Shopping Center Development (2007 LGAA)

City of Hornell (Winner)
County: Steuben County
Population: 5,000 to 10,000
City Hall: (607) 324-7421

This initiative is a prime example of how communities can jointly capitalize on their individual assets to foster economic development. Wal-Mart had expressed an interest in locating in the Hornell area but was concerned about development costs and the need for municipal services. The City of Hornell had very little undeveloped property, but ample resources to provide utilities and police/fire protection. The Village of North Hornell had available property, but lacked the necessary infrastructure to develop it. Faced with the prospect that Wal-Mart would reconsider if no viable options were presented quickly, the City, Village, Town of Hornellsville and the City Industrial Development Agency (IDA) worked together to reach an agreement where the City was allowed to annex into the village the property (owned by the IDA) needed for the site.á In exchange, the Village and Town receive a specified percentage of the revenues received by the IDA, pursuant to a 20-year PILOT agreement. Once the PILOT expires, the City is required to annually share a specified portion of both the property tax and sales tax revenues with the Village and Town.

The Wal-Mart plaza has provided a shopping opportunity, not only for the residents of the Hornell area, but for the surrounding rural communities as well.á Currently, there is still not another plaza within 60 miles of the Wal-Mart site. Construction of the plaza created over 500 new jobs in the area and generated over $15 million in building contracts.

Given the success of this initiative, the City, Town and Village are currently working on another agreement to establish a Lowes Plaza across the street from the Wal-Mart Plaza.á They are using their experience from the Wal-Mart project to help advance their goals. They hope the Lowes Plaza will become another example of the advantages of inter-municipal cooperation.