SCHENECTADY COUNTY Metroplex measure sent to state Authority seeking approval for extra $25M bond cap BY MICHAEL LAMENDOLA Gazette Reporter
Schenectady County’s prime economic development engine won local approval Tuesday to seek a $25-million turbocharge from the state to continue its mission of expanding the tax base and creating jobs. The county Legislature approved home rule legislation Tuesday night to ask the state Legislature to expand the Metroplex Development Authority’s bond cap by 50 percent, to $75 million from $50 million, and to extend its life by five years. It is currently scheduled to cease operations in 2028. Metroplex Chairman Ray Gillen said the $25 million increase is exactly what Metroplex can repay over time, based on its current debt, its projected sales tax revenues and the performance of its loan portfolio. The five-year extension would allow it to issue long-term bonds of 20 and 30 years, the usual terms of repayment. Gillen said Metroplex should be able to leverage $100 million in investment through the extra $25 million in bonding. Metroplex has a current bond rating of A, about average. Metroplex receives about $7 million annually through a portion of the county sales tax. Since its creation in 1999, it has tapped $42 million of its $50 million bonding authority. In the process, it has helped generate $300 million in investment and created 3,000 jobs, according to Metroplex officials. Gillen said Metroplex has support in both houses of the state Legislature for the measure. The vote in the Democrat-dominated county Legislature was 10-2. Republicans Joseph Suhrada, R-Rotterdam, and Angelo Santabarbara, R-Rotterdam, voted against it. Minority Leader Bob Farley, R-Glenville, Judy Dagostino, D-Rotterdam, and Philip Fields, D-Schenectady were absent. Jim Buhrmaster, R-Glenville, voted with majority Democrats. Suhrada, a frequent Metroplex critic, urged legislators to delay their vote until the state Comptroller’s Office completes an audit of Metroplex, which was announced last week. He also said people are con- cerned Metroplex will never go away, as is the case with the state Thruway Authority, and that it will establish a large debt for the community to repay. His amendment to increase the bond cap by only $10 million failed along party lines. During the public comment session, 24 people spoke in favor of extending Metroplex’s bonding cap and two spoke against it. Proponents included major developers and business owners who have benefited from Metroplex’s efforts, including The Galesi Group, Fortitech and the Hampton Inn. Galesi executive David Buicko, whose company owns several business parks in the county as well as several downtown Schenectady buildings, said Metroplex is an essential economic development tool and the envy of other communities in the region. “It levels the playing field,” Buicko said, meaning Metroplex provides assistance to developers to rehabilitate downtown buildings they would find too costly to fi x on their own. “We have a responsibility to the community” to keep Metroplex on track with its mission, Buicko said. Brad Littlefield of Delanson, who persistently petitioned the comptroller’s office to audit Metroplex, opposed the legislation. “We should recoup bad investment prior to increasing the bond cap more,” he said. He asked the Legislature to delay its vote until after the comptroller completed its audit.
... Brad Littlefield of Delanson, who persistently petitioned the comptroller’s office to audit Metroplex, opposed the legislation. “We should recoup bad investment prior to increasing the bond cap more,” he said.
Although the quoted statement summed up a portion of my argument, the quote was not taken verbatim from my comments. The Gazette is taking liberties in paraphrasing comments while placing them in quotes. They have also edited and reworded some of what I have written in my Letters to the Editor.
The Daily Gazette story tells only half the story; the half that supports the majority party.
The 24 people who spoke included only four who seemingly were not recipients of public revenues awarded by the Metroplex. Of the four members of the public, three spoke against lengthening the charter and increasing the bond cap with the fourth withholding a statement of support or opposition. The latter spoke of the many redundant organizations that exist in Schenectady County to support business development and of the many forms of public funding (e.g., Empire Zone, Metroplex, IDAs, PILOTs, etc.) received by developers.
The parade of supporters was unquestionably orchestrated by either someone from the Metroplex Board of Directors or the Democratic party controlled County Legislature. Each businessman read from prepared notes and stated that if it were not for the Metroplex funding, they would not be conducting business in Schenectady County.
Gazette Reporter Lamendola also misreported the vote. Of the 15 Legislators, 3 (Farley, Dagostino, Fields) were absent/excused, 2 (Suhrada, Santabarbara) voted in opposition, 1 (Dicerbo) abstained and the remaining 9 voted in favor of the legislation. Legislator Buhrmaster voted for a defeated amendment proposed by Legislator Suhrada to lower the increase in the bond cap from $25M to $10M. After the amendment was defeated, Buhrmaster voted for the initial proposal. Legislator Dicerbo, the sponsor of the proposed legislation, requested that the (recorded) sponsorship be changed and abstained from the vote because he is employed by the NYS Office of the Comptroller.
