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Links Roundup: Inside New York State

March 31, 2014

Last week the ABO issued the report of its investigation of the Town of Montgomery IDA.  The investigation was in response to a complaint they received that the IDA had inappropriately acted when it approved financial assistance to a project.  The report has received some local press. The link is below.  The report is public and on the ABO web site.

Links Roundup: IDAs

March 25, 2014

Texas company proposes upgrades at NY airport

Wall Street Journal

The Journal News ( ) reports that the Westchester County Industrial Development Agency voted Thursday to negotiate a $40 

LDC will issue tax-exempt bonds to HWS

Finger Lakes Times

entities like HWS, Finger Lakes Health and the New York State Agricultural By law, the city’s Industrial Development Agency is limited to providing 

Accent on New Paltz: Dear Ulster County Industrial Development Agency

New Paltz Times

paul brown SQ Please include this communication as part of the permanent record of the public hearing held on Jan. 28, 2014 in New Paltz, New York 

Lawsuit filed against ECIDA over Uniland project

Business First of Buffalo

started legal action against the Erie County Industrial Development Agency over The action was filed before New York State Supreme Court Justice John Officials from the ECIDA and the New York City-based law firm, Heller 

Community Bank eyes Olean for mortgage office

Business First of Buffalo

according to the agenda for the Cattaraugus County Industrial Development Agency’s Feb. 13 meeting. The $6 million project would support the bank’s mortgage processing operations across New York state and could include the 

Geneva IDA to discuss downtown revitalization project

Finger Lakes Times

GENEVA — The New York Main Street Downtown Revitalization Project will be discussed by the Geneva Industrial Development Agency board when 

Orange County IDA OKs $500000 for Amy’s Kitchen food plant

Times Herald-Record

NEW WINDSOR — The Orange County Industrial Development Agency on Thursday approved giving $500,000 to The money from the IDA piggybacks on $800,000 New York state plans to give Amy’s Kitchen for infrastructure 

Play Ball: Yankee Stadium Keeps ‘BBB’ Bond Rating Despite Attendance Drop

CoStar Group

U.S. baseball park operator Yankee Stadium LLC’s combined bond offerings issued by the New York City Industrial Development Agency (NYCIDA) 

New York IDAs just can’t say ‘no’

Rochester Democrat and Chronicle

Last year, the County of Monroe Industrial Development Agency board, which But they have little recourse: In New York, IDA’s powers are largely 

LI, NYC businesses wooed by New Jersey again


New York and New Jersey had the worst and second-worst tax climates last year, said Joseph J. Kearney of the Nassau County Industrial Development Agency. New York State has been rolling out its START-UP NY program for 

Dutchess County Industrial Development Agency: Audit criticisms are ‘unrealistic’

Poughkeepsie Journal

But it has also brought a pointed response from the Dutchess agency, suggesting that some criticisms from New York state Comptroller Thomas 


Two Islip, New York, Manufacturing Firms Plan Expansion Projects

Area Development Online

Two Islip, New York, Manufacturing Firms Plan Expansion Projects According to Islip Industrial Development Agency, the firm plans to renovate its 

New board member named at Niagara County IDA

Business First of Buffalo

Jerald Wolfgang, the director of the Western New York Regional Education Center for Economic Development, has been named to the board of the Niagara County Industrial Development Agency. Wolfgang, a Lewiston resident, fills 

Mortgage company expanding, adding 249 jobs


County Industrial Development Agency and qualifies for up to $1.5 million in performance-based New York State Excelsior Jobs Program tax credits.

Catsimatidis to turn grease into gold with Greenpoint biodiesel plant

The New York World

Metro Fuel Oil had been granted $10 million in bond financing and other benefits from the New York City Industrial Development Agency in 2007 to 

Jerald Wolfgang appointed

Niagara Frontier Publications

Jerald I. Wolfgang, director of the Western New York Regional Education Center for Economic Development, has been appointed a member of the Niagara County Industrial Development Agency. The NCIDA provides a variety of 

Geneva IDA to make decision on adding to Main Street grant

Finger Lakes Times

the city’s New York Main Street grant will be made at the 8 a.m. Tuesday meeting of the Geneva Industrial Development Agency Board of Directors.

