COMMITTEE ON Energy & Econimic Development
MINUTES: February 4, 2004*
MEMBERS: Chair: Rogowsky – Legislators: Young.
IN ATTENDANCE: BOL STAFF: R. Vega; CEO: Sal Carrera, Teri Waivada, Terry Masterson; OTHERS: Dan Rosenblum, Edna Sussman, Hope Corbin.
TOPIC: Westchester County Office of Economic Dev., Sal Carrera, Director
DISCUSSION:
Chair Rogowsky called the meeting to order at 9:42 a.m.
Draft minutes from 10/21/03 and 5/6/03 in the previous term were submitted for the record.
Leg. Rogowsky introduced the guest speakers Sal Carrera, Teri Waivada and Terry Masterson from the County Economic Development and Real Estate Office (EDRE) and IDA to explain to the committee their work and how the committee can work with them.
Mr. Carerra is in charge of Econ. Dev. and Real Estate and is also an active member of the IDA team that Teri Waivada leads. Terry Masterson and 2 others are the employees in that area. In the six years that he has been in the position, the vacancy and unemployment rates have changed completely. They have been a proactive force to improve business climate. The large corporations that downsized left thousands of sq. ft. of vacant office space which has now been filled under this administration with small and midsized businesses. He has gone out into the business world to convince them that Westchester is a proactive force and explain the good things we have to offer.
EDRE is an aggressive, deal-making organization that brings new development to the County. They have partnered with Con Edison and Empire State Development that have lots of benefits and money to offer. Westchester is one of the few counties that offers benefits to midsized companies. Carerra looks at IDA benefits such as sales tax abatements as long term investments. He sees changes from Yonkers on north with unemployment rate below 4%, vacancy rate less than half of what it was 6 years ago and millions in contruction projects. Retention, expansion and relocation efforts in Westchester have been very successful. Mr. Carerra gave several examples of how they worked with corporations to put deals together. New techniques such as helping train the 600 new Fortunoff employees show how much is being done to attract corporations.
They require that construction with IDA benefits be EnergyStar projects.
Another approach they use to improve the County’s real estate position and lower costs is to get out of bad lease deals and buy rather than lease buildings. This lowers costs from $35-$40 per foot to $8-$10/foot when you own. Property the County owns but does not need will be sold. An example is the parking lot next to the Board of Elections.
The competition requires that deals be made. New Jersey returned to giving benefits when they saw the business they lost to other places including Westchester.
In response to questions, Mr. Carerra stated that he does not get involved with the negotiations between a business and the local municipality. He gets involved in a wide variety of matters, however, so is very busy. He reviews every lease, license or business deal done in any department in the County from airport leases to hotdog stands. He tries to stay away from permits unless it is holding up a deal; then he will make a call. Mr. Carerra would be glad to let the legislators know about the final stages of negotiations so that they can participate on the local level if the incoming business needs assistance.
There are various empowerment zones in Yonkers and Mt. Vernon. These give the opportunity to offer “a 10 year forgiveness of real estate taxes which the State picks up.”
IDA deals don’t affect the County very much. NYS loses 4 ½% in sales tax on equipment and construction materials when abatements are given. The County has the power to do this although the State has objected to the loss of funds.
He would like to see the corporations take on operating the shuttle buses rather than the county because it costs so much and the buses are empty most of the day. Metropool has contracts with corporations to provide buses which are driven by the corporate employees to various locations including to collect employees in Queens. His office will assist new companies with transportation arrangements for their employees.
Most of the $500,000 funds for EDRE is from the IDA. Mary Russell will give the committee a breakdown of where the funds come from.
Mr. Carerra described the relationship that EDRE has with the Office of Tourism. Tourism, now under the Co. Exec. and EDRE, has become very successful in promoting Westchester Co.
The IDA Board is very active yet has a waiting list for people who would like to serve. The members have not objected to filling out the conflict of interest forms.
Leg. Young expressed his concern that the IDA Board be fully aware of the need for equity and fairness as it relates to racial, ethnic and gender in the companies that are awarded benefits. Mr. Carerra acknowledged the importance of this issue and, although there are not strings to the benefits, his office does monitor the balance of employees. The office also requires the posting of jobs on the county job website providing the opportunity to fill the job from the County residents.
EDRE requires that buildings use EnergyStar but not be “green” buildings. The interest rate is more beneficial if done through the County rather than NYPA.
Future meetings will pursue the energy issue and IDA.
The committee recessed for 5 minutes to establish a quorum. In the absence of a quorum, a motion to adjourn was made, seconded and the committee adjourned.
*There was not a quorum at this meeting; therefore, the committee did not take action on any of these items.
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