I find it hypocritical that Gillen and those on the Metroplex Board of Directors feel qualified and entitled to criticize the SI Group PILOT that was negotiated by the former Rotterdam IDA. Lest we forget the findings of the NYS Comptroller's Office in their audit of the Metroplex Authority, I have posted a paragraph from the Executive Summary on page 4. The complete audit report is available at
Performance measures are included in project applications and reporting requirements are part of the approved project plans. However, the Metroplex is not effectively monitoring project performance against these measures. For example, there was only limited evidence that steps were taken by Metroplex offi cials to ensure that sponsored projects reasonably met their employment projections as indicated in their approved project plans. None of the 16 projects we reviewed had current employment information on fi le as of December 31, 2007. The most current information reported to Metroplex was through June 30, 2006 and that was only for fi ve of the 16 projects. The employment information was out-dated and showed that none of the projects met their job projection goals. Although Metroplex guidelines called for the imposition of penalties for non-compliance with award terms, the approved project plans had no penalty provisions for non-compliance, and the Metroplex did not impose any penalties in cases where projects failed to create or retain jobs as projected.
Has the leadership of the Metroplex revised their practices to reflect the Comptroller's recommendations? Have any of the companies who benefited from the award of public revenues been penalized for not delivering on the job creation promised?
It appears to me that the former Rotterdam IDA at least considered the return on investment. There is a provision for a portion of the funding to be repaid for non-performance.
In Fulton County, we recently learned about two economic development officials getting a sweet deal from their agencies, with each receiving huge bonuses in 2007 and 2008 for basically doing their jobs. In Schenectady County, it’s something far more common: a company getting the sweet deal — in this case, SI Group with a payment-in-lieu-oftaxes agreement negotiated by the Rotterdam Industrial Development Agency in 2008. The typical PILOT assesses at full value and starts the payments as a percentage of that assessment, with the percentage steadily increasing over a number of years to 100 percent. That’s not what happened in Rotterdam, where the assessments and payments were locked in from 2008 through 2002, regardless of the true value of the property or the tax rate. At the time, town and county Democrats strongly criticized the agreement, but they’ve been much quieter since then-IDA Chairman Angelo Santabarbara switched parties and became a Democrat. As in the past, SI used a threatened assessment challenge to make the PILOT — with lower but guaranteed payments — sound like a good deal, especially for the Schalmont school district, which gets roughly twothirds of the $625,000 the company will pay this year. But the IDA gave up so much that even if the school district, town and county had to give the company refunds for years of alleged overpayments, they would still be well ahead without the PILOT. .....................>>>>.........................>>>>.....................http://www.dailygazette.net/De.....r00702&AppName=1
At the time, town and county Democrats strongly criticized the agreement, but they’ve been much quieter since then-IDA Chairman Angelo Santabarbara switched parties and became a Democrat.
It appears that AS has shown the dems that they were wrong with their criticism of this pilot. Looks like AS is slowly educating the dems and directing them to the light!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Correction A typing error in Wednesday’s editorial about the SI Group confused the dates of the company’s payment-in-lieu-of-taxes agreement. The agreement covers the years 2008 to 2022.
ROTTERDAM SI group penalized over boiler issue Employer’s PILOT payments increased after ‘green fuel’ plan falls through BY MICHAEL LAMENDOLA Gazette Reporter
The SI Group has agreed to pay an extra $584,625 over 11 years toward its payment-in-lieu-of-taxes agreement for failing to construct a “green fuel” boiler at the company’s Rotterdam Junction facility. The company will begin paying an extra 7.5 percent under its PILOT agreement beginning Jan. 1. 2012, according to the Rotterdam Industrial Development Agency. Rotterdam oversees the PILOT with the SI Group. The SI Group triggered the 7.5 percent penalty when it decided not to build a $12 million biomass boiler at the Rotterdam Junction facility. The company was supposed to begin construction of the $12 million boiler on Dec. 31, but decided to cancel the project after determining it would not be cost effective. The penalty is contained in a 2008 agreement that locked in the SI Group’s annual PILOT payments through 2022, making them immune to changes in full value or tax rates during the terms of the PILOT agreement. The company said the boiler would have helped control energy costs, allowing it to remain competitive and to continue employing 172 people in Rotterdam Junction. SI Group operates a second facility in Niskayuna, housing its headquarters and lab and employing approximately 200 people. Metroplex Development Chairman Ray Gillen praised the SI Group for working cooperatively with the Rotterdam IDA to resolve the issue. Metroplex administers the Rotterdam IDA under contract. “We value the many contributions that the SI Group and its employees make to our community,” Gillen said. Starting in 2012, SI Group will pay an extra $44,250, for a total of $634,250, to the town, county and local school district, rather than the pre-penalty payment of $590,000. In all, the extra payments will average $53,147 over 11 years. Under the revised agreement, SI Group will pay approximately $10.9 million to the town, county and school district in lieu of property taxes through 2022, saving itself $4.2 million. ...............>>>..............>>>>.................http://www.dailygazette.net/De.....r00702&AppName=1
Logged
