Recently, we printed letters discussing the role of Industrial Development Agencies (IDAs) in economic development on Long Island. Garden City’s Village Counsel Gary Fishberg wrote an op-ed piece about whether it is right for IDAs to grant tax reductions from municipalities to specific projects in exchange for the creation of jobs by the developer. Hempstead Town IDA Chairman Fred Parola responded that the IDAs role is still essential because it spurs economic development and job growth.

Interestingly, the issue goes way beyond the boundaries of Long Island. An article in the December 22nd issue of The Legislative Gazette, a weekly newspaper covering state government, discusses legislation that could change the way IDAs operate.

According to the newspaper, the NY Industrial Agency Coalition is seeking reform of state’s 115 IDAs. The Coalition, which is made up of a variety of community organizations, labor unions, public policy groups believes that IDAs should be reformed to make them more responsive to the public and more transparent. Bills to do so were pending in both the state senate and assembly during 2009, but they would have to be reintroduced in 2010.

According to the Gazette, the bills would have required IDAs to include representatives from local municipalities and school districts on their boards, and to require applicants seeking tax breaks to provide a community impact statement that spells out the benefits to the community versus the costs in lost taxes.

These seem like pretty reasonable requirements. It seems to us that if a community is going to be asked to make do with lower taxes from a particular project, it should have a say in whether the project makes sense.

Another provision of the bills would limit the IDAs participation in financing recreational facilities such as stadiums. Again, this is a sensible provision, and one that could be very timely if the Lighthouse project gets moving again.

Meg Morgan Norris

Publisher