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Links Roundup: NYS Public Authorities

March 10, 2015

New Yorkers Foot The Bill For Billions In Public Authority Spending

News Written by Kate Gurnett

Spending by New York’s largest public authorities jumped $3.5 billion since last reported in 2013, with  state and local authorities reporting nearly $60 billion in spending in their latest annual filings, according to a report released today by State Comptroller Thomas P. DiNapoli. Meanwhile, the combined debt of state and local authorities topped a quarter of a trillion dollars.

“Public authorities borrow and spend billions of dollars outside the state budget,” DiNapoli said. “And from Buffalo to Brookhaven, New Yorkers foot the bill. These shadow governments are responsible for the bulk of our hefty debt burden and are used to provide hundreds of millions of dollars annually in non-recurring resources to support the state budget. Recent authority actions suggest that authorities must do more to open their doors to public accountability.”

Of the nearly $60 billion spent, DiNapoli found that state public authorities spent $38 billion in their last reported fiscal year, while local authorities reported spending $21.5 billion. Of the 1,180 public authorities in New York, 325 are state authorities, 847 are local authorities and eight are interstate or international authorities, according to DiNapoli’s report.

DiNapoli’s report found that New York now relies on public authorities to undertake most of its borrowing -dubbed “backdoor borrowing” because it circumvents a state constitutional provision restricting the issuance of general obligation debt without voter approval. In addition, the state uses authorities to provide hundreds of millions of dollars annually to support the state budget, which disguises state spending levels and weakens transparency and accountability. The last two enacted state budgets combined anticipated more than $650 million in budget relief from the Metropolitan Transportation Authority, the New York Power Authority and others, essentially shifting costs from the general tax base to those who use authority services.

Just five years after the last major legislative public authority reform, DiNapoli’s report identified troublesome issues at several public authorities. They include:

  • The investigation of the Port Authority of N.Y and N.J. by the U.S. Attorney’s Office, the Manhattan District Attorney, the U.S. Securities and Exchange Commission and others, related to matters including the 2013 George Washington Bridge access lane closures;
  • The Thruway Authority’s indication in late 2013 that a toll and finance task force would be created to identify new resources to help pay for the new Tappan Zee Bridge. To date, however, the Authority has not established such a task force, and the financing plan and toll impact of the new bridge are unclear. Moody’s Investors Service and Standard & Poor’s Rating Services lowered their credit ratings for the Authority, citing factors that included uncertainty about funding of the new bridge and adequacy of overall Thruway toll revenues in coming years;
  • Findings by the Authorities Budget Office that the Environmental Facilities Corporation board made inappropriate use of executive session, dismissed concerns raised by the federal Environmental Protection Agency without proper consideration, and engaged in only limited discussion and participation in meetings regarding its approval of a $511 million loan to the Thruway Authority for projects associated with the Tappan Zee Bridge replacement; and
  • The Long Island Power Authority’s reduction of oversight for its service provider. Audits and reports on LIPA in recent years have identified areas requiring improvement, including adequacy of regulatory oversight, rate relief, financial management and debt, customer service, and storm preparation and response.

In total, public authorities employed 153,578 people at a cost of nearly $10 billion a year in total compensation, with more than 19,000 employees (nearly 13 percent) receiving total compensation of $100,000 or more. By comparison, less than 8.7 percent of state employees and 14.7 percent of New York residents earned as much.

Public authorities’ spending and activities — including purchases, personnel expenditures, contracts and other transactions — are not subject to the same independent review, oversight and reporting requirements as state agencies. The Comptroller’s audits of public authorities’ have revealed numerous examples of deficient contracting practices, improper expenditures and inadequate oversight. While the Public Authorities Accountability Act of 2005 and the Public Authorities Reform Act of 2009 established accountability mechanisms, authorities remain largely exempt from many day-to-day controls that apply to other government agencies.

The report is based on self-reported data by public authorities to the Office of the State Comptroller. The data, which is not independently verified by the Comptroller’s audits, represents the authorities’ most recently reported fiscal years, and does not reflect a common fiscal year or the state’s fiscal year.

Links Roundup: NYS LDCs

March 10, 2015

Businesses Push On With Plans To Grow Medical Marijuana


Under New York’s medical marijuana law, up to five businesses may be … to meet with the Washington County Local Development Corporation.

