NORWICH – A new policy passed last week by the county agency responsible for encouraging industrial development will add another layer of accountability to companies looking to relocate or establish themselves in the Chenango County area, according to economic development officials.

At a meeting on Wednesday, the Chenango County Industrial Development Agency approved a recapture policy which will enable them to “claw back” tax and other financial incentives given to companies that do not deliver on the promised economic benefits they claimed they would bring to the area.

“This is what we should be doing,” said CCIDA Chairman Hugh Kearney, who stated during the meeting that he believed having the policy in place would placate some community members who have been opposed to the incentives offered by the agency in the past.

According to CCIDA Executive Director Maureen Carpenter, the policy is the result of a recommendation by the organization’s Governance Committee, which was tasked two years ago with evaluating internals controls, policies and procedures. The policy will apply to all IDA projects and benefits going forward, she said, but will not apply to existing projects already receiving benefits.

While Carpenter said that IDAs are not currently required to have recapture policies in place, it is a recognized best practice in the industry and one which is strongly recommended through the Public Authority Accountability Act.

According to the recapture policy itself, its purpose is “to identify a set of criteria for evaluation of project performance and to assist the board of the agency in determining whether it is appropriate under certain circumstances to recapture, limit or to terminate a contract with the recipient of IDA benefits.”

In order to gauge how a company has adhered to their promises, the agency will use the information provided on the annual report they are required to fill out each year.

Some of the things which the agency will be looking for would be significant shortfalls on job creation and retention projections, lack of promised capital investment or a shift of production out of the area.

“If the economic benefits promised have not been achieved as described in the application, the company will be asked to provide justification for said shortfalls,” states the policy.