Presentation on theme: "OUR MISSION And OUR PUPOSE What Is Economic Development? Economic development in its simplest form is the creation of economic wealth for all citizens."— Presentation transcript:
What Is Economic Development? Economic development in its simplest form is the creation of economic wealth for all citizens within the diverse layers of society so that all people have access to potential increased quality of life. Job creation, economic output and increase in taxable basis are the most common measurement tools.
WYOMING COUNTY IDA The Wyoming County IDA is a public benefit corporation established in 1974 under New York State legislation and regulation. The agency is governed by a five member, volunteer Board of Directors who are appointed by the Wyoming County Board of Supervisors. An Executive Director selected by the WCIDA Board manages daily operations. Funding for WCIDA activities is provided through fees charged to business participants, interest earned on loans and investments, and occasional government grants.
MISSION STATEMENT The Mission of Wyoming County IDA is to promote, encourage and attract economic development projects in Wyoming County that result in the retention and/or creation of job opportunities that will generate additional tax revenues. A strong county economy enhances the quality of life and general prosperity for all Wyoming County residents.”
PROGRAM OBJECTIVES The WCIDA will fulfill its mission through the success of the following objectives: Provide appropriate tax incentives to qualifying companies as prescribed in New York State Law through sale / leaseback agreements according to the WCIDA Uniform Tax Exemption Policy.
OBJECTIVES CONT’D…. Administer a revolving loan fund in order to leverage private sector investment for projects that will create new jobs or retain existing jobs in Wyoming County. Develop and/or rehabilitate industrial sites throughout the county in order to encourage new commercial activity. Coordinator for Wyoming County’s Empire Zone Program.
CONT’D…… Act as a conduit for local businesses to access services and/or obtain benefits from state and federal agencies, including but not limited to: Empire State Development, NYS Office of Community Renewal, U.S. Small Business Administration, SCORE. Engage in other economic development activities that may be required from time to time in order to fulfill our mission for job creation and economic prosperity
The Wyoming County IDA has had many success stories in the past 10 years. The WCIDA has loaned out over of $5,600,000 to 35 companies since 1998, currently the IDA as a loan portfolio balance of $3,311,990. The WCIDA has worked to secure $2,297,800 in CDBG Funds which now have paid back funds available for revolving loans in the amount of $1,051,771 SUCCESS STORIES
In 2008 the WCIDA completed and submitted a grant request for funding of rail work at two locations in Wyoming County. This project will enable the expansion of two companies and add more than 1oo jobs in the County. In 2009 a $1.3 million award was granted by Governor Paterson for the Wyoming County Rail Initiative. In 2011 the Arcade phase of the project was completed. The IDA is working to complete the Attica phase in 2013.
HOW DOES THE IDA HELP AN EXPANDING BUSINESS? 1.Provide Tax Incentives 2.Gap Financing 3.Identifying Federal/State Grant program opportunities 4.Connections to business support agencies
WHAT IS AGENT STATUS? 1.By granting “Agent Status” the WCIDA enables a business to realize sales tax exemption on materials and equipment being purchased and made part of the new project during the construction phase of the project. 2.The company will also benefit from the exemption of mortgage recording tax, which is 1.25% of the mortgaged amount. 3.The company may also be granted partial real property tax abatement through a PILOT agreement. This will abate the real property tax on the increased value of the property once the project is complete. The base assessed value or assessed amount of the existing property remains billable at normal tax rates.
THE PROCESS 1.Company completes an IDA Sale/Leaseback Application. 2.The application is brought to the WCIDA Board of Directors who review the request and the benefits to economic development in Wyoming County. a.Total Company Investment b.Jobs to be created in the County 3. Schedule Public Hearing
Once the WCIDA Board approves the project the company granted IDA Agent Status. Thus they are able to utilize the following tax abatements a. Sales Tax on the Expansion project b. Mortgage Recording c.Real Property Tax / PILOT on increased value based on the following schedule Tax YearsExemption 1 – 5 100% 6 80% 7 60% 8 40% 9 20% 10 0% full taxes paid
EXAMPLE OF HOW TAX ABATEMENTS WORK FOR THIS EXAMPLE WE ARE USING CROMPTON HOLDINGS / YOGI BEAR JELLYSTONE PARK IN JAVA Crompton completed its sale/leaseback application in 2008. a. Total Company Investment was expected to be $3,340,000, Mortgaged amount $ 3,200,000 b.Jobs to be created in the County- 15 new jobs in the next 3 years Total Project amount $ 3,340,000 / Estimated taxable materials and equipment $2, 600,000. Real Property assessed value at time of application $ 438,700 Current Assessed Value after completed project construction is $1,228,000, increase of $800,000 / Estimated Combined property tax rate for the project is $25.91/ $1,000 of assessed value
ACTUAL SAVINGS REALIZED FOR THE PROJECT 1.Sales tax savings realized for project $ 205,000 2.Mortgage recording tax abated $ 40,000 3.Real Property Tax abatement over 10 years $145,096
Wyoming County Industrial Development Agency “Your Agency” To RETAIN * EXPAND* CREATE