NCIDA: Henry Sloma elected chairman of the board of directors

Niagara Frontier Publications

The Niagara County Industrial Development Agency board of directors today elected Henry M. Sloma as chairman of the board at the agency’s annual 

Roth Steel closed owing county development agency $60000

The Post-Standard

of Roth Steel has left the Onondaga County Industrial Development Agency OnTrack’s operator, Cooperstown-based New York, Susquehanna 

Links Roundup – LDCs

March 25, 2014

State agency awaiting audits from Joseph Davis State Park group

Niagara Gazette

Niagara Gazette — The New York State Authorities Budget Office is still waiting for annual audits and budget reports from a local development corporation created to oversee operations at Joseph Davis State Park. Earlier this year 

 Now the work begins

The Warwick Advertiser

In the recent transfer the Warwick Valley Local Development Corporation paid $3.5 million for a 150-acre parcel of great location,” he said, “Empire State Development will be offering economic incentives through New York State.


Links Roundup – Public Authorities

March 25, 2014

Penn Yan LDC cited for not filing budget, audit reports

Finger Lakes Times – Until that happens, it’s obligated to comply with state Public Authorities Law regarding submission of annual, budget and audit reports. The 2013 

Live chat with Richard Brodsky today at noon: Talk reforming the Port Authority

The Star-Ledger

Brodsky, a former New York assemblyman who authored the Public Authorities Reform Act, is now a senior fellow at the progressive think tank Demos  

Judge: Mineola should not have taxed MTA


The transit agency argued that the state’s public authorities law exempts it from property taxes; but village officials said the property at 250 Old Country 

Gulnara Shamshieva: Country’s authorities should resolve issue with accession to CU, there is


“The public authorities should resolve the issue on accession to the Customs Union, because we can observe a crisis of overproduction in agriculture 

NYS Non-Government Report

January 7, 2014

NYS Non-Government Report

Regional Review: A Closer Look at New York’s $7 Billion Subsidy System, released by the Alliance for a Greater New York, focuses on IDAs. 

Links Roundup: Inside NYS Edition

December 18, 2013

ABO Final Report of Carthage Industrial Development Corporation

The Authorities Budget Office (ABO) is undertaking a series of reviews of selected local development corporations (LDCs) across the state to better understand the public purposes for which each LDC was formed, and to gain insight as to how these corporations function and expend public funds. These reviews will also increase public awareness of the operations of LDCs.  The ABO has completed its limited scope review of the Carthage Industrial Development Corporation (CIDC).  The report concludes that although CIDC has undertaken various economic development projects in the area, it also funds activities that are not related to its core mission, such as subsidizing municipal operations and managing residential housing. This report is posted on the ABO web site at and available to the public at:

Links Roundup: Inside NYS Edition

December 18, 2013

Links Roundup: Inside NYS Edition

Report from the Office of the State Comptroller.

Links Roundup – Inside New York State Edition

October 24, 2013

From the Rochester Democrat and Chronicle

Questions about investigations into LDCs answered

Gary Craig and David Riley :: 6:50 p.m. EDT October 21, 2013

The current investigations into corporations tied to Monroe County sound more like a helping of alphabet soup than a political scandal of any significance. But hundreds of millions of dollars of taxpayer money — and questions of whether it is being spent properly — are at the core of the controversy.

That said, the investigation is admittedly confusing. With that in mind, here are answers to some of the questions that are commonly asked.

More: Dan Lynch, key player in LDC inquiry, accused of stealing from county project 

What is an LDC?

A local development corporation, or LDC, is a private nonprofit company, usually established to handle public projects. They have their own governing bodies and rules, though they are quasi-governmental in nature. Local governments typically help create and then use LDCs because they see them as a vehicle for significant cost-savings. As state Comptroller Thomas DiNapoli has noted in reports, “LDCs generally are not subject to the same requirements and procedures as local governments with respect to borrowing, procurements and certain other matters that relate to implementing a capital project.”

Who is investigating them and why?

