The Myth of Being “Business Friendly” — Part II

The Myth of Being “Business Friendly” — Part II

Contrary to what you might be hearing from some candidates, Part I documented the fact that the Supervisor and Town Board have had little if anything to do with the new businesses that have opened in Yorktown since January 2012.

Part II takes a closer look at assigning the “credit” for the upswing in Yorktown’s economy as well as the actual financial impact new commercial development may have on our taxes.

Assigning “credit” for the upswing in Yorktown’s economy

No one disputes the fact that more than a dozen new businesses have opened in Yorktown since January 2012, including four new ice cream stores, an array of restaurants and other eating establishments and two medical buildings. Sadly, some of these businesses have already closed their doors.

But no one is asking the question that really matters: What, if anything, did the Supervisor and/or Town Board have to do with this new economic activity? Were any specific Board actions responsible for the “turn around” — or were the new businesses a result of:

• the general post-recession upturn in the economy
• landlords reducing their rent
• lifestyle decisions on the part of first-time business owners
• actions of the independent Planning Board
• a reflection of new leadership in the Building Department

In other words, can our elected officials really take the credit for the new businesses?

Some facts

1. Most of the new businesses that have opened in Yorktown since January 2012 have filled vacant spaces — actions that never involved the Town Board. Prior to their opening, most of these new businesses dealt primarily with the Building Department, and some also with the Planning Board.
2. Of the 47 commercial building permits issued in 2012, 44 were for alterations and additions and only three were new construction: Best Plumbing at Crompond Crossing on Route 202 (relocating from an existing building to a new one), the new Mohegan Lake Motors building on Route 6 (that replaced an existing business) and a barn at the Grange fairgrounds. Planning for the first two projects started before 2012.
3. While it’s true that building permit revenue increased substantially in 2012, a fact that’s likely to receive lots of attention, commercial projects accounted for only 20% of that revenue. (Other than a basic application fee, building permit fees are based on the cost of the construction and there was a sizeable uptick in the number of residential building permits as well as mechanical permits for emergency generators.)
4. Of the 18 commercial projects on the Planning Board agenda in 2012, only five were new projects (as distinct from modifications to existing site plans) and all of them entered the development pipeline before January 2012.
5. Of the two new commercial applications submitted in 2013, one is a small half commercial, half residential project with two small commercial spaces (at least one of which is for an existing business in need of a new home), and the second, a mixed use restaurant/office/apartment project, replaces a previous business, the Osceola Beach& Picnic Grounds. Neither project required any Town Board action.
6. Other commercial projects in the pipeline: The Costco plan dates back to 2009 and the upgrade of the Jefferson Valley Mall and the new medical building in Jefferson Valley were in the works in 2011.

Have the new businesses resulted in an increase in commercial rateables?

Yes and no. As noted above, most of the new businesses that have opened in Yorktown since January 2012 have filled vacant spaces. As such, they’ve generated increased revenue for their landlords — but they haven’t added a penny to the town’s commercial tax base.

The only “new” commercial rateables for the 2013 assessment roll are the “partial” assessments for the partially built Best Plumbing and Mohegan Lake Motors buildings, both of which, as noted above, pre-date the current administration.

In fact, the Town’s total assessment roll actually declined in both 2012 and 2013 — which means that even if the amount of money that needs to be raised in taxes in 2014 stays the same (not likely), the town tax rate will go up because the tax levy will be divided by a smaller pie.

There’s spin and then there are the facts.  Just because the candidates believe their own spin, doesn’t mean you have to also.

For more information about other town issues, visit yorktownbettergovernment.org