Articles for J. Dale Shoemaker

Aug 7

2023

No action on Amazon’s warehouse in Niagara

One year after winning $124 million in tax subsidies from the Niagara County Industrial Development Agency, Amazon has taken few steps to build its promised 1,000-employee warehouse in the Town of Niagara. On Monday, the 217 acres of land along Lockport Road where Amazon plans to build its three-million-square-foot facility remained vacant. No earth had been moved, no stakes were in the ground. No construction equipment was present. In response to the delay, the IDA is now poised to grant Amazon a six-month extension on its subsidy package. The extension — which the IDA’s board will consider Wednesday — indicates[...]

Posted 2 years ago

Aug 3

2023

No more free golf for Chautauqua IDA

The Chautauqua County Industrial Development Agency has agreed to make changes to the way it operates after a scathing state review in May found “inappropriate and questionable” spending at the economic development outfit. Those changes, however, come with some consternation from the IDA. While it told state officials it would curtail some of its spending and review some of its policies, it vigorously defended other practices the state Authorities Budget Office critiqued, arguing the agency can’t force it to change. The IDA, for example, will no longer reimburse an executive for a country club membership where he played golf with[...]

Posted 2 years ago

Jul 30

2023

Feds sanction local defense contractor — again

A Western New York-based military contractor was rebuked by federal agencies three times between 1996 and 2021 for improper accounting practices and mishandling defense contracts, according to records obtained by Investigative Post. The investigations and audit into the Calspan University at Buffalo Research Center — or CUBRC — have resulted in more than $500,000 in penalties against the nonprofit organization. The most recent investigation, which ended in December 2021, was initiated after a tipster alleged CUBRC was committing fraud. Federal investigators ultimately did not charge the organization with crimes, but fined it $129,000 for violating federal contracting rules. A spokesperson[...]

Posted 2 years ago

Jul 27

2023

Mayor, Council cut deal to bail out Braymiller

The Buffalo Common Council on Thursday voted to approve a package of funding for small businesses across the city, a pot of money Mayor Byron Brown’s administration conjured out of pandemic relief aid to make a $563,000 forgivable loan to a downtown grocery store more palatable to lawmakers. Under the plan, Council members will each have $389,000 earmarked for small business grants in their districts, with an additional $2 million in loan funding also available. That $5.5 million package passed Thursday alongside a plan that reallocates $59.9 million of federal American Rescue Plan Act funding from various proposed community programs[...]

Posted 2 years ago

Jul 13

2023

Company seeking subsidies circulates fake study

A plastics manufacturer seeking tax breaks to build a plant in Lockport has put its application on hold after being called out Thursday for circulating a summary of a study that was fabricated and produced by artificial intelligence. Prior to a public hearing Thursday, the India-based firm SRI CV Plastics, seeking $312,000 in subsidies from the Lockport Industrial Development Agency, provided the agency’s board a one-page summary of a study that touted the safety of PVC pipes, one of the products the company plans to make at the plant. A University at Buffalo professor, Lourdes Vera, called out the company’s[...]

Posted 2 years ago

Jul 11

2023

Risks vs. benefits of proposed Lockport plant

An India-based plastics company is seeking to build its first U.S. plant in the Town of Lockport, despite strong objections from environmental groups who argue such a facility could harm human health and the environment. But the plant’s potential ecological impact isn’t the only issue up for debate: The firm wants tax breaks, and could further benefit from a limited environmental review. SRI CV Plastics Inc. is seeking $500,000 in subsidies, including $311,856 from the Lockport Industrial Development Agency, to build a $2.3 million, 14,000-square foot factory in the Lockport Industrial Park. The firm’s CEO, Varunkumar Velumani, said he plans[...]

Posted 2 years ago

Jun 29

2023

Yet another subsidy for local meatball maker

A West Seneca-based frozen food manufacturer — the rumored maker of Olive Garden’s meatballs — won yet another tax break from the Erie County Industrial Development Agency on Wednesday, its third since 2016. And that’s not counting six previous low-interest loans the IDA has granted to Rosina Food Products dating to 1981. The company manufactures frozen Italian food products, including meatballs, ravioli and pizza toppings. In a unanimous vote, the IDA board of directors approved $749,000 in property, sales and mortgage tax breaks for Rosina. Executives said the company will use the tax breaks to renovate and expand two buildings[...]

Posted 2 years ago

Jun 27

2023

Council nixes grant to downtown grocery

The Buffalo Common Council on Tuesday voted down a request for a $563,000 loan for the Braymiller Market, a downtown grocery store that’s previously received subsidies and other public assistance. The proposed funding drew outcry from some residents who argued that if the city was going to spend COVID-19 relief funding on a grocery store, it ought to support a store on the East Side, rather than downtown. That issue, the lack of supermarkets on the East Side, was highlighted after last year’s attack on the Tops on Jefferson Avenue, which caused the store to close for several months. The[...]

Posted 2 years ago