There are two investigations into Monroe County LDCs — one by the New York Office of the Attorney General and the other by the FBI. (The FBI has not discussed its investigation, but officials with the LDCs have acknowledged the probe.) The Attorney General’s Office in late July impaneled a grand jury for up to six months to consider whether individuals connected to the LDCs have broken laws.

The investigations are the offspring of work by DiNapoli’s office, which has been particularly critical of LDCs here and elsewhere in the state. While the comptroller has acknowledged the benefits of LDCs, he has concluded in numerous audits that they too often operate out of the public eye and can be hotbeds of favoritism in the awarding of contracts. “There’s no way for taxpayers at the end of the day to be assured their money is being used properly,” Brian Butry, a spokesman for the comptroller’s office, said recently. 

What are the different LDCs used by the county and what do they do?

Central to the investigations are two LDCs created under the administration of County Executive Maggie Brooks. The county established Upstate Telecommunications Corp., or UTC, in 2004 to upgrade and maintain county computer and phone systems. In 2009, Monroe Security and Safety Systems, also known as M3S, was launched to improve public safety radio and security systems. The operations of both have been criticized by DiNapoli in audits. Other LDCs established by current and past county administrations are the Civic Center Monroe County LDC, which maintains and operates the Civic Center garage; the Monroe Tobacco Asset Securitization Corp., set up to give the county an infusion of cash by issuing bonds and buying rights to the county’s expected share of a major settlement among tobacco companies and states; Monroe Newpower Corp., which provides power to county facilities; and the Renaissance Square LDC, created for the downtown project — one combining a public transit bus garage, performing art center and Monroe Community College campus project — that was never built. County officials have contended that the LDCs have saved taxpayer millions, while DiNapoli has claimed in some audits that weak oversight with some has cost residents. 

Who’s been criminally charged?

Daniel Lynch, 50, of Chili, a former sales executive at Siemens Building Technologies. UTC contracted the Rochester company to manage its project for the county. Lynch worked for Siemens for 13 years and left in March 2009, according to a statement from the company. He left to help form Navitech Services Corp., a company created by former Siemens employees that went on to work on two major LDC contracts, as well as his own company, Treadstone Development Corp., the state Comptroller’s Office said in an audit last year. Lynch was charged in an indictment unsealed Tuesday with second-degree grand larceny and two counts of first-degree falsification of business records. 

What did Lynch allegedly do?

First, some backstory. One of UTC’s responsibilities was upgrading and maintaining the county’s copy machines. It contracted with another company, Toshiba Business Solutions, for the job. Fast forward to 2008, when a Toshiba employee, who is not named in the indictment, and Lynch allegedly decided to rent a hospitality “chalet” tent at the PGA Championship at Oak Hill Country Club in Rochester. They allegedly agreed that their employers would split the $100,000 cost, but there was a problem: Siemens would not allow that type of entertainment expense, the indictment says. Lynch and the employee are accused of coming up with an illegal solution: To have Toshiba submit false invoices totaling $75,000 to Siemens that looked as if they were legitimate expenses for the copier project, when in fact the money would be used to pay for the tent. Other false documents, including business records of UTC and Siemens, were used to mask the true purpose of the money, according to the indictment. 

How was the money Lynch allegedly stole public money?

Attorney General Eric Schneiderman made a point in a statement he issued on Lynch’s indictment that the charges involve theft from a publicly funded entity. LDCs do receive public funds — the county’s 16-year contract with UTC totals about $99.2 million, though county leaders insist that the project saves taxpayers money. While the indictment does not explicitly say so, the cost of false invoices in a county copier project left taxpayers footing the bill.

 What do Siemens and Toshiba have to say about this?

Not much. Toshiba spokesman Rick Havacko said his company is cooperating with the Attorney General’s Office, but does not comment on pending legal matters. Alison Lewis, a Siemens spokeswoman, said in a written statement that the company is aware of Lynch’s indictment and that it too has cooperated with the Attorney General’s Office. The charges against Lynch deal with one specific incident. Is the investigation looking at other possible issues with LDCs? Yes. While the scope of the charges against Lynch is narrow, investigators have seized thousands of pages of documents from multiple locations and reportedly are looking more broadly at allegations of bid-rigging and preferential treatment with LDCs.

