The owner of a large hangar complex at Griffiss International Airport wants to substantially reduce its payments made to the county in lieu of property taxes, starting this year. The current schedule calls for $462,468 in each of the next three years. However, 394 Hangar Road Corp. now wants to pay the county $200,000 this year, $150,000 in 2016 and $100,000 in 2017 . . .But if you have followed the goings on at Griffiss "International" Airport, you may have a sense of deja vu. About a year ago, per a 10/16/14 Sentinel article, 394 Hangar Road Corp. requested from the Oneida County Industrial Development Agency (OCIDA) a $300,000 per year reduction in its PILOT payments, which were then about $750,000/year.
“Without a modification to the existing PILOT agreement, the building will not generate a positive cash-flow,” [said] a summary of the proposal.Why was the building not generating a positive cash-flow?
The PILOT changes are being sought as annual refunds received by 394 Hangar Road through the state’s Empire Zone program are starting to decrease and will be zero after four years.Since the Empire Zone funds were not available to governmental entities, and since the payments to the County go into operation of the airport, it sure looks like 394 Hangar Road Corp. was used to funnel state Empire Zone funds to cover Oneida County airport's operating expenses. BTW, 394 Hangar Road Corp. is not just another private company. It is a creature of Mohawk Valley EDGE, with whom Oneida County contracts for economic development services . . .
The 2014 request was subsequently approved with the reduction effective for 2014, so if the current request is approved, the taxpayers would be on the hook to make up the difference of about $2,100,000 over 2014 - 2017. (Is it any wonder why the County has taken $2,500,000 this year from Oneida Nation gaming revenue for "tax stabilization?")
The Sentinel's current article indicates more clouds are on Griffiss "International's" horizon:
No matter what the IDA decides, PILOT payments from 394 Hangar Road will end after 2017. The county has the option of assuming ownership of the complex in 2018, a status that would make it exempt from taxes. And even if ownership remains with 394 Hangar Road, zero payments are required in 2018 and after. . . .When all is said and done, as of 2018, between the $750,000/year in lost PILOT payments and another $750,000/year in lost rental from the old airport, the taxpayers will have to make up an additional $1.5 million per year in lost revenue on top of what they had been paying, as of 2013, to keep the airport running. While the proceeds from the sale of the old airport may mask the airport's true financial picture for awhile, the discontinuance of both the PILOT and the rental income suggest that . . .
Additionally, the county is selling the former county airport in Whitestown to the state for $10 million later this year. The state has been leasing the older airfield with the annual rent being counted as revenue in the Griffiss budget since the airport moved from Whitestown to Griffiss in 2007. New York is paying $743,342 this year for the Whitestown location, which is home to the state Emergency Preparedness Center. That revenue stream ends when the sale is completed.
Griffiss "International" Airport's house of cards, built on payments from higher levels of government, is about to come tumbling down.
9 comments:
I believe that you will find that the Empire Zone funds have gone to the GLDC, OCIDA, and EDGE, not the airport's operating expenses.
The airport isn't a bad deal when you consider that it's 1% of the overall budget - technically less when you consider revenue. But even with the current requested budget being in line with previous years, over half, 2.5 Million, of the requested 4.6 Million Budget is Salaries, Maintenance, Utilities, and Other Materials/Supplies.
Considering that Tompkins County has an Operating Budget of just under 3 million, ~500K more than what we spend on what I'll call general expenses, and offers things like actual passenger service its no wonder people have become weary of its funding. Schenectady County's airport has an operating budget of under 1 million and does something most municipal airports will never do - make a profit.
Now I'm not an expert, but I'm going to assume that being an old Air Force base is a major part of the problem. With various shakeups in renters we have an opportunity to start reducing, realigning, and leveling the airport to the tune of 1.5 million while salvaging the important assets that we can use - like the runway itself. No matter how good of a deal voters are going to, and have gotten, weary of funding it in its current state. R.M.
When you have an airport that is not functioning as an airport in any significant way, it is rather dumb to keep pouring tax payer money into it no matter how much. It, someday, will also come out that the entire Griffiss operation is written down in the sense of below market lease rates and taxes. Why does one imagine that checker boarding existing companies from market rate locations into taxpayer subsidized ones dominates the development there? How many really new businesses and jobs have been created. When one factors federal, state and local tax dollars into the picture, the entire Griffiss redevelopment has been a huge failure. It would have been far better to have turned a good deal of it over to a private developer in the first place. But, if that was done, the local power structure would have lost a fortune in contracts, jobs for cronies, political donations, lawyer fees, etc.,
R.M.
After spending close to $100 million to renovate Griffiss from a former USAF base to a civil airport, the FAA will not permit the County to shut it down and use it for any non-aviation purpose, unless the County is willing to repay the FAA.
I'm not saying to shut it down - as it is an asset to have and, when dealing with less than 1% of a budget, shutting it down would have no tangible effect.
However, when looking at the airport as a single entity, why not reduce operations (and even buildings) to lower the 1 million in Salaries and 1.5 million in maintenance/utilities (which will continue to raise). The county is never going to make profit off the airport, but without being efficient the crazies are going have an easier time getting there hands in the cookie jar an make the entire 10+ years a waste. R.M.
If I want to invest in a business I'll buy stocks and get a return with known risks. My tax dollars are not for foolish commercial fantasies conjured up by Oneida County and EDGE for political kick backs and payoffs. The corruption needs to stop and my taxes need to be cut. Period.
The citizens of Oneida County have suffered and been played for patsies long enough. If given the chance, VOTE THEM OUT! It's way past time for a house cleaning of this government.
Sad. True. Pathetic.
We cant vote them out without viable candidates to run against the entrenched group that now controls the county. We do not need the usual , tired,unimaginative group of candidates that are put up as opposition to what we already have to suffer with. Even worse is when there is no meaningful opposition at all!
Political will and legislation can certainly override or change FAA rules. The insanity of operating a non airport at forever taxpayer cost, should not be permitted to continue. An asset is only an asset if it produces a positive outcome. The airport that is not an airport simply extends spending and debt. If our system has become as warped to permit no reform or change, we all might as well throw in the towel.
The whole county is run by by a band of thieves. Did anyone expect anything more of this crowd?
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