SYRACUSE – Town council members renewed tax abatements for two companies Tuesday but, for the moment, rejected two others.
Syracuse councilmen approved renewal of abatements for Patrick Industries, which acquired A.I.A. Countertops last year, and for Jasper Plastics Solutions. They did not OK renewal for Syracuse Properties or Technical Services, noting the companies had fallen short on employment and payroll requirements to remain eligible for benefits.
Technical Services, whose 10-year tax phaseout begun in 2009 was supposed to offset a $3.2 million project, has so far spent only $400,000, according to Town Manager Henry DeJulia. The town has only seen about $250,000 of a projected $1.4 million payroll, he added, while rather than creating eight jobs, the company may have lost one or two.
Syracuse Properties has likewise fallen short of where it should be on payroll and employment by about a third, councilman Brian Woody noted.
Members seemed reluctant to outright decline renewal for the two companies, at least not without determining whether the shortfalls were due to forces outside owners' control – the legal exception to noncompliance.
“Everybody could say it's out of their control, even if it's the biggest company in the world. So what qualifies as out of their control?” council President Larry Siegel asked.
The only example given in the law was a decline in demand for a company's product or service, Town Attorney Mike Reed replied. Reed said he will look into case law for other examples in preparation for a hearing with the two companies that council set for May 7. They will make a decision immediately after the hearing.
May 15, the date of the next regular council meeting, is the deadline for filing tax abatement renewals with the county.
Also during the meeting, council voted to hire Wightman Petrie for inspection services for industrial park work covered by Economic Development Administration and Economic Development Initiative grants. The total cost for these services is $142,985.
Council also voted to donate $2,000 to the Lake Area Community Band for a July 4th concert as well as two other to-be-determined performances. The town usually donates to the 50-member band, but officials had questions this year since the cancellation of the Park Rhythms Concert series means only the July 4 performance is guaranteed.
The donation was passed on a three-to-one vote, with councilman Jeff Morgan absent. Woody, who voted against giving $2,000, had first proposed $750 for only the holiday performance, but that proposal failed.
Parks Superintendent Chad Jonsson said his department decided to cancel the summer concert series for lack of interest. He noted some performances saw as few as 30 attendees, and said it made more sense to hire bands to play for existing gatherings at events such as the May 12 opening of the farmer's market.
