Proposal to change CRC would circumvent IDA restrictions
The New York City Economic Development Corporation has a new plan that would enable it to provide tax exempt financing to businesses regardless of statewide Industrial Development Agency (IDA) law. Like the IDA, the Capital Resource Corporation (CRC) is an arm of the Economic Development Corporation. The CRC’s board is identical to the IDA’s, and it currently has the same powers to issue tax exempt bonds as the IDA. This means that since the expiration of certain provisions of state IDA legislation, the CRC has also not been able to issue tax exempt bonds for non-profits. Now, the Economic Development Corporation is looking to change the CRC’s rules so that it could allocate tax exempt bonds even when the IDA is not able to do so. Though CRC assistance has been focused on non-profit organizations, it has the potential to finance for-profit businesses as well.
JUNE 11 UPDATE: At today's CRC Board meeting, City Comptroller Thompson's and the Bronx Borough President's appointees to the Board voted against the proposed amendment in its current form. Because the Comptroller's appointee can veto amendments to the CRC's incorporation document, it cannot be changed until the staff of the Economic Development Corporation and all members of the Board holding veto power reach a consensus. View the letter from the Comptroller's appointee to the Executive Director of the CRC.
• Read Good Jobs New York's testimony from the June 5, 2008 IDA public hearing
• View the CRC's current Certificate of Incorporation
• View the CRC's Board Book for the June 11, 2008 CRC Board meeting
• See the press release by State Assembly Member Richard Brodsky questioning CRC authority, and also inquiring about an additional $350 million in tax exempt bonds that may be issued for the new Yankee Stadium. Click here for more information on the hundreds of millions in public financing the Yankees have already received for building their new stadium.