Report: LI’s IDAs created 47,000 jobs, most in NYS

0

Long Island’s industrial development agencies helped create more jobs than IDAs in any of the state’s other nine regions – for the fifth year in a row, according to a new report.

The Office of State Comptroller Thomas P. DiNapoli found that 47,012 people had been hired as of December 31, 2019 by companies, subdivisions and other projects that received tax breaks by the eight IDAs of Long Island. . This number represents about 24% of the 199,982 jobs created statewide by IDA projects.

After the island, the New York and Hudson Valley CIDs created the most jobs, 40,482 and 31,722 respectively.

Locally, Suffolk County IDA projects hired the most people, 14,394, followed by Nassau County IDA projects with 12,822. Both only followed New York’s IDA in terms of business creation. jobs.

The Controller calculated the “Net Jobs Earned” for each project by comparing the employment for 2019 with that for the year before the project received IDA assistance.

Suffolk IDA Executive Director Anthony J. Catapano said: “The eight IDAs in the region have identified assistance projects that are of great value to our local economy, where the creation of capital investments and employment opportunities for residents… is extremely important.

DiNapoli’s annual IDA Scorecard looked at hires that have taken place over multiple years, as IDAs provide tax breaks for 10, 15, 20, and in some cases, 40 years. The duration of the aid depends on the size of the project and the number of jobs to be created and retained. Companies that don’t keep their job promises can have their tax breaks canceled.

DiNapoli urged taxpayers to use the report card “to assess whether the benefits these projects bring to their communities are worth the cost of the incentives provided by their local IDAs.”

Locally, the 140 IDA projects in Suffolk had the lowest tax incentives per new job, $ 921, while the 10 IDA projects in Glen Cove had the highest, $ 34,345, according to the report. This pattern has changed in recent years.

Island-wide, the tax savings realized by 853 projects on their property taxes, sales and mortgage registration amount to $ 4,046 per job earned.

Ann Fangmann, executive director of IDA Glen Cove, said it “has a higher proportion of residential projects than most other IDAs and these projects produce fewer jobs per dollar of. [tax] benefit. ”The Glen Cove IDA projects had created 235 jobs by the end of 2019.

She said the Garvies Point and Village Square housing projects “will spur economic development from spinoffs that don’t show up in state-generated statistics.”

Garvies Point, started in 2017, is valued at $ 1 billion, the most of any active IDA project on Long Island, according to the comptroller’s report.

The Nassau and Suffolk CIDs provided $ 70 million and $ 13 million in tax savings in 2019 to their respective projects as a group.

The large disparity between IDAs is due in part to the Neptune Power Cable Project which represents an inordinate amount of Nassau’s tax breaks.

“The Neptune cable project received a huge tax package, otherwise it wouldn’t have been built,” said Nassau IDA president Richard Kessel, who oversaw the construction of the cable between New Cassel and New Cassel. Jersey in 2007 when he headed the Long Island Power Authority. . “The cable project skews our numbers because of its size and the fact that so few jobs have been created.”

Leave A Reply

Your email address will not be published.