Letter to the Editor – Special to the Star, Dennis A. Cornell
In February, Rick Miller reported that 1641 River Street LLC, a company owned by County Legislator R. Donald Benson, sought $480,000.00 in Sales Tax abatement from the Cattaraugus County Industrial Development Agency (IDA) for a project that Benson claims will retain just one job.
The proposed project is a brownfield clean-up.
Here’s how it works: 1641 River Street LLC owns a parcel of land that was previously owned by Socony Vacuum Co. The property contains piping and oil deposits contaminating the soil. The project will involve removing the old pipe and contaminated soil and replacing it with clean soil.
Exxon Mobil is the successor in interest to Socony Vacuum Co. and will pay for the clean-up. Under an agreement with Exxon Mobil, the property owner, 1641 River Street, LLC, will get to determine who completes the clean-up. Benson will undoubtably pay his other company, Benson Construction and Development, LLC to complete the job using Exxon’s money.
On a job like this, it is reasonable to assume Benson Construction will make a 10 – 15% profit. On this Six Million Dollar clean-up, that will be a profit of $600,000.00 to $900,000.00.
Just to recap: Benson got Exxon to pay his company $6,000,000.00 to clean up property, owned by his other company; for which he will likely profit $600,000.00 to $900,000.00.
In addition, New York State will give 1641 River Street, LLC an income tax rebate equal to 25% of the total project cost; another $1,500,000.00 to Benson.
But that wasn’t enough for him. Republican Legislator Don Benson, who appoints the members of the IDA Board is asking the IDA Board to give him another $480,000.00 in sales tax abatement. That is money that would go directly into City, County and State coffers.
A good portion of that $480,000.00 would go to the City of Olean. The City is looking at an 18% Real Property Tax increase. Even worse, in the 2026 County budget, Legislator Benson just cut dozens of County jobs, including jobs in the nursing home and the health department.
$480,000.00 to “retain” one Job? What job?
If this project were going to create 100 jobs, it would be different. But I don’t believe 1641 River Street LLC has even one employee today. The IDA minutes were very unclear on exactly what job is being retained.
The bottom line, this is an example of a Republican Legislator, who fashions himself a “fiscal conservative” asking a Board that he appoints for $480,000.00 in corporate welfare. And he’s asking for corporate welfare, when he should already profit in excess of Two Million Dollars (taking into account profit and income tax rebates) in a City that’s facing the worst financial crisis since 2006.
Make no mistake, Benson is doing this project with or without the additional $480,000.00 in sales tax abatement.
If the IDA Board has any integrity at all, it will deny Benson’s application to “retain one job” for $480,000.00 of what should be our tax money.
Dennis A. Cornell, Portville, New York
