IDA shenanigans in Clarence

State law was amended in 1993 to prohibit IDAs from giving benefits to retail operations, everything from dress shops to supermarkets. The six IDAs in Erie County followed up with a memorandum of understanding in 2001 that included the same requirement.

That didn't stop the Clarence IDA from helping to subsidize the new Dash's Market that opened in May at 8845 Main Street.

The site had been home to a couple of supermarkets in the past, a Jubilee and then a Latina's. The store was vacant when Dash's decided to open.

It's an upscale, modern market, complete with a drive through. The exterior is striking and inside includes a Spot Coffee, complete with a fireplace. And, get this, valet parking is available.

The Clarence IDA sanctioned the $5.1 million project, which included about $2.5 million in construction.

Dash's got a 10-year property tax abatement which will save it $110,000, a sales tax exemption on construction materials and non-production equipment worth $180,000, and a waiver on the county mortgage recording that will save it an undetermined amount. If Dash's floated a mortgage for the entire cost of the project, the savings would come to about $51,000.

The Clarence IDA used a "but for" clause in the state law and countywide IDA agreement to benefit the Dash's project. State law makes this exception when:

The predominant purpose of the project would be to make available goods or services which would  not,  but  for the  project,  be  reasonably  accessible to the residents of the city, town, or village within which the  proposed  project  would  be  located  because  of  a  lack  of  reasonably  accessible retail trade facilities offering such goods or services.

In other words, but for the subsidy, residents would be denied access to the retail service.

Buffalo has used incentives to help put a supermarket on Jefferson Avenue on the East Side and replace an aging grocery on Niagara Street on the lower West Side. Fair enough, as those communities might otherwise not have a supermarket.

But Clarence, one of the most affluent suburbs in WNY?

A search on Google Maps shows there are plenty of supermarkets that either border on the Clarence town line along Transit Road or are within a couple-mile drive. They include two Wegmans, two Tops, a Wal-Mart Superstore and, get this, a Dash's.

No access?

Technically speaking, none are in the Town of Clarence, and the IDA used that rationale to qualify the Dash's project.

"They didn't have one (supermarket) in the community," explained Paul Leone, director of business development for the Clarence IDA.

The IDA deal with Dash's new. But it's the one officials chose to crow about in a full-page ad that ran Monday in The News. The agency, in the ad, proclaimed the Dash's project "is a great example of how the IDA works for you."

Indeed, it does.

Comments

[Texas Kid]

Clarence is just getting in on the IDA action. They probably sat around watching the flops in Buffalo and said why not us..we pay taxes. As for a supermarket, that's probably the best you're going to get in WNY and NY. High tech industries aren't going to move into NY with all your baggage like high regulations and high taxes and dysfunctional government. Despite the braggadocio about this high priced NY education system, your young college educated are moving out and end up up calling their Univ of Texas or Texas A&M or Florida State counterpart boss when they move to those states to get a job. That is unless they want a new job stocking shelves at Dash's in Clarence.

[Art Klein]

Gee what is the fuss? Clarence is a wealthy American entity and like other autocrats expects, and gets special privileges from the tax payers. Obviously the market in Clarence cannot support a food market and it would be terrible for those fine haired folk to go to Amherst and mix with the peasants to buy food so it is fitting for the tax payers to support their need.

But is it not ironic that the most Republican and Conservative bastions can find a way to increase the role of government in their community while all the while proclaiming less government is what they seek.

The wealthy suburbs cost us the New York Taxpayer more in tax money than all the inner city schools combined. Disgusting, arrogant and not at all surprising.

[hey Jim O]

This would be another good lawsuit. Sounds like the 'but for' thing could be easily challenged the way James did in this article.

[lanres]

In Lancaster - The Supervisor who also heads the IDA helped out his friend by buying his $1.8 Million Dollar building - his friend was also on the IDA Board . Now the Supervisor wants to use IDA incentives to help sell the building for less than what taxpayers acquired it for. Five years of lost tax revenue , five years of tax dollars paying the mortage and utility's - now the IDA will find more ways to waste tax dollars to help others not pay their share of taxes - sweat!

[lanres]

P.S. - Pleas quit diverting from the issues by labling. Party names dont matter any more - they all are the same - control the jobs - control the spending - pack the retirement funds - screw the taxpayers. When they promise to "Control Spending" thats exactly what they mean!