A request by Erie County Comptroller Mark Poloncarz to conduct an audit of the Erie County Industrial Development Agency’s payment-in-lieu-of-taxes program has drawn the ire of the county agency.

Poloncarz, in late August, wrote a letter to Phillip Ackerman, ECIDA chairman, asking to review the agency’s PILOT agreements for a two-year period between Jan. 1, 2006 and Dec. 31, 2008. The county comptroller’s office last reviewed the PILOT agreement in 1998.

While ECIDA officials freely admit the PILOT agreements are public record and available both online and through annual documents supplied to the New York State Comptroller’s office as well as other county and local offices, their concern is the timing of the request.

Poloncarz, a Democrat, is facing a challenge in the November general election from Republican Phil Kadet.

“We certainly have nothing to hide,” Ackerman said. “But, let’s see how interested the Erie County Comptroller’s office is after the election.”

Ackerman noted the ECIDA, despite its name, is governed by state laws, regulations and mandates.

Poloncarz denies politics are behind his request. His interest is merely to serve as a fiscal watchdog for the county.

“There’s no way I could complete the audit by election,” Poloncarz said. “It’s what, 44 days from now, and an audit takes a lot longer than that to complete.”

Industrial development agencies frequently use the payment-in-lieu-of-taxes program as a means for offering incentives to companies to invest in the region. As part of the incentives, companies agree to make annual payments instead of straight taxes for a period of time — anywhere from five to 15 years. The payments gradually increase to the full tax rate.

“Just because the IDA is a state agency, it doesn’t prohibit me for conducting my own audit,” Poloncarz said. “There is no hidden agenda. If the IDA is doing everything correctly with the PILOT program, then they should have nothing to hide.”

Poloncarz said he just wants to make sure that all PILOT payments are being made.

In other audits, including those of the Erie County bed tax charged to area hotels, Poloncarz found several hotel operators that had delayed making payments to the county. Payments were made after Poloncarz went public with his findings.

Ackerman said the ECIDA wants to work with Poloncarz, but virtually all of the information he is seeking is already available, either through the agency’s own web site or through other public documents.

Poloncarz said, however, if he feels the ECIDA is stonewalling his efforts, he will press forward.

“I may have to use the powers of my office to subpoena their records even though that would be a waste of taxpayer’s dollars,” he said.

© 2009 American City Business Journals, Inc.