Quoted Text

CAPITAL REGION
Firms cross fingers as some let back in Empire Zones
BY MICHAEL LAMENDOLA Gazette Reporter

    Local business leaders are holding out hope that the state will change its mind and recertify about a dozen companies that lost their Empire Zone tax breaks for 2008.
    The Empire Zone Designation Board last week reversed the decertification of 74 companies that appealed the loss of their benefits. They were among 640 companies booted from the Empire Zone program last June. The state took action to remedy abuses in the economic development program; 363 companies appealed.
    Seven Schenectady County projects out of 13 won reinstatement as well as several key projects in Albany County. The board did not reinstate any projects from Montgomery County that lost certification in June.
    The reversal applies to several major projects in downtown Schenectady, including the buildings housing the Bow Tie Cinemas’ Movieland and MVP’s headquarters, both owned by the Galesi Group. It also applies to Galesi-owned Glenville Business and Technology Park.
    MVP officials told the state as part of the appeal that they would relocate the MVP headquarters if Galesi lost the Empire Zone benefi t.
    Still awaiting reversal are the $5.2 million FedEx Freight project in the Rotterdam Industrial Park, Solid Surface Craftsman operations in Glenville and the two major industrial parks in Albany County, Northeastern Industrial Park and Green Island Properties.
    The Galesi Group owns the Rotterdam Industrial Park, the Northeastern Industrial Park and Green Island Properties.
    Galesi Group Chief Operating Officer David Buicko said he is “comfortable the state will do the right thing” and reinstate Empire Zone benefits for these projects and properties. “We felt we complied with all the rules,” he said. “We have appealed.”
    The state revoked Empire Zone certifications last year, retroactive to Jan. 1, 2008, saying that the companies either failed a 1-to-1 cost-benefit test or were identified as “shirt-changers.”
    The 1-to-1 test measures whether a company’s gross wages and capital investments equaled the tax benefi ts it used and had refunded.
    Shirt-changers are new companies that are similar in ownership and operation to an existing business in the state and showed no growth in their employee base for the period measured.
    The companies received assistance in their appeals from Schenectady county and city officials.
    Metroplex Chairman Ray Gillen said the FedEx project easily meets the state’s criteria for receipt of Empire Zone benefits. He said the project’s test measure is 9.21 to 1.
    Should FedEx lose its Empire Zone benefits, however, it would qualify for a payment-in-lieu-oftaxes agreement, he said.
    “FedEx is paying full taxes now and using the Empire Zone. The project is generating taxes of $142,000 for the county, school district and town of Rotterdam,” Gillen said. “If the Empire Zone is not restored, the project would revert to a PILOT [agreement] that would cut taxes to approximately $88,000 per year for the county, the school and town of Rotterdam.” ........................>>>>................>>>>................http://www.dailygazette.net/De.....r00102&AppName=1

This article clearly shows that Galesi is accustomed to getting what he wants.   It must have really annoyed him to lose out on buying the government housing project that Sync now owns!  

Stil........continuing to receive the empire zone tax breaks is a major win for them.

Quoted from bumblethru

Stil........continuing to receive the empire zone tax breaks is a major win for them.

BT, I do agree with you about this.  It's always the way...businesses that really don't need the tax breaks continue to benefit.
But I am sure that Galesi is regretting that he underbid the Sync property and lost it.    By obtaining that property, he would have had the ability to open another truck entrance and expand any and all businesses in the park.  Even if the multi housing property doesn't get rezoned to residential, Sync could sit on it forever and Galesi cannot do a thing about it!

Quoted from clubhouse

BT, I do agree with you about this.  It's always the way...businesses that really don't need the tax breaks continue to benefit.
But I am sure that Galesi is regretting that he underbid the Sync property and lost it.    By obtaining that property, he would have had the ability to open another truck entrance and expand any and all businesses in the park.  Even if the multi housing property doesn't get rezoned to residential, Sync could sit on it forever and Galesi cannot do a thing about it!

I have my own issues with this whole housing thing. It appears that there are many who are to blame for this present situation. And it doesn't matter to me if there is another party waiting on the sidelines hoping for it to fail. That is not my issue. I believe that the owner and our town officials have not handled this properly. But why should that be a surprise....that's the way rotterdam does anything!

As far as galesi.....I don't feel so bad for them. They have several sprawling industrial parks and own half of downtown. So they may lose one they had their eye on. They will clearly survive and continue to devour!

I'm disgusted by the whole chain of events that have and are still occurring on an issue that should have been nipped in the bud a year or two ago.

NYS leads the sheep to slaughter....help 'em set up...give 'em a boost...fill their pockets in the beginning,,,,just like fattening up a pig....then............

BANG!!!!!!.....bleed 'em to death....squeeze 'em to death.........where's our value in that???????