The dormant Yorktown Industrial Development Agency was almost revived this month when the state Senate passed a bill to re-establish the economic development tool, but the Assembly bill stalled at the end of the legislative session.
Sen. Terrence Murphy”™s bill passed on June 14. Assemblyman Steve Katz was unable to get his bill out of committee before June 18, when the session adjourned for the year. It was Katz”™s last day making laws. He is not running for re-election.
IDAs are quasi-governmental agencies that give tax breaks to companies for developing projects that create or retain jobs. They can buy and lease land and finance projects with bonds that are repaid with project revenues.
The Yorktown IDA was created in 1980 but was dissolved by the town board in 1999. Murphy, who once served on the town board, has been a proponent of reviving the agency since at least 1999.
Yorktown Supervisor Michael Grace said the town needs to encourage development and lower taxes.
He said high property taxes discourage investment. If a property is developed, the value is added to the tax assessment and the owners or tenants must cover the extra costs.
“How many more bagels or pieces of pizza do you have to sell,” he asked, “to keep the doors open?”
Homeowners already feel the tax burden. He said a home valued at $550,000 has to pay about $15,000 a year in property taxes. Economic development spurred by the IDA would broaden the tax base and increase economic activity in town.
Developers could get assistance from the county”™s IDA, but he said Yorktown would rather control the process and offer one place to get projects approved.
“Unfortunately,” he said, “it didn”™t get out of the Assembly.”
