connected developers have received tax breaks with few questions asked and little is done when businesses fail to live up to the promises they make.

We need reform to ensure that we're getting our money's worth. By introducing business standards, accountability measures, and transparency reforms, IDAs could become the strategic investment vehicles they were originally intended to be, and with stimulus money on the way, they could create the good jobs we need now.

Despite the recent mess in Albany, this package of reforms has been advancing. Our New York State Coalition - The Initiative for Development Accountability is hopeful that at its special session this fall, the New York State Legislature will act to pass comprehensive IDA reform.

Why is this important to understand? Because the recent action of Erie County Executive Chris Collins and the Erie County IDA was motivated by a desire to escape the common sense and much needed reforms being proposed in Albany.

For the time being we have defeated the County Executive's attempted end-run around statewide reform, but, as state reform moves forward, Collins will continue to search for loop holes. And, other counties throughout upstate are following his lead.

To learn more about the NYS Initiative for Development Accountability or the Coalition for Economic Justice please call 716.892.5877.

IDA Reform-Another Voice Editorial from Buffalo News

Reform will hold IDAs accountable and help Buffalo
By Lou Jean Fleron Updated: 06/25/08 6:49 AM

In the first hot sun of June, citizens rallied in front of the Erie County Industrial Development Agency on Oak Street behind a banner that read “Living Wages for a Livable City.” Passing traffic in old and new cars, delivery vans and 18-wheelers honked their votes for decent jobs and living wages.

Those votes need to be translated into the passage of Assemblyman Sam Hoyt’s IDA reform legislation that will establish job standards, accountability measures, transparency procedures and environmental standards in exchange for public subsidies to private businesses.

Across New York, local IDAs deal with our money, handing out more than $400 million per year in tax breaks, too often providing subsidies that fail to promote real economic development and do not deliver the jobs they promise.

Quality job standards are good for workers, for communities, and also for business. The top 10 “pro-business states” — Virginia, South Carolina, Florida, North Carolina, Utah, Wyoming, South Dakota, Alabama, Georgia and Nebraska — all have enacted wage standards on development subsidies.
Prevailing wage requirements also benefit taxpayers and working families. A recent study of Federal Highway Administration data found that costs per mile of highway are lower among those states which pay higher hourly wages. Because of higher productivity, the high-wage states averaged over $30,000 per mile savings to taxpayers.

Here in the Queen City, the second poorest city in America, nearly 29 percent of us live in poverty. Good jobs with health care, benefits and pensions continue to disappear. Auto workers are forced to take “buy downs” to gradually lower their standard of living to satisfy the insatiable greed of global capital markets.
Poverty, joblessness and inequality are the reasons we have economic development policies. We cannot afford to continue to perpetuate these conditions by continuing to subsidize failure. Upstate New Yorkers need good jobs, not just any jobs, as a return on our investment in business development.

In this celebrated and proud blue-collar town, people spontaneously support wages that allow families to live self-sufficiently, educate their children, buy their homes and contribute to their communities. When we give up tax revenues needed for schools, roads, parks, libraries, public safety and public health, we expect to receive in exchange living wage jobs.

The drive-by living wage supporters on Oak Street honked in solidarity because in Buffalo we stand, as Tim Russert said, “side by side, shoulder by shoulder.” Our history and our experiences teach us that a strong local economy will be built only on good jobs that attract and retain a skilled work force. That is the primary purpose of IDAs. It is time we held them accountable.

Lou Jean Fleron is director of workforce, industry and economic development at the Cornell University Industrial and Labor Relations School in Buffalo.