2-27-14: Courtesy of YNN. “The Amherst IDA is actually known statewide for being a wasteful and ineffective organization.”
/>Assemblyman Sean Ryan said one look at his wall of shame is all you need. It’s a list of what he called failed IDA projects and unfulfilled promises of job creation — the latest addition coming in just last week.
“PHH Mortgage announced that they were cutting 135 jobs,” Ryan explained. “That’s despite receiving over $4.5 million in tax breaks from the Amherst IDA, where they were supposed to not only retain 400 jobs, but add 400 more.”
With no claw back agreement in their deal with the IDA, the company will continue to receive tax breaks for the next nine years, and according to Ryan, whether you live in Amherst or not, you’re paying for it.
“The people of Lackawanna, Hamburg, West Seneca, Concord, they’re all pitching in for this,” Ryan said.
County Executive Mark Poloncarz believes something needs to change.
“That’s not right. You need to have policies in place that allow you to get that money back, so we can actually benefit as a community, not just give away the bank,” said County Executive Poloncarz, D-Erie County.
In his State of the County address Wednesday, Poloncarz called on local IDAs to include such policies that could prevent bad deals in the future.
“They are fearful of the impact it will have on their own business. Now remember, the IDAs only get paid by the fees they generate from the deals they enter into.”
Ryan is calling on legislators to pass the JOBS Act to hold IDAs accountable statewide.
“Not only is there more openness and transparency, but there’s mandatory recapture. That means if you’ve promised PHH their $4.5 million for the jobs, if they don’t meet those, PHH has to give the money back,” Ryan said. “That’s how it works in the rest of the world.”
A PHH spokesman blamed low industry-wide demand for the job cuts but said the company is committed to maintaining a presence in the area.
We went to the Amherst IDA, but our requests for comment were not returned.