LDC-MORE QUESTIONS THAN ANSWERS
Comptroller Auerbach Provides Answers and Poses Questions About Local Development Corps
KINGSTON, NY (October 11, 2011)….Ulster County Comptroller Elliott Auerbach again poses questions about the use of Local Development Corporations (LDC) in Ulster County, this time with regard to County Executive Michael Hein’s proposal to create an LDC to take possession of the Golden Hill Health Care Facility. “My office continues to review the Executive’s proposal,” said Auerbach, “and I give him credit for presenting a comprehensive approach to this longstanding dilemma but many questions remain to be answered.”
The Comptroller has prepared a fact sheet for the public on what local development corporations are, the purposes for which they may be created, and relevant characteristics of an LDC. “We want to support public discussion on the proposal so we also provide a list of questions to consider about the use of LDCs,” said Auerbach.
Auerbach explained that as they delve further into the proposal and tease out the specifics, additional information will be forth coming. “I support innovation in solving government problems,” said Auerbach, “but complex problems are best served through collaborative processes. The emerging markets of today are most often the result of creative, group processes.”
In March 2010 the Comptroller asked the County Legislature to table a resolution approving a proposed certificate of incorporation and consenting to the formation of a local development corporation. At issue was the use of an LDC to bypass a law that had sunset allowing industrial development agencies to issue tax-exempt bonds for public purposes. “Ultimately the Ulster County Industrial Development Agency was able to clear specific legal hurdles but,” said Auerbach, “there is still much to be wary about public authorities … like the Ulster County Resource Recovery Agency, they use public funds yet are far removed from the oversight of the taxpayers’ whose funds they use.”
SELLING GOLDEN HILL HEALTH CARE CENTER TO
A LOCAL DEVELOPMENT CORPORATION (LDC)
Answers About LDCs and the Questions That Follow
Local Development Corporations are:
• Nonprofit corporations
• They can be created by anyone at least 18 years of age
• They can also be created by municipalities including counties
Local Development Corporations may be created in New York State for:
• Relieving and reducing unemployment
• Promoting and enhancing employment opportunities
• Instructing or training individuals to improve or develop skills
• Conducting scientific research to attract or retain industry
• Lessening the burdens of government and acting in the public interest
Characteristics of Local Development Corporations:
• LDCs can be used to conduct a wide range of activities
• LDCs may not operate for the benefit of their members or board of directors
• LDCs enable a county to issue debt and keep the debt and expense off the county’s books and, as a result, the borrowing will not impact a county’s debt limit
• An LDC may award contracts without bidding
• LDC income and operations are exempt from taxes
• Real property owned by an LDC may be exempt from taxes if used for a tax exempt purpose
• A county can sell or lease real property owned by the county to an LDC without appraisal or public bidding
• An LDC must use the acquired property for purposes set forth in its certificate of incorporation, unless it obtains written approval from the county.
Questions to consider when an LDC is created to “lessen the burdens of government”:
• How will transparency and public disclosure be ensured as public funds are expended by an LDC?
• Can compliance with local as well as state and federal laws and regulations be ensured?
• Counties are prohibited from providing “gifts” to private entities. How can we hold LDCs to the same standard?
• Is it true that LDCs are exempt from competitive bidding and fair procurement practices? If so, how will we ensure an LDC maintains high standards?
• What are the standards to be applied when a county declares real property as “no longer required for municipal use”.
• If surplus real property can be sold to an LDC without an appraisal, how will taxpayers be assured they received the full value of their asset?
• Who will appoint members to the board of the LDC and will members be able to also hold another elected or appointed office?
• Could a county require LDC board members and staff to comply with the county’s ethics law?
• LDCs were to be created for economic and industrial development, would using an LDC to serve essentially as a “sales agent” be appropriate?
• What local safeguards can and will protect public funds, assets, resources and interest?
Hey Carnright just threatened you in the midhudson news story. It's about time you took him down.
ReplyDeleteI guess Carnright was referring to the freedom of disinformation act.when he threatened you. Get this LDC transfer scrushed with an eye toward not being able to sell it. Instead envision a collective buyout by the staff to run it as an employee-owned cooperative. Create a need for federal grants to subsidize infrastructures and start pushing the idea now while the targets have yet to be created. That way you can build to suit the organization more effectively. Think at least three years ahead.
ReplyDeleteHey keep in mind this issue is hardly unique to Ulster County and getting out in front of this coming babyboomer thing with a viable model would be helpful nationwide.
ReplyDeleteOn Golden Hill,
ReplyDeleteSo far, the only people who have publicly praised Hein for his proposal to sell GH have been:
Rich Cahill (conservative candidate for mayor)
Robin Yess (former county Republican chair who was banished because she was too conservative)
and Ralph Mitchell (a Kingston arch conservative who thinks Government should spend no money at all)
If that does not tell you the political philosophy of Mike Hein, nothing will. Mike Hein is no Democrat, he is a Republican. When will the Democrats see this? What a bunch of idiots!
