LDCs- Everything is illuminated, or should be
In a recent meeting that I had with the County Democratic Chair of a neighboring county, I was introduced to the concept of LDCs-Local Development Corporations. I don’t pretend to totally understand what is going on with them, but the more I learn, (scroll down to County Democrats probe $13million contract) the smellier(quasi governmental entity?) it gets. Btp had a post which began to scratch the surface of why LDCs are a baaaad thing.
Ted O’Brien, Democratic County Legislator from Irondequoit, does understand them and is working to remove the shroud of secrecy which envelops them. This is a big story, but so far, only R News and Joe Spector from the D&C have covered it. Contrary to what the County Attorney says, these corporations have no transparency and our legislative body has no oversight with them. There are 11 LDCs in place with our county government. I get shivers just thinking about them. Take a moment to read Ted’s letter to the legislature:To the Honorable
Monroe County Legislature
407 County Office Building
39 West Main Street
Rochester, New York 14614
Re: Legislative Oversight of Local Development Corporations
Honorable Legislators:
The County Administration has significantly increased its reliance on Local Development Corporations (LDCs), which are private not-for-profit entities, shrouding governmental functions from public oversight and accountability. The use of LDCs not only removes government business from legislative scrutiny, but also from ‘good government’ protections such as the Open Meetings Law, the Freedom of Information Law, and competitive bidding requirements. Such laws and regulations were put in place to protect the public interest and to guarantee government accountability and efficiency. When government business is removed from public purview and this Honorable Body, democracy suffers and the potential for serious abuse increases.
The following LDCs are among those established by past and present Monroe County Administrations: Monroe Newpower Corporation, Main and Clinton Local Development Corporation, Upstate Telecommunications Corporation, Monroe Tobacco Asset Securitization Corporation, Greater Rochester Outdoor Sports Facility Corporation, Civic Center Monroe County Local Development Corporation, Monroe Community Sports Centre Corporation, Monroe County Sports Development Corporation, Monroe County Industrial Development Corporation, Monroe County Development Corporation and Community Capital of Monroe County, Inc.
Upstate Telecommunications Corporation, which owns and operates the County’s telephone and computer systems and will soon provide all of its copiers, has borrowed over $32 million, incurred losses of $1,032,370 in 2006 and has incurred cumulative losses of $18,584,606 as of Dec. 31, 2006. Main and Clinton Local Development Corporation has been created to construct Renaissance Square, the biggest capital project in the County’s history and has spent $8,049,207 as of May 31, 2007 – without any legislative debate or approval of the project. The Greater Rochester Outdoor Sports Facility Corporation is the current lease holder and operator of Frontier Field, and owes the County over $16 million in delinquent rent payments.
Of the three above-mentioned LDCs, the over $32 million of incurred debt, over $8 million in spending, and $16 million in lost revenue for Monroe County have occurred with little or no legislative oversight and accountability.
In order to reverse this trend of unaccountability and rein in LDCs, we propose that this Honorable Body enact a local law amending the Monroe County Charter to include a new provision, entitled “Legislative Oversight of Local Development Corporations.†Adoption of this proposal will introduce public accountability into a wide range of County activities that been removed from legislative oversight in recent years.
The Public Authorities Accountability Act adopted by the State Legislature in 2005 required LDCs to begin submitting annual budgets and financial statements to the Legislature but the Legislature still exercises no oversight over or influence on the actions of these entities.
All of the oversight functions which are incorporated in the proposed local law already exist for some of the County’s related entities. For example, the Legislature has members on the Airport Authority, approves appointments to the Airport and Water Authorities, approves the budget of the Cultural District Commission and approves all borrowings by the Airport and Water Authorities. These are not new or novel ideas. However, this proposal updates and broadens County Law, strengthening standards for a set of operating entities that did not exist when the Charter and Administrative Code were written.
The specific legislative actions required are:
1. Schedule and hold a public hearing on the proposed local law.
2. Enact local law amending the Monroe County Charter, as attached.
This proposed local law will have no impact on the revenues and/or expenditures of the 2007 Monroe County Budget.
We recommend that this matter be referred to the appropriate committee(s) for favorable action by Your Honorable Body.
Respectfully Submitted,
Ted O’Brien
Legislator – District 17
Carla M. Palumbo
Democratic Leader
C. Stephen Eckel
Legislator – District 26 Calvin Lee, Jr.
