Incentives : Myths vs. Realities

Myth:
IDAs lend money.

Reality:
IDAs do not lend money.  They act as a conduit for bond financing and work with private sector banks and equity investors to fund projects.  Total private funds to be invested by 2008 COMIDA projects are estimated at $198 million.  

Myth:
IDAs take away from the tax base by abating property taxes.

Reality:
IDAs do not abate taxes on existing buildings.  The Payment in Lieu of Taxes (PILOT) applies to the incremental increase in the value of the property.  PILOT payments allow for a gradual payment of increased taxes.  PILOTs do not apply to land or special district taxes. 
Total estimated new property tax revenues over 10 years for projects approved in 2008 are in excess of $36 million.

Myth:
IDAs use taxpayer dollars to fund their operations.

Reality:
IDA operations are funded through fee income.

Myth:
IDAs only assist BIG business.

Reality:
89% of the 2008 projexts were with companies with less than 100 employees.  The EquiPlus program was specifically developed for small businesses.  To date, this program has assisted 138 companies with 158 projects.  

Myth:
IDAs have no accountability and operate begind closed doors.

Reality:
Public Hearings are advertised.
Meetings are adversitied and open to the public.
Meetings have been held at noon on the third Tuesday of every month for at least 20 years. 
IDAs must file annual reports with the New York State Authority Budget Office. 
All financial information, policies, agendas and minutes are available on the website.