From: Zac Moore (zdmoore@maxwell.syr.edu)
Date: Thu Sep 12 2002 - 23:52:33 EDT
DestiNY USA is proposed to be the largest Mall in the United States and
will be located in Syracuse, NY, a city cited for significant levels of
poverty and who's mayor recently rejected a city living wage initiative.
The following is part of an effort to link economic justice with
environmental justice including the building of multi-million dollar
sewage projects in minority neighborhoods. When millions of dollars are
spent in poor neighborhoods, local residents should benefit from the
jobs whenever possible.
http://www.syracuse.com/opinion/poststandard/index.ssf?/base/opinion-0/1
03130134414012.xml
Public support for Destiny carries job responsibilities
September 06, 2002
Syracuse Post Standard
By Harold Jones, Patricia Rector, Donna Reese and Margie Clark
In the very near future, state and federal lawmakers will consider deals
proposed by Destiny USA developers for significant tax breaks,
abatements and other financial "incentives." The state says its main
purpose in offering these massive breaks (some of which span decades) is
to increase long-term economic opportunities for New Yorkers.
As one economic policy analyst observed in a recent report to the New
York State Department of Economic Development: "The justification for a
state's economic development efforts is that through improving economic
conditions in the state, the economic well-being of its residents will
be improved."
To assure that taxpayers get a return on their investment, particularly
those historically who have not shared in benefits open to others, we
believe that the following items must be incorporated as essential
statutory components of any state economic subsidies New York state
gives to Destiny and all major economic development projects in our
community.
Job quality standards. Because so many developers, after receiving
substantial public monies, have failed to deliver on their promises, 37
states, four counties and 25 cities have begun to apply job quality
standards to development agreements. New York state should learn from
other governments' bitter lessons and include the following, as an
amendment to the Pataki/Congel Destiny deal:
Wage requirements pegged to local market wages, tracked with the cost of
living or average wages at a two-tiered standard, one for employees
receiving health benefits, and a higher one for those without. Payroll
reports should, at minimum, be issued annually to state officials.
Requiring employers to inform employees earning less than $12 an hour of
their possible rights to the Earned Income Tax Credit and advance EITC
payments from their employer.
Monitoring and tracking of employee retention rates so that jobs created
are not merely revolving doors.
Demonstration by developers and employers receiving state or local
assistance that the subsidies meet a public purpose and result in a net
expansion of the tax base.
A requirement that the developer strongly encourage Destiny's tenant
companies to develop and make public aggressive and measurable plans to
recruit and retain a work force that reflects the diversity of our
community.
Serious reporting requirements: Specific wage data on all employees at
subsidized companies should be mandated so that the State Legislature
and the public can make informed judgments about the real value of
government economic development programs. Tracking should minimally
require demographics on "protected classes," and should also identify
numbers of individuals who live in economically distressed areas, as
defined by census data.
A targeted hiring program: Any agreement with the developer (and with
tenants), including project labor agreements, should include the
creation of a First Source office, whose primary purpose is to build an
economic base in low-income communities by hiring:
Qualified people from economically distressed neighborhoods, as defined
by census-tract data.
Individuals referred by local, community-based job training
organizations.
People whose jobs were displaced by mall development.
People with disabilities who are otherwise qualified for training and/or
paid work.
Neighborhood residents, who will bear most of the brunt of initial
construction: increased traffic, noise, increased housing costs, etc.
Job training, monitoring and reporting: Data must be gathered yearly
about ethnicity and gender, and whether trainees live in economically
distressed areas. In addition, reports should document efforts to train
people with disabilities. Yearly tracking should also measure the
percentage of trainees who move into full-time or part-time jobs, and/or
jobs where the wage is so low, and whether the recipient qualifies for
any form of public charity (which would be a hidden taxpayer subsidy to
the developer or employer).
We also expect and deserve greater accountability from state and local
economic development agencies: stronger oversight of developers'
performance goals; cost-benefit analyses to determine what the public is
getting for its dollar; and meaningful annual financial and performance
auditing.
Why? The Institute on Taxation and Economic Policy, of Washington, D.C.,
found "a troubling landscape" in its recent audit of 122 economic
development programs in 44 states. Poor oversight, infrequent auditing,
lack of measurable outcomes, and even non-compliance with the
authorizing legislation plagued government-subsidized development
programs.
Only proposals that respect long-term community needs and priorities and
contain provisions for ongoing public disclosure are worthy of
lawmakers' support.
Harold Jones is president of the Coalition of Black Trade Unionists;
Patricia Rector is community co-chair of the CNY Labor-Religion
Coalition; Donna Reese is president of the Syracuse Chapter, NAACP;
Margie Clark is with the Partnership for Onondaga Creek.
(c) 2002 The Post-Standard.
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