Empire Zone changes faulted

CANTON — St. Lawrence County lawmakers want Gov. David A. Paterson to rethink proposed changes to the Empire Zone program, arguing problems with rural job creation should be considered.

Lawmakers unanimously supported the program's continuation Monday after talking the issue over with Ogdensburg Empire Zone Coordinator Kimberly R. DesChamp and Potsdam Planning and Development Director Frederick J. Hanss. Mr. Hanss administers Potsdam's zone.

"If the governor's proposal goes through, all of the businesses in Potsdam's zone will no longer be zone-certified," Mr. Hanss said. "The changes made in 2005 made it more difficult for businesses to participate. This makes it impossible."

The program provides incentives including sales tax exemptions, investment tax credits, improvement incentives and wage tax credits for businesses to locate and create jobs in Empire Zones. Participating communities may also extend their zones to include businesses with regional impact.

The two officials said the governor's plan to require a benefit-cost ratio of $20 company investment or jobs created for every $1 in tax incentives for zone businesses is unattainable in St. Lawrence County. The current benefit-cost ratio is $15 for every $1 of tax incentives.

"We've never seen a 20-to-1 project," Mr. Hanss said.

Mrs. DesChamp said even a company such as Curran Renewable Energy, which has been identified as a regionally significant project with an investment of $10 million, achieved only a benefit-cost ratio of $6.43 to $1. The same is true for Newton Falls Fine Paper, Potsdam Specialty Papers, and North Lawrence Dairy, Mr. Hanss said.

"These are all pretty substantial manufacturing projects for the region and for St. Lawrence County. None of them have hit that ratio," he said.

According to Legislator Vernon D. "Sam" Burns, D-Ogdensburg, the governor said during Monday's town hall meeting in Massena that he would be open to discussing his proposal if zone officials can provide reasons why businesses cannot reach the 20-to-1 benchmark.

"The problem is the program really caters more to metropolitan areas than rural areas," Mrs. DesChamp said.

She is contacting other rural counties to find out whether they face the same challenges.