Legislator Hughes and Savage misrepresented the state audit as "routine". This is inaccurate and misleading because in the 9 years since the founding of the Metroplex, it has NEVER been audited.
The vote will give the public a better sense regarding which representatives have the public interests in mind. It is curious that Mr. Farley, the author of the Metroplex law, did not attend the meeting last evening with such an important proposal being voted upon. Legislator Buhrmaster, who is waging a campaign for Congress on a platform that he will be representing the overtaxed residents, did not vote in a manner that is consistent with that pledge. He may have lost my support. I am hopeful that additional Republican candidates and those from third parties will announce their intentions to run for the 21st Congressional District seat.
I heard Legislator Suhrada speaking on the Paul Vandenburgh radio show (WGDJ Talk 1300) about the actions of the Legislature last evening on the legislation to lengthen the charter and increase the bond cap of the Metroplex. He is an advocate of the public.
I just hope that the audit is a complete and honest one so we can all see how badly our money has been spent and with how little we as residents have to show for all the money spent.
Obviously success isn't measured by sales taxes returned through metroplex. I browsed the metroplex website http://www.schenectadymetroplex.org/downloads/Town%20Sls%20Tax%20Update.pdf. I noticed that Metroplex distributed the county sales tax money back to the towns in 07' was $191,145 less than distributed in 06'. You would figure with these 2000 new jobs created through metroplex would correspond with more taxes collected. There was actually only a net gain of $154,106 in sales tax revenue between 99' to 07'. How many 10's millions were given to these business's for this $154,106 windfall.
The website also states that there are 144,344 residents in Schenectady County. That's an extra $1.06 per County resident after 9 years of so called economic development.
Quoted from Cicero: ... You would figure with these 2000 new jobs created through metroplex would correspond with more taxes collected.
Cicero,
The new number being advertised by the Metroplex is 3000 jobs. Of course, there is no evidence presented to support the claim. The job growth, as cited in each subsequent press release, appears to come in increments of one thousand.
Based on the annual review presentation by Metroplex Chair to the County Legislature in early March, I suspect that he is claiming credit for all new jobs in Schenectady County, regardless of Metroplex involvement. He included in his cited "successes" many projects in which the Metroplex provided little to no input or financial support. For example, the ~500 jobs that will be staffed at the GE main plant during the next several years have little to do with the Metroplex. I am hopeful that the audit of the Metroplex by the NYS Office of the Comptroller will find that the realized benefits of the tens of millions of dollars of investment of public revenues exceed those associated with the $7M in Empire Zone grants that were awarded in the county; a gain of 31 jobs.
As for the $1.06 per resident in tax revenue increase, we should amortize that over the next nine years and apply that to the projected $16M budget shortfall in the 2009 county budget.
The legislatures that run the city and the people who run Metroplex sure know how to handle our money don't they. Now we end up with a $16 million shortfall in the budget and the idiots want to tax us to death to try and balance it. The ones in control right now couldn't find their butts with a map let along run a city.
The parade of supporters was unquestionably orchestrated by either someone from the Metroplex Board of Directors or the Democratic party controlled County Legislature. Each businessman read from prepared notes and stated that if it were not for the Metroplex funding, they would not be conducting business in Schenectady County.
This asumption was correct. This was a definate orchestratrated display by the Metroplex and the County Legislature. And as one resident stated, "It looks like a Boy's Club".
It is a good old boys club. It isn't what you know, but who you know. Clearly, most of these people that they say talked at this meeting last night, in favor of the metroplex, certainly did not even need taxpayers metroplex money. They already have it.
I say that if the NYS Comptroller doesn't do an audit that satisfies the people, there are other avenues. The Beast has got to be stopped before we all go broke.
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
Well, as I have said to some people (and I don't remember if I posted it on here), I decided that I was going to send an e-mail to both Mr. Amedore and Mr. Tedisco regarding this prior to the bill coming to the floor of the Assembly.
Here's a copy of what I sent yesterday afternoon, with both having auto-replies on their e-mails that they may not be able to answer specific questions.
I hope that other people also decide to send something to ask them to make sure this doesn't happen. Also, we need to contact some of the local talk shows. In fact, due to the issues with the deficit in Colonie, Mark Williams (590, WROW), was saying this afternoon that they are going to be holding a bake sale / bottle drive to help with that deficit. Maybe they would be willing to have one here in Schenectady for EITHER the Metroplex or the County budget shortfall (which I think would be more in-line with what they're looking to do in Colonie).
