GCEDC must find that tourists will flock to Dick's Sporting Goods in order to offer tax breaks to COR
Batavia Towne Center -- the location of Target, Bed Bath & Beyond, Michael's, Petco and Radio Shack -- is a tourist destination.
It became a tourist destination in 2007 when the board of the Genesee County Economic Development Center voted to proclaim it a tourist destination and Mary Pat Hancock, chair of the Genesee County Legislature, gave the designation her stamp of approval.
Without the designation, the GCEDC could not have awarded -- under state law at the time -- some $4.5 million in tax breaks for COR Development Company to build the retail shopping center.
The law lapsed in 2008, but is back in force this year, just in time for COR to request another $1 million in tax incentives to help lure Dick's Sporting Goods to Batavia.
The Buffalo News reported on the revival of the law last week, noting that it's the intention of the governor's office to crack down on tax incentives for purely retail projects.
Those retail projects were magnets for controversy because critics said they did not generate new wealth within the region, served a strictly local clientele and favored one business over others that were fighting for a piece of a shrinking local retail market.
Among the exceptions to the law banning tax incentives for retail projects is the declaration that the project is, or is part of, a "tourist destination."
The statute is pretty clear that Albany wants these incentives going only to retail projects that will likely "attract a significant number of visitors from outside the economic development region ... "
Who decides if a project is a tourist destination? According to the Govenor's Office, it's purely a local decision.
It's up to the GCEDC board to conduct a public hearing on the topic. After the public hearing, the board votes. If it votes to declare the project a "tourist destination," there's one last step, and that's for the chair of the governing agency -- in this case, Mary Pat Hancock of the County Legislature -- to approve the designation.
There's no other process to confirm the designation nor appeal the decision. There's nothing in the statute that allows another authority to overrule the local decision.
For her part, Hancock seems quite convinced that Batavia Towne Center is a tourism destination.
Hancock noted that Batavia Towne Center is right next to the Clarion Hotel, with its new water park, conveniently located near the Thruway and there are lots of hotels in the area. Those hotels bring families to town for hockey tournaments and soccer tournaments, and business travelers might bring their families along these days.
And those people, she said, will want convenient shopping in the area.
"We would certainly like to see that empty building (the former Lowe's location) put to good use and see something there that brings people to the area," Hancock said. "It's conveniently located for people who come here and with the price of gas, it's wonderful that people can come here and mix business with pleasure."
Kelly Rapone, head of tourism for the Genesee County Chamber of Commerce, wanted to emphasize that she's supportive of the proposed project at Batavia Towne Center, but admitted that she's never considered the shopping center a tourism destination and the chamber has never promoted -- as far as she can recall -- the shopping center as a tourism location.
One measure in New York of whether a location is a tourism destination, as established by the promotion campaign "I Love NY," is whether a signficant number of people from more than 50 miles away will travel to the location.
That definition is used in awarding grants to tourism projects, Rapone said.
While the shopping center is good at pulling people from neighboring GLOW counties to Batavia, she isn't sure Batavia Towne Center would measure up to I Love NY's criteria.
"(Batavia Towne Center) is definately an asset to have when people are deciding where to stay while traveling," Rapone said. "They're not going to stay in a hotel when there's nothing around."
She doesn't think, though, that people are going to travel to Batavia and stay in a hotel just to shop at Dick's.
We asked Hancock about a remark by the owner of Barrett's Batavia Marine, Mike Barrett, that tax breaks to COR is like "using your own tax money to put yourself out of business," and Hancock said she certainly hopes that isn't the case.
She doesn't think that's GCEDC's purpose, she said.
"The GCEDC has done great work with our present businesses and works with our businesses to help them expand or move to different locations," Hancock said. "Part of the GCEDC's mission is to retain business and retain jobs and they've been doing a really good job."
LATER THIS WEEK (we hope): Details on the 2007 financial package that helped create Batavia Towne Center.