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Thursday, May 20, 2010

GAF Raw Deal...For Taxpayers.

For years, the complaint of Erie politicians has been that 40% of the properties within the city limits are un-taxed , non-profit entities, that cuts into the revenue to the city’s coffers. While the administration of Mayor Joe Sinnott has worked diligently to launch payment in-lieu of taxes, of PILOT agreements with some of the non-profits, as with prior city leaders, the results have been less than stellar.


So as I read the details of the agreement that city fathers and the Erie County Convention Center Authority put together regarding the vacant, but on the tax rolls, former GAF Plant on Erie’s bay front, I have little doubt that the location will end up as part of a LERTA or other tax exempt program when an eventual developer is found to take on the property, thereby reducing the tax base yet again.

The “deal” calls for the Convention Center Authority to get $3 million in taxpayer dollars from the State and pay off GAF, who would cover the cost of the demolition of the plant. An un-named developer would be responsible for the environmental cleanup of the site and environmental liability insurance on the property.

I’m more than a little skeptical that some investor would agree to eat the sizable cost to clean up the former shingle factory site and the price tag for future developers to be protected against environmental damage claims without some back end break to cover the costs.

The deal just sounds too good to be true. Keep in mind this whole thing was put together by the Convention Center Authority, Executive Director Casey Wells and authority board member Roger Richards, a pair of masterful salesmen who sold taxpayers the bill of goods about the rosy future of the Bayfront Convention Center and it’s neighboring hotel. As predicted, both facilities, while very nice, have not really done much in the way of new business.

While the Authority leadership may try to claim a level of success, the reality is that the facility has yet to bring in much in the way of new business. Instead the Bayfront Convention Center has plundered it’s business from other, local, often privately owned and operated facilities. For a huge expenditure of over 100 million taxpayer dollars, the results are dismal!

So what do we do now? Why of course we throw more money into the bay front, with no real, concrete plans in place. It’s seems long past due that the taxpayers of the Erie Community stand up and demand accountability from its leadership. Therein is the problem. City, county and state leaders know they can pass the buck on accountability, because the shuffle these deals off to the un-accountable authorities. This way they have the plausible deniability and cover that they need when it comes to the people left footing the bill, you the taxpayer.

RED FLAG ALERT- It's no real surprise that the Erie Times News editorial board thinks this raw deal is a good deal! Keep in mind, they thought the Convention Center was a winning idea too!

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