Approximately 1,600 businesses around the state could lose their Empire Zone benefits, including 34 in the Auburn area.
In an attempt to tighten up the 2009-10 budget, the state is passing a number of reforms to its biggest economic development program. Those reforms include revoking Empire Zone certifications from businesses that are believed to be taking more money from the state than they are putting back into the economy.
According to a list provided by Empire State Development, 24 businesses in Auburn's Empire Zone were sent letters warning that they may lose their eligibility for benefits. ESD requested more information from 10 local businesses before making a decision, and the remaining 139 Auburn businesses were informed they will be recertified.
Perhaps the biggest name on the list from Auburn is McQuay International, which manufactures air conditioning and ventilation equipment. While the main business will have its certification renewed, McQuay Real Property, Inc. likely will not.
Skaneateles Falls-based medical equipment manufacturers Welch Allyn was also informed it could lose its Empire Zone benefits.
According to ESD, the state is looking to weed out businesses that are not generating the same amount of wages or capital investments as they are receiving in tax benefits. Businesses given benefits before August 2002 that reincorporated and transferred new employees or jobs to the new entity were also singled out.
This is not necessarily the final list of businesses to lose benefits, according to ESD. The final decision will come from the state Department of Economic Development by June 19.
Those businesses that do lose their certifications will have a chance to appeal.
Empire Zone benefits include tax breaks and exemptions, refunds and capital credits for businesses that promise to bring jobs and revenue to the state. The program has been under fire in recent years because some say businesses that do not live up to initial promises are not held accountable.
Jennifer Haines, Auburn's director of economic development, said Thursday that the city was informed ESD would send out letters to Empire Zone businesses. But she said she only learned Wednesday which businesses received letters.
Haines said the city planning department has not been informed of how the appeals process will work, or whether or not the city would have a role to play in that process.
But she also said she hopes there is a way for companies that lose their certifications to work to get the benefits back. Included in the Empire Zone program are sales tax exemptions and property tax reimbursements, Haines continued. Those alone could mean a “huge” amount of money for local businesses, she said.
“Honestly, I wish there were zero (local businesses on the list),” Haines said. “All those companies are vital to our economy.”
Welch Allyn, Inc. is appealing any decertification, Jamie Arnold, public relations manager, said Thursday.
“(Our lawyers) are investigating this,” Arnold said. “It's disheartening to see that we're on that list. We certainly know that we've added jobs, and are expanding.”
While Arnold said it's too early to determine what impact no longer being in the program would have on the company, he said the move would have a negative impact given the high cost of doing business in New York.
- Staff writer Jessica Soule contributed to this report.
Staff writer Christopher Caskey can be reached at 253-5311 ext. 282 or christopher.caskey@lee.net.
EMPIRE ZONE LIST
Auburn Empire Zone businesses notified they may lose their eligibility for zone benefits:
€ Crowley Lighting Protection
€ Daddabbo's Pizza
€ Central Building
€ Piccolo Properties
€ R & M Associates
€ 1866 Clark Street Road Properties
€ Gen West Associates
€ Cayuga Orthopedic & Sports Physical Therapy
€ Bianco Plumbing
€ Locastro Enterprise d/b/a Poppy's Ice Cream
€ Macabe Family Development
€ Jamarg
€ Volpi Manufacturing USA Co.
€ Material Recovery Services
€ York Industrial Plaza
€ Hares & Orman
€ Owasco Beverage
€ Rondina Properties
€ AAF-McQuay Real Property
€ Juno's Glass
€ Allentown Properties
€ Curley's Management
€ New Hope Mills Manufacturing
€ 143 North Street
Auburn Empire Zone businesses asked to give more information to Empire State Development:
€ Aurelius Hospitality
€ Alec C. Gush
€ Seneca Falls Savings Bank
€ Creative Electric
€ Columbus Center
€ Auburn Express Mart #302
€ Auburn Community Federal Credit Union
Camtech Precision Mfg.
€ Tim-Jer Enterprises, Inc. d/b/a Colonial Laundromats
€ Quality Rentals
According to a list provided by Empire State Development, 24 businesses in Auburn's Empire Zone were sent letters warning that they may lose their eligibility for benefits. ESD requested more information from 10 local businesses before making a decision, and the remaining 139 Auburn businesses were informed they will be recertified.
Perhaps the biggest name on the list from Auburn is McQuay International, which manufactures air conditioning and ventilation equipment. While the main business will have its certification renewed, McQuay Real Property, Inc. likely will not.
