In reply to Bradley Lewis’ Feb. 1 letter, I would ask Mr. Lewis (and more to the point, the head of Schenectady Metroplex, Ray Gillen) the following: If, as stated in Mr. Lewis’ letter, “Metroplex is a major partner in a county economic development team that is accountable, results-oriented and successful,” and Metroplex is doing so well and on the right path, what does the Metroplex have to lose by having an outside entity auditing this entity, besides comforting Schenectady County taxpayers? Mr. Lewis also stated, “For many years Schenectady operated with a private economic development group that had no audited financials and very little accountability.” Mr. Lewis, how much accountability does Metroplex have? Why not put Metroplex’s taxpayerfunded money where its mouth is? Allow an open audit of the records by an outside source, namely New York state (as recommended by Brad Littlefield’s Jan. 8 letter). KEVIN MARCH Rotterdam
Good letter. Those who support the call for an independent and comprehensive audit of the Schenectady Metroplex Development Authority by the New York State Comptroller's Office need to continue the pressure by writing Letters to the Editor of the Daily Gazette and Times Union, contacting the Comptroller's Office, NYS Attorney General, and the Governor and by calling into the local talk radio stations when discussion pertains to Schenectady County.
One person alone cannot champion a cause. I commend those of you, like Kevin, who have given of yourselves in working to ensure integrity in government and to make Schenectady County a better place to live.
SCHENECTADY COUNTY Report: $7M results in few jobs Empire Zone lured businesses BY KATHLEEN MOORE Gazette Reporter
More than $7 million in state taxpayer money was used over the course of one year to add just 31 jobs in Schenectady County, according to the 2007 Empire Zone annual report. The Empire Zone businesses, which are primarily located in the city, spent $54 million to expand or start new companies in exchange for $7.2 million in tax reimbusements and sales tax exemptions, the report said. It refers to activity from 2006; the next report is expected this summer. The report makes it clear that Empire Zone benefits successfully encouraged some businesses to relocate and invest in this area. But the report also calls into question the other goal of the program — job growth, particularly among residents in the city’s “economically distressed” areas of Hamilton Hill, Vale and Central State Street. Very few zone businesses are located in that area and in the zone as a whole, almost none of the businesses offered statistics on how many area residents they employed. The Empire Zone businesses do employ many people: Countywide they had a total employment of 5,364 workers at 167 companies in 2006, according to the report. But state officials have questioned whether such figures are accurate after discovering widespread misstatements in other cities’ reports, and have criticized the statewide program for not fueling enough job growth each year. In Schenectady County, there was an increase of just 31 workers over the previous year, despite the addition of many new businesses with goals of regular job growth. Some of those businesses apparently never even opened, including Camelo Donuts. Others quickly closed — including Sushiart Japanese Restaurant — and still others never met their development goals. Among the latter is the Minority Contractors Technical Assistance Program, MCTAP, which still employs just two people and has yet to open its training center after five years in the program. OUTLOOK IMPROVING There may be better news on the jobs front in the next report, because several zone businesses that were in construction in 2006 — including the Hampton Inn and Movieland — will be able to point to job creation in 2007. Movieland, which opened in May 2007, employs five full-timers and 10 part-timers. The Hampton Inn, which opened in June 2007, has hired about 24 full-timers and six part-timers. In Rotterdam, Railex has opened with Empire Zone benefits and has about 140 employees. Each business pays its taxes, which are then reimbursed by the state. “There are a lot of people,” said county economic development chief Ray Gillen, who chairs the Metroplex Development Authority. He expects the 2008 report to show many more jobs. He argued the 2007 report at least showed that developers are investing in the area. “The investment numbers are pretty good,” he said, noting that $54 million was spent for $7.2 million in tax credits and exemptions. “It confirms the level of investment we’ve been saying. There’s substantial new investment.” But the report also lists several new additions to the zone that didn’t expand or add any jobs. Among them are Acme Press, which is 85 years old and has nine full-time workers now — but was listed as having 11 when it was added to the zone in 2006. Sepsa North America, which relocated to Schenectady in 2006, has 33 workers now, one less than it lists as having when it came to the city. It had promised to employ 100 workers by the first quarter of 2008. One success story could be Villa Italia, which moved to Schenectady from Rotterdam partly because of the Empire Zone benefits. Walk-in business has increased by more than 60 percent since the move to the city’s downtown. As business grew, so did the jobs. The pastry bakery had 37 full- and part-time employees when it opened in 2005. Now it has 52 employees, of which roughly half are part-time, owner Bob Mallozzi said. He spoke highly of the tax credit program, in which the state reimburses him for the local taxes he pays. “It’s been really beneficial,” he said. “It was definitely part of our decision to move here … We exceeded the amount we needed to hire by a lot.” He is also one of the few employers who tracked the number of employees from the city’s distressed area. Two of his workers live in the Hill-Vale neighborhoods. ORIGINAL PLAN The original purpose of the state’s Empire Zone program was to encourage job creation and business growth in economically distressed areas. The goal was for businesses to relocate to such areas and hire employees who lived there. But the Empire Zone philosophy has changed. According to the state’s development department, the zones are now supposed to “attract new businesses to New York State and to enable existing businesses to expand and create more jobs.” The zones have been widely expanded; in Schenectady County, businesses can now locate in Glenville and Rotterdam as well as the city. In response to criticism about the effectiveness of the program, legislators have recently tried to rein in the Empire Zone program in many ways. Mayor Brian U. Stratton has tried to push through a rule that would require Empire Zone businesses in Rotterdam and Glenville to hire a percentage of their workers from Schenectady’s distressed areas. State legislators also tightened the geographic rules for the program to stop municipalities from extending their zone well beyond the distressed areas. Now there can be just three non-adjacant zones in each area. The change forced Schenectady to jettison some of its zone areas — the city had extended its zone to virtually every commercial property in Schenectady, although businesses could not claim the benefits unless they projected substantial investment or job growth. Most recently, state Comptroller Thomas DiNapoli said such reforms were not enough. He said the program isn’t monitored closely enough to determine whether it’s effective at retaining and attracting jobs. “New York should take another look at the Empire Zone program,” DiNapoli said in February. “We need to know if we’re getting a bang for the taxpayers’ buck.” A spokesman for the comptroller’s office reiterated that this week, saying the taxpayers need to closely review the Empire Zone reports to decide whether their money is being well spent by the state. “We have advocated for increased transparency and accountability so that public policy makers, local officials and most importantly the taxpayers can understand and determine whether the benefits provided are cost-effective,” said spokesman William Reynolds.
