Collins Pushes Legislature to Stop Blocking $200 Million of Development

July 20, 2009

Innovative economic development measure offers solution to state inaction, certain EC legislators pad resolution with union giveaways

Erie County Executive Chris Collins today called on the County Legislature to stop blocking more than $200 million of economic development projects in Erie County.  The Legislature has failed to act on an Administration resolution that would give the Buffalo and Erie County Industrial Land Development Corporation (ILDC) the ability to issue tax exempt bonds for local not-for-profit organizations looking to finance capital projects.  Instead of passing this resolution, certain members of the Legislature are now attempting to use it as a way to steer private construction jobs to organized labor.

“Once again, certain members of the Erie County Legislature – lead by Chairwoman Lynn Marinelli – are putting politics ahead of job growth and economic opportunity in Erie County,” said Erie County Executive Chris Collins.  “This resolution gives dozens of local not-for-profits the ability to move forward with substantial capital projects, pumping millions into the local economy and putting people to work.”

Several Erie County not-for-profits are ready to move forward with millions of dollars in local capital projects, but are unable to secure tax exempt bond financing.  Not-for-profits used to be able to bond through local Industrial Development Agencies, but the New York State Legislature has failed to reauthorize the necessary legislation for nearly two years.  The Collins Administration worked with attorneys at the Erie County Industrial Development Agency (ECIDA) to find a way to help the not-for-profits move their projects forward despite the inaction of the New York State Legislature.

“Our proposal is an innovative way around the state’s purposeful delay that will put people to work,” continued Collins.  “Instead of helping us to expedite this creative solution, Legislator Marinelli sent this resolution to committee and then led the effort to fill the resolution with protections for organized labor including Project Labor Agreements, apprenticeship programs and prevailing wage requirements.  Once again, certain elected leaders continue to cater to the special interests instead of helping create jobs and rebuild our economy.  This community deserves better.”

Local projects that are currently stalled include work at the Buffalo Niagara Medical Campus, work related to the University at Buffalo’s expansion in downtown Buffalo, construction projects at local charter and private schools, as well as capital improvements at several local charitable organizations and agencies.

The ECIDA estimates that the original resolution would have allowed not-for-profits to save as much as 15% on their projects.  The proposed labor union protections suggested by certain legislators would not only negate those savings, but dramatically increase the final project cost by nearly 30%.

“In an effort to pad their campaign accounts with special interest donations, members of the Majority are willing to sacrifice essential economic development critical to our region,” said Collins.  “We cannot let this stand.”