Tompkins County
New York

Resolution
2018-132

Resolution to Authorize the County Administrator to Execute a Memorandum of Understanding with Tompkins County Area Development, Inc., for Economic Development Services

Information

Department:County AdministrationSponsors:
Category:Economic DevelopmentFunctions:Tcad

Attachments

  1. Printout
  2. 1. 2018-05-18 - PDEQ memo (This file has not yet been converted to a viewable format)
  3. 2. Projected Impact
  4. 3. 2018-05-18 - TCADCounty - MOU (This file has not yet been converted to a viewable format)
  5. 4. 2018-05-20 - TCAD MOU resolution (This file has not yet been converted to a viewable format)
  6. 5._2018 TCAD Work Plan_FINAL
  7. 6. TCAD 2017 Accomplishments
  8. 7. 2018-05-22 - DRAFT TCAD Case Statement (003) (This file has not yet been converted to a viewable format)
  9. 8. 2014-2018 TCAD MOU
  10. 9. Final Report All
  11. TCAD MOU Discussion
  12. 2018-06-07 - Funding approach
  13. _PDEQ_06.14.2018_for Screen
  14. Legislature-TCAD_06.19.2018
  15. 2018-06-14 - MOU additions J Molino
  16. TCAD MOU - Final 6-19-18 (This file has not yet been converted to a viewable format)

Resolution/Document Body

WHEREAS, in the contemporary economy, local government plays a significant role in the identification and realization of opportunities to increase the net wealth of the community by developing and providing information critical to business location and expansion decisions and by assisting businesses to access a variety of public sector economic development incentives, and

 

WHEREAS, Tompkins County has long chosen to contract with Tompkins County Area Development (TCAD) to provide this service, and

 

WHEREAS, TCAD is a not-for-profit organization whose board includes representatives of the business community, higher education, local government (including four County representatives), public education, the tourism industry, and organized labor, and

 

WHEREAS, TCAD has maintained high levels of performance on behalf of the County, including assisting a broad range of projects over the last five years, in which projects have paid $7.2 million in new property taxes to Tompkins County and $38 million to other taxing jurisdictions and helped create approximately 600 jobs for area residents through tax exempt financing provided by the County’s Industrial Development Agency (IDA) and Local Development Corporation (LDC).  In addition TCAD fosters economic development through the negotiation of payment-in-lieu-of-tax agreements and by undertaking general economic, demographic, infrastructure, and other analyses that assist business decision-makers, and

 

WHEREAS, TCAD is financially supported by contributions from local businesses and institutions, project-fee income generated by projects assisted by the County’s IDA and LDC, and appropriations by local government, and

 

WHEREAS, prior to the 2008 recession, fee income generated by the County’s IDA and LDC was robust, fueled by a strong national economy and several major institutional developments, allowing TCAD’s budget to be balanced largely with IDA/LDC fee income and employer contributions that, in turn, enabled the County to enjoy a strong economic development program at a minimal direct cost to the County, and

 

WHEREAS, in the wake of the 2008 recession, private and institutional development slowed, causing financial support for TCAD to shift from on-going IDA/LDC revenue to the reserves those agencies had accumulated prior to the recession, and

 

WHEREAS, recognizing the need to maintain the programs and activities, in 2012 the Legislature’s Planning, Development, and Environmental Committee commissioned a Task Force to provide it advice regarding such alternative revenue structures, as well as any operational issues associated with an alternative model, and

 

WHEREAS, the Task Force recommended a funding plan that phased-in the use of Room Occupancy Tax revenue as one source of funds available to the County to address the TCAD funding goals and such allocations of Room Occupancy Tax Revenue would contribute a portion, but not all, of the County funds necessary to provide one-third of support for TCAD’s budget, and

 

WHEREAS, the recommendations from the Planning, Development, and Environmental Committee were implemented into a 5-year Memorandum of Understanding (2014-2018) with TCAD to continue to provide economic development services, and

 

WHEREAS, after discussion and feedback from community stakeholders, review and analysis of the prior four years of the current Memorandum of Understanding, the County Administrator is recommending a successor Memorandum of Understanding continuing the use of Room Occupancy Tax revenue as a partial source of funds available to the County to address TCAD funding goals,  now therefore be it

 

RESOLVED, on recommendation of the Planning, Development, and Environmental Quality Committee, That the use of hotel tax revenues be limited to no more than seventy-five percent (75%) of Tompkins County’s payments to Tompkins County Area Development in 2019, fifty percent (50%) in 2020 and 2021, and twenty-five percent (25%) in 2022 and 2023,

 

RESOLVED, further, That the Legislature hereby authorizes the County Administrator to enter into a 5-year successor Memorandum of Understanding dated January 1, 2019, to December 31, 2023, to implement said recommendations.