8:16 is probably the Hein staffer who thought of this lame idea in the first place.
ReplyDeleteSeriously? A nationwide model? Like Hein's foreclosure prevention plan? Or his highway shared service plan? It seems like Hein's plans are great on the day he has the 4ft posters and die a slow death after that.
Photo op Hein. I am writing in Jim Quigley for Exec!
I saw the quotes from the Wawarsing meeting, thanks. The town would garner more tax dollars if some illegal apartment buildings with no co actually existed on the tax roles. Some of us pay more than we should while some get a free ride. Criminal aliens running rackets ought to be paying their share. Hint Windermere. I love those angry posts about Hein! Keep up the good work.
ReplyDeleteTalking to a friend from Hein's Country Club who is in the know. She tells me that Hein is not long for Ulster County. His new bestie, Andrew Cuomo is lining up a sweet commissioners gig for him. It is all makes sense now. He is lining up the sale of Golden Hill, probably to a friend or campaign donor, spending down the fund balance of the budget, and leaving Ulster County high and dry. What does he care, he is leaving. Never really trusted this guy, now I know why. Just another selfish politician who puts his own interests before the taxpayers.
ReplyDeleteYeah well tough decisions make for higher and higher offices and duties. As for high and dry I think we're better off not broke and drowning. So I guess high and dry is something good. Everyone agrees the county can't afford nursing homes except the few who greedily put their wants in front of the county taxpayers. Got room for every senior in the county? I didn't think so.
ReplyDelete$8,000,000 from the sale of the Nursing Home and $11,500,000 from the fund balance this year. Take those away, and the $12,000,000 from fund balance last year and we are more than drowning, we are dead! That's over $40,000,000 dollars, I repeat FORTY MILLION DOLLAR$! It is not difficult to spend the fund balance, an idiot can do that...obviously.
ReplyDeleteHe has no problem laying off CSEA workers, while creating positions for his Friends by closing Consumer Fraud and putting a 3rd director in Office for the Aging where he just cut 2 CSEA employees. One would think that with less employees, you would need fewer directors, not more! 3 directors overseeing 8 employees, can you TOP HEAVY?
Talk about your consumer fraud, Mike Hein is taxpayer fraud personified.
Elliot, please speak up about the fraud Hein is perpetrating on the county taxpayers! If you are the County Watch Dog, please start watching. This is not a sustainable approach to Governance.
I guess you're ready for some serious cuts and tax hikes to boot. There's this thing called a recession that these republican "job creators" are perpetuating by sucking out all the profit they can while eliminating all the jobs. Tax policies have been diverting all our nation's cash to the greedy few to crash the economy. I don't think Hein has any control over it.
ReplyDelete10:07, your math is a little off, but your point is still valid. Hein is treading on thin ice. Be it 30 or 40 million,you can only shake the piggy bank so many times.
ReplyDeleteHein cuts CSEA and creates a Director's job? When does the Legislature stand up against this?
ReplyDeleteReminds me of OWS and what they are speaking out against.
Hein was a "banker" (snicker,snicker) after all.
Hey isn't there some penalty for keeping double books in the DA's office? I thought slush funds were considered to be a form of embezzlement. At least we know it's mismanagement, but how does the county enforce the rules? Is there an investigation into this underway?
ReplyDeleteSo is there any truth to the rumor that the LDC buying Golden Hill is The Birchez, There is some gossip going around the says Hein is selling Golden Hill to Steve 'I've never seen a Government $ I couldn't steal'Aaron, that he is also Hein's biggest contributor and the sponsor of Heins $1k per plate fund raising dinner? Say it isn't so, Say you didn't know!
ReplyDelete4:09 Yeah and Hein was A no-show at his own event at lenefsky's, the tickets even said "Sponsored by the Birchez"
ReplyDeleteThis guy Aaron would steal the pennies from under his mother's g-string, Oh he already did!
Mike Hein is making a mistake allowing Steve Aaron to get involved with Ulster County. It is a one way street with Aaron, and it ain't going Hein's or Ulster County's way. The Legislature should stand up against this.
ReplyDeleteIf only half of the rumors on the street are true about Aaron, Hein is nothing short of stupid to get involved with him.
It has been well documented that Aaron does not like to pay his bill's, bullies his way through the process, reneges on agreements and will sell his on family down the river (campaigning against Nick Woerner, stealing from his own Mother) to get what he wants.
Maybe Hein is the same way? He did promise the residents of Golden Hill "as long as I am Exec, GH will stay in County hands".
Golden Hill in one hand, $$$$$ in the other, it won't be long before one gets toooooooo heavy to hold on too, you make the call which one Hein will drop, give you a clue: it begins with a G and ends with a L and it's not girl!
ReplyDeleteAaron and Hein are two peas in a pod, well maybe not, two pigs in a sty is a better analogy.
Aaron contributes to Hein's campaigns, Hein works out a deal to let Aaron steal Golden Hill, Hein leaves Ulster County for as yet un-corrupted passtures and guess what, the county is left with Aaron who has by now taken every county $ that is not nailed down. Hey UC Legislature, where the heck are you?
