The City of Mt Vernon is $millions in debt and owes the school district over $20 million. Yet the City gave developers over $17 million of taxpayer's dollars. Please read the following.
The ABO (Authorities Budget Office) oversees IDAs.
Here is a link to the complaint form. https://www.abo.ny.gov/Complaint/Complaint.html
Here is the language I used in my complaint. Feel free to use the language and share this in your network. NOTE: I filed this complaint as a concerned citizen who has been studying the IDA closely for years, not a trustee of the school district who also sits on the IDA board.
1. The Mount Vernon IDA gave a 30-year PILOT to a housing developer, but not all IDA board members were aware that the PILOT contract had been executed, including the treasurer who is also Comptroller for the City of Mount Vernon. He found out at the November 14, 2024, IDA meeting. While he was reviewing the IDA financial statement, he noticed a large deposit (the fee paid by the developer to the IDA) and had to ask the attorney if that was related to the project. In fact, a “groundbreaking” ceremony was already scheduled for this project and not all board members were aware and it was not mentioned at the meeting.
2. It was revealed at the November 14, 2024, IDA meeting that Harris Beach, the law firm that represents the Mount Vernon IDA also received a "transaction fee" from the housing developer. How can they honestly represent the interests of the MV IDA (a public benefit authority) if they are also paid a fee by the developer for closing the deal? How is this legal? How is this ethical? At a minimum shouldn't this be disclosed to the public before any deals are made?
3. The Mount Vernon IDAs website does not meet the requirements under Section 2800 of Public Authorities Law. I recently reviewed the ABO review of the Port Chester IDA by Brendan Schaefer, Deputy Director, Compliance and Enforcement. Pages 2 and 3 of that report lists the information that is required to be posted on IDA websites. The Mount Vernon website is missing important information.
4. The chairwoman of the Mount Vernon IDA is the mayor of Mount Vernon. Her largest political campaign contributions came from the property owner, the housing developer, and Harris Beach. This potential conflict was not disclosed to the public and she did not recuse herself from voting on this project. How is this ethical? How is this legal?
5. When the original "economic impact analysis" done for this project (by Victoria Storrs) showed that it offered virtually no economic benefit to the community, Ms. Storrs went back and revised the report by reclassifying certain "developer costs" as "community benefits" thereby making it look like the project offers an economic benefit to the community. Written questions were submitted about this at the public hearing, but they were never answered.
The Mount Vernon IDA lost its ability to take on new projects because it was out of compliance with financial auditing requirements. This housing project is the first new project it has been allowed to take on in many years. Given that context, how was this allowed to happen? At a minimum the contract should have been made available to all members of the IDA and the public when it was executed, "transaction fees" received from the developer by the law firm that is supposed to represent the interests of IDA should have been disclosed to the IDA board and the public before deciding to move forward with this project, potential conflicts of interests between IDA board members and the developer should have been disclosed to the public from the outset, and the MV IDA website should have been in compliance with NYS law before this project was even considered.
This project is financed primarily with Federal Low Income Housing Tax Credits, and NYS HFA funding. I understand that there is a serious need for housing for individuals/families on the low-end of the income spectrum. However, the IDA is not a housing agency, it is a tool for stimulating economic growth and creating local jobs. It is unethical to allow for-profit rental housing developers to profit at the expense of local property taxpayers and our local school district.
The Voice of Mt. Vernon is a community group and not affiliated with a political group.
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