GCEDC

A pair of Batavia hotels are getting some tax relief through the Genesee County Economic Development Center because they are installing new energy-efficient doors and windows.

A GCEDC news release says the project will mean 21 retained jobs.

The Days Inn and Super 8 at 200 Oak St., Batavia, are expected to spend more than $220,000 on the project.

The owners will save about $9,000 in sales tax on materials under terms of the GCEDC arrangement.

If Steve Hyde said it once, he said it at least a half-dozen times Tuesday during a public hearing on providing tax incentives for a proposed Holiday Inn Express in Batavia: The Genesee County Economic Development Center wants the input of other hotel owners on the potential economic impact of the proposed project.

"We are most interested in your views on what’s going on in the marketplace so we can share that with the board and they can give it thoughtful consideration," said Hyde, CEO of the GCEDC, near the end of a sometimes slightly contentious public hearing.

About a dozen local hotel operators attended the 4 p.m. meeting.

Typicall at such hearings, members of the public speak, officials listen with little or no response and the meeting ends. But Hyde repeatedly engaged speakers, either with questions or by challenging them to deliver more facts.

"If you have additional facts from validated sources that can justify your position, you should present that to us," Hyde said. "We hear you loud and clear but we need you  to provide us with verified facts."

The meeting opened with Mark Masse, VP of operations for GCEDC, presenting an overview of the proposed project and the proposed tax incentives the GCEDC can help deliver.

The developer is Michael Patel and an investment group, Chase Hotel Group, which operates in four states and eight markets. Previously, Patel owned and developed Comfort Inn in Batavia and he currently owns Hampton Inn in Batavia.

The proposed hotel would have 80 rooms and cost $3.5 million to develop.

When completed, the hotel will employ 19 full-time equivalent staff members.

Under the tax abatement proposal, Patel and Chase Hotel Group would receive $112,000 in sales tax exemption, a mortgage tax exemption of $37,500 and a property tax abatement over 10 years of $400,136.

These are taxes, according to Masse, that won't be generated if the project isn't built. 

There will be no tax reduction -- meaning no abatement of existing taxes -- for existing tax liabilities on the property.

If the project is built, it should generate more than $800,000 in sales tax over 10 years and $38,700 over 10 years in fire district fees.

The total economic benefit to the community over 10 years is estimated at more than $8.5 million.

Local hotel owners took issue with these numbers saying the figures don't account for lost business, not to mention the potential closure, of existing hotels.

"You say after the Hampton Inn opened there was an occupancy increase," said Chan Patel, owner of the Clarion Inn on Park Road (formerly the Holiday Inn). "I can prove to you that over the next two years, my occupancy went down by 10 percent."

The operators who spoke said they've all seen occupancy rates drop as new hotels have come into the market and they don't see how a market with a 48-percent occupancy rate in market with 1,000 rooms will benefit by adding 80 more rooms.

Jayesh Patel, owner of Travel Lodge, Batavia, argued, as did other hotel owners, that more rooms will mean that all of the hotels will wind up charging lower rates. The Holiday Inn Express, he said, with the benefit of tax breaks, would then have an advantage over established hotel owners who are paying all of their taxes.

"If the developer has faith in the market then they should spend money out of their own pockets rather than out of taxpayer pockets," Jayesh Patel said.

Rashi Dev, owner of the Comfort Inn, said if Michael Patel believes there is such a need for more hotel rooms in Batavia, why is he charging rates at his other property, the Hampton Inn, that are as low or lower than similarly priced hotels in the area.

"The Hampton Inn should have rates $5 or $10 (per night) higher than us," Dev said. "If he's so confident in the market, why does he need to decrease his rate?"

There were no GCEDC board members present at the meeting. GCEDC staff will present the feedback from the public hearing to the board prior to the board voting on the proposal at its March 3 meeting.

Hyde said any factual information hotel owners can provide at least two weeks prior to the March 3 meeting will also be presented to the board and that hotel owners will be given a chance to speak at the March 3 meeting.

Today, Town of Batavia also announced a public hearing on the project with the town's planning board at 7:30 p.m., Feb. 15.

Top photo: Steve Hyde; inset, Chan Patel; bottom, Mark Masse opening the meeting.

I don't think many would disagree that we all want a robust and aggressive job-creating engine in Genesee County. We also can agree that unfair tax burdens created the need for IDAs with their enticements and tax incentives in the first place.

In the big picture, we all want our county to be chosen as the next home to companies like: Barilla Pasta, Google, Yahoo or Geico -- and without an IDA we don't compete at all.

