If signed by the governor, a bill would give the town of Chester a say in what happens within its municipal boundaries when it comes to tax breaks offered by the Orange County Industrial Development Agency.
The purpose of the bill is to amend the general municipal law so as to require the signature of Chester”™s “chief executive officer,” or town supervisor, for payments in lieu of taxes. In addition, the IDA would have to get three-fifths majority of the town board prior to any PILOT being approved.
IDAs, created by the state and administered by the counties, function the way each county decides to set up its IDA bylaws. All work differently but are mandated to adhere their primary mission: to be sure the incentives offered will create a positive financial impact to the municipality where a company decides to move to or expand.
Jim Petro, the chairman of Orange County”™s IDA, told HV Biz the county had already gone down the same path with Chester over C&S Wholesale Grocers, which expanded in the Chester Industrial Park in 2010 and was given a 15-year PILOT. The town sued the county, its IDA and C&S. The lawsuit was dismissed on all counts.
New York state Assembly Bill A3146, introduced by Assemblywoman Nancy Calhoun (R-Blooming Grove), was passed and then brought to the Senate floor by Sen. William Larkin (R/C-Cornwall-on-Hudson) as bill S5166, where it also passed. It is now awaiting Cuomo”™s signature.
“Each county sets up its IDA differently,” said Ron Hicks, former president/CEO of the Mid-Hudson Economic State Development under former Gov. George Pataki and now president/CEO of Rockland”™s Economic Development Corp. Rockland”™s bylaws require the IDA to include the taxing jurisdictions in the discussions and decision-making before proceeding.
There is no devil in the details, however, despite the abundance of laws, bylaws and opinions or arguments. “An IDA is required by law to hold a public hearing, so people can come out and voice their opinion,” Hicks said. “It is a listening session and it is presented to the full body and it is voted on. Every member of the public can be heard. No decisions are made at public hearings. All IDAs are required by the comptroller to have cost-benefit analysis on every project ”“ and the burden of that cost is on the applicant, not the taxpayers. Each applicant claiming a cost benefit is warranted must be treated consistently and benefits consistent with the size of the project.”
Petro said he personally conducts every public hearing to bring information back to the seven-member Orange IDA board. “But when we had a public meeting for C&S Wholesalers”™ 15-year PILOT at the Chester Town Hall, Mr. Neuhaus was not present, nor was anyone representing the town.”
Further, said Petro, “When the IDA board sat down with C&S, we invited Mr. Neuhaus to the table. He agreed to everything; then after it was over, he decided to sue us, the county and C&S because he claimed he thought it was a ten, not a 15-year PILOT. Didn”™t he read the minutes of the meeting? Everything was there in black and white.”
Reached for response, Chester Town Supervisor Steve Neuhaus said, “I am asking the state to do something to give my town a seat at the table.”
Petro recently received letters of support from town of Blooming Grove Supervisor Frank Fornario, as well as the Monroe-Woodbury School District, for a 15-year PILOT for Mediacom, Inc. “A $41 million deal for Orange County. We asked them if they approved, and even though we have the power to override the municipalities if they are opposed, we respect their wishes. R.J. Smith Realty built an office building in the town of Goshen and asked for a PILOT and the supervisor at the time did not want to give it. We didn”™t give it.”
The bill now before Gov. Andrew Cuomo would allow Chester the right to review the project and approve or suppress it with a three-fifths vote of its board; request a new set of environmental reviews; and require the applicant to submit to a review every three years to ensure compliance. If it fails to fulfill the requirements, its incentive program would be reviewed and could be revoked.
“I take the IDA seriously,” said Petro, who has been chair for six years. “Either way it goes ”“ if the governor vetoes it, that”™s the end of it; if it becomes law, I am not taking the low road. I will take any application from the Town of Chester and at that time have our preliminary meeting and then ask them to come back after they have finished their review and their second environmental study. When they are completely done, and it is presented to the IDA, it will receive the same scrutiny ”“ and courtesy ”“ as any other applicant.”
James O”™Donnell, deputy county executive, said, “Politics, as always, can be tough business. But when it comes to economic development, we are as aggressive as possible in creating jobs, especially in this climate and in a state which makes job creation very difficult. We are serious in bringing good, high-paying jobs to this county and rebuilding our tax base. That”™s the only agenda we care about.”
