Politics

Investigating IDAs

Here in New York, industrial development agencies (IDAs) are one of main job creation mechanisms for local communities.In 2009, IDAs gave away close to half a billion dollars in tax breaks to companies in the name of economic development.IDAs are known as "public benefit corporations" - they're supposed to help their local communities, and create jobs.But in their four decades of existence, they've been accused of everything from failing to comply with state laws, to simply being inefficient.You can follow the Innovation Trail's investigation into how IDAs spend your tax dollars by subscribing to the RSS feed on the right.

Tax break for Syracuse bookstore lives to fight another day

WXXI News | By Ryan Delaney, WRVO

Published March 26, 2012 at 4:39 PM EDT

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The Syracuse Common Council has move closer to approving a proposed tax break for the building of a new bookstore and fitness center for Syracuse University.

Cameron Group, LLC.

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This sliver of land, already owned by Syracuse University, is tax exempt. Proponents of a tax break for a building there argue the deal guarantees the city some revenue, where previously there was none.

Ryan Delaney / WRVO

A tax-break deal for a new off-campus bookstore and fitness center for Syracuse University has gotten a reprieve.

The deal was slated for a vote in the Syracuse Common Council today, which, based on a whip count of the councilors, would have voted the deal down.

Instead, the council withdrew the legislation from the agenda, giving the project a shot to revise and resubmit.

The road ahead is far from certain though: Many councilors still have serious issues with a request from a private developer for a 30-year payment-in-lieu-of-taxes (PILOT) deal to build a complex that it would then rent out to the university.

"I don't see where you would grant a PILOT in the most commercially viable area of the city and [for] a brand new building," said councilor Pat Hogan.

Hogan added he'll likely remain "a solid no" on the project.

"Steadfast" on 30-years

Tom Valenti, one of the principals for the developer, Cameron Group, said when the council asked him Friday if he would be willing to talk more, he agreed, even though the project was first proposed in 2006.

At issue is the length of the PILOT: Valenti contends the 30-year deal is the best he can do.

"I'm steadfast that 30-years is the only way that's going to work with the rent we have coming in from the university."

But councilor Kahlid Bey thinks there's more room for compromise than Valenti is letting on.

"I don't believe that. He's a businessman; he has to make his best sell," Bey said after Monday's council meeting.

The only other project in the city with a 30-year deal is the stalled Destiny USA mega mall. That project had regional benefits, whereas the bookstore and fitness center does not, said Bey.

Those is favor of the tax deal take a better-than-nothing approach. The land in question is currently owned by Syracuse University and thus tax-exempt since the school is a non-profit. If it went undeveloped or if the school undertook the bookstore project itself, the city won't see any tax revenue.

Any new deal between the Cameron Group and the city would have to be approved by the Syracuse Industrial Development Agency (SIDA).

SIDA barely passed the PILOT in a 3-2 vote last month and one of the those "yes" votes has since resigned from the board.