ARMOR DYNAMICS SECURES BIG CONTRACT

Even in this painfully slow economy, there are still some small glimmers of hope for local manufacturing. Armor Dynamics, which is in the Kingston Business Park on Delaware Avenue, was featured in the Times Herald Record last week as an example of local business inching through the growth process.

The business came into focus because our Congressman Maurice Hinchey secured a $2 million project to develop and fabricate armor for the military. That contract is big enough that the growth could also result in jobs and investment in Kingston over the next year or so. Strange news from an area fighting to keep the jobs we still have.

Armor Dynamics is the second tenant in the Kingston Business Park. Their facility was built by the KLDC and with a million dollar grant the Economic Development Office secured with State funding. Contracts like this one can act as a catalyst for other ventures in the Business Park.

Anyone who has stopped by the facility will notice a Kingston Patrol Car inside the lobby. The company has offered to armor that car for the city at no cost. This is likely the beginning of the process that will see other police agencies purchase the armoring for their patrol cars which in turn, will lead to more jobs and investment in Kingston.

Steve Finkle, our Director in the Economic Development office says Armor Dynamics currently operates in 10,000 square feet but will likely expand that building over the next year. That expansion has gone through the planning stage and approved already.

Lets hope we can attract yet another business to this location soon. Our city's economic climate depends on it. Something Solar perhaps?

ULSTER COUNTY IS OPEN FOR BUSINESS

Ulster County is OPEN for business once again! As if we were living in a cave, new business starts on a grand scale stopped like a derailed train a few years ago when the Ulster County IDA implemented the "Prevailing Wage" requirement for any business looking for IDA assistance.

The rule is suspended for one year to see what affect, if any, the proverbial "welcome mat" will have as our County's financial crisis worsens. Cross your fingers.

Michael Berardi, chairman of the IDA’s board, said in the Freeman: The six-member body voted unanimously last week to suspend the wage rule for one year and that
members agreed to the suspension for different reasons.

Whatever the other members thought to bring this vote outcome, I don't care. I'm just thrilled to see a change in the approach to how we offer help to struggling business in this county. Large or small, new business needs coddling in these tough times.

The Freeman reports: The prevailing-wage policy was put in place a few years ago and was amended in 2007 to grant exemptions to businesses that employed at last 100 permanent workers, paid at least 75 percent of them $12.50 per hour or more and were at risk of leaving Ulster County.

Although it didnt have any affect on Empire Merchants North, they left for the Greene County anyway because of demographics and a lack of shovel ready sites in the UC region. Their building on Flatbush Ave will be a prime location for a business looking to utilize this window of cognitive thought in the IDA.

My thanks to Board Member, Jen Fuentes for giving this change of rules a chance to end the retrospective arguments that followed the "Prevailing Wage" stipulations. Jen, we need a shot in the arm, and this might be just that.

Economic advocate and friend Shelly Zimbler had railed against the Wage issue when it was first introduced and warned that the applications would stop coming in the day we implimented such a rule. The applications stopped the day it went into affect. From 3 or 4 a month to zilch.

He, like so many others suspect there was prodding from Hein and company, I have no confirmation either way, but it's a good idea. Now how are we to alert the business community that Ulster County has changed the ground rules to induce serious investment? Are we putting up fliers on light poles or are we actually stepping out of the 20th century?

COMMERCIAL GROWTH ON BROADWAY?

Yes! The Planning board met last Monday July 14th.

One applicant, Kamran Khan, presented the board with a plan to redevelope the corner Mobile Station on Henry and Broadway. It is a dramatic proposal for an area that most feel is neglected.

So I followed the discourse. The owner, Cheekam King, intends to build a Convenience Mart type of building on the adjoining lot on Henry. The little Kiosk you see in the picture will be raised and the parking will increase.

The Planning Board gave the "Go-Ahead" and initiated the paperwork to begin the project.

I like it, actually. Its an agressive and daring investment for the area. It will be open about 20 hours/day and releive some of the traffic We see around W Chester St all night long.

Building will be under way shortly, and hope to be open by March.

Note: Sales Tax and Property Tax will be generated.

Can somebody say Hallelujah?

RIVER RADIOLOGY IN THE ZONE?

ALBANY is looking to kick River Radiology out of the NYS Empire Zone.


As many as 26 companies are being reviewed by the Empire State Development Department, which handles the Empire Zone program. The Kingston company is part of this first aggressive step by ESDD to weed out companies getting tax breaks without compliance with required paperwork.


The companies recently received notice that their Empire Zone benefits, such as breaks on property and sales taxes, will be revoked by the state. According to the Poughkeepsie Journal: River Radiology is among those who have not responded to requests for information from the state regarding their job projections or capital investments.



Taken from Gannett News Service: The EDZ program offers tax breaks to companies that locate in areas targeted for development. Critics say the initiative - which costs the state about $600 million in tax breaks each year - has been exploited and has encouraged sprawl without creating the jobs to justify the tax breaks.

The Empire Zones Started in 1986 to help development in poor urban areas. There are 82 zones in the state with about 9,800 businesses employing 380,000 people receiving tax breaks and other subsidies.



Assemblyman Richard Brodsky, D-Greenburgh, one of the harshest critics of Empire Zones says: "This program should be shut down," "It is not working, it is in effective.”


Regarding River Radiology, I would have to disagree with the Assemblyman on the count that this may be an example of a Economic stimulus that brought in a large employer who then became a success story. River Radiology received about 20% discount in property taxed from 2003-2005 and have since been contributing the full amount assessed. Full commercial taxes, increased employment, and decent pay….sounds like a success to me.


Our own Economic Czar Steve Finkle said: “During the course of several months, River Radiology Accountants have not returned correspondence regarding the Business Annual Report (BAR) which the state expected a while ago” “If this constitutes a lack of performance, I think we have a good record in the Empire Zone, having only one of these companies on this list since it’s inception, If it’s because they don’t need the program, that’s even better”.


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