The Schenectady County Legislature overwhelmingly approved legislation Tuesday, April 8, that would extend the life of Metroplex Development Authority for another five years and increase its bonding authority by $25 million.
If approved by the State Legislature, Metroplex’s bond cap will increase from $50 million to $75 million, and it’s operations will be extended through 2033, instead of 2028.
Metroplex Chairman Ray Gillen said that a $25 million increase was the appropriate amount to ensure that the county could continue its economic development plan.
Gillen said that extending Metroplex’s sunset date would allow for the agency to seek 20- or 30-year bonds.
Gillen said these bonds currently have better rates than shorter longevity bonds. He also said that a combination of Metroplex’s current debt and a leverage of county tax dollars should help the agency repay its bonds.
Earlier this month, Gillen said Metroplex had issued approximately $45 million of its $50 million bond cap since the agency’s inception in 1999. Tuesday’s resolution marked the first time Metroplex has asked for an extension of credit.
We have to make sure we do this at the right amount, said Gary Hughes, D-Schenectady, who was in favor of the $25 million bump. He said a lesser amount would be imprudent. `We don’t want to be back here next year asking the state for another increase.`
The Legislature voted 9-to-2 in favor of the resolution. Joe Suhrada, R-Rotterdam, and Angelo Santabarbara, R-Rotterdam, voted against the measure citing a pending audit of Metroplex by the state comptroller’s office.
Suhrada also said he would rather see a smaller bond increase. An amendment proposed by Suhrada to change the bond cap from $75 million to $60 million was swiftly defeated by the Democratic majority.
James Burhmaster, R-Scotia, voted with the majority. Vincent DiCerbo, D-Schenectady, abstained because he is an employee in the state comptroller’s office. Legislators Philip Fields, D-Schenectady, Judith D’Agostino, D-Rotterdam and Robert Farley, R-Scotia were absent.
Chair of the Legislature Susan E. Savage, D-Niskayuna, championed the work of Gillen, who she appointed in 2004.
`There’s a major difference between Metroplex pre-Ray Gillen and post-Ray Gillen,` she said. `He changed the types of loans and grants coming into the county and he also changed the course of Metroplex taking it beyond the downtown area to our municipalities.`
Savage said she credits Gillen with helping to generate $300 million in investment. She said about 3,000 jobs have been created since the establishment of Metroplex.
Twenty-four people spoke in favor of the resolution, many of them business owners or developers who have benefited from Metroplex’s assistance.
David Buicko, an executive at Galesi, one of the area’s largest developers, has lived in the county since 1969. He said that before the advent of Metroplex, developers were never aware of certain state aid programs such as Brownfield grants and Empire Zones. He also said that Metroplex comes to the aid of both large property owners, like himself, and smaller businesses.
`Metroplex levels the playing field,` said Buicko.
Only two members of the public spoke against the measure.
Kevin March, of Rotterdam, advised the Legislature that it would be prudent to wait on a vote until the results of a pending state audit of Metroplex was made public. He also was concerned that increasing the bond cap would unfairly burden county taxpayers.
`A successful business should be bringing in more than it’s giving out,` said March. `The coffer should be full and Metroplex should be ready to give money away, not off the back of the taxpayer, but from businesses.`
Gillen said that many Metroplex projects are not bonded, but financed out of direct sales tax proceeds, especially in the county’s municipalities.
Metroplex is funded by one half of one percent of the county sales tax.
It can design, plan, finance, site, construct, administer, operate, manage, and maintain facilities within its service district, often partnering with the county and the city of Schenectady on capital projects.“