Comida - How does it work?
OK, I have a question. How does Comida work? I admit to not deep diving into all things Comida but I have some questions. (Yes, I read the RochesterTurning archive articles here)
For example - there was a recent article in the D&C where Comida projects created jobs. Here is the complete list
***DelMar Brighton Inc. received a package of tax breaks for a $1.3 million renovation of the Courtyard by Marriott in Brighton. The 149-room hotel will get a makeover of the lobby and meeting rooms, and new furniture in guest rooms. ***InSciTek Microsystems Inc. in East Rochester received a package to help purchase $212,500 in equipment for a new laboratory. The communications systems maker employs 43 and expects to add four jobs. ***AJL Manufacturing Inc. in Rochester got a package to help purchase $250,000 worth of computer equipment. The company, which employs 174 people, said it will create four additional jobs. ***Terry Tree Service, Henrietta, received a package to help buy new dump trucks for $362,870. The company, which specializes in storm and disaster recovery services, employs 41 and will create four jobs. ***The Conking and Calabrese Co. Inc. of Fairport, a building supply distributor, received a package to help it buy a new boom truck for $100,000. The company employs 18 and will create two jobs. ***Elmer W. Davis. Inc. of Rochester received tax breaks to help it purchase $658,000 in new vehicles. The commercial roofing contractor employs 50 people and expects to hire four more. ***Lunch Byte Systems Inc. in Greece, a developer of nutrition software for school districts, also received incentives. The company is spending $83,000 on new computers that will help it sell to larger school districts. The 45-person company expects to hire two more employees.
I think that is great. Incentives to create jobs. OK - Are there any jobs lost as a result of these expansions? Are these job creations true net job creations? When do the jobs get created? Is there a time period? How is this activity funded?
Off to the Comida web site. They have all the meeting minutes (interesting reading) which list all the projects and projected jobs for the past few years. In terms of funding here is how they are funded.
COMIDA provides assistance to qualified applicants/projects. COMIDA does not lend any money to these projects, rather this assistance is provided through tax exemptions, real property tax abatements and access to lower interest rates through tax exempt bond issues. [snip]
COMIDA provides this assistance without any public money. Income is generated by the fees charged to applicants. These monies have been reinvested in our community to further the goals of economic development.
OK - tax incentives and abatments. Without public money. How is that possible? I mean ultimately the public through elected officials determine tax rates and such.
One more thing, So much does each of these jobs cost?
Anyone out there want to comment?
Well, according to MetroJustice’s report on COMIDA, here’s where the money comes from:
In other words, it’s like I said, arbitrarily, “hey stlo7– I just told your neighbor he doesn’t have to pay taxes ’cause he promised me he’d create all these crazy jobs, man.”
you:”but that leaves less of us to shoulder the burden of paying for schools, roads, etc.”
Me: “yep. very sad. anyway…”
you: “But what if they don’t create the jobs?”
Me: “why do you hate America?”
[...] OK - 40 jobs vs 260 jobs and yes, business changes and it is easy to do a search on a multibillion dollar company and find something. Remember when I wrote about these latest Comida awards? When are those jobs coming? Are these net gains in job growth? [...]
[...] saw my first post about COMIDA. There were a couple of posts that BTP has completed earlier in the year but this article [...]