I would pose a question to Mr. Gardener who is concerned about permanent, high paying jobs giving a return on the investment in the long term.
Villa Italia is still considered part of the Empire Zoned area and receiving much in tax breaks. I wonder how much Villa Italia's employees make. I'm sure they aren't high paying, permanent jobs. Yet they continue to get the tax breaks. And for how much longer?
Although I agree with Mr.Gardener's assessment, I believe that he should start leveling the playing field.
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
After reviewing the application, Gardner said, it wasn’t clear whether any of the seven jobs proposed would be permanent or high-paying. “Is this the best way to spend over $4 million worth of taxpayer money?” he asked. “It’s not even clear if there are any new jobs at all.”
I would contend that it is a better investment than the $2.5 million given by the Schenectady Metroplex Development Authority, chaired by Gillen, to the owner of the Big House in Schenectady. The project is over 2 years late and recent reports are that it may not open. $2.5 million dollars in grants and low interest loans of public revenues to a private business owner. What is the return on the "investment" of tax revenues? Not even the handful of minimum wage service industry jobs (waiters, waitresses, bartenders, etc.) created.
And this is if SI is telling the absolute truth. I would have to believe that the company will eventually close the manufacturing of chemicals in the Junction and continue to expand that segment of their business to other countries. They can't keep up globally. They may develop this biomass project and jump on the 'energy/fuel' train. They will eventually sell power. Not a bad idea FOR THE COMPANY but not so good idea FOR THE EMPLOYEES. The biomass project will take less manpower than they employ now. They may even contract an outside company to run it. But time will tell.
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
ROTTERDAM Schalmont officials wary of tax deal District could lose $200,000 annually BY JUSTIN MASON Gazette Reporter Reach Gazette reporter Justin Mason at 395-3113 or jmason@dailygazette.net
Schalmont officials said a proposed 15-year tax deal between the Rotterdam Industrial Development Agency and the SI Group could reduce district revenues by more than $200,000 annually. However, the payment in lieu of taxes agreement would effectively end four years of litigation between the town and Niskayunabased company over its property assessments. Absent the PILOT agreement, any settlement lowering SI’s assessment could result in the school repaying a significant amount of taxes. “We need to take a look at this,” said School Board Chairman Michael Della Villa. “The board is concerned about this.” Members of the IDA will convene a public hearing on the proposed agreement at 7 this evening in Rotterdam Town Hall. Chairman Angelo Santabarbara said the agency will hear comments on the proposal and could bring the issue to a vote later during the meeting. “We have to ask, is it going help the economy, is it going to help the taxpayers and is it going to help the town,” he said Monday. “That is what we have to decide.” In December, company officials asked the IDA to broker a 15-year tax agreement with the town, county and Schalmont school district that would save the company $4.2 million. In addition, SI wants a $616,000 sales tax exemption while converting the plant’s old natural gas boiler to a biomass unit. The plant is on a 40-acre site in Rotterdam Junction recently assessed at about $31 million. Della Villa questioned the overall impact of the PILOT agreement on Schalmont. He said it is unusual for a tax agreement to be forged while there is an ongoing legal battle about the company’s assessment. “We’re not necessarily coming out in favor of it,” he said. “We need to know what the impact will be.” Superintendent Valery Kelsey said the annual reduction in school tax revenue proposed by the PILOT is significant for the district. She said Schalmont would inevitably need to find alternative sources to compensate for this reduction. “It has an impact,” she said. “The bottom line is that it’s lost revenue that has to be made up somewhere.”
My prediction is that if Rotterdam doesn't give them their tax breaks...they'll move out.
