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March 25, 2010


Hon. David Paterson
Governor, State of New York
Executive Chamber
State Capitol
Albany, NY 12224

Dear Governor Paterson,

On behalf of the 2,500 employer members of the Buffalo Niagara Partnership, I write in strong support of Program Bill #228, your proposal to amend the New York State Rehabilitation Tax Credit Act of 2009 in a way that allows banks and insurance companies, key investors in real estate development projects, to participate in the state’s historic tax credit program. Reversal of the current disqualification of these vital entities will allow the initiative to reach its potential as an effective economic development tool for Upstate, and most especially Buffalo Niagara, where nine projects with an estimated investment value of $175 million await this much-needed amendment.

Real estate developers attest to the fact that the exclusion of banks and insurance companies is the single largest impediment to the program’s viability as a useful instrument for the re-development of Upstate’s historic buildings. While the changes being advanced in Program Bill #228 are a major improvement, I urge you to also consider the inclusion of a provision, much like what is found in A.10168/S.7042, permitting the bifurcation of historic tax credits thus allowing for state tax credits to be transferred to a business partner separately from the transfer of federal tax credits. The inclusion of both amendments will maximize the program’s ability to speed economic revitalization in the downtowns of Upstate cities.

Considering the significant economic stimulus other states across the country have seen as a result of their HRTC programs, the New York State Rehabilitation Tax Credit Act, once amended, may prove to be one of the best pieces of economic development legislation Upstate has seen in a long time.  Thank you for your continued efforts to amend this bill in a way that allows our region to finally reap the well-intended benefits of these tax credits – millions of dollars in investment, hundreds of new jobs, and revitalization of our historic “Main Streets”.

Sincerely,

Andrew J. Rudnick

cc.    Senate Majority Conference Leader John Sampson
         Assembly Speaker Sheldon Silver
         Senator Dale Valesky
         Assemblymember Sam Hoyt