What are Lynch’s connections to LDCs and the county?

Lynch has been a key player in LDCs and the companies that work for them for years. An audit from the Comptroller’s Office last year said he worked for Siemens during the creation of Monroe Newpower Corp., an LDC that was created in 2002 and contracted with Siemens for a project involving a county power plant. Minutes of meetings of the UTC board from 2006 through 2008 also frequently listed Lynch as an attendee. Lynch and his company, Treadstone, have been well-paid through LDC projects. A comptroller’s audit of M3S said Treadstone received $822,000 in consulting fees from January 2010 to Sept. 30 from Navitech, and Lynch was paid $369,000 directly. Annual reports from UTC for 2009 to 2011 also list about $175,000 in payments to Treadstone in those years, though it is not clear if they are related to or separate from the money mentioned in the comptroller’s audit. Lynch also has been generous in campaign donations to county and state candidates. From 2005 to 2011, he donated at least $41,000 to the Monroe County Republican Housekeeping Committee, and from 2006 to 2010, a little more than $12,000 to County Executive Maggie Brooks’ campaign account, among other recipients, according to state campaign finance records. It is clear Lynch has been generous in other ways, too. He and his wife, Karen, founded the Generosity Store on South Goodman Street in Rochester. Its sales benefit Golisano Children’s Hospital and the School of the Holy Childhood, whose president and CEO, Donna Dedee, said the store gave students an outlet to sell goods they make at the school and valuable work experience. “We found their entire family to be incredibly generous and innovative,” Dedee said of the Lynches last week.

Has anyone in county government been implicated?

No. Nelson M. Rivera, a county official closely tied to LDCs, resigned earlier this month, but he has not been accused of doing anything wrong. However, Rivera, who was the county’s chief information officer, has retained a criminal defense attorney. Rivera filed a formal defense of the UTC contract when the Comptroller’s Office questioned it in a 2011 audit. County Democrats have questioned if he had a conflict of interest in the selection of Navitech for the M3S contract, noting the company listed him as a reference while he also sat on a selection committee for the contract. The county has contracted with former U.S. Attorney and former state Attorney General Dennis Vacco for legal assistance with the LDC investigation. Vacco, now in private practice in Buffalo, has not returned calls for comment. The Monroe County Water Authority also has retained the law firm Burke and Burke.

Are more indictments likely?

Yes. Even Lynch’s attorney, Michael Schiano, said more indictments are expected. When Lynch was arraigned, Schiano noted in court the expectation of “other (indictments) that will be coming down the line in the next few weeks.” And sources knowledgeable about the investigation have told the Democrat and Chronicle the same thing. Predicting who will be indicted is a crapshoot, and unsurprisingly, rumors are hot and heavy in political circles. At least 15 local lawyers have been retained, but that does not mean that many people are likely to be charged. Some of those hiring lawyers are people involved with the LDCs who have testified or will testify before the grand jury and want legal advice and assistance.

In a typical investigation, prosecutors and authorities would look for someone with knowledge of malfeasance, if, in fact, any occurred. It’s likely prosecutors with the Attorney General’s Office are doing just that, hoping someone can provide helpful information that clears up the unquestionably murky picture about the LDCs.

Authorities Budget Office

October 22, 2013

The Authorities Budget Office (ABO) is undertaking a series of reviews of selected local development corporations (LDCs) across the state to better understand the public purposes for which each LDC was formed, and to gain insight as to how these corporations function and expend public funds. These reviews will also increase public awareness of the operations of LDCs.  The ABO has completed its limited scope review of the City of Kingston Local Development Corporation (KLDC).  The report concludes that much of what KLDC does is consistent with its statutory purpose, however it has also taken on projects and activities that are city functions.  The final report is posted on the ABO web site and available to the public at:

Authorities Budget Office

September 25, 2013

The Authorities Budget Office has completed its operational review of the Capitalize Albany Corporation.  information is a copy The final report is posted on the ABO website and available to the public at: