The impending closure of the Super Steel plant [Dec. 2 Gazette] is a blow to our area which need not happen. Soon Congress will enact an economic stimulus package with focus on infrastructure improvements that could keep Super Steel active as a manufacturer. In Oct. 29 testimony to Congress, Amtrak Chief Operating Officer William Crosbie said that 81 Amfleet coach cars are in storage, awaiting repair. Amtrak only has funds to fix 12 cars. Given the growing demand for intercity passenger rail travel, it would seem appropriate for Rep.-elect Tonko and Sen. Schumer to seek infrastructure funding for Super Steel to refurbish the stored Amtrak coach cars. Restoration of these passenger cars would benefit the economy, the environment and the traveling public. I hope our elected officials fight for this needed federal funding. ANTHONY RUDMANN Colonie
Viewpoint Scamming Schenectady Super Steel took millions, then abandoned county BY CHRISTOPHER CHICHESTER For The Sunday Gazette
Asuper sham has now been completed in Schenectady County. Super Steel, the Glenville-based plant that manufactures railroad cars, announced it is closing. One hundred seventy-five New Yorkers will lose their jobs come April. This is not a surprise. Our Empire State’s destructive corporate welfare culture has achieved another milestone. Of failure. In 1995, Super Steel was boldly predicted to be a Capital Region success story. I know. Because I served on the designated Pravda-like predictions team as a spokesman for Governor George Pataki during his first term. We hailed Super Steel relentlessly. They were The Next Big Thing. From the way we hyped it, you’d think Super Steel was destined to be a new General Electric in the Electric City. Wrong. We engaged in a woefully pathetic exercise in how to speak nonsense to the public. REVEALING STUDY Super Steel is a super sham since it pocketed millions of dollars from New York taxpayers, and left. In a devastating study on corporate welfare, former Sen. Franz Leichter reported: “ . . . the State agreed to provide $4.69 million in subsidies and other financial assistance to GM Super Steel in 1996. This includes up to $2.04 million in direct loans from the State’s Job Development Authority [JDA]; a $400,000 interest subsidy grant from the Empire State Development Corporation [ESDC]; $750,000 in training grants; and rail improvements made by the State’s Department of Transportation valued at $1.4 million. “GM Super Steel will also receive $1.8 million in property tax exemptions; $1.8 million in tax exempt financing; $1.7 million in electricity savings; $1.1 million in wage tax credits; a $900,000 investment tax credit on the facility; $810,000 in employee tax credits; and $245,000 in sales tax exemptions. With over $1 million more in local assistance, the total package of incentives and benefits to Super Steel amounts to $13 million.” $13 million. All that cash, and Super Steel is deserting Glenville anyway. It makes you want to scream at the injustice of those lost 175 jobs, and the impact it will have on the employees’ families. The ESDC, JDA and other agencies that dispense these government subsidies are mere press release factories. They pretend to understand the econometrics of a region. But they’re staffed by political appointees with little or no knowledge of businesses and markets. In 1995, there was no railroad car expert at the ESDC or JDA who had market knowledge of Super Steel’s potential ability to compete in Glenville. But bureaucrats who knew how to hand out the money were at the ready. We have corrosive Soviet-style agencies, and their propeller-hat bureaucrats who send mil- lions of dollars to the Super Steels of New York. And pray they’ll stay. The praying hasn’t worked. They leave. It has failed for easily over a decade now. Is anyone even paying attention to what’s happening here in our state with these policies? Our state Legislature should schedule multiple hearings on ESDC and JDA operations. Summon their bureaucrats to the Legislative Offi ce Building in Albany, and grill them on how they reach their decisions. Our state is so pathetic with economic policy that we’re reduced to bribing businesses such as Super Steel to either remain here or relocate here. Unlike South Carolina, Nevada or other growing states, the reputation of our business climate doesn’t speak for itself. Our reputation is hostility. It’s no secret what needs to be done: cut taxes across the board. Corporate taxes and personal income taxes. It’s that simple, and it will not happen given the impending one-party Democratic control of the state Legislature. This dynamic is lost on Schenectady’s elected officials. They begged for help even after Super Steel’s announcement. Robert Farley helped lead the way. “We need to do whatever we can as a community to try and get them through this and not have them close their doors,” he said. Whatever we can. To get them through this. That means Farley wants another handout, another special government giveaway for Super Steel. He doesn’t get it and likely never will. Why didn’t Farley call for sweeping tax reductions for New York’s businesses? Or reform to our oppressive regulations? Perhaps call attention to how the Department of Environmental Conservation unleashes itself for the sole purpose of harassing business owners? Because he wants more of the same. He favors the ..................http://www.dailygazette.net/De.....amp;EntityId=Ar04300
It's too bad the county officials don't have a clue how to attract businesses, run county government, or form a budget that doesn't keep going up up up every year until we're on the verge of collapse here in this county.
