Tompkins County IDA Procedures
Economic Incentive Recapture Policy
Introduction
Recapture policies are a response to a concern that public sector economic development incentives are not achieving desired results. There have been several national, high profile examples of large public sector investments in private sector developments that, by any measure, have not yielded the new jobs or taxes projected.
Tompkins County has been fortunate in that the return on public sector investment in private sector development has generally met or exceeded expectations. As the County moves forward with a more aggressive economic development strategy, perhaps including an external marketing campaign, it is appropriate to adopt a policy that maximizes the return on public investment in economic development.
Application for Economic Development Assistance
It is assumed that existing applications for assistance require historical and projected financial information as well as detailed information concerning the incentive requested. These applications will be modified to include the following:
- A list of all public subsidies received by the applicant or the applicant's parent company during the preceding ten (10) years to include the following:
- the type of subsidy received such as property tax abatement, industrial revenue bonds, direct loans or loan guarantees, grants, technical assistance or employee training;
- the amount and term of the subsidy;
- the public benefit that was projected such as job retention or increased property tax revenues;
- the public benefit received;
- name and contact information for organization granting subsidy.
- A description of the construction jobs resulting from the proposed project, including the following:
- the estimated total number of jobs that will be held by Tompkins County residents;
- the estimated wages and value of fringe benefits to be provided.
- A description of the permanent jobs resulting from the proposed project, including the following:
- existing employment by category with wages and benefits;
- projected new employment by year for three (3) years by category with wages and benefits.
- A description of the jobs that will be lost, if any, as a result of the proposed project, including wage and benefit information. This particularly related to productivity improvements.
- A description of non-employment-related economic benefits, including the following:
- property taxes and special assessments by jurisdiction for three (3) years;
- sales tax on construction materials, furnishing and fixtures for the initial project;
- mortgage recording tax;
- purchases from local suppliers or subcontractors on an annual basis for three (3) years.
- A summary of the company's products and markets particularly as they relate to possible competition with other Tompkins County companies.
Reporting Requirements
- On an annual basis for the duration of the term of the assistance provided, the company will provide the following information:
- average annual employment by category with wage, benefits and residence of employee;
- property taxes and special assessments paid;
- local and New York State sales tax paid;
- any other information relevant to the project that the IDA deems appropriate.
Economic Incentives Recapture Policy Provisions
Recapture policies are a response to a concern that public sector economic development incentives are not achieving desired results. There have been several national, high profile examples of large public sector investments in private sector developments that, by any measure, have not yielded the new jobs or taxes projected.
Tompkins County has been fortunate in that the return on public sector investment in private sector development has generally met or exceeded expectations. As the County moves forward with a more aggressive economic development strategy, perhaps including an external marketing campaign, it is appropriate to adopt a policy that maximizes the return on public investment in economic development.
- If the company shifts production activity to a facility outside of Tompkins County and, as a result, fails to achieve the economic benefits projected, then the IDA will declare the agreement to be in default and require the value of the incentives utilized to date to repaid, with interest (determined as the New York State legal interest rate).
- If it is determined that the economic benefits projected have not been achieved for reasons other than described above, then the IDA will afford the company a hearing where the company can be heard as to the issue. The following criteria will be used to determine if a valid explanation exists for failure to achieve the economic benefits projected by the company.
- Natural Disaster: if a natural disaster such as a fire, flood, or tornado disrupts the business
- Industry Trends: An evaluation of industry trends will be made relevant to the company, and a determination reached as to whether the company is in a market that is declining. International and national data will be used in the evaluation. An industry is considered in decline when, measured by the appropriate SIC code, it experiences employment or revenue declines--beyond its control--of 10% or more over 3 years.
- Loss of Major Supplier or Customer: if the loss of a customer or supplier represents 15% or more of the sales of the company
- Productivity Improvements: if new technology, equipment or general productivity improvements result in the need for less than projected employees or investment
- Unfair Competition: if an international competitor utilizes an unfair competitive advantage to acquire market share
- If the IDA, based on criteria outlined in points 1 and 2 above, then determines that the company's reasons for failing to meet the economic benefit projections are invalid, the IDA can declare the agreement to be in default and require the value of in the incentive utilized to date to be repaid, with interest.
- The IDA granting the economic incentive retains all rights to impose, delay or waive penalties.
- The policy is effective as of the date of project approval and applies to all current and future projects.
Tompkins County Industrial Development Agency (TCIDA)
Standards of Conduct/Code of Ethics
Standards of Conduct/Code of Ethics
Definition: (a) Board Member or Employee means a board member, employee, or administrator of the Tompkins County Industrial Development Agency (TCIDA), whether paid or unpaid.