Quoted Text
From: March, Kevin Sent: Wednesday, April 09, 2008 2:36 PM To: 'Assemblyman James Tedisco'; Assemblyman George Amedore (AmedoreG@assembly.state.NY.US) Subject: Schenectady Metroplex
Mr. Tedisco and Mr. Amedore,
As the 2 assemblymen who represent Schenectady County at the state level, I wish to address the fact that last night, Schenectady County agreed to request from the state the opportunity for them to raise their debt ceiling from $50 million to $75 million.
There was a large number of people who came to speak last night at the county legislature meeting in regards to this issue, and I was hoping to let you know my feelings. First, I realize that the county has had the Metroplex authority in effect since 1999. This means that this organization has been running for approximately 9 years.
I believe that you would both agree with me that State Street, especially between Erie Boulevard and Nott Terrace, has been changed amazingly, and may in fact, be bringing in many more dollars than it used to before this project began.
What I don't understand is how the County can say that this project is a success and has reached "first base" as someone referenced last night. They also stated that the additional debt possibility would be needed for the Schenectady Metroplex to be a "homerun." Well, I am not a professional mathematician, but a couple things bother me with this. First of all, it took getting into approximately $42 million worth of debt to get to first base. Now, with that being said, that would make me think that the project was about 1/4 through what they expected it to be. Now, the legislature approved adding another $25 million worth of possible debt to this organization. If they had a debt ceiling (bonding authority) of $50 million and that only got 1/4 of the job done, how is $25 million going to finish the job, that is unless they're planning on coming back and nickel and diming the community until they get what is really need, which by my calculations would be somewhere near $200 million worth of approval.
Also, if the Schenectady Metroplex is being such a success and so many good things are happening from this, then why is it that they would have to continue to borrow money? Wouldn't there be a return on the investment coming in? Shouldn't the projects start to pay off, and in fact, reduce the amount of the debt that the Metroplex is in, and in fact, they should not need any additional debt allowance, as they are getting a return on investment?
I know that you, Mr. Amedore are a businessman, and successful at that. I don't know what your profession, Mr. Tedisco, was before you came into the assembly and are now the Assembly Minority leader, but I would pose this question.
Let's say that you gave someone $50 million to do what they pleased with. Now, let's say that the same person came back to you and said that they spent the $50 million but that in order to get things going REALLY well, they would need an additional $25 million. I just don't see where this makes good business sense.
This would be in accordance with paying off one credit card with another, or to bring up something else that is hitting Schenectady County and the entire nation, let's look at it as a sub-prime loan. We, the residents of Schenectady County, gave a sub-prime loan to the Metroplex and the Metroplex can't afford to pay it back. Now, instead of taking back what is rightfully ours, we are supposed to hand out yet another $25 million? That's right, as residents of Schenectady County, we are the ones who are paying back the majority of this, as the Metroplex draws its money from the sales tax throughout the county.
I respectfully request that you not approve the additional request from the Schenectady Metroplex for an additional $25 million in bonding authority.
This is expanded on since the Metroplex is currently in the process of being prepared for a audit by the State Comptroller. I would say at a minimum that we should wait to see what the results of the audit are before even considering the idea of lending more money.
I appreciate you taking the time to read and carefully consider this before it comes to the floor in the Assembly. I would suggest that since I did not see you at the County Legislature meeting last night that you watch SACC-TV in the coming days to see the meeting to see what the residents and business owners had to say about this.
I hope that you use the insight that has brought you as far as you have come to determine what is truly right for the residents of Schenectady County, which does NOT include additional money for the Schenectady Metroplex, but instead a reduction in the debt that the County and the Metroplex have.
I would appreciate knowing any input that you have on this subject in either way and can be contacted as listed below.
Sincerely,
Kevin T. March {my address} {my cellphone} {my e-mail address}
A Ponzi scheme usually offers abnormally high short-term returns in order to entice new investors. The high returns that a Ponzi scheme advertises (and pays) require an ever-increasing flow of money from investors in order to keep the scheme going.
The system is doomed to collapse because there are little or no underlying earnings from the money received by the promoter. However, the scheme is often interrupted by legal authorities before it collapses, because a Ponzi scheme is suspected and/or because the promoter is selling unregistered securities. As more investors become involved, the likelihood of the scheme coming to the attention of authorities increases.
