Statewide Coalition Calls for Permanent Restoration of Industrial Development Agency Authority to Aid Civic Facilities

A broad coalition of not-for-profit, economic development, municipal and business leaders appeared today before the State Assembly Committee on Local Governments to call for the permanent restoration of State Industrial Development Agencies authority to assist not-for-profit civic facilities. The coalition in support of restoration of civic facility includes Mayor John T. McDonald III of Cohoes, President of the New York Conference of Mayors, Mayor Philip A. Amicone of Yonkers, Deputy Mayor Robert C. Lieber of New York City, Mayor Gerald D. Jennings of Albany, County Executive Greg Edwards of Chautauqua, The New State County Executives Association, the New York State Economic Development Council, the New York Conference of Mayors and others.  

The authority of IDAs to assist not-for-profits in financing capital projects expired in January 2008. Today the coalition affirmed its support and called for immediate passage of the proposed bill by Assemblyman Joseph D. Morelle to permanently restore the authority of IDAs to assist not-for-profit Civic Facilities. The legislation will remove the $20 million trial project cap for some not-for-profit projects which was enacted in 1997.  

IDA investment in civic facilities, which has been on hold for a year, is withholding billions of dollars in not-for-profit investment which would help speed the economic recovery in New York State.  These projects range from large projects like hospitals and universities to local community based projects like group homes for the mentally disabled, cerebral palsy centers, and YMCAs.

“It is time to move the IDA Civic Facilities Legislation forward and agree to explore reform measures, which will help stimulate economic activity in the City of Albany” said Albany Mayor Gerald D. Jennings. “New York State cannot afford to take a back seat, waiting for this legislation while the rest of the nation utilizes the federal stimulus dollars to catapult public and private development projects and create much-needed permanent and construction jobs for their citizens. The City of Albany has projects in the pipeline that are jeopardized without this important financing program."

“In a given year, about half the projects New York City IDA sponsors are for not-for-profit organizations,” said New York City Deputy Mayor Robert C. Lieber. “In addition to providing much needed social services, these organizations add $43 billion in annual expenditures into our City’s economy and employ more than 500,000 individuals to carry out their missions. Between 2000 and 2004, not-for-profits assisted by NYCIDA created and retained 87,000 jobs.”

Greg Edwards, Chautauqua County Executive and Vice-President of the New York State County Executives Association said, “Our concerns are not anti-union, as I am very impressed with Chautauqua County organized labor and their ability to get the job done.  The concern is that legislation pending in Albany to reform IDA financing authority, as presented, would have the opposite effect on the purpose of the IDA’s.  Instead of creating jobs, it would drive jobs from our state, send our workforce to other State's taking their families and our future with them. Simple changes can be made to this legislation to promote job creation and have safeguards for taxpayers. I encourage Albany lawmakers to reach consensus immediately so we can help grow our state's economy out of this recession.”  

“Yonkers is in the midst of a massive urban renaissance,” said Yonkers Mayor Philip A. Amicone. “Our waterfront is being transformed. A new downtown is emerging. Safe, affordable housing is going up in once-neglected neighborhoods. And some of our oldest and largest commercial enterprises – like Yonkers Raceway and Cross County Shopping Center – have reinvented themselves. None of these projects could have happened without assistance from the Yonkers Industrial Development Agency. In these turbulent times, we need to expand, not limit, the reach of the IDAs across the state. Imposing wage restrictions and limiting an IDA’s ability to incentivize civic facilities will only thwart our ability to grow jobs and revenue.”

“Annual sunset clauses in civic facility authorization creates uncertainty that deters the development of new projects,” said NYCIDA Chairman Seth W. Pinsky. “In New York City we currently have about 14 projects in our pipeline that could benefit from IDA assistance. These projects represent a potential investment of $445 million in new construction, renovation or machinery and equipment acquisition. Without our assistance, these important projects may be scaled back or not happen at all.”  

Peter A. Baynes, Executive Director of the New York State Conference of Mayors, said: “The ability of IDAs to finance civic facilities is not only an issue of economic and community development, it is also an issue of fiscal prudence and tax relief for New Yorkers. Civic facilities are frequently funded, indirectly, by federal, state or local governments. To the extent the IDAs can lower the cost of financing civic facility projects, those costs-savings directly benefit the taxpayers of New York. At a time when New York’s tax burden is stifling businesses and residents alike, it should be the top priority for the Legislature and the Governor to restore the authority for IDAs to finance civic facility projects.”  

“New York and the nation are in a deep recession,” said NYS Economic Development Council Executive Director Brian McMahon. “Extending the IDA nonprofit law would create jobs, generate $70 million in new state tax and IDA fee revenues, and provide an economic stimulus for many of New York’s struggling communities. These are good outcomes for New York State and New Yorkers.”

"Lack of access to IDA financing for not for profit senior services providers has limited their ability to develop the community based facilities that seniors desire and that will make the health care system more cost effective.” said Carl Young, President of the New York Association of Homes and Services for the Aging.  “The development of retirement communities, nursing homes and other senior residential options offers job creation and economic growth opportunities for local communities and business owners.  These are facilities that provide permanent, good paying jobs with comprehensive benefits.  Furthermore, these are facilities that will remain in communities permanently providing a vast array of services to seniors.”  

“The economic benefit of IDAs is measurable. For instance, the Erie County Industrial Development Agency’s Regional Development Corporation made 520 loans to businesses since it formed in 1979, totaling $88.1 million, and that leveraged $684.8 million in private investment, a more than 7 to 1 ratio for each dollar the RDC loaned,” said John Cappellino, director of business development at the Erie County IDA. “IDAs also leverage private investment by providing incentives to encourage business investment and growth in our region while adapting to the new economic challenges that confront us. Recently the ECIDA enacted a progressive adaptive reuse policy that will partner with local private investors to redevelop and adaptively reuse old and blighted structures in our communities. That’s what IDAs do best, creatively leverage private investment to grow our community.”

About NYCEDC

New York City Economic Development Corporation is the City's primary vehicle for promoting economic growth in each of the five boroughs. NYCEDC's mission is to stimulate growth through expansion and redevelopment programs that encourage investment, generate prosperity and strengthen the City's competitive position. NYCEDC serves as an advocate to the business community by building relationships with companies that allow them to take advantage of New York City's many opportunities. Find us on Facebook or follow us on Twitter, or visit our blog to learn more about NYCEDC projects and initiatives.