July 24, 2009

ERIE COUNTY LEGISLATURE APPROVES MILLIONS OF DOLLARS FOR JOB-CREATING PROJECTS

The Erie County Legislature today approved a plan, by a vote of 11 to 3, authorizing the Buffalo and Erie County Land Development Corporation (ILDC), part of the ECIDA, to issue bonds for certain projects of not-for-profit corporations in Erie County. "This unique arrangement allows local borrowing for economic development and job creation," stated Legislature Chair Lynn Marinelli. Legislators who approved the item are: Chair Marinelli, Majority Leader Maria Whyte, Economic Development Chair Tim Kennedy, Daniel Kozub, Barbara Miller-Williams, Betty Jean Grant, Thomas Mazur, Thomas Loughran, Michele Iannello, Robert Reynolds and Timothy Wroblewski.

Under this plan, qualified not-for-profit corporations will be able to receive tax-free borrowing for their capital projects, allowing millions of dollars in building, infrastructure and improvement work to begin. For the last 18 months, many of these projects have been stalled because of Albany’s failure to re-implement the law governing Industrial Development Agencies, according to Chair Marinelli, and the State’s failure created the need for the county to act so that these valuable community projects could move forward.

The ILDC is a local development corporation formed in 1982 whose officers are part of the Erie County Industrial Development Agency (ECIDA).

The Erie County Legislature was asked two weeks ago to allow the ILDC to act on behalf of the county, thereby allowing them to provide tax exempt financing to not-for-profits in accordance with federal IRS rules. The Legislature, through the Economic Development Committee chaired by Legislator Tim Kennedy, spent many hours in discussion with members of the administration in an effort to build a consensus that benefits all parties involved.

"I am glad the Erie County Legislature was able to reach a consensus to allow these vital, non-profit projects to proceed while ensuring that the workers involved are paid a fair wage," Legislator Kennedy said. At Economic Development Committee meetings held on July 16 and July 22, ECIDA officials identified the Tapestry Charter School and the Buffalo Niagara Medical Campus projects as pending and already subject to prevailing wage requirements, as well as the UB 2020 Project that may be subject to this requirement as well. Others may emerge, such as projects at private colleges and local hospitals, but the Legislature’s vote mandates the fair wage requirement for all projects.

The next step is for the ILDC Board to meet to amend its by-laws. The next scheduled meeting is on Monday, August 10. However, ECIDA officials may advance the meeting, according to their testimony.

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