Doing the COMIDA shuffle

February 22, 2012 at 1:28pm

Mall renovations, the construction of a for-profit college's campus, and several projects that move jobs from one local town to another: these are the latest batch of projects getting economic development subsidies from the county Industrial Development Agency.

Of the tax breaks approved by the COMIDA board yesterday, only one involved a business expanding and creating new jobs without moving some in from another location in the region. That exception is Qualitrol Company LLC wants to add 15,000 square feet to its 53,000 square-foot building in Perinton. And it plans to add the equivalent of 16 full-time employees. It'll get property tax abatements on the new space.

The rest were exactly the type of projects that critics say shouldn't receive tax breaks or other incentives. For example:

• Greece Town Mall L.P. was granted property tax abatements to convert the Bon-Ton venue at The Mall at Greece Ridge into smaller retail spaces. A press release from COMIDA says that the $11 million project will create the equivalent of 136 new full time positions.

But economic development incentives are meant to help attract or retain businesses that have other location options. Retail, however, is dependent on demographics and markets: if there's a market for new or expanded retail space, the private sector will build it. Tax breaks for retail, then, is not considered an effective or wise use of public economic-development subsidies. Another issue: Greece Town Mall L.P. is a Wilmorite subsidiary; another Wilmorite subsidiary owes the city of Rochester millions in tax and loan payments.

• The COMIDA board granted a property-tax abatement to 846 LPR, LLC, to build a 33,000 square foot campus in Greece that will be leased by Bryant & Stratton College. The press release says it's a $7.5 million project that will create the equivalent of eight jobs. Again, this is a business that locates or expands based on demand or market potential. The COMIDA press release says that Bryant and Stratton anticipates a 70 percent growth in its student body over the next five to 10 years.

• The board also approved tax breaks for renovations to the Strathallan Hotel in Rochester. Hotels, like retail, are driven by demand and markets and are not considered an effective use of public economic development incentives.

• And the board granted tax breaks to 3750 Monroe Avenue Associates and 180 Kenneth Drive, LLC, to build or renovate space so companies can combine some local offices. In 3750 Monroe Avenue Associates' case, Maximus will consolidate offices from Fairport, Victor, and Amherst into its Pittsford space. The project is expected to create 203 new fulltime equivalent jobs. For 180 Kenneth Drive, Toshiba Business Solutions will consolidate offices on Atlantic Avenue and Metro Park into an expansion at its Henrietta facility. That project is expected to create six full-time equivalent jobs.

Comments for "Doing the COMIDA shuffle" (2)

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Alex said on Feb. 22, 2012 at 8:21pm

Where IS the outrage? How in god's name can Wilmorite say they need $11 million to 'develop' the Greece Bon-Ton? How is this going to add a single job (outside of the construction, which will be done anyway)? Will people come in to our county to shop at one of these small stores? Will people go out of the county to shop at a likewise small store if they don't get the COMIDA grant? No, of course not! In the end, all this grant does is reward a faithful contributor to the local republican party!

And, as for the Strathallan-why waste money there? There is essentially zero downtown left (and, trust me, the downtown hotels all have LOTS of vacant rooms every night) as it is, and the last thing we need is more hotel rooms. Once again outside of the temporary construction jobs, where is the benefit? The answer is simple- there is NONE.

With budget shortfalls in everything from schools to road repairs, these politically-motivated handouts need to stop.

Lewis said on Feb. 23, 2012 at 11:21am

Sometimes the lack of outrage comes from inaccurate reporting in the City itself. For instance the author lumps all of comida's actions together while citing qualitrol as the only real growth deal that brings jobs to Rochester. This is just not true. For instance the Maximus deal will not only stop close to 200 jobs from moving to Pennsylvania but will actually add at least 100 good paying jobs to their payroll right away. with the potential to add 200 more over the next 2 years. these Jobs include Medical and other professionals and are likely to stick in Rochester for years to come. While agree that subsidies need to grow business not just move it around. It would help to get the facts straight and really understand how the incentives work. And to the previous commenter. Wilmorote and the Wilmonts are among the most stalwart Democrats in Town for the past 50 years and anything but the "Republican Faithful" Again, there are excesses but if we want to attack them good facts is a good place to start.

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