Coalition for Sustainable Economic Development Tax Abatement Policy Recommendations

Tax abatements are a privilege that should only be granted upon considering an applicants commitment to providing the following community benefits. Rather than an all or nothing approach to abatements, a policy of granting graduated levels of abatements - including enhanced abatements - may be provided based on the extent of the applicants commitment to providing the community benefits identified below.

Municipalities, TCAD and the IDA should be proactive in recruiting businesses that provide these benefits.

Community Benefits

Hiring and Working Conditions Developers and employers have no documented history of wage-theft and ensure that everyone involved with the building of the project, as well as those who work in the finished product, will make at least a living wage as defined and updated by Alternatives Federal Credit Union every two years.

The developers and managers of the finished product will have a diversity hiring commitment in place for all pay grades.

At least 90% of all project employees of the general contractor, subcontractor or subcontractor to a subcontractor (collectively the workers) working on the project must reside within the local labor area (defined as Tompkins, Schuyler, Cortland, Tioga, Chemung, Seneca and Cayuga counties.) Companies do not have to be local companies as defined herein, but must employ local workers residing within the local labor area to qualify under the 90% local labor criteria.

All workers involved in the project will have the right to organize and their human rights as defined by the 1948 Universal Declaration of Human Rights will be respected.

For projects over $500K contractors, subcontractors, and subcontractors to subcontractors shall have in place a state approved apprenticeship program if their craft falls under the jurisdiction of a craft represented by the local building trades council.

Developers and employers will have an ongoing record of maintaining safe and healthy working conditions for all employees and contractors. Employers and contractors will not ask about prior criminal convictions on their job application or in the initial interview process.

Environmental Protection The design, construction and operation of the project uses energy efficient building practices, minimizes use of fossil fuels, and furthers the Countys goals of reducing greenhouse gas emissions.

Projects will protect important or fragile environmental resources (as identified by governmental advisory bodies or through other credible evidence), such as woodlands, wetlands, streams or lakes, air or water quality, steep slopes, neighborhood character or historic features.

Projects will contribute to a sustainable development pattern, such as density or transit oriented development, not suburban sprawl.

Social Justice The project increases equal access to basic services including food, water, and energy security, and

The project supports our community goal of encouraging development of and use of minority and women-owned businesses.

Residential projects will provide mixed-income housing that is available and affordable to low- and middle-income families, particularly in the city core.

The project uses locally sourced goods and materials in their projects in construction and in operation to the degree possible.

The applicant demonstrates good corporate citizenship, including a history of compliance with local building codes, payment of taxes on time, etc.

The applicant demonstrates a financial need for tax abatement.

Public Process Since tax abatements involve a waiver of significant levels of public monies there should be a robust process to inform and engage the public during multiple stages of the abatements development. A transparent public process can help ensure positive outcomes for both developers and the community.

For all projects applying for tax abatements, the relevant municipality (city, town, county) shall conduct a transparent, accessible public process that includes the following steps:

Posting notice that an abatement has been applied for, and a timeline for procedural steps in the abatement process.

Posting the abatement application and all related documentation online and in the relevant municipal library and the County library as soon as possible.

Conducting an initial public information session - while discussions between TCAD, the municipality and developer are still in formative stages - in which the public has an opportunity to ask questions, articulate expectations for public benefits, and otherwise provide input on the abatement application.

Providing the public with the developers and governing bodys responses to questions and concerns raised in the public information session before the municipality or the IDA rules on the application.

Posting notice of public hearing on the abatement and providing all related documents online and in the County and relevant municipal public library at least 10 days before the public hearing.

Abatement ApplicationThe abatement application should be a mechanism for establishing accountability. Instead of check boxes, the application should request descriptions. For example: instead of Do you have diversity in hiring practice? Yes / No application should say Describe your diversity in hiring practices. What is the current diversity of your workforce?

AccountabilityFor all projects that have been granted tax abatements there should be mechanisms in place to ensure that the project adheres to the community benefits agreed to when the abatement was granted, and recapture policy should be invoked for projects which have not complied with the terms of their abatement contract.

Information about the projects adherence to the terms of the abatement agreement and/or recapture actions will be made public both online and in relevant public libraries.

IDA Committee StructureIn appointing members of the IDA, the County Legislature should attempt to ensure that the following interests are represented: School District Social Justice and Equity Labor The Environment Municipal Government Businesses