Senator’s open letter to Orange County Industrial Development Agency

Dear Orange County IDA Board:

I write with strong objections to the incentives being sought by the Royal Wine Corporation from the Orange County IDA. While I conceptually support the project itself in the Village and Town of Goshen, the inducements being pursued are exceedingly improper and ought to be disapproved.

The site in question is not some major blight or problem property that requires the community and IDA to bend over backwards for development: it is prime real estate for distribution given its location to major highways. Furthermore, site clearing is already complete and, as indicated on the IDA application, construction has started, making an enormous incentive for a project already-underway inappropriate, at best.

Elsewhere in the Town of Goshen, a number of distribution projects are moving through the approval process and none have indicated an interest in IDA benefits. I am extremely concerned that, if the IDA moves forward with an inducement for Royal Wine Corporation, it would prompt other warehouse projects to seek tax breaks that they otherwise would not have sought. Clearly, given the current perspective of similarly-situated distribution projects elsewhere in Goshen, this industry can develop and succeed in our community without a massive subsidy.

Specifically, the IDA application seeks nearly $32 million in property, sales, and mortgage tax breaks and commits to the creation of 45 new full-time equivalent jobs and 10 new part-time jobs; this amounts to a per job subsidy of over $581,000 - an absolutely astronomical figure.

As State Senator, I represent the very people who would be required to subsidize this massive, unwarranted inducement. While I appreciate the current IDA board’s efforts to restructure its agency over the past year, moving forward with Royal Wine Corporation’s application would be a severe breach of the IDA’s responsibility to taxpayers.

Thank you for your service to the county as well as your consideration of the above concerns.

Sincerely,

James Skoufis

Senator, 39th District