Relates to the Schenectady county metroplex development authority

Title of bill

An act to amend the public authorities law and the tax law, in relation to the Schenectady county Metroplex development authority

Purpose

To increase the maximum amount of bonding authority of the Schenectady Metroplex Development Authority, and to extend the authorization of Schenectady County to impose the additional one-half percent of sales tax, which funds the authority's economic development activities and also generates funding for local towns and villages.

Summary of provisions

Section one of the bill amends Section 2661(9) of the Public Authorities Law to extend, for an additional five years, the provisions regarding the dedication of the revenues received from the additional one-half of one percent sales tax.

Section two of the bill amends Section 2665(1) of the Public Authorities Law to increase the amount of bonds the Authority may issue over its lifetime. The current aggregate limit of $75 million would be amended to provide that the aggregate principal amount of bonds or notes issued may not exceed $100 million.

Section three of the bill amends Section 1210-C of the Tax Law to extend for an additional five years (to 2038) the authority of Schenectady County to impose an additional sales tax rate of one-half of one percent.

Section four of the bill provides a severability clause.

Justification

The Schenectady Metroplex Development Authority was first established in 1998 (Chapter 124) to undertake a comprehensive, coordinated economic development program. For almost two decades, Metroplex has proven to be a very successful economic development engine.

The Metroplex Authority represented a new and unique approach in New York State toward economic development. The Authority is governed by an 11-member board representing all parts of the county, and is supported by a dedicated revenue stream of a portion of local sales tax revenue.

The 1998 law authorized the County to impose an additional one-half percent sales tax. Seventy percent of the revenues generated are dedicated to Metroplex's economic development activities, while thirty percent of such revenues are distributed to towns and villages in the County. (Note: like most counties, Schenectady's total local sales tax rate is 4%. However, unlike other counties, Schenectady dedicates one-half percent of its sales tax to Metroplex and the real property tax abatement fund).

Because it represented a new approach to economic development, the 1998 law placed an aggregate limit of $50 million on the amount of bonds that this new authority could issue. By 2008, Metroplex had proven to be a success and was nearing the bond limit. Legislation was passed in 2008 (Chapter 468) to increase the aggregate bond limit to $75 million.

Metroplex has continued to play an important role in the economic revitalization of the City of Schenectady and of Schenectady County in general. It has helped local businesses expand, and has also attracted new businesses and jobs to the region. Through its efforts, many vacant properties have been developed, debilitated structures have been fixed up or replaced, and properties have been returned to productive use.

Today, Metroplex is once again almost at its bond limit. This legislation would raise the bond cap and help ensure that Metroplex has the continued capability and flexibility to foster and support economic activity in the county.

Legislative history

New bill

Fiscal implications

This bill has no direct costs to the State or to local governments, but the efforts of Metroplex have generated positive economic activity which has resulted in an increase in tax revenues for the State and localities.

Effective date

Immediate