Wow ... Metroplex and the County Legislature should be SO proud of their accomplishments.
Fire Gillen. Impeach Savage. Reduce the tax burden on Schenectady County Residents.
Reduce the tax burden----ha ha ha ha ha ha ha.....when have you seen the total amount of taxes decrease??? they may rid us of one tax only to give it 'Peter' or 'Paul'---depending on who's turn it is........
It is a circle jerk.......
...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
ALBANY State comptroller plans to audit Metroplex BY MICHAEL LAMENDOLA Gazette Reporter
The state will audit Metroplex Development Authority’s books for the first time since its creation in 1999. Metroplex officials called the state comptroller’s audit routine. “It is not triggered by anything. We have all of the procedures in place and we are in full compliance with the public authorities law,” said Metroplex Chairman Ray Gillen. The State Comptroller’s Offi ce notified Metroplex of its plans in a letter dated Feb. 28. The letter said the office “selected Metroplex for an audit . . . that will evaluate its policies and procedures and internal controls.” There is no indication of wrongdoing suggested in the letter. The comptroller plans to examine Metroplex’s operations from Jan. 1, 2006, to Dec. 31, 2007. The period covers some of Metroplex’s major investments when it distributed millions in loans and grants toward the construction of the Hampton Inn and the Bowtie Cinema, as well as provided grants to the Downtown Schenectady Improvement District and the Upper Union Street Business Improvement District. Spokesman Bill Reynolds of the State Comptroller’s Office said the audit could take several months. Gillen said he looks forward to the audit: “It’s more on operational issues.” Metroplex Executive Director Jayme Lahut called the audit “fairly routine for a non-financial audit.” He said Metroplex hires an outside certified public accountant to audit its books annually. Metroplex sends copies of the audits to the comptroller’s office.
I'm pleased to hear that FINALLY an audit will be conducted. HOWEVER...they need to go back further in time. And after the audit is completed, perhaps Cuomo should look into it also. But with Gillen being an appointed Spitzer crony to the board of SCCC, I really don't know how this will play out or how fair of an audit it will be.
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 thanks go to Mr. Kenneth Madej, the Chief Examiner at the New York State Office of the Comptroller's Office. He is a public servant who is serving the interests of the public and abiding by the law that requires public authorities to be audited. I have faith that Comptroller Dinapoli and his staff will perform a thorough and unbiased (performance) audit of the Schenectady Metroplex Development Authority. Regardless of the findings, which I hope will show that there has been no impropriety in the actions of Mr. Gillen and the Board of Directors, I am pleased that Mr. Dinapoli is placing public interests before partisan politics. An accounting of the taxpayers' money and an assessment of the effectiveness of the Metroplex is long overdue.
I want to thank my friends (most of whom I have never met) on both this forum and the Schenectady forum who voiced your opinions and views. The postings on this board are read, I suspect, by many in the media and in government. Despite differences of opinion expressed, the dialog captured the attention of many in positions to make the audit a reality. A special thanks to Kevin March (bigK) for authoring his Letter to the Editor in response to the attacks against me by Metroplex Board member Brad Lewis.
Since the stories have appeared in the Daily Gazette this week, I have heard from many people in the public who I do not know and who have expressed their gratitude for my call for an audit of the Metroplex. Several business owners have contacted me to share their accounts and frustrations. I provided to them Mr. Madej's contact information and encouraged them to share their information with the New York State Comptroller's Office.
It is time now to turn our focus toward the next front in our battle to ensure integrity and accountability in government.
Good goin' Brad Littlefield....I have never met you but, am sure glad you are who you are and do what you do.....and I dont mean your job/position etc...I mean who you are......
Though I dont often agree 100% with everyone, the person who has the get-go to get going is the best...
...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
Thanks senders. Perhaps I will have the pleasure of meeting you some day. I plan to attend the meeting of the Schenectady County Legislature next Tuesday night at 7 pm. I want to lend my support to Legislator Santabarbara as his first piece of legislation, that provides for a Sheriff's Deputy to be present at the Town of Princetown meetings, comes to the floor for a vote. So, if any of you are available to attend the meeting, come and join me. Perhaps we can go out for coffee (my treat) after the meeting.
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