Assistant Democratic Leader
Harry B. Bronson
Assistant Democratic Leader
Travis R. Heider
Legislator – District 14 Stephanie Polowe Aldersley
Legislator – District 16
Carrie M. Andrews
Legislator – District 21
Glenn J. Gamble
Legislator – District 22
Paul E. Haney
Legislator – District 23
Willie J. Lightfoot
Legislator – District 27
José A. Cruz
Legislator – District 29
Thank you Ted, for this wonderfully succinct letter, helping us to understand the nature of the beast. I hope that people will read this and begin to get angry. GET VERY ANGRY that our tax dollars are being frittered away with no oversight to the biggest donors to the Monroe County Republican Machine (AKA Maggie and Steve) Get Angry and then DO SOMETHING. Go to a county leg meeting and watch what goes on-notice how the Dems are ignored, notice the arrogance of the Repugs. Go to work for one of our Democratic county leg candidates-they need all the help and support you can give them. Let’s turn this county around. Not to beat a dead horse, but You Have the Power!
The letter from Ted was actually a referral, or the cover for proposed legislation that would of created a basis of oversight for these LDCs, but it was dismissed by the Republican Majority at the Agenda Charter committee and voted down!
It’s about time someone came out and made a strong statement!
That’s true, here is the proposed legislation-notice no action has been taken on it. August 17th was the date of the letter. And thank you for your response, I am blown away that nobody is picking up on this. This is so big and could bring down the Republican house of cards that is our county legislature if only people were paying attention. Hellooooo, McFly, anybody in there?
By Legislators _________________ and ———————–__________________
Intro. No. ______
LOCAL LAW NO. ______ OF 2007
A LOCAL LAW ENTITLED “AMENDING MONROE COUNTY ADMINISTRATIVE CODE
AND CHARTER RELATING TO LEGISLATIVE OVERSIGHT OF LOCAL DEVELOPMENT
CORPORATIONS.”
BE IT ENACTED BY THE LEGISLATURE OF THE COUNTY OF MONROE, as follows:
Section 1. Section §C2-6(C)(15) is added to the Monroe County Charter:
§ C2-6(C)(15) Legislative Oversight of Local Development Corporations
The Monroe County Legislature will exercise the following oversight functions over all local development corporations, which are hereby defined as a “Local Authority,†as defined in the Public Authorities Accountability Act of 2005 (Chapter 766 of the laws of 2005) (see Act§2; PAL§2(2)), established in Monroe County, New York:
a. To confirm the appointments of all members to the boards of directors of local development corporations established in Monroe County, New York.
b. To hold two positions on the boards of directors of all local development corporations established in Monroe County, New York. One such position shall be filled by a nominee of the majority leader of the Legislature and the other shall be filled by a nominee of the minority leader of the Legislature.
c. To approve the annual budgets of all local development corporations established in Monroe County, New York prior to the start of their fiscal years.
d. To authorize the issuance of all and any long term debt or other long term financing mechanisms of all local development corporations established in Monroe County, New York.
e. To require that semiannual financial reports and annual audited financial statements of all local development corporations established in Monroe County, New York be submitted to and filed with the Clerk of the Legislature. The annual audit reports shall be filed within 181 days of the end of the LDC’s fiscal year.
f. To require that all local development corporations shall be subject to the Public Authorities Accountability Act of 2005, the Freedom of Information Law, the Open Meetings Law and competitive bidding statutes as adopted and periodically amended by the State Legislature since they constitute a “local authority†performing a public function.
File No. 07-0____________.LL
ADOPTION: Date:____________ Vote: ______________
ACTION BY THE COUNTY EXECUTIVE
APPROVED: —_____________ VETOED: _____________
SIGNATURE: ____________________________ DATE:___________________
EFFECTIVE DATE OF LOCAL LAW: _______________________________
Added Language is underlined
Deleted Language is stricken
There is so much political fodder for Democrats to use against Maggie Brooks…yet they decided not to run a campaign against the County Executive! Absolutely insane. The National Republican Party is imploding…and the local Republican management of Monroe County is a package of incompetence, political patronage and indifference.
Crazy as it may appear. I really think that support for a third party candidate can defeat Maggie Brooks….or at least….put her in a major defensive role…so that she has to spend her large cache…rather than giving it to Republican County legislatures.