Jobs

By Creating Jobs, Suffolk IDA Gets the Job Done

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Suffolk-IDA-logo-2Everyone knows the importance of teamwork when it comes to getting things done. In this spirit, I’d like to devote this blog to recognizing one of HIA-LI’s most valued partners, the Suffolk County Industrial Development Agency (IDA).  

Across the state, IDAs support business growth, relocation, and expansion by lowering the cost of capital investment. They offer tax incentives – and provide access to various business resources and technical assistance opportunities.

And we’re fortunate to have one of the state’s highest-performing IDA’s right here in Suffolk County.

According to Newsday’s report on an analysis by the State Comptroller, tax incentives provided through Long Island’s industrial development agencies – for four years running – had helped to create more jobs as of 2018 than IDAs in any of the state’s nine other regions.

And here on the Island, the largest number of new jobs – 12,881 – were created by 137 projects supported by the Suffolk County IDA.

HIA-LI regularly works cooperatively with the Suffolk IDA to help fortify the regional economy and trigger employment growth. For example, we collaborated with the Suffolk IDA in April 2019 on a 160-page Opportunity Analysis that helped us identify ways to better link the future success of the Long Island Innovation Park at Hauppauge (LI-IPH) to Long Island’s long-term economic revitalization.

In the Opportunity Analysis, James Lima Planning + Development and the Regional Plan Association concluded that the Park’s future success would be maximized by nurturing the growth and agglomeration of competitive, tradeable industries.

Among other projects, we’ve also joined forces with the Suffolk County IDA and the Long Island Regional Planning Council to advocate for creation of a new, regional workforce development center, possibly situated within the LI-IPH. The center would match its training curricula to the specific workforce needs of our region’s fastest-growing businesses.

The public sector and the private sector need to work cooperatively to help maintain the strength of our local economy. Along these lines, HIA-LI is proud of the successful, long-term partnership we’ve enjoyed with the Suffolk County IDA.

Under the leadership of Chairperson Natalie Wright and Executive Director Anthony Catapano, the Suffolk IDA has been a steadfast partner in promoting job growth and business growth on Long Island. And I’d be remiss if I didn’t mention the unwavering efforts of the Suffolk IDA’s Deputy Executive Director Kelly Morris and former Associate Director John McNally who, with their hard work and dedication, helped to make it all happen.

I hope you’ll stand with me in applauding the Suffolk IDA on its many accomplishments. We look forward to working with them on future joint initiatives.

Prevailing Wage Bill Would Deliver Devastating Blow to LI Economy

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prevaling wage blog imageA bill has passed the New York State Assembly and is now sitting in the State Senate (A1261/S1947) that would require all Industrial Development Agency (IDA) funded projects to pay “prevailing wage.”  The bill is co-sponsored by State Senators James Gaughran and Monica Martinez.

While we appreciate the good intentions of the bill’s supporters, it must not pass. The bill’s adoption would deliver a devastating blow to future economic growth in Suffolk County. In addition to inhibiting the creation of new manufacturing enterprises, this radical change in IDA guidelines would also suppress the introduction of new housing into our region, including affordable housing.

Over the course of 41 years, HIA-LI has grown to represent tens of thousands of Long Island business professionals. We serve as a widely recognized advocate for regional development. It is our core mission.

A centerpoint of our constituency is the Hauppauge Industrial Park, which ranks second in size only to Silicon Valley among America’s industrial parks. This 1,400-acre Park houses more than 1,350 businesses employing some 55,000 people. These workers collectively represent a post-tax payroll accounting for more than $2 billion in local spending. Many of our projects have benefited from IDA support.

More broadly, the Suffolk IDA plays an essential role in Long Island’s economy. It has been a vital economic development resource with an excellent record of success helping local companies expand or renovate, build or add new facilities, or relocate to Suffolk County.

In the Town of Smithtown alone, the Suffolk IDA has been instrumental in the delivery of 34 projects – 13 ground-up developments among them. Most of these IDA projects have been situated in the Hauppauge Industrial Park. Townwide, they are helping to create 4,624 jobs and leverage more than $322 million in private capital.

A new prevailing wage provision is expected to shoot average IDA projects skyward by as much as 40 percent. Such a surge will instantly transform this new requirement into nothing short of a deal-killer for vast numbers of new developments. Contrary to the feelings of some lawmakers this bill will not increase the salary of construction jobs but will decrease the availability of jobs. This would not only stymie the creation of tens of thousands of permanent jobs and construction jobs but would also suppress creation of the kind of workforce housing that allows Long Island to allure and retain skilled personnel including millennials.

Over recent years, New York State witnessed the way that a new prevailing wage requirement had choked off the pipeline of IDA projects in Ulster County and the City of Yonkers. That same harmful scenario would surely play out here, too.

Our analysis is clear: imposing these onerous new costs on future IDA projects would severely diminish Long Island’s competitive status – and badly dampen our hopes for the future.

We urge our State lawmakers to reject this unsustainable new burden on our region’s economy.