IDA’s incentives packages tallied for county board
NORWICH – The Chenango County Industrial Development Agency released a summary of companies receiving payment-in-lieu of taxes agreements, bond finance packages and one-time sales tax abatements last year and the number of corresponding jobs created or retained as a result.
For the nine payment-in-lieu of taxes projects, called PILOTs, the amount of county, local and school taxes not paid in 2011 was more than a half a million dollars, or $530,718. (In comparison, in 2010, the amount was greater, at about $658,000.) But the companies collectively paid approximately $338,000 on the parcels they had enrolled in PILOT programs last year, not to mention taxes on other parcels that they might own.
In 2011, the nine businesses that have PILOTs collectively created a net increase of 336 full-time equivalent jobs. Chobani, Inc. of Columbus and Norwich Pharmaceuticals of North Norwich both performed well. The nation’s number one Greek yogurt manufacturer went from 250 jobs to 966; Norwich Pharmaceuticals started its PILOT with 202 employees and ended the year with 350.
“Chobani far outperformed the originally created FTE’s number,” said Commerce Chenango President Steve Craig, upon presenting the summary to the county board last week. The IDA is an independent board that is appointed by and serves at the pleasure of the Board of Supervisors.
In 2010, Norwich Pharmaceuticals led the way in job creation and greatly exceeded projections with 329 jobs versus only 202 anticipated. There were 10 businesses with PILOTs in 2010 that created a net increase of 150 jobs.
Some Chenango County businesses did not reach their goals, however, such as Baillie Lumber, Bytheway Publishing, and Upturn Industries, according to the summary. Chenango Memorial Hospital, which received a bond agreement in 1998, counts about 100 fewer in-house employees since then. Craig explained that most of those jobs are considered auxillary services that still exist, but are provided by a contract employer instead.
“There isn’t a straight line between the benefits given and the number of jobs created,” Craig said. “Jobs just don’t act like a lever you can pull. There are variations, obviously, between what we estimate and what it came to be. Every industry has its own challenges to grow. Sometimes it’s easier for some companies to keep projections than others.”
In fact, the number of jobs created by the companies receiving IDA-administered economic development tools actually shows a net decrease of 156.5 FTEs.
Supervisor Peter C. Flanagan, D-Preston, who has requested the agency’s economic development summary for several years, said he would like a longer history of the taxes forgiven for each company in next year’s summary. Some projects go back a decade or more, he said.
In the case of providing financial incentives to help start-up new businesses, he asked when a start-up becomes a bona fide company. “I realize the challenges of trying to do business in New York .... but how long does it take to keep starting up?” he asked. Flanagan previously commented that companies receiving assistance in turn for job retention and creation receive less than a slap on the hand for not meeting projections.
Earlier this month, State Comptroller Thomas DiNapoli issued a report on New York's industrial development agencies that says cities, towns and villages have missed out on millions of property tax dollars as a result of significant tax breaks given to entice and retain local businesses. The report stated that the number of jobs created by the local economic development engines dropped by 22,000 from the year before. It also cited a $483 million gap in what IDAs gave out in tax breaks and how much they took in via payments-in-lieu-of-taxes.
The Chenango IDA summary lists $68,106 in abated taxes last year for New York Susquehanna & Western Railroad, a low number Craig conceded when considering all of the right of ways through the towns of Sherburne, North Norwich, Norwich, Oxford and Greene. The value is ascribed by the New York State Office of Real Property Tax Services, he said, not by town assessors.
Supervisor David C. Law, R-Norwich, questioned whether the municipalities along the route can protest losing out on those property taxes since the railroad has been mostly defunct since 2006. Craig said municipalities will be notified of the public hearings when S&W extends its lease with the IDA again next year.
The IDA is losing two seasoned board members: IDA President Randy Mohr, who joined in 2008, and William Ballard, who served two stints on the board totaling 25 years. The Chenango County Board of Supervisors accepted their resignations, and appointed Brian D. Burton, assistant vice president and branch manager of NBT Bank in New Berlin, to fill one of the vacancies. A second appointment is anticipated in June.
Businesses Total 2011 Taxes Not Paid on County-administered PILOT projects
Chobani, Inc., Columbus 146,505
Baillie Lumber, Smyrna 2,310
Bytheway Publishing, Norwich 8,004
CZ-USA, Norwich 1,982
Norwich Pharmaceuticals, North Norwich 237,292
New York Susquehanna and Western Railroad 68,106
Upturn Industries, Bainbridge 1,952
Wagner Nineveh, Afton 21,622
Who’s We, LLC (the Eaton Center), City of Norwich 42,945
Total $530,718
One-Time Projects
Chobani - received $1,084,156 in sales taxes exemptions on materials to build a warehouse.
