Some industrial development agencies across New York state are not looking out for the taxpayer. That’s the conclusion state Senator James Skoufis came to as his months-long investigation into practices by IDAs around New York concludes.
Skoufis said the committee on investigations and government operations found some IDAs around the state don’t have taxpayers best interests in mind.
“The IDA should be investigating themselves right now," he said. "If they don't do it, it's not part of the culture. And again, the biggest loser is the taxpayer.”
Skoufis said he will continue to push legislation that would consolidate the state’s various IDAs into regions. He says it’s an effort to stop IDA-provided tax breaks from hurting taxpayers.
What You Need To Know
- The New York Senate Investigations and Government Operations Committee finished a months-long investigation into industrial development agencies, or IDAs, across the state
- Sena. James Skoufis, who chaired the investigation, submitted a criminal referral to the Orange County district attorney, alleging deceitful practices committed by Milmar food groups, which received tax incentives from the Orange IDA
- The inspector general’s office will install a state monitor at Orange County’s IDA to as an additional measure of accountability
Bill Fioravanti, the CEO of Orange County’s IDA, which was a subject of the committee investigation, said the proposed legislation to regionalize would hurt economic development in smaller municipalities.
“I think it's a mistake," he said. "And that comes from someone from the Orange County idea. It would benefit us. More projects would come to us, we'd get greater fees. And rather than losing them to the locals.”
Orange County’s IDA was under the microscope over how it handled an application from Milmar food groups, when it sought to expand its footprint. The investigation revealed Milmar told the local town board its expansion wouldn’t create jobs, but told the county IDA it would.
Skoufis said that Milmar food groups lied and he submitted a criminal referral to the Orange County district attorney regarding the alleged deceitful practices. Milmar received a 15-year payment in lieu of taxes agreement from the IDA worth approximately $2.25 million.
Spectrum News 1 reached out to Milmar food groups for comment, but did not hear back.
“What they should be doing is sussing out these applications in determining whether the incentive is warranted," Skoufis said of IDAs.
Fioravanti said when the Goshen Town Board notified them of the discrepancy, the Orange IDA sought to clear what they’re calling any miscommunication. He says in this instance, Skoufis is playing politics, but the IDA is open to hearing how it can function better.
“I'm not going to say the senator or others haven't raised criticism that allowed us to look at something perhaps a little differently and or more closely," he said. "So I'm open to constructive criticism.”
Skoufis added that the inspector general’s office will install a state monitor into Orange County’s IDA to as an additional measure of accountability. This will happen as early as August 1.