To look at a reported $592,000 in profit and $4 million in assets for GCEDC, it seems obvious to wonder if the oft-criticized industrial development agency is going to give back some of the $238,000 it received from Genesee County taxpayers in 2010.
It's not that simple.
First, what we often refer to as GCEDC is really two organizations. There is the Genesee County Industrial Development Agency -- doing business as the Genesee County Economic Development Center, which is a public-benefit corporation -- and there is the Genesee Gateway Local Development Corp., a not-for-profit corporation.
As far as profits go, GCEDC generated a positive cash flow of $4,860 in 2010.
The GGLDC reported net unspent revenue of $589,183.
But it's not like that money is sitting a bank somewhere with the GCEDC having free reign on its distribution.
Much of the money comes from grants, both from state and federal agencies and entities such as National Grid and can only be used for designated purposes. It's money received but not yet spent and, though it will be spent, it can only be spent on specified projects and programs.
A $1.3 million increase in 2010 in operating revenue for GGLDC comes from a $900,000 Empire State Development Grant for the STAMP project in Alabama; and new rent revenue of $300,000 from tenants of the MedTech Center, opened in 2010.
Other grant revenue included $19,353 from National Grid for gas meters and service at MedTech; $175,000 from National Grid for STAMP; and a state grant of $752,716 for phase II development of STAMP.
In all, GGDLC had operating revenues in 2010 of $1.778 million and operating expenses of $1.189 million.
In 2010, GCEDC had $935,592 in revenue, which included a 77-percent increase over 2009 in fees from companies receiving GCEDC assistance. In 2009, there were $361,152 in fees paid. For 2010, that figure was $639,550.
Total operating expenses for GCEDC in 2010 was $930,732, which included $689,100 in salaries, wages and benefits.
As for GCEDC sitting on $4.4 million in assets, that includes $1.89 million in land held for development.
Assets also includes nearly $600,000 due this year and in following years from Darien Lake Theme Park in fees.
There's also more than $2 million in bank accounts.
Mark Masse, senior VP of operations, explained a portion of the accounts this way: $469,000 is from grants for revolving loan funds; $729,000 set aside for specific park projects and the work force development program; $230,000 in the operations checking account; $292,000 in savings that mostly came from the sale of One Mill (the former GCEDC office) and is a set aside for emergency expenditures.
Asked about all of the revenue and seeming profits of GCEDC, County Manager Jay Gsell said, "It's not that simple."
In some counties, the IDAs need to come to their legislators and ask for money for road and sewer improvements, Gsell said. That doesn't happen with GCEDC.
"You’ve got to look at the bigger picture," Gsell said. "What is that they’re doing? What is their game plan? What else have they got that money leveraged for? You know, there are a lot of things they’ve been doing that -- as far as infrastructure improvements in other parts of the county -- precludes the county from actually having to participate."
As far as changing the county's contribution to GCEDC, it's too soon to say, Gsell said.
“Certainly, it’s not something, as far as the budget is concerned, that I’m ready to say to the legislature, 'well let’s do this or let’s do that' as far as 2012 is concerned," Gsell said.
Chairwoman Mary Pat Hancock said she is certain any profits from GCEDC are being reinvested on behalf of the taxpayers, but she did say, reducing the county's share of contribution -- designed primarily to cover about half of the GCEDC's personnel expenses -- is not off the table.
“We look at that every year and certainly, this is a tough budget year," Hancock said. "This isn’t a discussion we haven’t had, that we’re afraid to have and that we won’t have.”
