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Op-ed column: Ensure development success before giving tax abatement

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In 2006, DCG Development, a local company best known at the time for running large apartment complexes, bought Clifton Country Mall, a floundering 52-acre indoor shopping mall in Clifton Park, for $11 million. Six years later, and after further millions of dollars invested, it is now known as Clifton Park Center, a combination traditional and open-air mall that includes a new 104-room Hilton Garden Inn and Conference Center with a Prime bistro, a state-of-the-art 10-screen ...


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comments

robbump
August 23, 2012
7:11 p.m.

[ Flag Post ]

Here's how I would grant any sort of tax abatements:

A company promises something ... let's say 500 jobs for 10 years, and they want ... let's say a half-million dollar abatement.

Prorate the benefit to the abatement:

$500,000 / 500 jobs * 10 yr * 52 weeks/yr * 40 hr/wk =

$500,000/10,400,000 man-hours = $0.048 per man-hour

Dole them out - on a monthly basis, the (almost) 5 cents per hour of employment they ACTUALLY produce.

Don't pay on promises, pay on production. Use similar calculations if (for example) they promise sales tax revenue.

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