Hyde: State wants to ‘put more handcuffs on IDAs’

The Daily News Online

Hyde was referring to the economic development slogan Cuomo’s adopted, “New York is Open for Business.” … is $10,000 for the EDC and $25,000 for the agency’s financial arm, Genesee Gateway Local Development Corporation.

Ex-New York State Senator Malcolm Convicted of Bribery

National Legal and Policy Center

The first story, in the New York Post of January 31, 2010, focused on a nonprofit called New Direction Local Development Corporation, which …

Kaiser Appointed Senior Vice President of Arrow Financial Corporation

PR Newswire (press release)

… Warren County Local Development Corporation Loan Review Committee, … Falls, New York, serving the financial needs of northeastern New York.

Mangano Announces Free Business Seminar To Assist In The Hiring Of Developmentally Disabled

The Nassau County Local Economic Assistance Corporation (NCLEAC) is a local development corporation, created by the Nassau County Legislature …

Lucky Blue Smith And Kristina Bazan Get Schooled

Look To The Stars

According to the New York City Department of Education, for the Class of 2013 … Hills Local Development Corporation, and Make the Road New York.

Energize NY Offers Funding for Businesses

Joe Del Sindaco of Energy Improvement Corporation, the local development corporation that offers Energize New York, explained some of the …

Batavia Town Board approves agreement with developer

Buffalo News

… Industrial Development Agency, New York Green Inc., and Genesee Gateway Local Development Corporation. … not covered by a $175,000 grant issued by the New York State Energy Research and Development Authority.

Links Roundup: NYS IDAs

March 10, 2015

Commentary/Joe Nacca: The sales tax shell game

… environs of Canandaigua (and other western New York communities). … The Industrial Development Agency and a developer hatch a deal that will …

City task force to study developer tax break programs

Real Estate Weekly

… has launched a task force to study the efficacy of New York’s tax breaks. … as well as the New York City Industrial Development Agency (NYCIDA).

Renowned sculptor’s studio could become downtown apartments

Albany Business Review

This building at 1 Columbia Place in downtown Albany, New York partially … if he receives tax breaks from the city Industrial Development Agency.

Niagara Global Tourism advisory panel named

Buffalo Business First (blog)

… Arrowhead Springs Winery president; Sam Ferraro, Niagara County Industrial Development Agency executive director; Mark Thomas, New York …

Fine Fare supermarket being constructed

Bronx Times

… E. Gun Hill Road will be the new location of a Fine Fare supermarket, according to a New York City Industrial Development Agency spokesperson.

Thor Equities scoops up bottom floors at 470 Broome

New York Post

The city’s Industrial Development Agency also approved an incentive … leaping from 304 Hudson St. to the New York Times Building to take the full …

Agency appeals to keep local OK for tax breaks

Glens Falls Post-Star

GLENS FALLS — Glens Falls Industrial Development Agency will highlight two local development projects in an appeal to the state Legislature to … He said the issue is one over which New York City and upstate interests can unite.

Nassau County IDA Business Development Director Nicholas Terzulli wins 40 under 40 award

The Indian Panorama

Development Counselors International (DCI), a New York-based firm that specializes in economic development marketing, manages the awards …

Property of the Month: BBS Architects, Stalco Construction, SCC, and PW Grosser complete $14.1

New York Real Estate Journal Online

RCS is the only K-8 charter school in New York State’s Suffolk County. … CMA enlisted Riverhead Industrial Development Agency to issue bonds on …

Industrial Development Office Flourishes 2014 Business

Genesee Sun

The Industrial Development Agency, (IDA) which operates under the … a total of 9 grants from New York State over 2014 to expand and extend local …

Moinian, Brookfield Get Hudson Yards Tax Abatements Totaling $180M

Commercial Observer

The Moinian Group and Brookfield Properties today got approval from the New York City Industrial Development Agency, or NYCIDA, to receive tax …

Fried Frank Guides $180M Tax Deals For NYC Towers

Law360 (subscription)

In two unanimous votes, the New York City Industrial Development agency approved $115.1 million in tax exemptions for Brookfield’s planned $2.1 …

Mangano Announces Free Business Seminar To Assist In The Hiring Of Developmentally Disabled

… supplied by the Nassau County Industrial Development Agency. New York State regulations that allowed IDAs to fund such projects expired in 2008.

