IDA Legislation Would Hurt Upstate Small Businesses

Assemblywoman Jane Corwin (R,C,I-Clarence) today spoke out again in opposition to the Assembly Democrat’s IDA “Reform” legislation that would increase costs for upstate businesses already suffering through the financial crisis. Yesterday, Corwin attended a hearing held by the Local Governments Committee on the legislation that outlined the bill’s negative impact on the upstate economy.

“The IDA Reform Bill is bad for Western New York and wrong for the 142^nd District,” said Corwin. “The conditions put forth in the bill would drastically raise costs for businesses participating in the IDA incentive program to almost double the maximum benefit that an IDA can offer.”

Under the legislation (A03659) introduced by Assemblyman Sam Hoyt, businesses that take advantage of Industrial Development Agency benefits would have to abide by burdensome conditions and requirements that would increase costs, including requiring participating businesses to pay prevailing wages for any construction or building renovation work. Other provisions, such as requiring a Community Impact Report, would unnecessarily increase the length of the process because IDAs are already vetted through state regulations and local policy and are subject to SEQRA review requirements.

Business conditions vary across the state and the bill would effectively force a one-size- fits-all approach onto all IDAs. Experts estimate that the bill would raise costs by 30 percent for participating businesses in the incentive program.

“If this bill passes, economic development would virtually stop in upstate New York,” said Corwin. “What we need to do during these times is promote job creation by lowering the cost for companies to do business in Western New York so that we can attract good-paying jobs and help middle-class families.”