Even the smaller companies with a vision to produce a new product or service can help make our county vibrant and offer those vitally important, but few and far between, living wage job opportunities. Jobs that can lift our median income and bring some of our citizens their own little piece of prosperity-- the kind that bring money to other businesses by circulating it around our communities.

The jury is still out on how I perceive the GCEDC's, or any IDA's  performance. But I do firmly believe that more stringent oversight on pay rates and elimination of performance bonuses needs to swiftly be put in place by the Legislature to restore the public's trust. I'm also curious about the $500 bonus given to a consultant.

I, too, am a small business owner and, although I won't be creating any jobs other than my own and have no need for a shovel-ready site, I know that I prosper with my business when Genesee County is prospering. I've talked to a few people whom I admire and respect who also own their own businesses. They made some points that make a whole lot of sense.

What if the bonus money and inflated salaries had been allocated and/or redirected for infrastructure or start-up rent subsidies? Phase two of the county water deal is in limbo.

In my own town, we have a great location on Route 19 at the 490/90 interchange. The property known as Oatka Hills has sat empty for years, and for the last several years has had a "For Sale" sign with the GCEDC logo on it. It lacks the infrastructure and utilities and even though the location has so much potential, it sits empty.

Bringing in utilities is an expensive undertaking. Funds being used to pay large bonuses and inflated salaries could, and should, serve more people than just the privileged few who work at the GCEDC. Another alternative is using the bonus money to subsidize rent for start-up businesses that are taking a chance on our main streets -- something the Orleans County IDA is doing.

As the leader of the Genesee County Democratic Party, I have had the opportunity to work closely with candidates running for office at several levels. Invariably, when we've had state and some local candidates running, IDA reform has come up in their campaigns. Like Senator Mike Ranzenhofer, some candidates have come from Erie County with their knowledge on the subject, reflecting what they experience in their own backyard.

And from our local media, and the promising GCEDC press releases, we have always been led to believe that it was different here -- that our IDA was accountable and delivered the goods. I always cringed when our candidates made their opinions on this issue public, waiting for the swift redress that came from one particularly vocal legislator, and occasionally from the local press. This made wading into reform almost a certain political misstep.

For my own complacency about this subject, I apologize. Healthy opposition is needed over some issues and should translate into vigorous debates which show alternatives to the status quo and maybe uncover some things that need correcting in the process.

As a citizen, I am calling on the county legislators to take the responsibility they have been given by the people who have entrusted them. Their responses to date have been very disappointing and show a disconnect.

Our county's median income is around $33,000. We have more rentals in two of our larger population centers than owner-occupied properties, many of our villages have more empty storefronts than filled ones, and our population stands at around 57,000 and dropping.

If crime goes down, there is no bonus check for Sheriff Gary Maha. If road repairs for a given year come in under budget, the windfall doesn't go back to Tim Hens, the county highway superintendent. It is the responsibility of the governing body to hold all public entities accountable, including the GCEDC.

When building the Upstate Medtech Center, the GCEDC should have ensured prevailing wage was paid to construction workers, according to a state Department of Labor (DOL) letter issued in November.

The letter came to light following an Authorities Budget Office report critical of GCEDC's staff compensation practices.

It was written by John D. Charles, associate attorney for the DOL, and issued in response to an unnamed person who asked that the department look into the matter. It concludes that the department's opinion was based solely on the material provided by that person and should not be relied on as a final answer.

Ask for a response to the DOL letter, GCEDC CEO Steve Hyde issued the following statement:

"While the LDC (Genesee Gateway Local Development Corp.) wholly disagrees with the Department of Labor's initial conclusions, we are actively working with them to ensure that they have all of the facts and circumstances of the Medtech project. A final determination has not been made by DOL with respect to the issues and questions raised."

Longtime local contractor Vito Gautieri is known to be concerned about how the bid for construction of the Medtech Center was awarded. It ultimately went to Batavia-based D.A. Tufts Co.

In an interview last week, when asked if the letter from Charles was addressed to him, Gautieri said, "No comment."

He then went on to complain about GCEDC forming a nonprofit corporation -- Genesee Gateway Local Development Corp. (GGLDC) -- as owner and agency developing the project. He said if that's how government agencies are going to operate on construction projects, then "we might as well pull up our shingles and move out of town."

At issue is compliance with New York's prevailing wage laws, which require employees on public works projects to be paid an hourly rate based on a prevailing wage schedule set by the state.

The DOL letter says that according to information given to the agency, the GGLDC's Medtech project does not meet the standards for waiving prevailing wage.

