Articles for J. Dale Shoemaker

Jun 1

2023

The false promises of IDA subsidies

In order for Western New York’s economy to remain stable, economic development officials argue that industrial development agencies need to grant tax breaks and other incentives. “People just aren’t going to build here unless they have incentives to help them to do that,” Mark Onesi, chair of the Niagara County Industrial Development Agency, told Investigative Post last year. “It’s expensive to do business here so we help as many people as we can.” Research, however, refutes those assertions. Economists have found between 75 and 90 percent of jobs created with tax breaks would have happened without the help. “The system[...]

Posted 2 years ago

May 31

2023

IDA tax breaks cost schools millions

Editor’s note: This is the first of two stories on industrial development agencies. Tomorrow, we report on “perverse incentives” and other shortcomings in IDA programs. Any time Susan McGee’s children want to join an activity outside of the classroom — be it sports, music or other extracurriculars — it means one thing: a fundraiser. Raising money for extracurriculars may seem routine for a small, struggling Rust Belt city like Dunkirk, where McGee’s children attend school. But there’s another factor at play: The Dunkirk City School District loses out on an average of $5 million in revenue every year thanks[...]

Posted 2 years ago

May 15

2023

‘Inappropriate and questionable spending’ at IDA

A state review of the Chautauqua County Industrial Development Agency has found more than $250,000 of “inappropriate and questionable discretionary spending,” including costly holiday parties and membership to a golf club. Among other issues, the draft review by the Authorities Budget Office obtained by Investigative Post found: The IDA’s chief financial officer, Richard Dixon, was reimbursed $30,600 for use of his personal vehicle and $18,429 for a membership and other expenses at a local golf club. CEO Mark Geise, Dixon and other staff used IDA credit cards to pay for $26,000 in “inappropriate meal purchases.” The agency made more than[...]

Posted 2 years ago

May 10

2023

Subsidies for developer accused of racism

Editor’s note: This is the final of three stories triggered by the filing of a lawsuit Monday that accuses the Clover Group of discriminating against Blacks in the placement of senior apartment complexes. Monday’s story focused on the lawsuit. On Tuesday we profiled Clover’s CEO, Michael Joseph. The Clover Group — the target of a federal lawsuit accusing the company of “racist and illegal practices” — grew its business in Western New York with the help of millions of dollars of tax subsidies and low-interest government loans. The public assistance to the company owned by Michael Joseph, a generous donor[...]

Posted 2 years ago

Apr 26

2023

Big subsidies for factory rehab in Tonawanda

A century ago, tusks from thousands of elephants from Africa — dug up from graveyards or collected by hunters — made their way to a Town of Tonawanda factory complex where the Wood & Brooks Company used them to make piano keys. Closed by the 1970s, the factory complex on Kenmore Avenue today is “substantially vacant” according to a developer who wants to rehabilitate two of the property’s dozen buildings into business incubator space and 55 apartments. The developer, Michael Wopperer, has estimated the project will cost $23 million. He hopes to complete the redevelopment by the fall of 2024.[...]

Posted 2 years ago

Apr 24

2023

Tesla shareholders unhappy with Musk

A group of Tesla shareholders who together own more than $1 billion in company stock are seeking to oust CEO Elon Musk, alleging that he’s too focused on running his other companies and is letting Tesla’s value slip. Among other reasons for ousting Musk, the shareholders note that Tesla’s alleged union busting at its South Buffalo factory was cause for significant concern. Investigative Post’s J. Dale Shoemaker joined WGRZ’s Town Hall to discuss Tesla’s alleged union busting activities in light of the shareholders’ letter.

Posted 2 years ago

Apr 18

2023

Another Buffalo Bills stadium tax break

After celebrating the deal for the new Buffalo Bills stadium during his annual budget address last week, Erie County Executive Mark Poloncarz revealed yet another way that the deal will be stacked in the favor of the Bills, rather than county residents. Speaking to reporters after his speech, Poloncarz said New York and Erie County structured the community benefits agreement — a key component of the overall stadium deal — to maximize tax write-offs for Bills owners Kim and Terry Pegula. That would amount to an added benefit not previously reported. And that benefit would be on top of state[...]

Posted 2 years ago

Apr 12

2023

Holes in oversight of Bills stadium deal

Erie County Executive Mark Poloncarz and his top aides like to say the community benefits agreement accompanying the deal for a new Buffalo Bills stadium is among the “best” and “strongest” CBAs ever committed to paper. “This is the best CBA ever negotiated with any NFL team,” Erie County Attorney Jeremy Toth told Investigative Post this week. But a close examination of the CBA, along with interviews with experts and the officials who negotiated the agreement, reveals at least two ways the deal could fall short of those lofty pronouncements. For one, a yet-to-be-formed Community Benefits Oversight Committee made up[...]

Posted 2 years ago