Sunday, July 31, 2011

Where our tax money really goes

From the Daily News:

The city will spend nearly $1 million in taxpayer money on a contest meant to encourage business in lower Manhattan - but two-thirds of the cash will likely go to consultants.

The city's Industrial Development Agency board Tuesday approved spending $950,000 on the Lower Manhattan Business Expansion Competition to award businesses that locate or expand in lower Manhattan prizes ranging from $20,000 to $650,000.

Three board members - representatives from the Manhattan and Bronx borough presidents and the city controller - angrily objected because the amount expected to go to consultants wasn't spelled out.

The Economic Development Corp. will oversee the project, but will hire a private consultant to run it.

EDC President Seth Pinsky wouldn't say how much the consultants would be paid because, he said, the agency is still taking bids.

A source familiar with the proposal said the EDC planned to spend about two-thirds - around $600,000 - on the consultant.


Anonymous said...

Bank bailout economics. DiNapoli just released a report indicating IDA projects are a waste...

Anonymous said...

Wow! Consultants and contractors with political connections raking it in.In NYC of all places? In our data-driven meritocracy? Who knew? (Sarcasm intentional)