It says that because the project was at first initiated by a public agency (GCEDC wholly owns the GGLDC and is the project's actual owner), it is not just a temporary title holder.  In addition, it is not acting "merely as a mechanism to facilitate financing." If it were just a temporary titleholder and holding title merely to facilitate financing, according to the letter, perhaps paying prevailing wage would not be required.

There will be a public hearing at 4 p.m., Tuesday, in Batavia's Town Hall, 3833 W. Main St. Road, on a proposal to provide tax subsidies for the construction of a Holiday Inn Express on the north side of the Thruway.

The hearing is being conducted by the Genesee County Economic Development Center.

The public is invited to attend and provide feedback on the proposal.

GCEDC did not have information to release to the media today in advance of the meeting on exactly what is being proposed.

In response for a request for more information, Media and Marketing Manager Rachael Millspaugh wrote in an e-mail: "There is no additional preliminary information on the project except what was discussed at the December 2010 board meeting. We will have a project summary available at the public hearing. The GCEDC Board will be reviewing and acting on the request at this Thursday's regularly scheduled meeting."

After the initial two stories about the Authorities Budget Office report on the Genesee County Economic Development Center's compensation practices, some readers wanted to know what local legislators thought of the issue.

In the second story, we had comments from Chairwoman Mary Pat Hancock and Legislator Hollis Upson, who also sits on the GCEDC board. Below are responses from the other seven members of the Genesee County Legislature.

Raymond F. Cianfrini
District No. 1
Towns of Alabama and Oakfield

Legislator Cianfrini said he was disturbed by the ABO report.

"In terms of oversight, I was not aware until I read the report of the way in which they allocate resources for salaries and bonuses," Cianfrini said.

He said he doesn't believe public employees should receive bonuses, but acknowledged there is some question as to whether GCEDC employees are truly public employees.

"As for the size of the pay, should Genesee County have the highest paid director of an EDC -- should we be 'leader of the pack'? I'm not sure I have a full handle on how the GCEDC board has justified paying these kind of salaries."

In terms of oversight, he said he would like to see the legislature review the GCEDC's budget to ensure the county portion of its revenue is being spent appropriately.

"I wonder if our portion of the budget is being used wisely and whether any portion is funding bonuses," Cianfrini added.

He does believe GCEDC has done some good projects for the county and he's a big supporter of GCEDC's efforts to move the STAMP project forward in Alabama, which is part of his district.

"It's an important project that needs to be developed," Cianfrini said. "GCEDC took the initiative to keep the ball rolling and for that. I'm grateful and want to see it continue."

Robert J. Bausch
District No. 2
Towns of Elba, Byron and Bergen

Legislator Bausch said he's supportive of the GCEDC and believes the agency has helped improve Genesee County's economy and wants to see its work continue.

"Having been a lifelong resident of Genesee County, I know one of the major complaints over years and years and years, is that we weren't doing enough to support industrial development, bringing jobs into the county and so forth," Bausch said.

"When John Dwyer took over as head (of economic development) and really got that organization going, we finally started to see some results and I think Steve (Hyde, current CEO) has done an excellent job of following his lead."

As for the compensation issue, Bausch said that's a matter for the GCEDC board to decide.

"I know most of the members," Bausch said. "They are hard-nosed businessmen, so I've got to trust their judgment."

He said that a recent state report on the Genesee County Animal Shelter, knocking the conditions there, and the ABO report knocking the GCEDC board, "tell you about all you need to know about the state of New York State."

"Here's one place getting a negative audit because it is trying to be successful and here's another about a place trying to keep costs down by using volunteers, but they get complaints because it isn't exactly perfect," Bausch said.

As for legislature oversight, Bausch said the legislature has a liaison on the GCEDC board and he doesn't see any need for more oversight than that.

Annie M. Lawrence
District No. 3
Towns of Pembroke and Darien

Legislator Lawrence said she's satisfied with the current level of oversight the legislature provides the GCEDC board. How they compensate staff is really up to the board, she said.

"That goes back to micromanaging," Lawrence said. "I think we have qualified individuals who sit on that board. They know better than we do the day-to-day goings on. I trust these individuals to do their job."

As for the ABO report, she said it was long and involved and it's possible that the bonuses should have been handled differently, but ...

"The thing is, in Genesee County we have had a lot of wins with GCEDC and a lot of positive things have happened as a result," Lawrence said. "We’ve had those jobs created. We’ve helped existing businesses and we’ve helped new businesses.

"Through this downturn, yes, our unemployment has been high, but it could have been higher if we didn't have the projects we had."

Jerome J. Grasso
District No. 5
Town of LeRoy

Legislator Grasso said when he first read the ABO report, he found it pretty stunning.

"You read it and the language it uses kind of takes your breath away in the fact that it's so negative," Grasso said. "But then you look at what Harris Beech (GCEDC's law firm) put out and realize it's all just opinion."

Before the legislature takes a position on the report, however, Grasso said members should wait for things to settle down and then try to get more information and see what's really going on.

"I think we should have the full truth," Grasso said. "We need transparency. I'd like to wait and get the full picture."

However, he does believe GCEDC fully cooperated the the ABO investigators and maybe not all of the information has been released.

"I don't think the GCEDC has attempted to hide anything," Grasso said. "When the ABO people came in, whenever they asked for anything, they got it. I don't think there was an attempt to not be transparent with the auditors."

As for legislative oversight, Grasso thinks the legislature does have the power to make changes if they don't like what they see going on with the GCEDC. He said either board appointments could be changed or the county's portion of the budget could be withheld.

Esther Leadley
District No. 6
Towns of Alexander, Bethany and Pavilion

The GCEDC has Legislator Leadley's full support.

She called the ABO report one-sided and singled out the Batavia Daily News and The Batavian for providing only one-sided coverage of the issue.

"I think the GCEDC has done an excellent job in bringing companies here to Genesee County," Leadley said. "The bonus money was not taxpayer money. I'm convinced of that."

As for oversight, she said the legislature provides a good deal of oversight -- between Upson's position on the board, Hyde regularly appearing before the Ways and Means Committee and the various other reports the legislature gets from GCEDC throughout the year.

Robert J. Radley
District No. 7, Wards 1 and 6
City of Batavia

Legislator Radley, an engineer and planner by trade, said he approaches GCEDC as a business issue.

"I have five business development people working for me from Maine to North Carolina and I look at this from a business development perspective," Radley said. "First, it's typical in business development to pay salary plus bonuses. But putting that aside, I don't see how a report can look at someone's salary without looking at the results.

"If our director has a salary that is twice, say, of Erie County, but he's bringing in four times the revenue, then he's worth the money. To me, to do this right, somebody has to say we're going to compare salaries and we're going to compare results. Then you have a meaningful comparison."

As for legislative oversight, Radley said it pretty much ends at appointing the right people to the GCEDC board.

"It's incumbent upon us to appoint a board with the right qualifications, the experience and the expertise to direct that agency," Radley said. "I don't think it's incumbent upon us to get down into the nitty-gritty."

Edward DeJaneiro Jr., 2nd Vice Chair
District No. 9, Wards 4 and 5
City of Batavia

According to Legislator DeJaneiro, the GCEDC could maybe use some additional legislative oversight, but it's important to remember how vital economic development is to the county.

"We want to keep in mind that GCEDC is one of the few tools we have to concentrate on bringing in new business and making it easy for new business to come into the county," DeJaneiro said. "I don't think we want to throw the baby out with the bathwater. We need to make sure that their bonuses and compensation are in line with what we expect for our community, though."

While the legislature has only limited oversight of the GCEDC, he said he would like to keep a close eye on them.

He said he was rather surprised by the level of compensation staff was getting.

"I want to know what they’re doing, because I think it’s out of the ordinary to give those kinds of wages and bonuses that are so out of line with the rest of the community."

In response to a reader request, we asked for information on whether GCEDC staff members are eligible to participate in the NYS state retirement system.

Here is the full text of GCEDC's response:

Request: Can I get a list of GCEDC employees who participate in the NYS retirement system and what GCEDC’s annual contribution to the pension program is, please?

Response: Membership in the New York State Retirement System is mandatory for all full-time employees of Genesee County Economic Development Center (GCEDC). Currently there are six employees who are enrolled in the New York State Retirement System including the President and CEO, Sr. VP of Operations, the CFO, VP of Business Development, the Marketing and Communications Manager, and the Office Manager. Contributions to the New York State Retirement System are set by the state. In 2010, the GCEDC received an invoice to pay $41,663.

Here's a news release sent today from the Genesee County Economic Development Center:

The employment scene in Genesee County for year 2010, despite the Great Recession being in full swing, had positive results with regards to employment and job creation and retention across the county.

According to the latest figures just released from the New York State Department of Labor, Genesee County showed a net increase of 300 private sector jobs in 2010. The growth rate of private sector job creation within the county reflected a 1.8-percent increase for the year.

This type of growth is encouraging as most communities across the state and country have been shedding jobs or are fighting to maintain the status quo during 2010.

“Genesee County continues to succeed and grow even during difficult economic times," said Steve Hyde, president of the Genesee County Economic Development Center.  "This growth has been enabled by our private sector companies being resilient and successful during these tough economic times."

The GCEDC board of directors drove a focus on growth and ensuring we are a “business-friendly” community by way of our economic development strategic plan written in 2003.

Since 2005, GCEDC has participated in 177 economic development projects with area companies. This has fostered capital investment commitments which exceed $430 million and job creation commitments of nearly 1,400 jobs.

“It is encouraging to see that public/private partnerships like the GCEDC has with our business community is contributing to their sustainability and growth, especially in uncertain economic times like we have today," Hyde said. "I’m hopeful for continued growth and success in our local and regional economies in 2011."

Sen. Mike Ranzenhofer is once again supporting legislation that would prohibit staff members of public authorities -- such as the Power Authority and the Genesee Economic Development Center -- from receiving bonus payments as part of their compensation.

Ranzenhofer said he plans to support legislation introduced again this session by Sen. George D. Maziarz that would ban the sort of bonus payments that recently came under scrutiny by the Authorities Budget Office.

"In the private sector, such bonuses may be appropriate," Ranzenhofer said, "but in the public sector it is not appropriate. The more appropriate way to do things is if someone is doing a good job, then you want to adjust their salary. If they're doing a poor job, then you adjust their salary."

GCEDC's board, according to the ABO report, has paid out more than $344,000 in bonuses to employees since 2004.

Jim Vincent, vice chairman of the GCEDC board of directors, insisted after the report came out that the board "has done nothing wrong." He said employee compensation has been based on performance and within legal guidelines.

Ranzenhofer said he has no issue with the job GCEDC has done and believes the agency has created jobs and done a good job representing Genesee County, he just thinks staff members shouldn't receive bonuses.

Also, at a reader request, we confirmed today that GCEDC staff are eligible to participation in the New York State retirement system. We have a request into GCEDC for details on contributions for employees but have no response yet.

County Manager Jay Gsell said employee payments for the pension fund come from GCEDC independent revenues and not from the county contribution to GCEDC. He said the county's contribution covers 42 percent of base wages for agency personnel.

Previously:

• State report blasts compensation practices of GCEDC
• ABO report on GCEDC neither fair nor accurate, officials say
• GCEDC releases consultant's salary survey

At the request of The Batavian, the Genesee County Economic Development Center sent over a one-page summary of a compensation survey completed in 2008.

The survey gathered compensation information from 26 IDAs from across the United States, comparing budget, staffing and executive compensation.

Handwritten notes on the summary indicate GCEDC CEO Steve Hyde earned a base salary of $134,550 and the average salary of the 26 agencies was $148,000, with his total compensation set at $171,600 compared to an average of $166,600.

Download (PDF).

Previously:

• State report blasts compensation practices of GCEDC
• ABO report on GCEDC neither fair nor accurate, officials say

A state report critical of compensation practices of the Genesee Economic Development Center is neither fair nor accurate, county and agency officials are saying today.

"We've done nothing wrong," said Jim Vincent, vice chairman of the GCEDC board of directors. "Nobody likes to be criticized, but we stand by what we've done. We are being criticized for our success."

The Authorities Budget Office report strongly condemns how more than $344,000 in bonuses have been awarded to GCEDC staff since 2005 and also expresses concerns about the $153,000 annual base salary paid to Director Steve Hyde. (Read: Previous Story)

Vincent said everything the GCEDC has done was cleared by an attorney and performed in accordance with state law.

"This is a difference of opinion," Vincent said. "They (the ABO) thinks we did it the wrong way. We think we did it the right way. We truly feel we have a dynamic organization.

"We've done everything legally, properly and transparently, and we continue to produce results."

While referring most questions to Vincent, the director said everything about compensation is a board decision and Vincent should speak for the board. Hyde was also critical of the ABO report.

"The report is using only half-truths in a lot of ways and disregarded a lot of the facts and information we provided them," Hyde said. "But that's the regulatory environment we live in."

Hyde said the ABO disregarded performance models provided by GCEDC and a compensation survey that showed his salary was right in line with 26 other similar IDA's across the nation.

The GCEDC claims it has generated $409 million in capital improvements for Genesee County businesses (full list, PDF).

In a memo released by the GCEDC late this afternoon, GCEDC attorney Robert J. Ryan said the ADO's report is wrong in stating the board didn't have the authority to set compensation as it sees fit and issue bonuses according to its own guidelines.

Ryan:

... the ABO Report concludes that the Agency does not have the legal authority to pay incentives or additional compensation. This is the opinion of the ABO and not based in law. The General Municipal Law explicitly provides the Agency the ability to establish and pay compensation out of Agency funds. We are unaware of and the ABO has not provided any legal authority that would prohibit the Agency’s compensation package being based upon salary and a performance incentive.

ABO Director David Kidera said his agency was really trying to get across two points in its report:

• First, that the GCEDC is really dealing in public funds, "even if they don't see it that way," and the kind of profit-sharing plan the board has been using isn't appropriate or legal.
• Second, that while the GCEDC board says it has followed procedure and been transparent in its compensation practices, the board can't really produce any documentation to support its claims.

Because the bonus payments were not appropriate, Kidera said, the report recommends that the payments be "recovered."

That means, he said today, the board should ask employees to return the $344,000 in bonus payments they've received since 2005.

He implied he realizes that isn't necessarily a realistic expectation.

"I think we're required to say that because these bonuses were paid inappropriately, that because in the absence of any proper procedures for paying bonuses -- and these are taxpayer funds -- the board should seek to rectify that," Kidera said.

"Is that going to happen? I don't know. I realize we're talking about employees here and this might not happen in the private sector, but we would be remiss in our responsibilities if we just said, 'it's wrong,' and then let it go."

Kidera acknowledged that the ABO has no real authority to enforce its recommendations. It's up to the GCEDC board, he said, whether to implement its recommendations, or up to the legislature to replace the board if it doesn't like the board's response to the recommendations.

Otherwise the only thing the ABO can do is issue a follow-up report on the board and county's response to the initial report.

He did say a copy of the report was sent to District Attorney Lawrence Friedman with the idea that the DA's office could investigate any potential legal wrongdoing.

Friedman said that he's received the report but that it's really too soon to say if any sort of legal proceedings would follow.

Mary Pat Hancock, chairwoman of the Genesee County Legislature, said it is not the legislature's role to act in an oversight capacity of the GCEDC. She said the procedures put in place creating IDAs, put the IDAs at arm's-length from county legislatures. The legislature doesn't approve the budget or operations of the GCEDC. 

While GCEDC board members are appointed by the Genesee County Legislature, the time for dealing with issues related to any appointee are when it's time to renew a term or make new appointments.

The county just finished a budget process that required sacrifice from several departments and nearly led to the elimination of the county's nationally recognized, pioneering restorative justice program, Genesee Justice. In order to save the program, the agency's director, Ed Minardo, volunteered to resign.

Hancock said the county's share of funding for GCEDC was cut by 15 percent, reducing it to about $266,000, and Hancock said that is money well spent.

"It has been demonstrated that the magnification of each dollar we put into GCEDC, because of their success in attracting business, we've found that contribution has come back to us many times over," Hancock said.

Legislator Hollis Upson, who is also a member of the GCEDC board of directors, also defended the agency as an important engine of economic growth in Genesee County.

"Arguably, Steve Hyde brings something of value to Genesee County," Upson said. "The compensation and bonuses came strictly from performance and results. (Staff) compensation came out of generated income"

Pointing to a previous post on The Batavian listing the salaries of the top 25 public officials in Genesee County, Upson noted 20 of the top 25 were education executives.

"The superintendents and officials at BOCES work a lot fewer hours, I would suggest, and they don't generate income," Upson said. "We are helping them (school officials) by generating a tax base.

"So while the perception would be that (Hyde makes a lot more money than other officials in the county), someone who would look at it from only that standpoint, well there's a lot more to it."

The Genesee County Economic Development Center should recover more than $344,000 in bonus payments to employees made from 2005 through 2009, according to a report issued Wednesday by New York Authorities Budget Office.

The ABO is responsible for fiscal oversight of certain local agencies, including industrial development agencies.

In a scathing report (pdf), ABO officials say that GCEDC made bonus payments that do not comply either with state law or guidelines.

In the case of one bonus payment, the report recommends the matter be referred to a local law enforcement agency for further review.

"GCIDA (aka, GCEDC) officials justified its bonus practices as proper and comparable to bonus incentive plans in use by private industry," the report reads. "GCIDA officials continue to show a lack of understanding that the GCIDA is a public entity and not a private industry."

The report is also critical of the $153,000 annual salary for Executive Directory Steve Hyde. Hyde's base salary is the highest in the state for any IDA, the report states, and significantly higher than any IDA director in Western New York, and higher by far than any other public employee in Genesee County.

In 2009, GCEDC paid out $91,000 in bonuses, with $60,000 going to Hyde.

The report is critical of how the board of directors arrived at its bonus structure, not using an individual's performance goals set at the beginning of a calendar year, but instead basing bonuses on available funds at the end of the year and whether overall group goals were met.

The report says that criteria violates a state comptroller's advisory opinion issued more than 10 years ago, though the state law governing IDA's does not specifically address bonus compensation.

