County Supervisors Take Charge of Wayward Loan Program

At our monthly meetings, Council receives updates on Ontario County business from our County Supervisors. This month, Supervisor Charles Evangelista reported that a recent audit of the county’s Revolving Loan Fund raised questions about the administration of the program and the lack of jobs created by some firms receiving loans. The purpose of the program is to loan money to companies interested in locating in the county, or expanding their existing operations, all with an eye toward the creation of new jobs.

We obtained a copy of the Summary Sheet for the County’s loan program (click here to view it). It lists all loan recipients and the history of their loans. In critiquing the program, the Canandaigua Messenger reports, “of the 39 current loans, 36 are listed as having ‘problems.’”

In addition to issues of repayment, there is the question of job creation. Companies receiving funds are required to report progress on their employment goals. The Messenger continued, “Only 31 companies out of the 39 reported job-creation statistics, and many of them only after prompting by the OED. Of those that created jobs, only four met their job-creation target; six are not on track to meet their target; and five did not meet their target. Sixteen other businesses reported job loss.”

Responding to the crisis, the County’s Planning and Research Committee, chaired by Geneva Supervisor Rocky LaRocca, brought forward a series of resolutions designed to correct perceived problems. The reforms are intended “to provide greater accountability and transparency” by giving the Board of Supervisors more information about and control over the loans.

They have created a Loan Review Committee which will “make recommendations to the Board of Supervisors regarding the granting of loans, including the terms and conditions of such loans.” (View the bylaws of the County Revolving Loan Review Committee here.) Committee meetings will be open to the general public under provisions of New York State’s open meetings law. The bylaws also include a “Conflicts of Interest and Ethics Policies” section, covering such areas as “pecuniary interest, gifts, and confidential information.”

In legislation covering “Amendment to Loan Authorizations,” the Board gave itself direct oversight of changes in the terms and conditions of any loan after the original loan agreement was in place. (Click here to view the resolution.) Apparently, it was common practice for county loan administrators to decrease interest rates, extend the term of the loan, or otherwise offer concessions to firms. It appears some loans were never repaid.
New procedures for loan application processing and monitoring were also put into effect. These reforms seem sensible to get the wayward loan program back on track.

The audit findings and recommendations are reminiscent of last year’s inquiries into IDA’s in communities across New York State, including the Ontario County IDA (OCIDA). In April, 2006, Ontario County Economic Director Michael Manikowski and OCIDA Chair Christopher Iversen responded to an unflattering state audit. (Their response can be accessed here, or visit the State Comptroller's site to see the complete set of responses). OCIDA has claimed that increased reporting and independent monitoring is not a good idea because “it would not bode well for the county's economic landscape to take such a hard line with risk-liable companies”.

But we think that the reforms make sense. The intention is not to discourage business investment, but instead to provide accountability to taxpayers for the use of their funds to subsidize the start-up or expansion costs of private industry. We applaud the efforts of our elected County representatives to keep a check on their administrative colleagues.

The Local Impact of Federal Programs: Arcuri's Message About Fire Grants

Our new Congressman, Michael Arcuri, recently sent a mailer indicating his current legislative priorities. High on his list was full funding for grants to local fire departments.

We called Arcuri’s office to get more details. According to Peter Scalise, on staff in Arcuri’s Utica office, President Bush’s 2008 budget calls for only $300 million for the Assistance to Firefighters Grant Programs (Fire Grants) and ZERO funding for Staffing for Adequate Fire and Emergency Response Firefighters (SAFER) grants. According to Arcuri, for the 2007 year, Congress appropriated $547 million for Fire Grants, and $115 million for SAFER. Funding had been as high as a total of $750 million in fiscal years 2003 and 2004, in the immediate aftermath of 9/11.

The “primary goal” of the Fire Grants program is “to meet the firefighting and emergency response needs of fire departments and nonaffiliated emergency medical services organizations.” (For more about that program, click here.)

City of Geneva firefighters have received Fire Grants funding four of the past five years, including: in 2004, the amount of $96,840, for equipment, including personal protection equipment; in 2005, the amount of $111, 032, for a similar purpose. This is a case of taxpayer money put to good use! Of all the government spending programs, we cannot understand why this one would be in the crosshairs.

Arcuri sent a letter to the House of Representatives Appropriations Committee requesting an increase in federal funding to support our community firefighters. In that letter, he said, “We ask far too many of our firefighters to risk their lives in our defense every day…and we have an obligation to provide them the necessary resources to perform their jobs as safely and effectively as possible.” (For full text of their letter, click here.)

In Geneva, we certainly count on our fire department to be there in an emergency. The coordination of the paid professional members and the three volunteer companies yields a dedicated, well-trained, and fast response system. The federal and state governments create these grant programs with the understanding that public safety is a primary concern. They should continue to fund them.

To send a letter of support to restore funding for Fire Grants and SAFER, visit Congressman Arcuri’s website and send an e-mail.

Property Sale Compromise in The Works: Photo Essay Highlights Church and Land

It appears that a compromise will be reached between the Geneva Hispanic Church of God and a neighbor over the sale of City land, and the City is ready to go along with it. The compromise may be a good idea under the circumstances, but if the City had done the right thing the first time around, the sale of all the land to the Church should have been approved last fall, and an arrangement to accomodate the adjoining neighbor's interests, if necessary, worked out without all this intrigue. Since June of 2006, the Church had approached City officials about the land. The City turned the Church down, but later flip flopped on policy and was ready to sell the same land to one of the Church’s neighbors. There is a public hearing on the land sale, Wednesday, May 2, 2007, at 7:00 p.m., prior to the start of the regular City Council meeting. We encourage the public to attend the meeting and voice their views on the issue.

In the course of our work on the Geneva Hispanic Church of God’s attempt to purchase the land we learned that many people following the issue wanted to know more about the Church and the property in question. Local photographer Jan Regan (Jan Regan Photography) went on location and produced some story-telling images of the site, and last Sunday’s services at the Church.

Regan’s photography nicely documents the land and people. The Church congregation consists of about 25 multi-generational families, mostly Puerto Rican American in background. The church itself is a refurbished, white washed garage. The city owned land in question is a small, wooded lot directly behind the Church. The congregation would like to clear some of the land, plant some grass, and put out a few picnic tables. Click here for Regan’s portfolio of images.