Skaneateles Falls-based medical equipment manufacturers Welch Allyn was also informed it could lose its Empire Zone benefits.
According to ESD, the state is looking to weed out businesses that are not generating the same amount of wages or capital investments as they are receiving in tax benefits. Businesses given benefits before August 2002 that reincorporated and transferred new employees or jobs to the new entity were also singled out.
This is not necessarily the final list of businesses to lose benefits, according to ESD. The final decision will come from the state Department of Economic Development by June 19.
Those businesses that do lose their certifications will have a chance to appeal.
Empire Zone benefits include tax breaks and exemptions, refunds and capital credits for businesses that promise to bring jobs and revenue to the state. The program has been under fire in recent years because some say businesses that do not live up to initial promises are not held accountable.
Jennifer Haines, Auburn's director of economic development, said Thursday that the city was informed ESD would send out letters to Empire Zone businesses. But she said she only learned Wednesday which businesses received letters.
Haines said the city planning department has not been informed of how the appeals process will work, or whether or not the city would have a role to play in that process.
But she also said she hopes there is a way for companies that lose their certifications to work to get the benefits back. Included in the Empire Zone program are sales tax exemptions and property tax reimbursements, Haines continued. Those alone could mean a “huge” amount of money for local businesses, she said.
“Honestly, I wish there were zero (local businesses on the list),” Haines said. “All those companies are vital to our economy.”
Welch Allyn, Inc. is appealing any decertification, Jamie Arnold, public relations manager, said Thursday.
“(Our lawyers) are investigating this,” Arnold said. “It's disheartening to see that we're on that list. We certainly know that we've added jobs, and are expanding.”
While Arnold said it's too early to determine what impact no longer being in the program would have on the company, he said the move would have a negative impact given the high cost of doing business in New York.
- Staff writer Jessica Soule contributed to this report.
Staff writer Christopher Caskey can be reached at 253-5311 ext. 282 or christopher.caskey@lee.net.
EMPIRE ZONE LIST
Auburn Empire Zone businesses notified they may lose their eligibility for zone benefits:
€ Crowley Lighting Protection
€ Daddabbo's Pizza
€ Central Building
€ Piccolo Properties
€ R & M Associates
€ 1866 Clark Street Road Properties
€ Gen West Associates
€ Cayuga Orthopedic & Sports Physical Therapy
€ Bianco Plumbing
€ Locastro Enterprise d/b/a Poppy's Ice Cream
€ Macabe Family Development
€ Jamarg
€ Volpi Manufacturing USA Co.
€ Material Recovery Services
€ York Industrial Plaza
€ Hares & Orman
€ Owasco Beverage
€ Rondina Properties
€ AAF-McQuay Real Property
€ Juno's Glass
€ Allentown Properties
€ Curley's Management
€ New Hope Mills Manufacturing
€ 143 North Street
Auburn Empire Zone businesses asked to give more information to Empire State Development:
€ Aurelius Hospitality
€ Alec C. Gush
€ Seneca Falls Savings Bank
€ Creative Electric
€ Columbus Center
€ Auburn Express Mart #302
€ Auburn Community Federal Credit Union
Camtech Precision Mfg.
€ Tim-Jer Enterprises, Inc. d/b/a Colonial Laundromats
€ Quality Rentals
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Post your comment - click hereThere are 2 comment(s)
wheres-the-remote wrote on May 29, 2009 3:20 PM:
Welch Allyn is notarious for using temp agencies. They employ temps for a minimal amount of time, then lay them off in order to avoid paying any kind of benefits.
They recycle temps in order to claim they have new jobs, meanwhile running false employment ads.
I am happy to see that they are on the chopping block. I understand that they are a great company to work for, if you are one of the lucky ones to ever get hired on. But it seems that the only way in is through a temp agency, and then good luck getting onboard from there. "
bill balyszak wrote on May 29, 2009 2:29 PM:
Some of these outfits get to change their shirts and get all kinds of tax breaks but if we - the local taxpayers - want equitable assessments and reasonable property taxes, we're told to go pound salt or go hire a lawyer and go to court.
And then, maybe - just maybe - "something" may happen...but don't count on it.
Let's see how many of these outfits created new jobs as required to get some of these tax breaks.
Better yet, let's see how many did NOT create new jobs and will have to pay back all the tax breaks, etc. they received.
Any bets that not one of them will have to pay back their ill gotten gains?
Great laws our state and county legislatures pass, eh?
Toothless wonders! Both the Mickey Mouse Laws and the Legislators.
There's just no end to this bs is there? "