Industrial development agencies produced nearly 36,000 additional jobs statewide in 2014 through tax exemptions and tax-free bonds issued for private companies, according to an annual performance report by state Comptroller Thomas P. DiNapoli.
The quasi-governmental agencies in 2014 supported 4,581 economic development projects valued at $83.7 billion. Over the life of the projects, which can last several years, there has been an increase of 235,888 jobs statewide.
The numbers come with a caveat. In past years IDA information has been inconsistent and inaccurate, according to the comptroller’s report. Problems have persisted in how the agencies collect information from project operators.
“As the value of tax exemptions to private businesses continues to increase,” DiNapoli said in a press release, “taxpayers must be reassured that their community is receiving promised benefits.”
Last year DiNapoli championed legislation to improve the quality of the information reported and toughen the consequences when project goals for jobs creation and retention are not met. The law went into effect on June 15.
There are 109 municipal IDAs statewide. In Westchester County, IDAs are affiliated with the county as well as with Mount Vernon, New Rochelle, Peekskill, Port Chester and Yonkers.
IDAs statewide reported 490 new projects in 2014 valued at $11.7 billion. Nearly 600 previously IDA-backed projects were no longer listed.
The 35,945 jobs produced in 2014 represented an 18 percent increase from the previous year. The agencies reported 645,010 full-time jobs created over the lifespan of active IDA projects.
The projects received $1.1 billion in tax exemptions, offset by $483 million in payments in lieu of taxes, for net tax exemptions of $632 million. That was a decrease of $28.5 million, or 4.3 percent, from 2013.
The most common recipients of IDA support were manufacturers, accounting for 27 percent of active projects.
Project values increased by 15 percent from 2010 to 2014. Jobs gained by 30 percent and tax exemptions by 31 percent over the same four-year period.
The seven-county mid-Hudson region had 473 active projects in 2014. Tax exemptions tended to be higher than most regions because of the high value of the properties. In this region, the price per job retained or created was $5,044 in tax exemptions, nearly twice as high as the statewide average of $2,677.
For 13 years the comptroller”™s office has proposed legislation to standardize IDA procedures, Deputy Comptroller Gabriel Deyo said. In 2013 the agency began working more closely with the New York State Economic Development Council, an organization that represents IDAs and economic development professionals, to find consensus.
Under the new law, IDAs must use uniform criteria to evaluate applications. They must do a standard cost-benefit analysis before granting tax breaks. Project agreements must spell out the terms and conditions of financial assistance, explain how the project will be monitored and describe how jobs will be tracked.
If a developer falls short of producing promised jobs, the IDAs can suspend tax breaks or adjust payments in lieu of taxes.
The new law makes more clear how IDAs should proceed, Deyo said, and makes it easier to audit their performance.
With billions of dollars at stake, the report says, the new law will provide “critical information to residents about the impact of decisions being made on their behalf.”
