The Genesee County Economic Development Center (GCEDC), the regional Industrial Development Agency (IDA) in our area, has taken the first step toward bringing Double Reed—a data center—into our community, next door to the Tonawanda Seneca Nation.
But the fight is far from over. GCEDC still faces several legal and bureaucratic challenges before it can move forward. These include obtaining site plan approval from the Town of Alabama Planning Board, securing an Air Facility Registration permit with an Environmental Justice analysis from the NYS Department of Environmental Conservation, applying for access to low-cost hydropower from New York Power Authority, and undergoing a State Historic Preservation Office investigation for cultural resources. Perhaps most critically, the project still lacks a firm commitment from a tenant.
Nevertheless, following the recent meeting, GCEDC members congratulated themselves, asserting broad public support for this initiative. And what of the claim that Genesee County residents overwhelmingly support this? Based on conversations I’ve had in response to my previous article, I disagree. Many community members express skepticism at best, and outright opposition at worst, toward GCEDC’s projects. Yet their voices often remain unheard. Why? Because GCEDC’s use of dense financial language, greenwashing tactics, and exaggerated promises of jobs and economic growth intimidate and mislead the public.
However, people are starting to see through the illusion.
A growing coalition of labor unions, teachers, and government accountability advocates are calling for much-needed reforms to New York’s industrial development agencies (IDAs) like the GCEDC, raising alarms about their lack of oversight.
Consider this: While IDA boards are appointed by local officials, those same officials have no oversight power over them. The state comptroller has the authority to audit New York’s 107 IDAs, but in 2021, only six audits were conducted. Meanwhile, IDA incentives increased by 9%, even as job creation fell by nearly 2%.
Additionally, IDAs collect fees for every subsidy package they approve, creating an incentive to push through as many deals as possible. These fees can be substantial, forming a major portion of an IDA’s budget.
IDAs wield enormous power, granting property, sales, and mortgage tax breaks to corporations in exchange for vague promises of jobs and future tax revenue. These tax breaks can range from small amounts to staggering figures—like the $124 million deal for Amazon’s warehouse in Niagara or the $119 million package for Plug Power’s hydrogen facility in Genesee County.
Then there’s the manipulation. Take the recent argument from GCEDC: They assert the Double Reed project will fund the next phase of Batavia’s much-needed water infrastructure. But why must we accept environmental degradation, increased traffic, and noise pollution as the price for basic infrastructure improvements? Shouldn’t our tax dollars already be fully funding these essentials?
Even more concerning is the Plug Project, which has been on hold since January 2024. This pause has led the GCEDC to take over the construction of a $55 million, 450-megawatt substation electrical transmission for the STAMP projects—an obligation that Plug Power had originally committed to funding. While GCEDC claims that Plug Power is fulfilling its financial responsibilities, recent notes from the Alabama Town Board meeting tell a different story. Supervisor Crossen provided an update, revealing that Plug Power has not paid its 2025 PILOT or Host Community Fees. In fact, a default letter was issued at the February meeting.
This is the trap IDAs have set for us— duping communities into believing they must sacrifice their health, land, and quality of life in exchange for resources that should rightfully be theirs.
Even IDA leaders struggle to justify these subsidies. When faced with criticism, they claim that without their deals, projects wouldn’t happen at all. Yet extensive economic research disproves this. In his 2019 book, economist Tim Bartik found that 75% of jobs created through tax incentives would have been created regardless. A 2009 study by University of Iowa professors Alan Peters and Peter Fisher concluded that economic incentives work only 10% of the time and are a waste of money the other 90%.
“These incentives allow companies to get paid to do what they would have done anyway,” says Greg LeRoy, executive director of Good Jobs First. “And that’s terrible, because it means money is taken away from schools and other critical public services.”
Western New York school districts forfeit millions of dollars in revenue every year due to IDA tax breaks. And these breaks aren’t granted based on need. Companies that can afford to pay often threaten to move their business elsewhere unless they receive tax incentives.
Meanwhile, the race to attract companies through these subsidies has turned into a competition of who can give away the most resources. “It’s a classic race to the bottom,” says Russell Weaver, director of research at Cornell University’s Industrial Labor Relations Buffalo Co-Lab. Communities are held hostage by corporations demanding handouts.
And Double Reed’s cost isn’t just financial—it’s environmental. This data center threatens our waterways and fragile ecosystem. Masse claims due diligence, but Schumer and Hochel’s backroom pressuring to rush the environmental review casts doubt on their commitment to science and safe procedure. They treated legitimate concerns as obstacles, not guidance– pushing forward with their agenda, regardless of the consequences.
It is important to underline that the fight against the Double Reed data center is not over– far from it. If Genesee Residents are to have any hope of enforcing their own will over the GCEDCs, they need to be tuned into the existing resistance network that has been steadily growing and strategizing.
A key place to turn to is Allies of the Tonawanda Seneca Nation, which lists pertinent informational updates and action items to shape our future and protect the wetlands.
It’s time to challenge the unchecked power of IDAs. It’s time to demand economic development that serves the people—not just corporations. And most of all, it’s time to stand with the Tonawanda Seneca Nation and fight for the future of our community.
By Angela Larmon
