| COUNTY TO APPLY FOR EMPIRE ZONE Tompkins County will apply to New York State for Empire Zone designation to retain existing businesses, increase business growth, and add jobs to the local economy. Although the County's previous attempts to receive an Empire Zone have failed, recent changes in state legislation assure that by 2011, every county that currently lacks a zone will get one. Another key change in the legislation is that a property tax abatement is no longer offered; in its place is a tax credit tied to wages and benefits paid to employees in newly-created jobs. The application, designed with the leadership of Tompkins County Area Development (TCAD), will focus on growth of manufacturing and technology sectors as well as commercial development in high-density business districts. The application is for six sub-zones including an area in the City of Ithaca that extends along the waterfront and branches through the West End to encompass the Commons and downtown. Another sub-zone extends along the Route 96B corridor south with a loop to include a manufacturing area on South Hill. A large sub-zone in Lansing encompasses the Cornell Business and Technology Park and extends north to include other high-tech manufacturing areas. A smaller sub-zone is located in the North Lansing area. Another sub-zone captures the industrial and commercial area around the NYSEG headquarters on Route 13 North, and a small area in the northern part of the Village of Dryden is a sub-zone, as well. Each of the affected municipalities has agreed to the locations of the sub-zones, and each of the sub-zones has or is slated to soon have public utilities. Supporter Barbara Blanchard stated that she does not expect Tompkins to be among the first applicants to receive Empire Zone designation, due to competition from twelve other areas, but that being consistent in pursuit of a zone will assure eventual success. The local law that authorizes the County to apply for the Empire Zone was approved by a 9 to 5 vote. Kathy Luz Herrera, Leslyn McBean-Clairborne, Frank Proto, Thomas Todd, and Daniel Winch were opposed; Dooley Kiefer was absent. Among the objections and concerns were that tax abatements for certain businesses could lead to higher taxes for citizens, that Empire Zones are intended to provide relief to much more depressed areas around the state, and that Zone administration will lead to an expansion of local government. Contacts: Michael Stamm, President, Tompkins County Area Development, 273-0005; Kathy Luz Herrera, Chair, Planning, Development, and Environmental Quality Committee, 273-8169. COUNTY LOOKS FOR MORE ADVANCE FUNDS FROM TOBACCO BONDS After turning down a chance in July to gain approximately $1 million through a restructuring of its tobacco settlement bonds, Tompkins County has new information that indicates it could receive $3 million to $4 million in advance funds by joining a second round of refinancing. The Legislature approved the refinancing by a 10 to 4 vote. The returns to counties that participated in an earlier tobacco bond issue were three to four times more than anticipated, County Finance Director David Squires reported. Perhaps most dramatic is the case of Putnam County which, according to news reports, expected to gain about $700,000 in the transaction and actually received $4.6 million. Tioga County expected $1 million and received three times that amount, Squires reported. The complex restructuring of the tobacco bonds involves the sale of residual payments - funds set aside to protect investors if tobacco companies become unable to meet their financial obligations - that could eventually be returned to the County. The future payments would start in 2015 and extend through 2044 or longer, and total $26 million. The present value of the future payments has been calculated at between $4 million and $9 million, but this value would only be realized if the domestic cigarette market stays strong. By state law, the returns from the bond issue can only be used to pay for capital projects. Squires argued that using $3 million cash for capital projects would save the County $8 million in the cost of debt service. Squires also pointed out that, because the County opted in 2000 to sell only half the rights to its future tobacco payments, it will still receive annual payments from the settlement. Voting yes were Barbara Blanchard, Dick Booth, Kathy Luz Herrera, Michael Koplinka-Loehr, Peter Penniman, Martha Robertson, Nancy Schuler, George Totman, Thomas Todd, and Daniel Winch. Voting no were Tim Joseph, Michael Lane, Leslyn McBean-Clairborne, and Frank Proto. Dooley Kiefer was absent. Contacts: Michael Koplinka-Loehr, Chair, Budget and Capital Committee, 257-2329; Finance Director David Squires, 274-5544; Steve Whicher, County Administrator, 274-5551. COUNTY CSEA WHITE COLLAR CONTRACT IS APPROVED The Legislature approved by a 13 to 1 vote a three-year contract with the County's largest employee bargaining group, the Civil Service Employees' Association (CSEA) White Collar unit. Union members ratified the contract at a meeting last week. The key elements of the contract are annual raises in salaries of 2 percent in 2005, retroactive to January 1; 3.5 percent in 2006; and 3 percent in 2007. The union members also accepted a change in prescription drug coverage, starting in January 2006, from a two-tiered co-payment plan of $2 and $10, to a three-tiered co-payment plan of $5 for generic drugs, $10 for plan-preferred brand-name drugs, and $25 for non-preferred drugs. Dick Booth was opposed to approval of the contract. Dooley Kiefer was absent. Contacts: Anita Fitzpatrick, Personnel Director, 274-5526; David Chase, President, CSEA White Collar, 274-5235; Steve Which.her, County Administrator, 274-5551 IN OTHER ACTIONS: -- Daniel Karig, retired chair of the Department of Earth and Atmospheric Sciences at Cornell University, received the Legislature's thanks for a study of the geology and groundwater patterns around the closed Hillview Road Landfill. Dr. Karig's report resolved apparent contradictions in previous studies of potential contamination of nearby wells and groundwater by defining a plausible groundwater flow model. Karig's model is consistent with ongoing well monitoring in the area, say officials. -- Thomas Todd introduced a member-filed resolution to accept, without change, the 2006 Tentative Tompkins County Budget as recommended on September 1 by the County Administrator. The recommended 2006 budget holds the amount of taxes collected from property owners at the 2005 level. The resolution also stated that any addition to the budget must be accompanied by a subtraction of an equal or greater amount. While several of his peers said they appreciated Todd's effort to simplify the process, they also felt that the budget requires Legislative review and amendment. Only Todd and George Totman voted for the measure. -- The Legislature unanimously approved a member-filed resolution, presented Frank Proto, in support of locating a military cemetery at the former Sampson Naval Base and Air Force Facility, now Sampson State Park. |