Well, as I have said to some people (and I don't remember if I posted it on here), I decided that I was going to send an e-mail to both Mr. Amedore and Mr. Tedisco regarding this prior to the bill coming to the floor of the Assembly.
Here's a copy of what I sent yesterday afternoon, with both having auto-replies on their e-mails that they may not be able to answer specific questions.
I hope that other people also decide to send something to ask them to make sure this doesn't happen. Also, we need to contact some of the local talk shows. In fact, due to the issues with the deficit in Colonie, Mark Williams (590, WROW), was saying this afternoon that they are going to be holding a bake sale / bottle drive to help with that deficit. Maybe they would be willing to have one here in Schenectady for EITHER the Metroplex or the County budget shortfall (which I think would be more in-line with what they're looking to do in Colonie).
Quoted Text
From: March, Kevin Sent: Wednesday, April 09, 2008 2:36 PM To: 'Assemblyman James Tedisco'; Assemblyman George Amedore (AmedoreG@assembly.state.NY.US) Subject: Schenectady Metroplex
Mr. Tedisco and Mr. Amedore,
As the 2 assemblymen who represent Schenectady County at the state level, I wish to address the fact that last night, Schenectady County agreed to request from the state the opportunity for them to raise their debt ceiling from $50 million to $75 million.
There was a large number of people who came to speak last night at the county legislature meeting in regards to this issue, and I was hoping to let you know my feelings. First, I realize that the county has had the Metroplex authority in effect since 1999. This means that this organization has been running for approximately 9 years.
I believe that you would both agree with me that State Street, especially between Erie Boulevard and Nott Terrace, has been changed amazingly, and may in fact, be bringing in many more dollars than it used to before this project began.
What I don't understand is how the County can say that this project is a success and has reached "first base" as someone referenced last night. They also stated that the additional debt possibility would be needed for the Schenectady Metroplex to be a "homerun." Well, I am not a professional mathematician, but a couple things bother me with this. First of all, it took getting into approximately $42 million worth of debt to get to first base. Now, with that being said, that would make me think that the project was about 1/4 through what they expected it to be. Now, the legislature approved adding another $25 million worth of possible debt to this organization. If they had a debt ceiling (bonding authority) of $50 million and that only got 1/4 of the job done, how is $25 million going to finish the job, that is unless they're planning on coming back and nickel and diming the community until they get what is really need, which by my calculations would be somewhere near $200 million worth of approval.
Also, if the Schenectady Metroplex is being such a success and so many good things are happening from this, then why is it that they would have to continue to borrow money? Wouldn't there be a return on the investment coming in? Shouldn't the projects start to pay off, and in fact, reduce the amount of the debt that the Metroplex is in, and in fact, they should not need any additional debt allowance, as they are getting a return on investment?
I know that you, Mr. Amedore are a businessman, and successful at that. I don't know what your profession, Mr. Tedisco, was before you came into the assembly and are now the Assembly Minority leader, but I would pose this question.
Let's say that you gave someone $50 million to do what they pleased with. Now, let's say that the same person came back to you and said that they spent the $50 million but that in order to get things going REALLY well, they would need an additional $25 million. I just don't see where this makes good business sense.
This would be in accordance with paying off one credit card with another, or to bring up something else that is hitting Schenectady County and the entire nation, let's look at it as a sub-prime loan. We, the residents of Schenectady County, gave a sub-prime loan to the Metroplex and the Metroplex can't afford to pay it back. Now, instead of taking back what is rightfully ours, we are supposed to hand out yet another $25 million? That's right, as residents of Schenectady County, we are the ones who are paying back the majority of this, as the Metroplex draws its money from the sales tax throughout the county.
I respectfully request that you not approve the additional request from the Schenectady Metroplex for an additional $25 million in bonding authority.
This is expanded on since the Metroplex is currently in the process of being prepared for a audit by the State Comptroller. I would say at a minimum that we should wait to see what the results of the audit are before even considering the idea of lending more money.
I appreciate you taking the time to read and carefully consider this before it comes to the floor in the Assembly. I would suggest that since I did not see you at the County Legislature meeting last night that you watch SACC-TV in the coming days to see the meeting to see what the residents and business owners had to say about this.
I hope that you use the insight that has brought you as far as you have come to determine what is truly right for the residents of Schenectady County, which does NOT include additional money for the Schenectady Metroplex, but instead a reduction in the debt that the County and the Metroplex have.
I would appreciate knowing any input that you have on this subject in either way and can be contacted as listed below.
Sincerely,
Kevin T. March {my address} {my cellphone} {my e-mail address}
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