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
ROTTERDAM SI Group tax agreement gets OK Company will pay town, county, school district BY JUSTIN MASON Gazette Reporter
Members of the Rotterdam Industrial Development Agency approved a tax agreement sought by the SI Group to limit its costs and that will have the company pay the town, county and Schalmont school district $10 million over 15 years. The effect of the ruling is to resolve Schenectady International’s tax challenges and clear it to upgrade equipment, which officials claimed is necessary for the company’s survival. But in what was termed a concession Tuesday, SI agreed to pay the Schalmont Central School District $30,000 per year to help mitigate the anticipated $152,000 shortfall in taxes the school will have from the company under the agreement. IDA Chairman Angelo Santabarbara said the town, county and school district will waive an estimated $1.5 million in tax revenue through the duration of the agreement. “We tried to make sure everyone was benefiting in this,” he said following the meeting. As part of the payment-in-lieuof-taxes agreement, the Niskayunabased chemical company will end four years of litigation with the town over its property assessments. IDA attorney Gerard Parisi said ending the litigation will prevent Schalmont from having to refund more than $1 million in taxes that were overpaid by the company and potentially saves the town more than $100,000 in legal fees. SI also agreed to provide land at their Rotterdam Junction plant for the town to build a water tank. By building the estimated $1.2 million tank on SI property, town offi - cials will avoid elevation problems identified at other sites considered for the project. “They’re either going to give us ownership, an easement or a license — one of the three,” Parisi said. Santabarbara said SI will also consider “community givebacks” in the event the company is fined by the state Department of Environmental Conservation during the agreement. He indicated SI’s production facility off Main Street is now operating under several DEC consent orders. The agreement was ratifi ed by all five attending board members following a sparsely attended public hearing and a nearly hourlong executive session called to discuss potential litigation. SI Vice President William Scheffer was satisfied by the PILOT and said the company looks forward to spending another 15 years as a productive “corporate citizen” in Rotterdam. “We think is a winning situation for all parties really,” he said. Company officials are hoping the PILOT agreement coupled with an estimated $12 million investment to build a biomass boiler will improve its finances. When SI first pitched the PILOT, company official indicated the plant had lost money for fi ve consecutive years. SI launched a biomass initiative after receiving a $1 million grant from the New York State Energy Research and Development Authority in 2006. Plans for the wood-fired boiler have already passed the state’s environmental quality review with the town Planning Board. The company projects employing 50 workers during construction, which is expected to last nearly two years. Afterward, the company anticipates creating one additional management position, two skilled or unskilled jobs and four semi-skilled positions. Fewer than a dozen people turned out for the public hearing on the PILOT Tuesday. Officials from the Schalmont district were not present. Former town board member Robert Godlewski questioned the tax impact of the PILOT agreement. He feared revenue shortfalls caused by the company’s tax break could ultimately affect residents. “Somebody has to pick that up,” he said, Reach Gazette reporter Justin Mason at 395-3113 or jmason@dailygazette.net
Someone has to pay for the new teachers contract---oh, here's an idea. Let SI subsidize the School, kind of like a charter school....it would bear the name of Schalmont SI Sabres.....I mean why not?.....the monkey on our back will have a new home.....and NYS will STILL have the control over the edumacation.
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
SI also agreed to provide land at their Rotterdam Junction plant for the town to build a water tank. By building the estimated $1.2 million tank on SI property, town officials will avoid elevation problems identified at other sites considered for the project. “They’re either going to give us ownership, an easement or a license — one of the three,” Parisi said. Santabarbara said SI will also consider “community givebacks” in the event the company is fined by the state Department of Environmental Conservation during the agreement. He indicated SI’s production facility off Main Street is now operating under several DEC consent orders.
I think that the monetary agreement was fair. However, what I find somewhat amusing is constructing a water tower right on SI property!! Now tell me that's not a scary thought?
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
Rotterdam IDA deal with SI Group a bad one for taxpayers
Re Feb. 5 article, “SI Group seeks $4.2M in tax breaks”: County Legislator Joseph Suhrada and the Rotterdam Republicans are proposing a $4.25 million rip-off of taxpayers of historic proportions with the Rotterdam IDA’s proposed PILOT (payment in lieu of taxes) with SI Group. Rotterdam, Schenectady County and Schalmont school district taxpayers lose $616,000 in sales tax and $3.63 million in property taxes for a grand total of $4.25 million. What do taxpayers receive in return as far as permanent full-time jobs? According to the Rotterdam IDA, a grand total of seven new jobs! What kind of jobs? According to the Rotterdam IDA, one professional or management, two skilled or unskilled and four semi-skilled. Do the math — that’s $606,571 per job. Who negotiated this bad deal for the Rotterdam IDA? The Rotterdam Republican Chairman Gerard Parisi’s law firm. He has helped to to place partner Patrick Sacoccio on the Metroplex Board, even though both partners have a financial interest in a large loan from Metroplex. Joe Suhrada is silent — content to permit a multimillion-dollar rip-off to proceed without word. Mr. Suhrada is at best a hypocrite. If he has his way, we’d return to the bad old days of [former Schenectady Economic Development Corp. executive] George Robertson and the sweetheart deals. ROBERT SANDERS Schenectady The writer is president of the Woodlawn Democratic Committee.
Gee Mr. Sanders, perhaps you should look in your own democratic back yard if you are looking for the sweetheart deals. Talk about being a hypocrite!
And if the truth be known...if Rotterdam didn't offer the SI Group ANY tax break, they would clearly close up shop and move right out of town!
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
The article in The Feb. 27 paper mentioned that Schenectady International [SI] will pay Schalmont $30,000 per year “ . . . to help mitigate the shortfall in taxes . .. ” I would like to know, what kind of shortfall Schalmont will suffer? It seems they had a windfall after last year’s reassessment. My school taxes increased by $800, as did most of my friends’ and neighbors’. This is a joke. It seems the adage “much wants more” is very appropriate in this case. Are they setting us up for another increase in taxes to ward off the so-called shortfall? I’m a senior citizen who is not eligible for the Enhanced STAR, and as a recently retired educator, know the waste that goes on in schools. When will we stop giving and giving? THERESA GEORGE Rotterdam
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