SEQR ACTION:  TYPE II-20

 

Meeting History

May 29, 2018 3:00 PM  Planning, Development, and Environmental Quality Committee Regular Meeting

Mr. Molino reviewed his memorandum in detail and said he has had multiple conversations with various stakeholders in an attempt to develop a compromise that allows for the continuation of relationships and continues to support economic development in the future.

Following discussion, the Committee agreed that it is a complicated subject and needs further discussion.

It was MOVED by Ms. Champion, seconded by Ms. Dawson, and unanimously adopted by voice vote, to TABLE the resolution entitled Resolution to Authorize the County Administrator to Execute a Memorandum of Understanding with Tompkins County Area Development, Inc., for Economic Development Services until a time when a special meeting of the Planning, Development, and Environmental Quality Committee can be scheduled to discuss this further.

RESULT:TABLED - NOT FINAL [UNANIMOUS]Next: 6/14/2018 1:00 PM
MOVER:Anna Kelles, Chair
SECONDER:Deborah Dawson, Member
AYES:Anna Kelles, Amanda Champion, David McKenna, Deborah Dawson, Anne Koreman
Jun 14, 2018 1:00 PM  Planning, Development, and Environmental Quality Committee Special Meeting
draft Draft
RESULT:RECOMMENDED [UNANIMOUS]
MOVER:David McKenna, Member
SECONDER:Amanda Champion, Vice Chair
AYES:Anna Kelles, Amanda Champion, David McKenna, Deborah Dawson, Anne Koreman
Jun 19, 2018 5:30 PM Media Tompkins County Legislature Regular Meeting

Ms. Kelles spoke of the progress with workforce development and thanked Mr. Stamm and others for the presentation.

It was MOVED by Mr. John, seconded by Mr. McKenna, to delete the first Resolved: “RESOLVED, on recommendation of the Planning, Development, and Environmental Quality Committee, That the use of Room Tax revenues be limited to no more than seventy-five percent (75%) of Tompkins County’s payments to Tompkins County Area Development in 2019, fifty percent (50%) in 2020 and 2021, and twenty-five percent (25%) in 2022 and 2023,”.

Ms. Champion spoke of the funding model she proposed above as adopted by the Committee and said it was a compromise for the way things are done. She believes TCAD should be treated the same as other organizations and questioned if TCAD is eligible for tourism money what other agencies or departments are. She believes Legislators should weigh the value of TCAD and fund it appropriately without Room Tax money.

Mr. Lane said Mr. Molino’s recommendation is what he would expect of a County Administrator. He spoke of the history of tourism and the arts locally and believes the funds should be used for what they are intended for. He believes the County should pay for economic development out of the tax base. He said he supports the Resolved and that it should remain in the resolution.

Ms. Dawson said the Resolved is not a reflection of TCAD’s work. In 2012 one of the Task Force’s recommendations was that a task force be created. The 55/45 split is arbitrary and in no way is representative of TCAD’s contribution to tourism. It is what the County could afford to spend five years ago. She believes the responsible thing to do is to weigh its services within the budget.

Mr. John believes this is sensible and that there is a correlation between TCAD's services and tourism. The existing funding allocation has been a compromise that has worked and allowed TCAD to maintain financial stability. He opposes raising property taxes to support TCAD.

Mr. Sigler commented that the nature of tourism has changed. He sees that there is a place in the tourism industry for this and sees business as a tourism generator and believes people are being brought into Tompkins County by TCAD.

Mr. Molino, in response to Ms. Champion, said this would be an annual appropriation approved by the Legislature. He further commented that at any point as outlined in the MOU contributions can be changed.

Ms. Kelles said this is an issue of a limited amount of funding. Both are arbitrary and both are compromises and reflect an increase on the levy. She said Tompkins County doesn't put a lot of money into economic development but receives a lot of services.

Mr. McKenna said he believes the Room Tax money is “free money” because it is generated based on people doing what they want to do and is not taxpayer money. He thinks there is room for compromise but feels amounts should be over 50%. As long as Room Tax continues to increase everyone will get a share of it.

