Buffalo, N.Y. (WBEN) - "When I first heard the dollar figure, I was surprised. It's a large number, $250 million. But when you look at it in terms of it as debt service over the next 20 to 30 years, and less than our operational expenses under the current lease, it sounds like a fair deal," said Erie County Legislature Minority Leader Joe Lorigo on WBEN Tuesday morning.
Lorigo, who has been critical over the lack of transparency in the process in the past, cautions that he hasn't seen actual numbers yet, but is taking Erie County Executive Mark Poloncarz at his word.
"Looking at the deal, without seeing the numbers, my first reaction is that I'm happy to hear that [Poloncarz] is not looking for a tax increase. It seems like a fair deal for Erie County taxpayers in terms of the amount of money that we're capped at, $250 million."
On the other hand, Lorigo sees the $600 million dollar figure for New York State as surprisingly low. "I know a lot of people who say giving government subsidies to a billionaire football team owner is not a great idea." But he added, "the reality of the situation is that the Pegulas would have taken the team elsewhere if this money wasn't put up from the state and county."
Lorigo expects the state's $600 million dollar contribution to be recouped in income tax revenue over the course of the lease. "$27 million is what the income tax implications are for New York State on an annual basis, without the salary cap growing. Over 30 years, that's $810 million dollars."
He does have concerns over how much the county is bonding and how much is coming from surplus. "I think with a 170 million dollar surplus, we should be putting more of that toward the stadium initially and reducing our debt service over the next 20 to 30 years for taxpayers."
On Monday, Poloncarz said $75 million will be contributed to the stadium from Erie County surplus.
The county surplus is a combination of Covid relief funding and reduction in expenditures and a large sales tax surplus from online sales over the past year. Many will argue that Covid relief money is being put toward the stadium. While some legislators have issues on how that money is spent, Lorigo thinks putting money toward this one time expense, is justified.
Erie County is also getting out of the football business and would no longer own the Bills stadium. Ownership would be transferred to the state under terms of the deal. "That's a good deal for Erie County taxpayers as well," said Lorigo. "It's going to reduce our operating expenses and capital expenses over the next 30 years and we will only be paying the debt service. So that is a net benefit to Erie County taxpayers."
There is no indication of when the Erie County Legislature will vote on the deal, or if there will be public hearings. "We held three public hearings in the past. It would be up to the majority in the legislature if they want to hear from the public again. Regarding a vote, I know the Pegulas and the County Executive have said that September 1st is the goal to get an agreement in place. Hopefully there will be a final agreement in place by then so the legislature can take a vote," he said.
Listen to Lorigo's entire conversation during "A New Morning" below: