Report says Hamilton Square got breaks without producing jobs
GUILDERLAND — An annual report issued by the state’s Authorities Budget Office showed that a project provided tax exemptions by the Guilderland Industrial Development Agency had not fulfilled its agreement.
The project, which included renovations and expansions in Hamilton Square — formerly called the 20 Mall — on Western Avenue, was intended to sustain 151 jobs and create 30 more.
It received net exemptions of $172,000 through the IDA.
As of the time that the ABO issued the report, using data from 2013, Hamilton Square had employees in 151 full time equivalent positions. There was no increase in the number of employees in the shopping plaza since the project began.
The report, which examined 574 state and local authorities across the state, including 112 IDAs, showed that, while IDA debt declined from 2008 to 2012, projects that were expected to create 9,100 new jobs, generated 1,642 fewer jobs than were committed to in financial agreements.
These numbers, however, can be misleading, according to Donald Csaposs, the chief executive officer of the Guilderland IDA, which was created in 1973.
The transaction with Hamilton Square, he said, was approved and closed on Dec. 27, 2012, and the data in the report did not take into account that the project was not yet complete.
The agreement, said Csaposs, was for 30 extra jobs to be created by the time the project was finished. At the time the data was gathered, the renovation of Vent Fitness, and the construction of the new Starbucks and the M&T Bank were still ongoing.
Since the time that the data was gathered, the project has been finished, but, said Csaposs, Hamilton Square is not required to provide employment numbers to the IDA until the end of 2014.
“Anecdotally, you could say that there are more jobs there now.” Csaposs said, “Businesses exist there that didn’t before.”
William Lia Jr., the owner of Hamilton Square, could not be reached for comment.
Csaposs said the Guilderland IDA supports enforcement of the financial agreements between businesses or not-for-profit corporations and IDAs, and he said he believes that all IDAs should include clawback provisions in their agreements.
A clawback provision allows an IDA to recapture benefits if employment or other goals of the project are not met.
Csaposs had discussed clawback provisions with The Enterprise in 2011, when an audit by the state comptroller, Thomas DiNapoli, showed that three projects that were supposed to retain 209 jobs and create 40 more, had actually resulted in the loss of eight jobs.
Those projects were all for not-for-profit organizations — the construction of a facility for the Western Turnpike Squad; an update and expansion for the YMCA; and an update and expansion of a building for the Wildwood Program.
Csaposs attributed that fall-off to the poor economy.
Hamilton Square, said Csaposs, was the only project that the Guilderland IDA was funding, and now that it is complete, no new projects are on the immediate horizon.
“We have had some informal talks about projects, but nothing official,” he said.