Don't hold your breath on money for Summit

7/20/2011

By Jim Poole and Patsy Nicosia

Economic benefits Albany is offering to offset the loss of Summit Shock may be out of Schoharie County's reach.
Governor Andrew Cuomo is offering $150 million in tax credits and $50 million in economic development funds to the seven communities losing state prisons to compensate for jobs lost, but Schoharie County could get nothing.
The county meets few of the measures to qualify for the $150 million in tax credits to aid business, though legislators may soften those measures, according to Assemblyman Pete Lopez and county Planning Director Alicia Terry.
"There are a number of inconsistencies in that the criteria are too strict," Assemblyman Lopez said.
"They make it difficult for rural counties to access that money."
So far, Ms. Terry said, there are no criteria for seeking part of the $50 million in development money. But the guidelines for the tax credits are public--and for Schoharie County, disturbing, she said.
Among those strict guidelines is one restricting existing businesses from getting the tax credits.
"I'm frustrated that they're not willing to invest in existing businesses that have already made a commitment to Schoharie County," Ms. Terry said.
"Why does the state continue to discount the value of existing companies?"
Making the tax credits available to existing businesses, such as Mill Services, Mesa Tech and Kintz Plastics may encourage them to expand and create jobs, which is the thrust of the program, Ms. Terry added.
Other guidelines also appear to work against the county, she said. The tax credits must be used within a 10-mile radius of Summit Shock, which includes the vacant Guilford Mills plant and the villages of Cobleskill and Richmondville.
But the radius includes just a small piece of Middleburgh and excludes Schoharie altogether.
"For a rural county, the radius should be 15 miles," Assembly Lopez said.
"Economic development may be more spread out, given the rural nature of our county."
Also, retail businesses can't use the tax credits, which may leave out tourism-related employers such as Howe Caverns, Ms. Terry said.
"It does limit what's available to us," she said.
Finally, businesses that move here can't use the credits, according to Assemblyman Lopez.
"We wouldn't be stealing a business, we'd be growing one," he argued.
The seven communities will compete for the credits and funding. Some of those are in urban areas--such as Staten Island--and have more clout than rural counties, Assemblyman Lopez said.
Nonetheless, he'd push to amend the legislation to give rural areas a better shot at the money.
Ms. Terry agreed, adding, "We could get that legislation changed."
Disappointed but not giving up, she paraphrased the saying, "When God closes a window, he opens another."
"There's got to be a window open for us somewhere," Ms. Terry said.