Issues
Economic Development
Taxpayers First promotes economic development initiatives to revitalize our region. Lowering the cost of doing business is vital to our area's survival. Taxpayers First believes in smaller government and greater accountability for those using taxpayer dollars. Issues like the ones detailed below are examples of what Taxpayers First has already accomplished.
The Erie County Legislature has approved a measure that can reverse one of its most hotly contested actions from 2009 while opening job-creation projects to special financing offered by the federal stimulus program. The Legislature this week approved a bill championed by County Executive Chris Collins and the county Industrial Development Agency.... More >>
The following is Erie County Executive Chris Collins resolution, asking the Erie County Legislature to allow $200 million of economic development to move forward.
July 2, 2009
Immediate Consideration Requested
The Honorable
Erie County Legislature
92 Franklin Street
Buffalo, NY 14202
RE: Authorization for the Buffalo and Erie County Industrial Land Development Corporation (ILDC) to Issue Bonds
Honorable Members:
Enclosed please find a memorandum and proposed resolution from the Department of Environment and Planning pertaining to the issuance of bonds to not-for-profit corporations located within the County. The resolution authorizes the County Executive to charge the ILDC with the responsibility of issuing bonds on behalf of the County for the purpose of job creation and economic development. This authorization would facilitate the ability of not-for-profit corporations to access capital for projects that enhance, create, and preserve employment opportunities for County residents.
Should your honorable body require further information, I encourage you to contact the Department of Environment and Planning. Thank you for your consideration on this matter.
Sincerely,
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CHRIS COLLINS
Erie County Executive
MEMORANDUM
To: Honorable Members of the Erie County Legislature
From: Department of Environment and Planning
Re: Authorization for the Buffalo and Erie County Industrial Land Development Corporation (ILDC) to Issue Bonds
Date: July 2, 2009
SUMMARY
It is recommended that the Legislature approve the attached resolution prepared by the Department of Environment and Planning (DEP) authorizing the County Executive to charge the Buffalo and Erie County Industrial Land Development Corporation (ILDC) with the responsibility of issuing bonds on behalf of the County for the purpose of job creation and economic development. This authorization would facilitate the ability of not-for-profit corporations to access capital for projects that enhance, create, and preserve employment opportunities for County residents.
FISCAL IMPLICATIONS
The Erie County budget would not be impacted by the approval of this resolution. The County would realize a fiscal benefit through increased sales tax revenues.
REASONS FOR RECOMMENDATION
Since Erie County has the responsibility to promote the health, safety, and general welfare of the residents of the County, preventing unemployment and economic deterioration is a critical part of its plan of action. Not-for-profit corporations are large employers in Erie County, and they have not had the advantage of a local issuer for eighteen months. A number of local not-for-profit projects have been on hold for months. Completion of these projects will increase employment opportunities for the residents and will improve the quality of services available in Erie County. Charging the ILDC with the responsibility of issuing bonds on behalf of the County would benefit economic development.
BACKGROUND INFORMATION
On January 13, 1982, the Buffalo and Erie County Industrial Land Development Corporation (ILDC) was formed under Sections 402 and 1411 of the New York Not-For-Profit Corporation Law. The ILDC was established and is operated for the exclusive public purposes of relieving and reducing unemployment, promoting and providing for additional and maximum employment, bettering and maintaining job opportunities and lessening the burdens of government.
Acting in the public interest, it has the power to assist financially through the issuance of bonds, notes, and other obligations to construct, to acquire real or personal property, to rehabilitate, and to improve industrial or manufacturing plants for use by others.
Since January 31, 2008, the State Legislature has not extended the civic facilities powers allowing the Erie County Industrial Development Agency (ECIDA) to assist not-for-profit corporations (501c3 corporations). Not-for-profit corporations are large employers in Erie County, and they have not had the advantage of a local issuer for eighteen months.
Under the American Recovery and Reinvestment Act of 2009, there are substantial advantages for not-for-profit corporations to issue bonds in 2009 and 2010. The issuance of lower cost tax-exempt bonds makes financial sense. Completion of pending projects will increase employment opportunities and enhance the quality of services to Erie County residents.
Erie County, pursuant to its responsibility to increase employment opportunities and promote economic development, can designate the ILDC as an “on behalf of” issuer for the County. The ILDC will assist the County and act in the public interest to fulfill the economic development mission contained in the General Municipal Law.
CONSEQUENCES OF NEGATIVE ACTION
Without the requested authorization, Erie County will be unable to assist not-for-profit organizations to promote the creation and preservation of employment opportunities by offering tax exempt financing and other financial incentives.
STEPS FOLLOWING APPROVAL
The Erie County Executive will charge the ILDC with the responsibility of issuing bonds on behalf of the County for the purpose of job creation and economic development. This authorization will facilitate the ability of not-for-profit corporations to access capital for projects that enhance, create, and preserve employment opportunities for County residents.