Fine Fare supermarket being constructed

Bronx Times

… E. Gun Hill Road will be the new location of a Fine Fare supermarket, according to a New York City Industrial Development Agency spokesperson

Niagara Global Tourism advisory panel named

Buffalo Business First (blog)

… Arrowhead Springs Winery president; Sam Ferraro, Niagara County Industrial Development Agency executive director; Mark Thomas, New York …

Two pharmaceutical companies, InvaGen Pharmaceuticals and Alphamed Realty, will construct

Area Development Online

… they will purchase for $3.5 million in Central Islip, Long Island, New York. … substantial financial benefits from Islip’s Industrial Development Agency, … to the Town of Islip Industrial Development Agency for the assistance provided.

Batavia Town Board approves agreement with developer

Buffalo News

… Genesee County, Genesee County Industrial Development Agency, New York Green Inc., and Genesee Gateway Local Development Corporation.

Mangano Announces Founders Of Global 3D Printing Network To Speak To Nassau Inventors And

The club, sponsored by the Nassau County Industrial Development Agency, will meet at 7:00 p.m. on February 23rd in the Ceremonial Chamber of the …

Flexjet moving operations to Westchester County Airport

Westfair Online

“Westchester’s Industrial Development Agency understood our need for expanded facilities in the New York metropolitan area,” Mashburn said. “The financing made available through the IDA complements our investment of capital …

Chemung County IDA, ABO Report

March 10, 2015

The Authorities Budget Office has completed its operational review of the Chemung County Industrial Development Agency (IDA).  The report concludes that the IDA board routinely approves all applications for financial assistance and appears to provide little to no oversight or guidance regarding project selection, review and pre-approval.  Additionally, more than half of the IDA’s board appears to have conflicts of interest by also serving on the board of the organization contracted to administer the IDA. The report identifies over $163,000 in revenues lost to local municipalities and districts due to poor oversight of projects and PILOT payments, and that over $327,000 in fees owed by project applicants was not received by the IDA.  The report also found that the IDA’s projects generally failed to meet employment goals and that significant project data reported to the State by the IDA was inaccurate. This report is posted on the ABO website at:

Links Roundup: NYS LDCs

November 17, 2014

Long Beach Local Development Corporation reschedules meeting


The Long Beach Local Development Corporation has rescheduled its … for Long Beach and received matching funds from New York State agencies.

Gateway Local Development Corporation OK’s $3.1M budget

The Daily News Online

Two major sources of income include the balance of a $1 million grant from the New York State Division of Housing and Community Renewal for the …

Wary Optimism Greets De Blasio’s Brooklyn Redevelopment Plans

Brooklyn Bureau

The city’s nascent plan for Broadway Junction and East New York is one of two … of the Cypress Hills Local Development Corporation, which has taken the lead … South of Atlantic Avenue, East New York proper is more of a home to …

Empty ‘New Lots’ to become arts & business incubators

Brooklyn Daily Eagle

Local resident James Malone is excited about the initiative in East New York … Empty lots in East New York will be repurposed later this year to provide … up by Bill Wilkins of the Local Development Corporation,” said James Malone, …

Orange County Executive Steven Neuhaus

Hudson Valley Press

… Valley View Center for Nursing Care and Rehabilitation to a Local Development Corporation (LDC) effective May 1, 2015. The 2015 Executive Recommended Budget would stay within New York State’s tax cap law of 1.56 percent

With Funding Approved, 3 WTC Will Rise Again

Commercial Observer

The New York Liberty Development Corporation, a local development corporation formed by New York Job Development Authority, has approved over …

County proposes new LDC to sell Valley View

The Photo News

… officials proposed forming a new Local Development Corporation (LDC) to sell the county-owned facility to a private buyer. … health services administrator for the New York State Office of Mental Health, insists that with managed …

Saratoga County Prosperity Partnership Search Committee Retains Search Firm (press release)

The Saratoga County Prosperity Partnership (SCPP) is a not-for-profit local development corporation created under the New York State Not-For-Profit …

Links Roundup: NYS IDAs

November 17, 2014

Mayor Bramson Discusses New Rochelle’s Downtown

Talk of the Sound

Another member said he had an important question: would the city insist a developer could not go to the IDA (Industrial Development Agency) to lower …

SUNY Fredonia tech incubator gets $300000 Oishei grant

Buffalo News

… member of the Western New York Innovation Hot Spot consortium. The incubator also hosts the Chautauqua County Industrial Development Agency …

Attorney: Kingston cannot have ‘involved agency’ status in water bottling company’s environmental

The Daily Freeman

All but three of the involved agencies — the U.S. Army Corps of Engineers, the Ulster County Industrial Development Agency and the New York City …

Company with 200 job openings seeks tax exemption for Syracuse expansion

The Post-Standard –

It has applied to the Syracuse Industrial Development Agency for an … employs 30,000 people throughout the world, including 3,500 in New York.

