February23,2012 DavidKidera StateofNewYorkAuthoritiesBudgetOffice POBox2076 Albany,NY122200076 info@abo.state.ny.us DearMr.Kidera: ThebelowsignatoriesrequestthattheABOconductaninvestigationintothejobshiftingactivityof theMonroeCountyIDA(COMIDA)andVWREducationLLC(VWR,alsoknownasWardsNatural ScienceIncandScienceKitLLC).VWRisaninternationaldistributorofscientificandlaboratory equipmentandisownedbyChicagobasedprivateequityfirmMadisonDearborn. ThejobshiftingstemsfromVWRsannouncementinOctober2011thatitwouldcloseitswarehouse operationsinTonawanda(ErieCounty)inJanuary2012andconsolidateitsoperationsinHenrietta (MonroeCounty).

unty).AtthesametimethatVWRmadethisannouncement,thetaxsubsidiesforits TonawandawarehousefromtheErieCountyIDAended,whiletaxsubsidiesfromCOMIDAforits Henriettawarehousecontinuedandwillremaininplaceuntil2019. COMIDAminutesfromitsDecember20,2011boardmeetingreflectthatitwasmadeawareofthe Tonawandaconsolidation.GiventhatneitherVWRnorCOMIDAprovidedjustificationforthisjob shifting,onecanconcludethatCOMIDA,knowinglyorunknowingly,aidedVWRintheremovalofthe warehouseinTonawanda.ThisactionisillegalunderNewYorkGeneralMunicipalLawandwe requestafurtherinvestigationbytheABOintothismatter. TimelineofRelevantEvents: > 1994:TheErieCountyIDAgrantstaxsubsidiestoVWRonMay11,1994forthepurposeof expandingawarehousefacilityandofficebuildinginTonawanda.1 > 2001and2008:COMIDAapprovestaxsubsidiestoVWRonAugust21,2001andApril22,2008 forthepurposeofexpandingitsHenriettafacility.2
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ProjectsbothapprovedMay11,1994;TitlestransferredtoMonroeCountyIDAJanuary1,1996andMay30,1996.Project location:60Pearce&777E.ParkDr.,Tonawanda,NY.NYSOfficeoftheComptroller,2008IDAProjectData,at http://www.osc.state.ny.us/localgov/datanstat/findata/index_choice.htm 2 ProjectsapprovedAugust21,2001andApril22,2008;TitletransferredtoCOMIDAFebruary15,2002andDecember1, 2008.Projectlocation:5100WestHenriettaRoad,Henrietta,NY.NYSOfficeoftheComptroller,2009IDAProjectData,at

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2011:TheErieCountytaxsubsidies,grantedin1994,expirein2011. 2011:VWRannouncestheclosureofitsTonawandafacilityinErieCountyinOctober,2011.3 NewsreportsstatethatVWRintendstoconsolidateitswarehouseoperationsinits expandedHenriettafacility.4Between2008and2009,VWRreceivesnearly$200,000inlocal andstatetaxsubsidiesfromtheMonroeCountyIDA,whereVWRintendstoconsolidateits warehouseoperations.5 2012:VWRterminatesthejobsofitswarehouseworkersinTonawandainJanuary2012, shiftingtheworktoHenrietta.

