Upstate economic development received a much needed boost when Governor David A. Paterson signed into law legislation sponsored by Assemblymember Sam Hoyt (A10839/S7556) amending the current Historic Rehabilitation Tax Credit law to allow banks and insurance companies to now claim the tax credit.
"This is a major victory for economic development in Buffalo and Upstate New York," Hoyt said. "The amendments will create a ripple effect of private sector investment that includes the creation of hundreds of new jobs and historic structures in communities across upstate will be saved and restored."
Dozens of local projects have been on hold waiting for the law to take effect. The new law expands the pool of investors, allowing for hundreds of millions of new dollars to be invested in current and future developments in Western New York. This will propel new construction, which will create new jobs. Developers now have more incentive to invest in local projects, especially those in downtown Buffalo.
"Without Sam's efforts and the efforts of Senator Valesky, the Lafayette Hotel and the AM&A's department store would not be getting done," said Rocco Termini, head of Signature Development, who has been a leader in rehabilitating structures in downtown Buffalo. Termini expects to soon start work to transform the Lafayette into a mix of retail, hotel, residential and banquet space and complete work by next October.
Many high-profile projects in Western New York will receive a boost by allowing banks and insurance companies to apply for the tax credit, such as the Lafayette Hotel, AM&A's Department Store, Horsefeathers Building, Bethune Hall and The Cooperage.
"Banks and insurance companies are among the most experienced users of the federal rehabilitation tax credit program," said Jay DiLorenzo, President of the Preservation League of New York State. "Thanks to Sam Hoyt's persistent leadership in the Assembly, higher levels of private investment will finally begin to flow to redevelopment and revitalization projects across the state."
"This legislation inches us ever forward in our efforts to fix this critical program and put New Yorkers back to work," said Robert Simpson, President of CenterState CEO. "Upstate's urban areas are poised to see hundreds of millions of dollars of reinvestment from this program. To ensure this catalytic infusion in our urban neighborhoods, the Governor must still repeal his decision to delay payment of these tax credits for three to six years."
Many advocates of the new legislation believe it is a major step forward that strengthens the already important existing historic rehabilitation tax credit law. The legislation expands the opportunity for the reinvestment and development of existing buildings, many of which anchor communities of all sizes in New York State, will have a positive impact for decades.
"That the Governor signed Hoyt's bill is a tribute to Hoyt's leadership in Albany," said local preservation architect Clinton Brown.
"We are thrilled that the process for amending the HRTC legislation to permit banks and insurance companies to invest in worthwhile historic properties is finally complete," said Steven Weiss, a Buffalo attorney who specializes in historic tax law. "This progress is a major step forward and reflects the tireless effort of Messrs. Hoyt and Valesky, among others, who recognized early on that while the passage of the initial bill was itself historic, the improvement of it was necessary. The amendment will result in the ability to show the legislature and the Governor that the program will deliver what is expected and we hope that with these positive results, a further amendment will ultimately be enacted to allow the state and federal credits to benefit separate investors, further enhancing the value of the state credits."
Hoyt and Senator David J. Valesky (D-Oneida) were the prime sponsors of the Historic Rehabilitation Tax Credit legislation signed into law in 2009 that provided tax incentives for investors of both commercial and residential development of historic structures across New York State. Since the law took effect on January 1, 2010, the residential component of the original bill - which covers owner-occupied structures listed on the State and National Registers of Historic Places - has already seen a rise in applications. The commercial aspect has been strengthened by the passage of the new amendments.
"Making the HRTC available to banks and insurance companies will result in tens of millions of dollars of investment in our downtowns, hundreds of jobs and a revitalization of our upstate urban cores," Valesky said.
"I do not want to see another historic building in Western New York become derelict or demolished," Hoyt said. "Many key rehabilitation projects locally and statewide have been on hold, waiting for this amendment to become law. Now that it has, developers can get to work stimulating our local economies. I have fought hard to pass this law to ensure Western New York gets the economic boost it needs."
It's always nice to see, even in the most dire of economic times, the people of New York (and their money) come together to support the neediest among us: namely, Rocco Termini, Sam Savarino, Banks and Insurance companies. Not to mention Sam Hoyt who will spend your money to keep him in office receiving salary and benefits also paid for by you.
Clearly, this legislation is the first step towards solving all of Buffalo's problems forever.
I agree. I think Buffalo would look great with even more surface parking lots. Really encourages development