Wed October 30, 2013
Delaware North deal raises questions
Saying the "new Buffalo" doesn't need tax breaks to attract investment, State Assemblyman Sean Ryan is attacking the proposal to subsidize a new corporate headquarters and parking ramp for Delaware North.
Uniland wants to replace the office building on the curve of Delaware and Chippewa with an office building and hotel with a parking ramp on a separate piece of land at Chippewa and Elmwood.
Together, they are an $80 million project with a $10 million gap in the financing. The developer and Delaware North are looking for a complicated package of tax breaks and financing to pay for the complex and the ramp, saying it's not economically feasible without aid.
"The taxpayers are being asked to subsidize the risk. But, the developer keeps the reward," Ryan said.
"In terms of no taxes are being paid in the community from this project and no sales tax will ever be paid because of this project. We've got to get off this model of the community subsidizes risk and the reward goes to the developer."
Ryan said it's not being talked about but the parking ramp project already includes public money because a state brownfields tax credit is helping pay for cleaning up the property across from Hutch-Tech High School.
The ECIDA is slated to start reviewing the requests for tax breaks Monday morning.