According to the report, up until 2010, an informal subcommittee of the GCEDC board would meet and determine the bonus amount and structure for the agency's employees. Generally, the decision would be made in December with bonuses paid at the beginning of January. But in January 2007, more than $54,000 in bonus payments were disbursed even though the bonuses were not approved by the board until a month later.

While officials told ABO investigators that bonuses were paid based on agency performance, the report states that in 2008 the GCEDC did not meet its job creation goals, yet $91,000 in bonus payments were approved; and, for 2005, $55,000 in bonus payments were approved, even though GCEDC met neither goals for job creation nor capital investment.

For 2008 a $500 bonus was paid to a consultant even though there was no provision in the $60,000 contract for a bonus.

"Although we make no judgment as to whether such an expenditure of public funds is legal," the report reads, "we are referring this to local law enforcement officials for further review."

The report recommends that the $500 be recovered from the consultant. The consultant is not named in the report.

The report notes that Hyde's salary has increased from $82,950 in 2004 to $153,000  in 2009. In comparison, the IDA director in Orleans County earned $58,000 in 2009 and the Erie County director received $133,911. Among other Genesee County public employees, the District Attorney has the highest salary after Hyde at $118,187.

The report reads:

The GCIDA justified its practices, both in regard to bonus payments and salary structure, by referring to private industry standards and principals, and pointing out that GCIDA has its own private revenue source, and that payments are made with private funds. We are disheartened by this attitude and perspective.

The GCIDA relies extensively on Genesee County for financial support. For the five-year period 2004 through 2009, the GCIDA received more than $1.3 million in operating funds from Genesee County, almost 20 percent of its total operating revenues. Salary and compensation are part of the GCIDA's operating budget. So, directly or indirectly, the taxpayers of Genesee County contribute to the cost of supporting the GCIDA.

According to the GCEDC's 2011 program budget, anticipated revenue is $1.5 million with $266,217 coming from Genesee County. The remaining revenue is comprised of fees, grants -- including $475,000 from National Grid and $750,000 from the Town of Pembroke (over three years) -- and other unspecified sources.

The budget statement says that through August 2010, GCEDC supported 16 economic development projects, generated commitments for 50 new jobs over the next three years and $18.5 million in capital investment.

Among its ongoing projects: Gateway II, Buffalo East Technology Park, Med & Tech Park, Apple Tree Acres, Genesee Valley Agri-Business Park and WNY Stamp.

Next month, the Genesee County Economic Development Center officials will hold a public information meeting to discuss preliminary results of the draft environmental impact report concerning STAMP.

That stands for Science, Technology, Advanced Manufacturing Park -- a proposed large scale, high-tech/clean-tech, manufacturing park planned near the intersection of Judge Road and Route 77 in Alabama.

The meeting will take place beginning at 7 p.m., Thursday, Feb. 10 at the Alabama Fire Hall, located at 2230 Judge Road, in Basom.

The draft Generic Environmental Impact Statement (GEIS) includes an economic impact study, environmental study, master plan update, traffic impact study, the utility plan summary and provisions for farmland protection.

The proposed location for STAMP, according to its supporters, is considered ideal because of immediate access to transmission level electric power, reduced cost hydropower, a high capacity gas line, and the New York State Thruway.

STAMP is being developed as a campus-like setting to attract companies which produce computer chips, flat panel display units, semiconductors or similar products. Operations of this size could provide thousands of medium- to higher-income jobs to residents of Genesee and surrounding counties.

Alabama residents will receive an informational postcard in the mail encouraging attendance to February's public informational meeting. But everyone interested in this critical project is encouraged to attend.

This information was provided by the GCEDC:

The Genesee County Economic Development Center (GCEDC) has announced the launch of www.GreenGeneseeCounty.org -- a website to help residents and businesses conserve energy and lower utility bills.

It provides connections to rebates and incentives, educational resources, tips to manage energy consumption and find local contractors, plus it features helpful interactive tools.

A monthly newsletter with this information will also be available to residents who wish to provide their e-mail addresses on the website.

www.GreenGeneseeCounty.org will highlight local energy efficient initiatives and county news and events related to energy conservation. This includes a study on the feasibility and challenges of developing wind-power projects on six GCEDC parcels.

“Genesee County has been active in its efforts to improve its environmental performance and energy efficiency, said Christopher Suozzi of the GDEDC. "Green Genesee County supports this approach by giving our community easy access to a website, e-newsletter, and 'Ask the Expert' resources to help residents, businesses and not-for-profit organizations save money on their utility bills."

