Per the Capital District Business Review, GlobalFoundaries (the successor to AMD) is already pursuing a $2 BILLION expansion of its Malta, NY chip fab even before the fab issues its first chip. . . . Good news?
. . . the deal may hinge on whether the state is able to offer additional incentives.This story has a familiar ring to it, with echoes from Syracuse . . . and from Rome . . .
GlobalFoundries is negotiating with lawmakers for $300 million in incentives, said Assembly Majority Leader Ron Canestrari, D-Cohoes.
“They’re just too important to ignore. They have a proven track record . . ."The state already had approved $1.3 billion in tax breaks and cash incentives to convince GlobalFoundries to begin building the chip plant in Malta . . .
The "Adolfo G" comment on the story contains more content and information than the story itself. If true, NYS could be one of the biggest losers in history while portraying itself as a winner, because it may have invested taxpayers money in a business with a failing model.
Investments in public infrastructure designed to serve private needs IS THE SAME AS investing in private enterprise whether it technically is so or not. The public simply did not need the roads, water lines etc that have been installed for the chip fab.
This is why the State Constitution forbids investing public funds in private enterprises. It is gambling with OUR money. . . . and it takes so much out of the State's economy to serve ONE business in ONE area that it chases away other business opportunities that might be out there . . . ones repulsed by this state's high costs.
It's time to end this practice. No more state incentives for businesses, no more special deals, fire all the "industrial development" "experts." We are better off without them
3 comments:
Business when contimplating and investment, particularly when it involves an expansion is most concerned about location, cost and timing. The industrial development field was created to facilitate the process in terms of providing top notch information about these concerns and facilitating timing. For example identifying sites and coordinating the permit process. It was never intended that industrial development be centered around financial packaging. That was a political invention caused by legislation creating the tax, grant and loan structures now in place. The political impetus was conditioned by high taxed areas and by political credit agendas. Companies will milk guys like DiMeo simply because he is there. Local taxes to real companies and real projects are nor big in their cost equation. For example local land taxes mean virtually nothing when considered with labor cost. So, in many instances, the tax breaks would not be necessary to start with. But, of course who in their right mind would not take them when pointed out by the DiMeos of the world? Our federal and state elected representatives would have to change enabling legislation to alter the system. Firing the industrial developers would not.
WHat? You mean they WON'T be planting themselves in Marcy?
[fake disappointment]
I agree--- no public money to private businesses!
But we've been chanting this for decades; when will NYS stop it? It's only increased...
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