DEVELOPMENT: A very COMIDA Christmas

By Jeremy Moule on December 16, 2008

Wilmorite is getting a $192,000 stocking stuffer from the county Industrial Development Agency.

That's the value of a tax break the company is getting for its $6-million plan to renovate Greece Ridge Mall.

"Without that help, we wouldn't be investing the dollars that we are," says Kevin Wilmot, Wilmorite's vice president for finance.

The project will help the company keep existing businesses in the mall and will help it attract new, upscale retailers, he says.

The community will benefit from an increase in sales tax revenue, Wilmot says.

Greece officials asked COMIDA to consider extending benefits to the project during a public hearing Monday morning. Supervisor John Auberger wrote in a letter to COMIDA officials that the mall is a significant economic engine in the town and county.

But should a retail project receive tax breaks? A lot of folks say no, and a now-expired state law prohibited it.

Here's the rub, as critics see it: when the government bestows benefits on one retailer, it gives that retailer a competitive advantage and can hurt other businesses. It's a zero-sum equation where the subsidized businesses siphon-off customers from other retailers, critics say. The economy doesn't gain much, if anything, they say.

"There's only so many purses and shoes that are going to be sold in Monroe County," says Jon Greenbaum, an organizer for Metro Justice and an IDA critic.

Retail businesses should locate based on demographics and market factors, critics says, and not based on which community cuts them the best deal.

It's not just the one project that's at issue; there's a second phase planned for Greece Ridge that will likely involve more incentives. Last week, Wilmorite officials also announced a two-phase, $50-million plan to renovate Eastview Mall. Company officials have asked the Ontario County Industrial Development Agency about tax incentives for that project, too.

In Irondequoit, another company has plans to redevelop Medley Centre. The plans call for a mix of residential, commercial, and retail space, along with a hotel. While the developer hasn't applied for COMIDA incentives, many observers expect that it's only a matter of time.