The website was developed through a partnership with Blue Springs Energy, a company that assists organizations, local governments and individuals to access clean and renewable energy grants, incentives and credits and find local green services and products.

“Blue Springs Energy is proud to support Genesee County’s efforts to help its community save money on their energy bills and help the environment,” said Larry Simpson, president of Blue Springs Energy.

“There are numerous clean energy grants and incentives available from federal, state, and utility sources, but most are difficult to find and access. The Green Genesee County website and newsletter provides useful information so that residents and businesses can take action."

Here are four recent news items from the Genesee County Economic Development Center:

• Gov. David Paterson awarded GCEDC a $3.9-million grant to upgrade the short rail line in and around the new Genesee County Agri-Business Park off of Route 5 in the Town of Batavia. The grant money comes from a 2005 bond act for transportation infrastructure in New York. The 202-acre park offers shovel ready industrial land for food processors. Business Facilities Magazine recently named Genesee and Livingston counties as the second-best food processing area in the nation, citing both the Oakta Milk Products facility and the new agri-park in its article.
• National Grid has awarded GCEDC with $275,000 in grants to further the development of the Buffalo East Tech Park in Pembroke. The 300-acre site is adjacent the Pembroke exit of the Thruway, giving the development area easy access to Buffalo and Rochester. Sixty-seven acres of the park are shovel ready for business development.
• Sale-tax exemptions totaling $12,000 were awarded to Bruce Scofield, LLC, for reopening a transfer station and recycling center at 8620 Sanders Road, Stafford. The location will serve area residents and businesses with a facility to dispose of waste and recyclables. The facility has been approved by the DEC to receive 150 tons of solid waste per day and 75 tons of recyclables per day. For every $1 of tax exemption, the project is expected to return $141 in public benefit over the next 10 years. Scofield will invest $150,000 in the project.
• Pineyard Acres, LLC, of 6256 Clinton St. Road, Stafford, is receiving a $29,500 property-tax exemption, a $14,600 sales-tax exemption and a $4,000 mortgage-tax exemption for expansion of its business from 1,400 square feet to 5,600 square feet. For every $1 of tax exemption, the local economy should receive $210 in public benefit over the next 10 years, according to the GCEDC.  Pineyard Acres is expected to invest $335,000 in the expansion.

There will be an open house for the new School of Nursing facilities at MedTech Park from 3 to 6:30 p.m. on Friday, Aug. 20.

Genesee Community College and Genesee County Economic Development Center (GCEDC) will jointly celebrate the opening of the Dr. Bruce A. Holm Upstate MedTech Centre.

It includes the college's new School of Nursing, the headquarters of GCEDC and the Physical Therapy Department of United Memorial Medical Center.

Community members are invited for the ribbon-cutting ceremony, tours and hands-on demonstrations of the brand-new classrooms and laboratories.

Genesee's School of Nursing occupies the entire second floor of the new MedTech Centre building. The new 20,000-square-foot-facility includes a lecture hall, conference rooms, and three state-of-the-art nursing labs for hands-on, experiential learning.

There's also a student and employee gathering room with tables, a vending area and lockers, which allow students and staff to study, relax or socialize between classes. Faculty and administrative offices also occupy the second floor.

"The college's nursing program recently increased its enrollment, helping address a nationwide demand for more registered nurses," said Kathy Palumbo, director of Genesee's Nursing program. "This new facility exemplifies both the college and business community's commitment to a stronger healthcare workforce.

"We are grateful to all the public officials, private citizens, supporters of the college as well as our dedicated students and faculty who helped make these state-of-the-art facilities a reality."

The open house will welcome Genesee's wide-reaching Nursing Program alumni as well as the nursing faculty and advisory council, Genesee's president, Stuart Steiner, Ed.D, board of trustee members, elected officials and representatives from the GDEDC (which occupies part of the first floor of the building).

"This is an exciting time for GCEDC and Genesee Community College," said Steven Hyde, president and CEO of the GCEDC. "We are not only welcoming the nurses of tomorrow to this brand-new facility, ... we look forward to working collaboratively with the college and other organizations to develop new jobs for our region in the burgeoning new field of medical technology."

The ribbon cutting and School of Nursing open house program includes:

3 p.m. -- Doors open for the Open House

4 p.m. -- Ribbon cutting and brief welcome and acknowledgments by MedTech and college officials

4:30-6:30 p.m. -- Facility tours, School of Nursing demonstrations

An assortment of refreshments will be provided at the reception, including the college's new bottled "Cougar Water."

For further information or to RSVP to the GCC School of Nursing open house and reception please call Patty Hume at 585-343-0055, ext. 6234.