I would love to meet this Chris Chichester to shake his hand. Last weeks editorial about the school system and this one about Super Steel have been right on target. When will the handouts stop? If Super Steel could not make a go of it with the original $13 million dollars it probably won't even if it had another $13 million. I am amazed that it would be suggested by Bob Farley. The entire tax structure as well as give away programs need to be revamped, not just provide more money when a business fails. Until that happens in NY and/or Schenectady County we will not get businesses without providing huge incentives. They can not afford to do business in the state. Sadly we will be the reason for our own demise!!!!!!!
The sad part is, is that they (our local politico's) are still dishing out our tax money to businesses. And what will happen to the businesses that are laying off and receiving Empire Zone tax breaks? Ya know, the tax break that makes a business 'promise' to hire and increase their employees.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
I am not an advocate of the programs, but then again I have never been in the position as Supervisor to make the decision of accepting a business with the Enpire Zone program or turning one away which would result in no business at all. I have to imagine that for every one business that bellies up even after taking advantage of these programs there are many that are thriving as a result of them.
Why is the State in the business of deal making/breaking.....isn't that what risk, risk takers, consumers and the markets are for????? The government is suposed to enforce laws for crimes commited.....yet, we cry and cry cry,,,,,do something do something do something..... we are building the damn podium they speak at,on,around etc..........
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
Why is the State in the business of deal making/breaking.....isn't that what risk, risk takers, consumers and the markets are for?????
It would seem to me the country was built by the risk takers, consumers, and markets, on the flip side it would seem government is at least part of the cause of it's demise.
When Super Steel announced the shut down of its Glenville plant, I couldn't help recall the high hopes of many who labored to bring the firm to this area about 13 years ago.
Supporters predicted the company, manufacturer of train engines and rail cars, would spur an industry rebirth in a town that for a century was home to Schenectady Locomotive Works and successor American Locomotive Co.
Early in the process, Super Steel execs became disenchanted when Sunnyside Road people, concerned over losing the residential character of their neighborhood, derailed the proposal.
An alternate location was selected, but company leaders were still upset over the original citizen rejection. Any doubts they had about whether they were welcome disappeared when about 500 residents showed at Scotia-Glenville High for a rally backing the new site.................http://timesunion.com/AspStori.....;newsdate=12/24/2008
GLENVILLE Super Steel plant shuts its doors BY MICHAEL LAMENDOLA Gazette Reporter
The Super Steel Schenectady manufacturing plant in Glenville has closed, fulfilling its notice to the state to end operations by the first week of April, according to the state Department of Labor. The company, however, did not fulfill its job creation goals with the state as part of a $250,000 loan it received for operations in 2007 and may have to repay a portion of it, economic development officials said. A spokeswoman for the Empire State Economic Development Corp. said the agency does not comment on pending litigation. The parent company, Super Steel Products Corp. of Milwaukee, Wis., laid off 175 employees in stages, beginning Jan. 31. It cited as reason for the closure a steep decline in orders for the Glenville railroad car plant. Karen Williamson of the state Department of Labor said the plant is practically closed. “Our understanding is there is a skeleton crew there. But we are not entirely sure,” she said. Plant Manager William Carr was not available to comment Wednesday. He has refused to comment since Super Steel told the state through a Workers Adjustment and Retraining Notification, or WARN, in December that it would close the plant by April 3. Metroplex Development Authority Chairman Ray Gillen said he has been “actively showing the building, and the company is willing to lease or sell it. That is all I can say on this.” Williamson said the state Department of Labor sent a rapid response team to the plant several times since receiving the notice. The state offered access to its jobs bank and job counseling in addition to workshops on résumé writing and interview tips and techniques. In late January, it conducted an on-site job fair that attracted 10 employers, William said. Williamson said the state will know later this year how many former Super Steel employees found new jobs. “There is a delay. We have to check tax and finance reports for that data,” she said. Former Super Steel employees can still obtain services at the one-stop employment center at 797 Broadway in Schenectady, Williamson said. The company retains a payment in lieu of taxes agreement with local municipalities. The PILOT agreement started in 1996 at 20 percent of the building’s assessed value of $3.7 million. It was locked in for five years at 20 percent, then increased to 25 percent for two years, then to 35 percent for two years, then to 40 percent for two years and then to 45 percent for two years, where it is currently. It then increases to 50 percent for two years and 60 percent for two years before hitting 100 percent. The building’s assessment increased to $5 million in 2007 when Glenville underwent a reevaluation, and it was assessed at $6.7 million for school tax purposes in 2008. Super Steel received two grants from Empire State Economic Development during its time in Schenectady County. The fi rst was in 1995 for $400,000. Super Steel had to create 150 jobs by 2000. It met this goal, according to state officials. The company received the second grant in two parts: $250,000 in 2005 and $250,000 in 2007. Super Steel had to create 90 more jobs, bringing the total jobs there to 240, by Jan. 1, 2006, and it had to maintain this number until Jan. 1, 2009, as part of the grant conditions, the Empire State Economic Development Corp. said in December. Spokesman Warner Johnston was not available Wednesday for comment. Super Steel also operates two other manufacturing plants in Milwaukee. It is not closing those plants or laying off people there, according to the Milwaukee Journal Sentinel. It is also building rail cars at one of..............http://www.dailygazette.net/De.....amp;EntityId=Ar01302
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