 
With initial deadlines passed, businesses throughout New York state are assessing their options in light of decisions to expel them from the state”™s Empire Zone program.
One local business leader said his family”™s companies would have to re-think efforts to redevelop along Poughkeepsie”™s waterfront if the state does not reverse the decision to remove them from the EZ program.  Â
Five-hundred-plus businesses, including 22 in Dutchess County and 11 in Ulster County, are being removed from the EZ tax-break program, pending a possible appeals process. The number expelled from the EZ program in Mount Vernon is 28; in Yonkers 45; in Newburgh five; and in Sullivan County 19.
The state’s Empire State Development Corp., said it has reviewed the certification of more than 7,000 businesses that had been entered in the EZ program, which provides tax incentives to companies across New York. Of those, 6,600 businesses had their benefits retained. Another 96 companies that were first designated to have their benefits revoked, have had them restored. But 544 companies are set to be removed from the program unless they win an appeal, state officials said.
The EZ program offers a variety of tax breaks to businesses based on the number of new jobs and/or capital investments. Originated in 1986 as Economic Development Zones, the program was modified and its name changed to Empire Zones in 2000.
New York state has 82 Empire Zones, which prior to the expulsion program involved some 9,200 businesses employing about 380,000 people. There are EZs in Ulster, Dutchess, Orange, Rockland and Westchester counties.Â
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The program has been controversial for years, especially since December 2008 when the nonpartisan Citizen”™s Budget Commission issued a 16 page report saying EZ could not be reformed and should be abolished. The Paterson administration is ending the program effective June 2010, but meanwhile is revamping its parameters under state legislative impetus.
“It is important to understand that while these 544 companies were sent revocation notices, they won’t actually be decertified if they submit a letter saying they intend to appeal,” said Katie Krawczyk, upstate director for public affairs for Empire State Development. She said the state Legislature changed the qualifications for participating companies during the most recent budget debate, but said companies will get a chance to seek to persuade the state economic development commissioner they should be retained in the program.Â
Companies had until July 21 to notify the state they intend to appeal and have until Aug. 28 to file a written appeal.
Joseph Bonura Jr., who runs the Poughkeepsie Grand Hotel for the Bonura family, was a recipient of the notification that the Poughkeepsie Grand would no longer receive the Empire Zone benefit. “One box got checked incorrectly on the re-application we were asked to submit,” said Bonura. “We received the notice and we appealed and re-submitted our application.” Now, like dozens of others in the region, the Poughkeepsie Grand will be on stand-by until it goes through the appeals process.
The family renovated the Poughkeepsie Grand Hotel at a cost of close to $2 million. It also owns The Grandview and Shadows on the Hudson on the city”™s waterfront, where plans to expand are on the architect”™s table and moving forward.
The Bonuras are still planning to go ahead with their waterfront expansion, which includes a hotel, marina, a mix of commercial and retail space, as well as a walking promenade for pedestrians along the riverfront, “but if the Empire Zone goes away, we”™re going to have to re-think this project,” said Bonura Jr.
“Of course, we are concerned about economic development that might not otherwise happen without the benefits of the EZ program,” said Krawczyk, but she said Empire State Development officials have no choice in their decisions because they are based on regulations approved by state legislators. “We are implementing the law as it relates to Empire Zone reform, the purpose of which is to improve the program for all New York state taxpayers.” Â
(Kathy Kahn contributed to this story.)
