Erie County Industrial Development Agency (ECIDA)
Buffalo & Erie County Industrial Land Development Corp. (ILDC)
Buffalo & Erie County Regional Development Corporation (RDC)
2013 Mission Statement and Performance Measurements Date Approved: 3/26/2014
Mission Statement:
The mission of the Erie County IDA and its affiliates is to provide the resources that encourage investment, innovation, and international trade - creating a successful business climate that improves the quality of life for the residents of the region.
Annual Report:
Note: The ECIDA’s official annual report which outlines detailed project information and accomplishments is called “2013 Year in Review – Building Business in the New Buffalo”, and is posted on the ECIDA’s website at http://www.ecidany.com/about-us-corporate-reports under “2013 ECIDA Operations and Accomplishments Report”. Performance Goals, Measures & Results:
Goal: To promote private investment and innovation:
Objective A: Encourage private sector investment by providing incentives and other economic development services to spur eligible development projects.
Measurement: Value of new private investments from tax incentives.
2013 Results: The ECIDA approved 25 tax incentive projects in 2013 compared to 21 in 2012, a 19% increase. The anticipated private sector investment resulting from those projects is $589.7 million compared to $171.6 million in 2012, a 243% increase. The 2013 projects included the $172.2 million HARBORCENTER project at Canalside and the $100 million Conventus project at the Buffalo Niagara Medical Campus.
In 2013, the ECIDA also completed a $4.4 million realignment and reconstruction of two miles of rail lines at the former Bethlehem
contracting agent in support of this Erie County-led initiative. In addition, the ECIDA also funded a $1 million forgivable loan to Welded Tube of Canada to create 121 new jobs and locate their $50.2 million project on the site.
Objective B: Provide “gap financing” to spur the creation of new businesses and private-sector investment in working capital, machinery and equipment.
Measurement: Number and amount of business loans approved.
2013 Results: In 2013, the RDC provided five businesses with gap financing in the amount of $2.8 million compared to 10 loans in 2012 for $0.8 million. This is a 50% decrease in the number of loans and a 250% increase in the amount funded.
Objective C: Assist non-profit and other eligible borrowers obtain low-interest, tax-exempt financing from commercial banks.
Measurement: Value of new private investments from low-interest financing provided to non-profit organizations.
2013 Results: In 2013, the ECIDA/ILDC did not issue any new tax-exempt financing, however it did assist the City of Buffalo School district and DePaul Properties Inc with the refinancing of $62.5 million and $5.5 million respectively in previously issued bonds at a lower interest rate. This compares to 2012, when the ILDC board approved three new tax-exempt financing projects for a total private investment of $238.3 million.
Goal: To support business formation, job growth, and economic expansion, concentrating on underserved markets:
Objective A: To support the re-investment in vacant, abandoned and underutilized buildings, primarily in the urban core, through the ECIDA’s adaptive re-use tax incentive program and other financial support.
Measurement: Number and investment value of adaptive re-use building projects.
2013 Results: In 2013, the ECIDA supported the reuse of seven previously vacant or underutilized buildings in the City of Buffalo with new private sector investment of $137.1 million. These projects included the Richardson Center, the former Sheehan Hospital building and the former Arctic Freezer building. This compares to 2012 when the ECIDA approved five adaptive reuse projects with a total private-sector investment of $75 million. This translates into a 40% increase in the number of adaptive reuse projects and an 83% increase in the amount of private sector investment. In 2013, the ECIDA also provided $100,000 in funding to the Buffalo Urban Development Agency (BUDC) to fund operating costs associated with the Buffalo Building Reuse Project. This project seeks to co-ordinate and increase public and private sector investment in the downtown Buffalo core through new tools that include: a new building loan fund, strategic downtown infrastructure plan and increased promotion of downtown retail, commercial and housing opportunities.
Objective B: To support the creation and growth of minority & women-owned businesses.
Measurement: Number and amount of micro-loans and minority/women-owned business loans approved.
2013 Results: In 2013, the RDC funded five loans totaling $2.8 million. Three of the five loans, totaling $85,000, were to women-owned businesses and one of the loans was to a minority-owned
$33,000 and had no minority-owned business loans. The number of women-owned business loans increased by 50% and the amount funded increased by 158%.
In 2013, the ECIDA also provided a new $150,000 grant to the Buffalo Niagara International Trade Foundation to develop a Government Technical Assistance Center (GTAC) for Erie County. The GTAC assists small businesses, especially women, minority and veteran-owned businesses, in selling their goods and services to the Federal government.
Objective C: To support the creation of new jobs at all salary levels.
Measurement: Number of net new full and part-time jobs created and their average salary as a result of ECIDA financial support.
2013 Results: In 2013, the ECIDA tax incentive projects are anticipated to create 899 new jobs at an average salary of $42,077. This represents a 65% increase in anticipated new jobs when compared to the 544 jobs that were anticipated to be created from the 2012 tax incentive projects.
In 2013, the ECIDA also introduced a new claw-back policy which is triggered when actual job performance on each project falls below 85% of the anticipated jobs.
Objective D: Reach out to Erie County businesses to inform them of ECIDA and other business support services available.
Measurement: Number of unique sales calls and appointments
2013 Results: In 2013, the ECIDA made 413 unique sales calls and 188 appointments.
Goal: Encourage international trade:
Objective A: Promote & support the use of Erie County’s foreign trade zone to assist businesses in remaining globally competitive by reducing, eliminating or deferring import duties.
Measurement: Value of goods moving through Foreign Trade Zone #23.
2013 Results: In 2013, $46.5 million in goods moved through four locations in the Erie County Foreign Trade Zone compared to $44.2 million in 2012, a 5 % increase.
Objective B: Promote & support local companies to export to Canada and other countries.
Measurement: Number of worldwide business credit reports generated for companies located in Erie County and nationwide.
Measurement: Number of companies represented at international trade events. Measurement: Number of international trade events and number of attendees at
each event.
2013 Results: In 2013, the ECIDA reduced its international trade program efforts with the departure of its Director of International Programs. The International Program is currently under review pending discussions between the ECIDA and its economic development partners.
Additional questions required by the NYS Authority Budget Office:
1. Have the board members acknowledged that they have read and understood the mission of the public authority?
The Board discussed and re-adopted the ECIDA’s mission statement during the March 26, 2014 Board meeting.
2. Who has the power to appoint the management of the public authority?
The Board of Directors appoints the Officers of the Corporation and hires the Chief Executive Officer. Under the ECIDA’s by-laws, the Chief Operating Officer is responsible for all personnel functions of the Agency.
3. If the Board appoints management, do you have a policy you follow when appointing the management of the public authority?
The Board follows the ECIDA By-Laws when appointing management.
4. Briefly describe the role of the Board and the role of management in the implementation of the mission.
Management works with the Chair and Vice-Chair in formulating an on-going work plan for management to carry out the strategic goals related to the mission of the organization. Board members review and approve individual tax incentives and loan projects to ensure that they are consistent with the Agency’s mission. Board members also review and approve the annual budget to ensure resources are allocated appropriately to meet the Agency’s mission.
5. Has the Board acknowledged that they have read and understood the responses to each of these questions?
Yes, these questions and responses were discussed and approved by the Board during the March 26, 2014 Board meeting.
