Handout distributed at last night's CB7 meeting

CB7 Handout 11-10-14

SENATOR AVELLA CALLS ON DEC TO DENY WASTEFUL DEVELOPER APPLICATION FOR TAX CREDITS

FOR IMMEDIATE RELEASE

MONDAY, November 10, 2014

CONTACT: Heather K. Sager

718-357-3094/917-244-7945

SENATOR AVELLA CALLS ON DEC TO
DENY WASTEFUL DEVELOPER APPLICATION FOR TAX CREDITS

(QUEENS, NY) Today, State Senator Tony Avella is calling on the New York State Department of Environmental Conservation (DEC) to deny the Queens Development Group’s (QDG) application for Brownfield Cleanup Program (BCP) tax credits on its Willets Point Phase One property.

Approximately a year ago, QDG entered a contract with the NYC Economic Development Corporation which requires the QDG to clean up the property. As part of this agreement, the QDG received a capital grant commitment of taxpayer funds for $99 million, of which $40 million is intended to pay these cleanup costs. 

However, it was not long after QDG applied to the Brownfield Program, to try to obtain additional tax credits to clean up the property.

The Brownfield Cleanup Program (BCP) provides substantial tax credits to land developers to encourage the remediation and clean up of Brownfield sites. It was developed by the State in order to offset the costs of clean-up of the sites. An example of the amount of previous awards under the BCP is the $44 million awarded to the developers of the East River Plaza in Manhattan. 

After learning of QDG’s application, Senator Avella, along with advocacy group Willets Point United, immediately contacted the DEC to intervene. In a recent response letter, the DEC stated that the agency believes that, "The public interest is served by allowing these properties to participate in the BCP." The DEC also wrote in its response, "The fact that a property may be redeveloped without the incentives of the BCP does not preclude it from being eligible for the program."

“The Queens Development Group has already been promised $40 million in taxpayer funds to offset the costs of cleaning up Willets Point Phase One. Now, the QDG is attempting to take advantage of the BCP tax credit program by trying to apply for millions in tax credits for costs that will already be paid from the taxpayer’s pocket. It’s absolutely disgraceful,” said Senator Avella. “The DEC’s response is alarming, as it completely disregards the fact that the QDG is already required to clean up the site, and will already be receiving taxpayer funds to do so. Wasting taxpayer money by giving funds to developers who are already receiving clean-up related capital grants is not the intention of the Brownfield Credit Program.”