‘Next Great Idea’ Competition Down to Final Four

Oswego County Business Magazine

… partnership with local banks, the Oswego County Industrial Development Agency, the cities of Oswego and Fulton community development offices, the U.S. Small Business Administration, New York Business Development Corp., …

Stephen Putman, District 9

When the St. Lawrence County Industrial Development Agency recruits … We need to join with other rural upstate partners to pressure New York State …

New York disbands 36 urban renewal agencies and IDAs

Westfair Online

Among the disbanded agencies are the Tarrytown Urban Renewal Agency, the Town of Ossining Industrial Development Agency and the Town of …

New York abolishes 36 inactive government agencies – Newsday

Happy Halloween: Cuomo ends 36 ‘ghost’ authorities – Poughkeepsie Journal

New Legislation to Eliminate 2 Local Agencies – FOX 40 News WICZ TV

Full Coverage

The venture adventure Startups seeking more capital in region to advance their dreams

Buffalo News

Groups like the Western New York Venture Association and the Buffalo Angels … The Erie County Industrial Development Agency is jumping back in.

Despite issues, developers bullish on Buffalo

Buffalo Business First

Incentives, particularly New York state and federal tax credits for historic … The Erie County Industrial Development Agency, as well others like the …

Nassau incubator proposed to foster homeland security companies


The county’s Industrial Development Agency hopes to work with the New York Institute of Technology, which has a campus in nearby Old Westbury, …

Reginelli expected to be next CEO of Albany IDA

Albany Business Review

Sarah Reginelli is expected to be appointed the new chief executive officer of the city of Albany Industrial Development Agency in Albany, New York.

Two manufacturers awarded tax breaks for Saratoga Springs expansions

Albany Business Review

The industrial development agency approved tax incentive packages for the two … peroxide purification plant in Saratoga Springs, New York.

Partnerships with ASU bring startup acceleration program to New York

Arizona State University

New York Furnace, which is one of a broader network of startup … and Mohawk Valley EDGE/Oneida County Industrial Development Agency; and …

Huck Finn’s and Hoffman’s Playland planning big announcement

Albany Business Review

… in the Albany, New York warehouse district. Gary W. Domalewicz, chairman of the Albany County Industrial Development Agency, said the business …

New housing plans near medical campus seek approval

Buffalo News

… as well as other incentives from Erie County Industrial Development agency, National Grid USA, National Fuel Gas Co. and the New York State …

Fitch Affirms NYC Industrial Development Agency Revs (Terminal One Group Association. LP) at ‘A-‘

Business Wire (press release)

NEW YORK–(BUSINESS WIRE)–Fitch Ratings affirms the ‘A-‘ rating on $258.56 million New York City Industrial Development Agency’s special facility …

Groundbreaking held for $19 million incubator

Binghamton Homepage

And then $2 million each from the Broome County Industrial Development Agency, the SUNY Research Foundation … It’s expected that the 5 current Start-Up New York companies that currently reside in the university’s Innovative …

Council to Assess ‘Bang for the Buck’ Efficacy of EDC Investment

Gotham Gazette

On Thursday afternoon, the New York City Council Committee on Economic Development will meet to discuss the … The EDC and Industrial Development Agency (IDA) are already subject to significant oversight and disclosure …

Fitch Rates Inst of International Ed (New York) Series 2014 Rfdg Revs ‘AA-‘; Outlook Stable

Rock Hill Herald (press release)

Fitch also affirms the series 2001 New York City Industrial Development Agency civic facility revenue bonds (Institute of International Education …

Links Roundup: Public Authorities

June 12, 2014

Oilers now have a field to call home

Olean Times Herald

… its third season in the New York Collegiate Baseball League on Monday. Led by Brian O’Connell and the Olean

ManaFoods reaffirms interest in new Warwick Tech Park for ag-university education

Mid-Hudson News

WARWICK – ManaFoods of New York, formerly called Valley Fresh Direct, has reaffirmed its interest in locating at the … The Warwick Valley Local Development Corporation has been charged with developing the property, which is …

Suit filed to block Valley View transfer (VIDEO)

Times Herald-Record

Local development corporations have been upheld again and again by courts across New York state. We look … Ulster County used a local development corporation as a vehicle to transfer its nursing home to a private firm. The new …