Cooperative economic development efforts are a critical element to the future prosperity of our community. It is my assessment that the current formula for the distribution of sales tax hinders these cooperative efforts.

This negative influence was demonstrated recently in the events involving the Fingerlakes Crossing project. During this process it became clear that the city of Auburn had concerns about the impact that continued retail development in the towns of Sennett and Aurelius might have on the retail corridor through Auburn, specifically on Grant Avenue.

This concern was exacerbated by the fact that Auburn, in 1996, pre-empted the then existing countywide sales tax distribution formula. This pre-emption created a situation where retail development inside the city limits was enormously beneficial, and where retail development outside of the city limits was a more nominal benefit to the city.

While there is no point in re-arguing the merits of pre-emption at that time, it is undeniable that the longer-term results are counter productive. Simply put, any financial decision that causes you to consider the equivalent of “economic warfare” on your immediate neighbors cannot be good economic policy.

Cayuga County and the city of Auburn must encourage economic development of all types in a spirit of cooperation. Therefore if we have an artificial obstacle in place (sales tax formula), our efforts are better spent working to eliminate the obstacle, rather than to thwart development on one side of the city line, to “protect” it on the other side.

Economic development has a synergistic effect. Strong retail development in Sennett, proceeding through Grant Avenue, and continuing through Aurelius will establish a powerful retail corridor that will encourage further development, not diminish it.

To that end, the city and county have begun a process that can lead to the development of a new and equitable countywide sales tax formula. This formula must offer future financial protection to the city, and also assure diligent cooperation for the provision of services for projects outside of the city. If successful in adopting such a formula, we will enter into a new era of city/county cooperation.

that will place the financial incentives of inter-municipal cooperation ahead of the counterproductive parochial concerns inherent in the pre-emption system currently employed.

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