(b) Interest means a pecuniary or material benefit accruing to a board member, employee or administrator unless the context otherwise requires.
Policy: The Board of Directors of the Tompkins County Industrial Development Agency recognizes that there are rules of ethical conduct for board members, employees, or administrators that must be observed if a high degree of moral conduct is to be obtained and if public confidence is to be maintained. It is the purpose of this Standard of Conduct to promulgate these rules of ethical conduct for the board members, employees, or administrators of the Tompkins County Industrial Development Agency. These rules shall serve as a guide for official conduct of the board members, employees, or administrators of the Tompkins County Industrial Development Agency.
Procedure:
Standards of conduct
Every the board member, employee, or administrator of the Tompkins County Industrial Development Agency shall be subject to and abide by the following standards of conduct.
(a) Gifts
Shall not directly or indirectly solicit any gifts. Shall not accept or receive any gifts having a value of $75.00 or more or the limit set by New York State whichever is higher, whether in the form of money, services, loan, travel, entertainment, hospitality, thing or promise, or any other form, under circumstances in which it could reasonably be expected to influence the performance of official duties or was intended as a reward for any official action.
(b) Confidential Information
Shall not disclose confidential information or use such information to further a personal interest.
For the purposes of the Code of Ethics, all information falls into one of three categories: the class of information which is never confidential, the class of information which is always confidential, and the class of information which may be confidential.
Some internal or interagency records, communications, and reports are never confidential. According to the Public Officers Law, this is true of information that is:
• the result of an external audit; or
• statistical data; or
• an instruction to staff that affects the public; or
• making public a final policy or determination made by the county or one of its departments.
Disclosure or use of such information is not restricted by the Code of Ethics.
Information is always confidential when its disclosure would:
• impair current or imminent contract awards or collective bargaining negotiations; or
• impair a business’s ability to compete in the market place such as proprietary financial or business information; or
• interfere with law enforcement investigations or judicial proceedings; or
• deprive a person of their right to a fair trial or impartial adjudication; or
• constitute an unwarranted invasion of privacy; or
• endanger the life or safety of any person.
Information that is always confidential also includes:
· information that is specified as non-disclosable by federal or state law.
No board member, employee, or administrator of the Tompkins County Industrial Development Agency may ever disclose such information or use such information to further a personal interest.
Any information that does not clearly fall into just one of the above categories may be confidential.
(c) Representation before one’s own agency: shall not receive, or enter into any agreement, express or implied, for compensation for services to be rendered in relation to any matter brought before the TCIDA for consideration.
(d) Representation before any agency for a contingent fee: Shall not receive, or enter into any agreement, express or implied, for compensation for services to be rendered in relation to any matter before the TCIDA for consideration, whereby his/her compensation is to be dependent or contingent upon any action by such agency with respect to such matter, provided that this paragraph shall not prohibit the fixing at any time of fees based upon the reasonable value of the services rendered.
(e) Investments in conflict with official duties: shall not invest or hold any investment directly or indirectly in any financial, business, commercial or other private transactions, which creates a conflict with official duties.
(f) Private employment: shall not engage in, solicit, negotiate for or promise to accept private employment or render services for private interests when such employment or service creates a conflict with or impairs the proper discharge of official duties.
Disclosure
Board members, employees, or administrators of the Tompkins County Industrial Development Agency shall file by May 15 of each year an annual disclosure statement. This shall be submitted to the Clerk of the Tompkins County Board of Representatives in the form prescribed by resolution of the Tompkins County Board of Representatives upon recommendation of the Ethics Advisory Board. The Clerk shall retain the forms on behalf of the Ethics Advisory Board and make them available for inspection as detailed below.
The Clerk of the Tompkins County Board shall make the information submitted on Annual Disclosure Statements available, on request, to the members of the Ethics Advisory Board, County Attorney, County Administrator, Director of Finance, State Auditor and Commissioner of Personnel. The Clerk shall also make the information submitted on Annual Disclosure Statements available to any other individual submitting a request to see it, as required by the Freedom of Information Law, but shall withhold from their inspection the range of market value of investments.
The County Attorney shall confirm filing by all required filers. Requests for determination regarding conflicts shall be referred by the County Attorney to the Ethics Advisory Board. If the County Attorney determines that any required filers have not completed and filed an accurate and complete disclosure form the County Attorney shall report this to the appropriate supervisor.
Distribution of code of ethics
The chairman of the Board of the Tompkins Industrial Development Agency shall cause a copy of this code of ethics to be distributed to every board member, employee, or administrator of the Tompkins County Industrial Development Agency within thirty (30) days after the effective date of this local law.
Penalties
Any person who shall knowingly and intentionally violate any of the provisions of this code may be suspended or removed from office or employment, as the case may be, in the manner provided by law.
