Tags: corporate | welfare | new york | buffalo | company | headquarters

New York to Give $5 Mil to Help Buffalo Company Expand Offices

By    |   Tuesday, 06 Jan 2015 05:47 PM

New York state will reportedly spend nearly $5 million to help a billion dollar private food products company expand its Buffalo headquarters.

Art Voice blogger Paul Wolf reports the "corporate welfare" will go to Rich Products – the 140th largest private employer in America, Wolf says, citing Forbes magazine, which had revenues of $3.3 billion in 2014.

"You would think that a company as large and successful as Rich Products could pay their own way, without needing to tap into government assistance, but corporate welfare in New York does not have any limits," Wolf writes.

The state is supporting Rich's $18.5 million expansion project with $4.9 million in capital grants and tax incentives, including a $2 million grant from Empire State Development and $2.9 million in tax credits through the Excelsior Jobs Program, Wolf reports. Tax incentives totaling nearly $419,000 are also anticipated to come through the Erie County Industrial Development Agency, he writes.

"Small businesses have to take out loans but billion dollar companies get taxpayer funded grants," Wolf writes, adding "the New York State Constitution explicitly states that government funds are not to be provided to private businesses but through entities like the Empire State Development Corporation, politicians in desperate need to make friends with the wealthy … have figured out ways around the Constitution."

According to Empire State Development, the expansion project helped the company keep 651 jobs in New York, and create 74 new jobs.

"Rich Products considered locations in Florida, Georgia, Tennessee, Toronto, and Hong Kong for the expansion project," and without the assistance of Empire State Development, "the project most likely would have taken place outside of New York state."

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New York state will reportedly spend nearly $5 million to help a billion dollar private food products company expand its Buffalo headquarters.
corporate, welfare, new york, buffalo, company, headquarters
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2015-47-06
Tuesday, 06 Jan 2015 05:47 PM
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