Stretching city Empire Zone the right move

Wednesday, April 11, 2007 10:10 AM EDT

A cooperative effort between Auburn and a manufacturing plant in the town of Ira should help create just what this area needs: jobs.
Nutrition Bar Confectioners has proposed opening up shop in the former Increda-meal facility on Route 34. What will likely seal the deal is $637,775 in tax breaks in exchange for the promise of 50 jobs being developed within five years.

Even though their property is 20 miles from the city, the owners of Nutrition Bar Confectioners are seeking to take advantage of Auburn's Empire Zone.

A relatively recent change to Empire Zone regulations allows boundaries to be expanded to include “significant” nearby projects. In this case, Auburn's Empire Zone board approved the company's request to be included.

We think it's the right move because it will help the overall economy of Cayuga County.

This kind of cooperative effort is a great example of creative economic development, because Ira will never have its own Empire Zone and this new manufacturing enterprise would probably never get off the ground without the property tax reimbursements and wage credits the state zones offer.

And while 50 jobs may not seem like a lot to other counties, it is a significant number for this area. The plant expects to begin operations with 23 people and add about seven more in each of the next four years.

And because 50 is the magic number required for a company to qualify for the benefits, the state will need to conduct follow-up examinations of the company to make sure it comes through with its end of the bargain. A key to these kinds of deals is making sure promised jobs become a reality.

The plan still needs the approval of the Auburn City Council and New York state before it's a done deal, and we urge all parties involved to make sure it happens.

The Citizens' Say

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There are 3 comment(s)

Chris - Throop wrote on Apr 12, 2007 8:20 AM:

" Taxpayer, most employees at Nelson were from Cato or Weedsport area. The Empire Zone money comes from the state and not local government. "

Taxpayer wrote on Apr 11, 2007 8:03 PM:

" Are the tax breaks coming out of the pockets of Auburn taxpayers? If so then they should be required to hire a specified percentage of their workers from Auburn. Why should our tax breaks help Oswego residence get jobs? "

Chris - Throop wrote on Apr 11, 2007 4:26 PM:

" Over $13,000 tax breaks per employee? I like the fact that we are encouraging business but someone has to make up for those credits. We have to give such big breaks to offset these outrageous taxes. How about cutting back govt spending and taxes so they would not need such a huge break? "

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