Albany First Ward Common Council member Dominick Calsolaro
has a way of staying one step ahead of the game. After I posted this
article, in which I suggest that this cost increase for the Convention
Center is a good excuse to change plans, Dom emailed me this letter
that he had sent to Governor Spitzer a few days ago. It seems that
he is already on top of the idea... and is doing something about
it!
This is great. I can imagine Jerry Jenning's reaction...
City of Albany Common Council
June 26, 2007
Hon. Eliot Spitzer
Governor
State of New York
State Capitol
Albany, New York 12224
Dear Governor Spitzer:
On June 25, 2007, the Times Union reported in an article entitled, “Center
now a $300M project”, that the proposed Albany Convention Center
is now projected to cost $300 million rather than its original cost
estimate of $185 million! George Leveille, director of the Albany
Convention Center Authority (ACCA), said the cost of the project
is $100 million more than originally expected.
Of this $300 million, the state has committed only $75 million or
25% of the cost. Some of the other funding is to come from an increase
in Albany County’s “bed” tax, and, of course, the
selling of bonds. These bonds are to be secured with the backing
of the section 19-A (Public Lands Law Art. 2) monies from the State.
In fact, in subdivision 2 of section 19-A it states: “...that
any such payment shall be reduced by any amount necessary to meet
eligible obligations of the Albany convention center authority…”.
Simply put, the City of Albany can not afford to back bonds that
may total more than $100 million in principal alone, against future
state aid payments to the City. The City of Albany, according to
the most recent census data, has experienced an increase in the number
of residents living at or below the poverty level, while at the same
time, suffering from a loss of population of people defined as “middle
class”. If Albany is going to have to use state aid monies
to pay the convention center/hotel debt service, then there will
have to be an increase in the local real property tax rate to make
up the difference. The backs of the taxpayers in Albany should not
have to carry the load for a State authority’s (Public Authority
Law Art. 8 Title 28-B entitled, “Albany convention center authority”)
debt service.
How can the citizens/taxpayers in Albany be protected from having
to use future state aid payments to pay a State authority’s
debt? I have a few suggestions:
The State of New York fund the full cost of the Albany convention
center/hotel project, after all, the ACCA is a State authority.
The State place a limit on the cost of the project, let’s
say the original price tag of $185 million, and direct the ACCA to
scale back the proposed project so as not to exceed the original
cost estimate (with the State agreeing to fund the full cost of the
project if this proposal is agreed to).
The State recommend that the ACCA investigate alternatives to building
the convention center/hotel as presently formulated to find a less
expensive alternative. One of the required possible alternatives
would be updating the 1997 study that proposed expanding the Empire
State Plaza Convention Center. The original study for this expansion
projected a cost of around $20 million. Even with inflation and the
ever-increasing costs for construction materials, the cost of this
expansion will probably not exceed the original targeted amount of
$185 million.
This proposal is the one I truly would love to see happen – the
ACCA is reconstituted as the “Rebuild Albany Construction Authority
(RACA)”. The RACA’s mission would be to: (a) provide
funding to the City of Albany to rebuild or rehabilitate and/or demolish
the almost 1,000 vacant buildings presently identified in the City;
(b) provide funds for street and sidewalk reconstruction throughout
the city; and (c) provide funds for the City to undertake infrastructure
repair of its aging water and sewer lines. The RACA would also have
a revolving loan fund to help residents purchase the rehabilitated
vacant buildings for owner occupancy. This revolving loan fund would
also help to ensure a continuous source of monies for future home
ownership initiatives.
This last proposal would have to be implemented quickly (a change
in the Public Authorities Law) before anymore money is spent on the
proposed convention center/hotel project. Doesn’t it make more
sense to build or rehabilitate hundreds of houses for home ownership,
thus helping to reverse Albany’s present trend of population
loss, than to build one or two buildings that will do nothing to
bring in permanent residents to the shrinking City of Albany? Furthermore,
the RACA program would have to have a lifespan of at least twenty
years in duration, thus guaranteeing the construction trade workers
many more years of work than the building of one large project over
an eighteen to twenty-four month period.
What I am asking you to do is to review the whole convention center/hotel
project, especially its funding formula, and find a way to protect
the taxpayers of Albany from having the added burden of the convention
center/hotel debt service payments placed squarely on their backs.
The citizens of Albany should not have to pay for any part of this
State project. There has already been an increase in Albany County’s
hotel/motel tax to help raise money for the project. With the projected
increase in the final cost to $300 million can an increase in the
County’s sales and use tax be far behind? Or, will Albany County
propose the imposition of a “food” tax on restaurant
meals, on top of the already 8.25% sales tax? As you know, these
taxes are regressive in nature and hurt those who can least afford
to pay them.
Albany is a capital city, it should look like one. The RACA I am
proposing would go a long way into making Albany the capital of capital
cities. The City of Albany needs a major investment by the State
of New York in order for this to happen. A convention center/hotel
is a “sexy” idea, hundreds of vacant, dilapidated buildings
made into owner-occupied homes, with attendant reconstructed streets
and sidewalks, and an infrastructure that is newly rebuilt, while
not as “sexy” as a convention center, will go a lot further
in making Albany the capital of capitals, than one lonely convention
center.
Thank you for your time and consideration in this matter. I look
forward to working with you on making Albany the “capital of
capitals”.
Sincerely,
Dominick Calsolaro
Common Council Member – First Ward
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