By Joyce Miles
The county Legislature’s economic development committee agreed to back Center Court I LLC’s request for tax-exempt status Tuesday night as it issues $18 million in bonds to raise money for construction of the Hope VI low-income housing project in Niagara Falls.
Before the full Legislature endorses it, however, Niagara Falls Housing Authority officials will be asked to explain why they need $2 million more than was sought in 2007.
Niagara County Industrial Development Agency issued $16 million in tax-exempt Multi-Family Housing Revenue Bonds for the project in late 2007. According to IDA staff member Larry Witul, Center Court I LLC changed bondholders since then, so the bonds have to be issued again. Center Court now wants access to up to $18 million. Witul said project costs increased due to construction delays caused by required environmental mediation at the site. He characterized Center Court’s request as an “as soon as possible type” action, so the company can raise cash for the work.
Granting tax-exempt status doesn’t cost the county anything, Witul said; state law says Centre Court is entitled to it but requires it be conveyed by a local authority.
Legislators balked at the notion their vote on tax status might be seen as a blind endorsement of the project. Renae Kimble, D-Niagara Falls, said a fuller explanation of the cost hikes — or perhaps an itemized list — is in order first.
“What I want to know is, why is there additional construction cost when they are working as we speak?” she asked.
Center Court officials will be invited to address the Legislature and explain the cost hikes on Feb. 16, according to Chairman Bill Ross, C-Wheatfield.
In another matter, Legislator Rick Updegrove, R-Lockport, chairman of the economic development committee, said the county advanced economically in 2009 despite the recession.
In his 2010 Niagara County economic address, he committed the Niagara County Economic Development Agency to developing relationships and luring businesses in three “key” sectors: renewable energy, logistics and data management/high tech. The agency will try to capitalize on proximity to the U.S.-Canada border and nurture deals for logistics facilities near the recently expanded Niagara Falls International Airport, he said.
According to Updegrove, the county secured over $70 million in new spending/investments by seven businesses through grant of tax incentive packages last year. Among them, Globe Specialty Metals is re-opening Globe Metallurgical and hiring up to 100 people in Niagara Falls; Kissling Interests is turning the Remington Rand building into a mixed-use facility with a variety of business tenants and expected job creation exceeding 100; and Budwey’s Marketplace opened in Newfane, bringing 23 full-time and 70 part-time jobs into the small town that lacked a grocery store. Yahoo! landing in the Town of Lockport was good for another $150 million investment among others. Empower Niagara, the Legislature’s program of allocating power it receives from NYPA, created another $10 million in private investment by four businesses.