Attachment
A RESOLUTION SUBMITTED BY:
DEPARTMENT OF ENVIRONMENT AND PLANNING
Re: Authorization for the Buffalo and Erie County
Industrial Land Development Corporation
(ILDC) to Issue Bonds
WHEREAS, it is the policy of the State to promote the economic welfare and prosperity of its inhabitants and to actively promote, attract, encourage, and develop economically sound commerce and industry; and
WHEREAS, Erie County is tasked with the responsibility and burden to promote the health, safety, and general welfare of its residents by, among other things, preventing unemployment and economic deterioration including by increasing and maintaining employment opportunities and attracting and sustaining economically sound commerce; and
WHEREAS, the number of facilities located within the County that are operated by not-for-profit corporations has increased and will continue to increase the employment opportunities for County residents; and
WHEREAS, the ability to provide financing through the issuance of tax exempt and taxable bonds to projects of not-for-profit corporations is essential to the continued development, construction, improvement, and operation of these facilities; and
WHEREAS, in furtherance of its public purposes, the County has supported the provision of tax-exempt financing by the Erie County Industrial Development Agency (ECIDA) and of certain other financial incentives to not-for-profit corporations to promote the creation and preservation of employment opportunities for Erie County residents and to develop economically sound commerce consistent with the County’s burdens and responsibilities as expressed above; and
WHEREAS, the Buffalo and Erie County Industrial Land Development Corporation (ILDC), a local development corporation formed on January 13, 1982, under Sections 402 and 1411 of the Not-For-Profit Corporation Law, was established and is operated pursuant to its Certificate of Incorporation (a copy of which is on file with the County Clerk); and
WHEREAS, the exclusive public purpose of the ILDC is to relieve and reduce unemployment, promote and provide for additional and maximum employment, improve and maintain job opportunities, and lessen the burdens of government; and
WHEREAS, the ILDC, acting in the public interest, has the powers, among other things, to construct, to acquire, to rehabilitate, and to improve for use by others industrial or manufacturing plants and to assist financially in such construction, acquisition, rehabilitation, and improvement, to acquire real or personal property, and to issue bonds, notes, and other obligations thereof; and
WHEREAS, to accomplish its job creation and other economic development responsibilities and to relieve the burdens related to same and to facilitate the ability of not-for-profit corporations to access capital for projects that enhance, create, and preserve employment opportunities for County residents, the County desires to charge the ILDC with such burdens and responsibilities and to authorize the ILDC to issue bonds on behalf of the County for such purposes and to work with the ECIDA to achieve such public purposes.
NOW, THEREFORE BE IT
RESOLVED, that the ILDC is hereby authorized to issue bonds on behalf of the County for the benefit of not-for-profit corporations for the purpose of job creation and economic development; and be it further
RESOLVED, that the ILDC is hereby authorized to act on behalf of the County for the purpose of issuing bonds as contemplated herein and to exercise on the County’s behalf all lawful powers as may be deemed necessary to accomplish its public purposes including to enhance, create, and preserve employment opportunities for residents of the County; and be it further
RESOLVED, that such powers shall include, but not be limited to, those powers described in Section 1411 of the New York Not-For-Profit Corporation Law and its Certificate of Incorporation, with the power to issue tax exempt and taxable bonds, notes, or other obligations on behalf of the County in furtherance of its purposes; and be it further
RESOLVED, that any obligations issued by the ILDC shall never be a debt of the State of New York, the County of Erie, or any political subdivision thereof, and neither the State of New York, the County of Erie, or any political subdivision thereof shall be liable thereon; and be it further
RESOLVED, that the County is hereby authorized to covenant and agree with the ILDC in a transaction contemplated by this resolution for the benefit of the ILDC and the holders from time to time of any bonds, notes, or other obligations or other securities (hereinafter collectively, the “Securities”) issued by the ILDC; and be it further
RESOLVED, that the County will not limit or alter the rights of the ILDC to fulfill the terms of its agreements with the holders of the Securities or in any way impair the rights and remedies of such holders of the security for the Securities until the Securities, together with the interest due thereon or payable in respect thereof and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged; and be it further
RESOLVED, that authorized representatives of the County are hereby granted the power to make such a covenant to and agreement with the ILDC and to take any and all actions necessary or desirable to cause such covenant and agreement to be made or enforced; and be it further
RESOLVED, that the ILDC is hereby authorized to assign to or for the benefit of the holders of its Securities any covenant or agreement made by the County pursuant to the foregoing provisions; and be it further
RESOLVED, that the chairperson of the Erie County Legislature (the “Legislature”) and the chairperson of the Legislature’s Economic Development Committee shall be appointed to the Board of Directors of the ILDC; and be it further
RESOLVED, that these resolutions shall take effect immediately; and be it further
RESOLVED, that certified copies of this resolution shall be forwarded to the Erie County Executive; the County Attorney; the Director of Budget and Management; the Commissioner of Environment and Planning; Daniel D. Barry, Deputy Commissioner of the Department of Environment and Planning; and the County Comptroller.