JobshiftingbyIDAsisaviolationoftheNewYorkStateGeneralMunicipalLawArticle18A,Section 862,RestrictionsonFundsoftheAgency: Nofundsoftheagencyshallbeusedinrespectofanyprojectifthecompletionthereof wouldresultintheremovalofanindustrialormanufacturingplantoftheprojectoccupant fromoneareaofthestatetoanotherareaofthestateorintheabandonmentofoneor moreplantsorfacilitiesoftheprojectoccupantlocatedwithinthestate,provided,however, thatneitherrestrictionshallapplyiftheagencyshalldetermineonthebasisofthe applicationbeforeitthattheprojectisreasonablynecessarytodiscouragetheproject occupantfromremovingsuchotherplantorfacilitytoalocationoutsidethestateoris reasonablynecessarytopreservethecompetitivepositionoftheprojectoccupantinits respectiveindustry. AfterreviewingthecontentsoftheFOILresponsereceivedfromCOMIDA(attached),inwhich severaldocumentswereincluded(theProjectdescription,theApplicationforRealPropertyTax Exemptions,thePaymentinLieuofTaxAgreement,theLeaseAgreement,andtheLeaseback Agreement),aswellasreviewingtheminutesfromrelevantCOMIDAhearings,thereisno justificationgivenforshiftingjobsfromErieCountytoMonroeCountythatmeetthestandardsof NewYorkLawregardingrestrictionsonfundsofanIDA.Accordingly,werequestthattheABO investigatethissubsidytodeterminewhetherCOMIDAandVWRviolatedNewYorkStatelawby shiftingjobsthroughtaxpayerfundedsupport.WealsorequestthattheABOinvestigatetheexpired ErieCountyIDAsubsidiesandtheroletheyplayedinVWRsdecisiontoshiftitsjobselsewhere. BasedonouranalysisofthedocumentsreceivedthroughtheCOMIDAFOILrequestandgiventhat neitherVWRnorCOMIDAprovedthattheprojectwasreasonablynecessarytodiscouragethe projectoccupantfromremovingsuchotherplantorfacilitytoalocationoutsidethestateorthatit wasreasonablynecessarytopreservethecompetitivepositionoftheprojectoccupantinits respectiveindustry,werequestthattheABOconductafurtherinvestigationintothischainof
http://www.osc.state.ny.us/localgov/datanstat/findata/index_choice.htm;Leaseagreements,COMIDAandVWRobtained throughFOILrequest. 3 NYStateDepartmentofLabor,WARNDetails,athttp://www.labor.ny.gov/app/warn/details.asp?id=3378 4 BusinessTransfersJobstoRochester,WIBV.com,byEmilyLenihan,at http://www.wivb.com/dpp/money/4_your_job/DOLsayscompanyfiledWarnOrder;ScienceKitShiftingWarehouse, CuttingBuffaloJobs,BuffaloBusinessFirst,byElizabethCarey,at http://www.bizjournals.com/buffalo/news/2011/10/24/sciencekitshiftingwarehouse.html 5 ItisunclearfromthedocumentsobtainedthroughaCOMIDAFOILrequestthetotalvalueofthetaxsubsidiesgrantedto VWRbyCOMIDAoverthelifeoftheagreement.2009isthemostrecentyearforwhichIDAdataisavailable.NYSOfficeof theComptroller,2009and2008IDAProjectData,at http://www.osc.state.ny.us/localgov/datanstat/findata/index_choice.htm

events.WealsorequestthattheABOexplorepotentialremediesforthisviolation,whichinclude:1) censuringCOMIDA;2)terminatingtheCOMIDAtaxexemptionstoVWR;and3)recapturingforegone revenuefromVWRauthorizedbyboththeErieCountyIDAandCOMIDAagreementstoreturnto localgovernmentalunits. Thankyouforyourtimeandattentiontothismatter. Signed, TeamstersJointCouncil46(BuffaloandRochester,NY) CoalitionforEconomicJustice,CEJ(Buffalo,NY) ALIGN:TheAllianceforaGreaterNewYork(NewYork,NY) WNYAreaLaborFederation(Buffalo,NY) RochesterandGeneseeValleyAreaLaborFederation(Rochester,NY) CitizenActionofWesternNewYork(Buffalo,NY) MetroJustice(Rochester,NY) PartnershipforthePublicGood(Buffalo,NY) SenatorMarkGrisanti,60thDistrict SenatorGeorgeMaziarz,62ndDistrict SenatorCatherineYoung,57thDistrict SenatorTimothyKennedy,58thDistrict AssemblymanSeanRyan,144thDistrict ErieCountyLegislatorBettyJeanGrant ErieCountyLegislatorThomasLoughran