IDA Bonds Outstanding balance
Chenango Memorial Hospital $659,456 (issued 1998, matures 2014)
Mid-York Press $1,887,988 (issued 2008, matures 2016)
For the nine payment-in-lieu of taxes projects, called PILOTs, the amount of county, local and school taxes not paid in 2011 was more than a half a million dollars, or $530,718. (In comparison, in 2010, the amount was greater, at about $658,000.) But the companies collectively paid approximately $338,000 on the parcels they had enrolled in PILOT programs last year, not to mention taxes on other parcels that they might own.
In 2011, the nine businesses that have PILOTs collectively created a net increase of 336 full-time equivalent jobs. Chobani, Inc. of Columbus and Norwich Pharmaceuticals of North Norwich both performed well. The nation’s number one Greek yogurt manufacturer went from 250 jobs to 966; Norwich Pharmaceuticals started its PILOT with 202 employees and ended the year with 350.
“Chobani far outperformed the originally created FTE’s number,” said Commerce Chenango President Steve Craig, upon presenting the summary to the county board last week. The IDA is an independent board that is appointed by and serves at the pleasure of the Board of Supervisors.
In 2010, Norwich Pharmaceuticals led the way in job creation and greatly exceeded projections with 329 jobs versus only 202 anticipated. There were 10 businesses with PILOTs in 2010 that created a net increase of 150 jobs.
Some Chenango County businesses did not reach their goals, however, such as Baillie Lumber, Bytheway Publishing, and Upturn Industries, according to the summary. Chenango Memorial Hospital, which received a bond agreement in 1998, counts about 100 fewer in-house employees since then. Craig explained that most of those jobs are considered auxillary services that still exist, but are provided by a contract employer instead.
“There isn’t a straight line between the benefits given and the number of jobs created,” Craig said. “Jobs just don’t act like a lever you can pull. There are variations, obviously, between what we estimate and what it came to be. Every industry has its own challenges to grow. Sometimes it’s easier for some companies to keep projections than others.”
In fact, the number of jobs created by the companies receiving IDA-administered economic development tools actually shows a net decrease of 156.5 FTEs.
Supervisor Peter C. Flanagan, D-Preston, who has requested the agency’s economic development summary for several years, said he would like a longer history of the taxes forgiven for each company in next year’s summary. Some projects go back a decade or more, he said.
In the case of providing financial incentives to help start-up new businesses, he asked when a start-up becomes a bona fide company. “I realize the challenges of trying to do business in New York .... but how long does it take to keep starting up?” he asked. Flanagan previously commented that companies receiving assistance in turn for job retention and creation receive less than a slap on the hand for not meeting projections.
Earlier this month, State Comptroller Thomas DiNapoli issued a report on New York's industrial development agencies that says cities, towns and villages have missed out on millions of property tax dollars as a result of significant tax breaks given to entice and retain local businesses. The report stated that the number of jobs created by the local economic development engines dropped by 22,000 from the year before. It also cited a $483 million gap in what IDAs gave out in tax breaks and how much they took in via payments-in-lieu-of-taxes.
The Chenango IDA summary lists $68,106 in abated taxes last year for New York Susquehanna & Western Railroad, a low number Craig conceded when considering all of the right of ways through the towns of Sherburne, North Norwich, Norwich, Oxford and Greene. The value is ascribed by the New York State Office of Real Property Tax Services, he said, not by town assessors.
Supervisor David C. Law, R-Norwich, questioned whether the municipalities along the route can protest losing out on those property taxes since the railroad has been mostly defunct since 2006. Craig said municipalities will be notified of the public hearings when S&W extends its lease with the IDA again next year.
The IDA is losing two seasoned board members: IDA President Randy Mohr, who joined in 2008, and William Ballard, who served two stints on the board totaling 25 years. The Chenango County Board of Supervisors accepted their resignations, and appointed Brian D. Burton, assistant vice president and branch manager of NBT Bank in New Berlin, to fill one of the vacancies. A second appointment is anticipated in June.
Businesses Total 2011 Taxes Not Paid on County-administered PILOT projects
Chobani, Inc., Columbus 146,505
Baillie Lumber, Smyrna 2,310
Bytheway Publishing, Norwich 8,004
CZ-USA, Norwich 1,982
Norwich Pharmaceuticals, North Norwich 237,292
New York Susquehanna and Western Railroad 68,106
Upturn Industries, Bainbridge 1,952
Wagner Nineveh, Afton 21,622
Who’s We, LLC (the Eaton Center), City of Norwich 42,945
Total $530,718
One-Time Projects
Chobani - received $1,084,156 in sales taxes exemptions on materials to build a warehouse.
IDA Bonds Outstanding balance
Chenango Memorial Hospital $659,456 (issued 1998, matures 2014)
Mid-York Press $1,887,988 (issued 2008, matures 2016)
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