9:07 The UC legislature is lining up for apts at 'the Birchez in Saugerties & Ulster, they know they get moved in when Steve moves in to GH! You wont hear a word from any of them.
ReplyDeleteWhy won't the Freeman report on any of this Aaron/Hein stuff? What good is a town paper when it's afraid to print what it's residents need to know.
ReplyDeleteAaron is a theif, Hein is an ass together you get an ass of a theif on your hands and the stink goes up to the 6th floor of the glass menagerie. The county was the most corrupt in the State 100 years ago, 50 years ago and today, with guys like Hein and Aaron around it will be for another 50 years,
Ah but the flies are beginning to gather!
As I read on the freeman last night, there is a brown bag somewhere with Heins name on it.
ReplyDeleteThe Democrats should hang their collective heads in shame. How can they possibly support Hein? Schriebman is inept and apparently, a very weak chairman who is pushed around by Hein and his cronies. How come he is not fighting Hein on this very basic Democratic value, caring for those who need help the most?
I am writing in a real, honest Democrat for Exec, enough is enough.
You just can't get anything by this guy Aaron, he's managed to find another housing project to get the government to pay for and he gets to collect the rent, hell he'll even be at the Puplic hearing explaining how the city should grant him a pilot, (payment in lieu of taxes) for the Cooperage development. and the taxpayers will be his profit margin once again. this guy is worse than ACORN, HUD, Fannie Mae and Freddie Mac, Barney Frank and Anthony Wiener all rolled up into one.
ReplyDeleteIf the Kingston planning board grant him approval for his newest scheme to fleece the taxpayers they should all be investigated.
Kingston and the county don't have a prayer if they keep him around. Just ask the people in the Town of Ulster how much better off they are with Steve's absence.
It may not be quite 3 years back taxes but Aaron's history within the towns & cities he has developments is not a good one. He also has some history with the Kingston Housing Authority, also not a good one, let's just say he had his problems.
ReplyDeleteYes he has a issue with keeping himself current with municipalities as far as paying his taxes but more importantly, his MO is troubling, once he has a foothold he reneges on agreements, requests additional pilots and in towns like ulster has had relationships with prior officials that he has exploited and has never delivered on his obligations.
He ends up paying about 1/3 of his legitimate tax liability and the towns and cities suffer.
He usually delivers a quality product, his senior housing is usually first rate but you need an in if you wnt to move up the waiting list and his personal investments are small by comparison to the amount of government funding he garnishes, agan making his money off the backs of local taxpayers.
Beside the new Kignston Development he is proposing, the Cooperage on Bryun St, (why Kingston would deal with this guy is beyond me), Now he is the unnamed LDC in the Hein Golden Hill deal where $8 million will put Steve in the Nursing Home business and all the government money up for grabs, I'm sure his mouth is watering at the thought of all that 'free money'!
What is wrong with Hein? Who in their right mind would deal in anyway at all with Aaron? His own family hates his guts! He is obsessed with money and acquiring a personal fortune on the Taxpayer's dime.
ReplyDeleteYou know the old $aying, if it walk$ like a duck, look$ like a duck, quack$ likes a duck, it'$ a duck. It doe$n't take much imagination to figure out why Hein i$ $o adamant about thi$ LDC.
Hein doesn't give a rat's ass, he's outta here in a year or two and he'll take his booty bag and move on up, just like the Jeffersons, Lets face it the County of Ulster was just a stepping stone, a place for him to wipe his boots. The problem he will face if this GH deal goes through is distancing himself from Aaron, you see once Aaron gets his hooks in you he won't let go until you are no longer of any use, usually for you it's far too late, credibility ruined, questions of corruption linger, just ask Nicky Woerner at what cost aligning with Aaron holds.
ReplyDeleteI think it is appropriate to congratulate Mr. Auerbach for giving the taxpayers a place to freely voice their opinions without filtering or censoring. Hein would never allow it.
ReplyDeleteFirst I want to say that Mike Hein is not capable of making non criminal decisions for take a look at his family! His family owns the Grand Slam which is the bar that is known to house the biggest drug dealers in Kingston! Second Steve Aaron is a felon who was on house arrest for cocaine!!
ReplyDeletePLEASE lets take this sale of the Golden Hill seriously and lets put what matters most........the elderly frail seniors that live there! Do they DESERVE to have Steve Aaron be a part of there home? A nursing home needs to be owned and run by someone who has compassion, someone who will not judge them by there race, color, religion or by what they dont have. Golden Hill is a place that I have witnessed to be an amazing place where the residents are given exceptional care, families are welcome and love and compassion is demanded and expected to be given by each employee. STEVE AARON HAS NO COMPASSION! HE HAS NO IDEA WHAT LOVE IS! He judges everyone and treats people as slaves. LETS make our decisions on whats best for the people that live there not on whats best for the crooked criminals pockets!!