Ms. Black expressed concern about not being able to fund human service programs, alternatives-to-incarceration programs, etc. and believes those are valuable services. As a compromise she said she would like to change the last two years of funding from 25% to 35% in the Resolved.

It was MOVED by Ms. Black, seconded by Mr. Lane, to amend the amendment to read as follows: “RESOLVED, on recommendation of the Planning, Development, and Environmental Quality Committee, That the use of Room Tax revenues be limited to no more than seventy-five percent (75%) of Tompkins County’s payments to Tompkins County Area Development in 2019, fifty percent (50%) in 2020 and 2021, and twenty-five percent (25%) thirty-five percent (35%) in 2022 and 2023,”.

Mrs. McBean-Clairborne spoke of the process that was undertaken in 2012 and said the decision was not arrived at lightly. She agrees that an argument could be made that other agencies such as the Airport could be eligible to receive tourism funds. This County doesn't have an economic development program, TCAD does that. It’s the hotels and businesses that are coming here and bringing in the Room Tax money and building the tax base. If we do not support what we have, the County would be looking at spending a lot more. The County has to be sensible about where its property tax dollars are coming from to support mandated services.

Ms. Robertson said she opposes the amendment to the amendment. TCAD makes money for the community. She believes the funding proposal as proposed by the County Administrator is reasonable and will also go to tourism.

Ms. Dawson referred to Mrs. McBean-Clairborne's comment and said since TCAD builds the property tax base the money should come from property tax.

Ms. Koreman said she would like TCAD's funding to be tied more to the kind of economic development that relates to good jobs that will help people to afford to live here and supports it coming from the property tax.

Mrs. McBean-Clairborne said she could accept that argument if none of it comes from property tax but some of it already does and will continue to.

A voice vote on the amendment to the amendment to change 25% to 35% for the last two years resulted as follows: Ayes - 7 (Legislators Black, Champion, Dawson, Kelles, Koreman, John, and Lane); Noes - 6 (Legislators Granison, McBean-Clairborne, McKenna, Morey, Robertson, and Sigler); Excused - 1 (Legislator Klein). AMENDMENT TO THE AMENDMENT FAILED.

A voice vote on the original amendment to delete the Resolved resulted as follows: Ayes - 7 (Legislators John, Kelles, McBean-Clairborne, McKenna, Morey, Robertson, and Sigler); Noes - 6 (Legislators Black, Champion, Dawson, Granison, Koreman, and Lane); Excused - 1 (Legislator Klein). AMENDMENT FAILED.

Mr. Lane said it is important this resolution is approved; TCAD needs to start its fundraising efforts and they need to know there is a commitment by their biggest partner.

Further discussion followed and it was MOVED by Mr. McKenna, seconded by Mr. John, to amend the resolution to use 55/45 for the first year and to establish a task force to revisit this issue.

Mr. Stamm spoke of the importance of having a five-year commitment, but where the funding comes from is up to the Legislature.

Mr. Molino questioned the appointment of the task force and who would serve on it. He also asked if there was no conclusion or consensus reached what would happen in years two thru five.

It was MOVED by Mr. Lane, seconded by Ms. Champion, to Call the Question. A voice vote resulted as follows: Ayes - 10, Noes - 3 (Legislators Granison, Robertson, and Sigler); Excused - 1 (Legislator Klein). THE QUESTION WAS CALLED.

A voice vote resulted as follows on the amendment: Ayes - 6 (Legislators John, Kelles, Koreman, McBean-Clairborne, McKenna, and Sigler); Noes - 7 (Legislators Black, Champion, Dawson, Granison, Lane, Morey, and Robertson,); Excused - 1 (Legislator Klein). AMENDMENT FAILED.

Mr. Molino asked if the resolution is not adopted that a meeting be convened with four Legislators with two from each side.

Following the adoption of the resolution, Mr. Stamm was thanked for his service to the community and wished well in his retirement.

Following the vote, Ms. Robertson was excused.

RESULT:ADOPTED [12 TO 1]
MOVER:Anna Kelles, Member
SECONDER:Deborah Dawson, Member
AYES:Shawna Black, Amanda Champion, Deborah Dawson, Henry Granison, Rich John, Anna Kelles, Anne Koreman, Michael Lane, David McKenna, Glenn Morey, Martha Robertson, Michael Sigler
NAYS:Leslyn McBean-Clairborne
EXCUSED:Daniel Klein