How Much Is FREE Costing?

by Contributor | August 4, 2016 2:27 pm

To The Editor:
I’m sure everyone remembers statements like: ”It’s not going to cost us anything” “If they leave us a bunch of piles what did we lose? Nothing because it didn’t cost us anything”!

Well I just want to interject my thoughts and ideas with some numbers for everyone to think about.

Cost of paying for crushed bricks (that we gave to the contractor) – $230,000

Cost of air quality testing during (mandated by state) asbestos removal -$60,000 (so far) – $70,000 (bonded extra) – $130,000

Loss for not having the site shovel ready for ALDI by July 1 – ?

Loss of real property taxes just from ALDI site – $12k.

Loss of revenue from sale of property not having Nestles site ready for development –
1.    Lot # 1 – $475,000 (ALDI – was paying $450,000)
2.    Lot #2 – $315,000 – (asking price)
3.    Lot #3 – $365,000 – (asking price)
4.    Lot #4 – $165,000 (asking price)
5.    Lot #5 – $395,000 (asking price)
6.    Lot #6 – $865,000 (asking price)

Total – $2,555,000 (asking price revenue)

Loss of Real Property Taxes – At least $84,000 (depends on assessment of building. could be higher or lower)

Loss of sales tax revenue – Dependent on category of development. (Someone may say “we get a set amount of sales tax revenue paid to us from the county” -but if the county gets more sales tax revenue we get more and the increase in tax revenue keeps cost to the taxpayer down.)

Total cost of FREE: $2,999,000 (Loss of revenue from non-sale, costs paid for demo, loss of tax revenue)

So FREE isn’t so FREE is it?

All of these losses would be no problem if we weren’t a finically stressed municipality.

We are and we need every dollar.

It is a fact that the revenue from the sale of the above named lots will be gained when they are sold but the loss of property taxes and sales tax is lost forever.

The jobs that the development of these properties will create will come sooner or later but the lost wages from not having these jobs available will again be lost forever.

Recently a businessman told me in reference to the demolition of the Nestle site that I should just wish the city leaders “LUCK.”

I would have to disagree. That is what you wish a sports team or a person opening a new business.

It is not what you should do for someone using taxpayer money.
The city leaders must take luck and guessing out of the formula when using taxpayer money.

Last year, when our bond rating had increased the city leaders should have bonded the $3 Million it would cost to have the Nestles site cleared and shovel ready.

That would have shown ALDI how serious we are about wanting them here.

Then the sale of all the properties (and possibly money from FRB) would pay back the bond.

We would be receiving tax money both real property and sales.

We would be free of an eyesore that had been a hindrance to our progress for almost a decade.

Again, these are my thoughts and ideas for you to think about.

PS – Today’s news story:  Fulton Mayor: Aldi ‘Still on board’ – Ground Hog Day again or Deja vu all over again or did they send me a paper from two years ago.

I know you are all thinking it. I’m just saying it.

Frank Castiglia Jr.
Resident and taxpayer in the city of Fulton

Source URL: https://oswegocountytoday.com/opinion/letters-to-the-editor/how-much-is-free-costing/

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