Relates to certain industrial development agencies

BILL NUMBER:S5271

Title of bill

An act to amend the general municipal law, in relation to certain industrial development agencies

Purpose

To create a regional IDA structure in Erie County

Summary of provisions

Section 1 expands the ability of The Town of Lancaster Industrial Development Agency to exercise its powers to include property within the corporate limits of the towns of Cheektowaga and West Seneca, provided that such town boards pass a resolution in support of the exercise of such powers.

Section 2 expands the ability of The Town of Clarence Industrial Development Agency to exercise its powers to include property within the corporate limits of the towns of Alden, Elma, Manilla and Newstead, provided that such town boards pass a resolution in support of the exercise of such powers.

Section 3 expands the ability of The Town of Amherst Industrial Development Agency to exercise its powers to include property within the corporate limits of the towns of Grand Island and Tonawanda, provided that such town boards pass a resolution in support of the exercise of such powers.

Section 4 expands the ability of The Town of Concord Industrial Development Agency to exercise its powers to include property within the corporate limits of the towns of Brant, Colden, Collins, Holland, North Collins, Sardinia and Wales, provided that such town boards pass a resolution in support of the exercise of such powers.

Section 5 expands the ability of The Town of Hamburg Industrial Development Agency to exercise its powers to include property within the corporate limits of the towns of Aurora, Boston, Eden, Evans and Orchard Park, provided that such town boards pass a resolution in support of the exercise of such powers.

Existing law

The exercise of powers of each town IDA is limited to the corporate limits of the town.

Justification

On September 26, 2012, Senator Gallivan held a public hearing regarding Industrial Development Agencies in Erie County. One of the concerns coming out of this meeting was the fact that many towns in Erie County lack an IDA and consequently they are at a competitive disadvantaged when businesses are choosing where to locate. One suggestion as to how to address this issue was to allow towns without an IDA to access the IDA of a town with an IDA. After further consultation with the towns in Erie County, both those with and without IDAs, a regional plan for IDA expansion has emerged as the

consensus plan for creating a level playing field for all towns in Erie County.

This bill apportions the towns of Erie County into five geographic regions, one for each town IDA. This system will require that towns work together to advance projects that are in the best interests of the region and Erie County as a whole. The cities are left the exclusive territory of the Erie County IDA, which is where the ECIDA has chosen to focus its energy. Projects in small towns, which are meaningful to the town in question but not critical to the county at large, are often put on the backburner by the ECIDA, as it focuses on revitalizing the city cores. This new regional approach will give these small towns greater opportunity to pursue these projects while allowing the ECIDA to continue to focus its energies in the areas most in need of its resources.

Legislative history

New Bill

Fiscal implications

Minimal

Local fiscal implications

Increased property values and the future property tax revenues that will result will pay for tax abatements.

Effective date

Immediate