Jocke Wulcan, Unsplash
Amidst the holidays and end-of-year scramble, New York State Governor Kathy Hochul vetoed legislation that would have required Industrial Development Agencies to have school district and labor union representatives on their governing board and/or board of directors.
Industrial Development Agencies, commonly known as “IDAs,” are public benefit corporations, a form of governmental entity created by the New York State Legislature. IDAs are authorized by New York State law to grant economic incentives, including tax abatements and Payment-In-Lieu-of-Tax (“PILOT”) Agreements, to businesses to encourage local economic development and growth, and meaningful job creation.
IDA boards are comprised of private citizens appointed by local government, with board members generally having significant experience in private sector business, economic development, finance and government.
NY Senate Bill S4040B, linked below, proposed to amend Section 856 of the New York State General Municipal Law to require “…at least one local labor organization representative and at least one representative of a school board or a superintendent of a school district to be appointed to each IDA.” In her veto message, the Governor indicated the school district and labor union representatives are currently eligible to serve on IDA boards and stated “…it is most appropriate to ensure specific industrial development agency members are chosen by the municipality to best represent the interests of the community rather than imposing an inflexible statutory requirement.”
IDAs are crucial to the continued development and evolution of the Long Island economy and promote continued investment and development in the region necessary to ensure growth of business and industry. Given the high costs and significant obstacles to constructing, developing and operating on Long Island, IDAs help businesses remain on and/or locate to our region where it would otherwise not be possible. Projects that receive IDA assistance can reinvent, reshape, modernize and revitalize the region, adding vibrancy to the landscape and helping to attract and retain talent and industry needed to ensure Long Island’s continued success for years to come.
New York State assemblywoman Michelle C. Solages, a co-sponsor of the vetoed legislation, intends to reintroduce the bill to the New York State legislature in the 2025 regular session, which convenes today.
https://www.nysenate.gov/legislation/bills/2023/S4040/amendment/B
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