COMIDA Strikes Again

Allworx: 5Linx Redux?

Three things we can safely assume:
1. Maggie likes to smile and have her picture taken with giant ribbons
2. COMIDA simply subsidizes existing businesses in the area rather than attracting new ones
3. Telecom companies like to spell their names with an X

COMIDA announced today more tax incentives for an area business. This time the recipient is Allworx, and what do they sell? . . . oh lord . . . that's right . . . VoIP! And what do they see as their target market to spur growth . . . yep, small to midsized businesses. Sound familiar?

This is almost the exact same line we heard regarding the 5Linx benefits a month ago and, like the 5Linx situation, the site developer also receives benefits under the guise of the achievements of the telecom provider. What did Techniplex do to warrant multiple incentives for the same site? Like LeFrois Development, this seems like an instance of one company piggybacking on another for tax breaks. Essentially, Monroe County has now subsidized two companies offering the same product to the same market section.

The County has changed its tune slightly, however, and we would like to think that the comments of the WBP (along with its comrades like RochesterTurning in the local progressive blogosphere) made the County realize that we will not be misled.

Whereas the 5Linx release promised the creation of "high-paying jobs," this release states the Allworx expansion "has resulted in more good paying jobs in our community." This quote is a grammatical atrocity, but that aside notice that there is no allusion to job creation. Are we to assume then that COMIDA is now helping businesses without any projection of additional job creation? At the least Maggie has realized she can't make promises which she cannot deliver on, such as the promise of 133 high-paying jobs that will never materialize.

Fortunately, Allworx is no 5Linx; they operate under a traditional business model that uses compensated, salaried employees and their founders do not have questionable backgrounds like Craig Jerabeck of 5Linx, or suspect government ties like William Faucette of the 5Linx Millionaires Club. Additionally, Allworx does not target private consumers and its consulting branch, InSciTek, is well-recognized within the Rochester business community.

It cannot be forgotten though that, despite the apparent success of this business, the tax breaks will eliminate any growth in our commercial tax base that would benefit Monroe County residents by helping to ease their tax burden.

Maybe Maggie needs to go back to her high school economics textbook and review the definition of laissez-faire. Being a Republican, it's a concept to which she supposedly subscribes.

Note: All 5Linx articles can be found in the January archives