N.Y.C. Comptroller Wants Transparency at IDA

New York City Comptroller William Thompson Jr. plans to call for greater transparency and accountability at the New York City Industrial Development Agency today.

In a letter sent to deputy mayor for economic development Robert Lieber on Friday, Thompson said that while the agency plays an important role in encouraging and assisting companies and nonprofits to expand and stay in the city some of its practices should be more open.

“There are concerns ... as to why some firms and not others are chosen to receive incentive packages,” Thompson wrote. “While these concerns may be unfounded, I believe that there are important steps that we as a board can take to increase transparency and accountability and foster greater trust in the process.”

Thompson is an ex-officio member of the NYC IDA board. Lieber served as chairman of the NYC IDA in 2007 before being appointed deputy mayor in December. Lieber oversees the issuer in his current position.

Thompson’s proposals include: providing official statements for bond offerings to the public and board members at board meetings; providing detailed information to board members on items to be voted on at monthly board meetings least 10 days in advance; posting cost benefit analyses for proposed benefits on the agency’s web site; making available information on the genesis of projects to board members and the public; and that agendas should be posted on the agency’s web site 10 days in advance instead of the current three days.

He also called for the board to be presented with complete information on the city’s involvement with projects which receive IDA benefits.

“The board is hard pressed to make an informed decision about the merits of a subsidy for a component of a project when the interlocking financial and legal aspects of the project are not presented,” Thompson wrote.

Thompson also proposed that for-profits benefitting from NYC IDA financial incentives, which can include tax breaks as well as tax-exempt bond financing, be required to “increase living wage standards” and that all beneficiaries be required to comply with environmental building standards to reduce energy consumption.

In fiscal 2007, the NYC IDA provided more than $2.2 billion in incentives to beneficiaries including tax-exempt bonds which cost the city $725 million in lost tax revenue, according to a press release from the comptroller’s office.