BUFFALO, N.Y. (WIVB) -- The Tesla factory in Buffalo does not pay rent or taxes, but Senator Sean Ryan, during a financial announcement on Friday, said it should, to account for budget shortfalls in the city. Ryan's call for action comes as Tesla sales have fallen over the last few months due to old models, growing competition, and backlash toward Elon Musk and the Department of Government Efficiency. New York State paid $900 million to build the factory back in 2014. Since then, the factory has faced many hardships, including layoffs and an unhealthy workplace environment. It does not pay taxes and only pays $1 a year to lease, according to Ryan. Ryan spoke at the Tesla Gigafactory on Friday, claiming that if the business did pay taxes, it would contribute $5 million to the city every year. He said a $5 million rent should be imposed, with $1 million going to the maintenance of the facility and the remaining $4 million going to Buffalo. Ryan described recent ideas proposed by Acting Mayor Chris Scanlon, such as a hotel bed tax and selling off parking ramps in the city as "short term gimmicks," and cited General Mills and Moog as local companies that contribute to the city. Empire State Development Corporation is in negotiations with Tesla about a lease extension. Ryan said he is planning a summit for next month to discuss the proposed hotel tax with stakeholders. Latest Local News Senator Sean Ryan calls on Tesla to pay rent, taxes Batavia man arrested in connection with February fire that killed 10-year-old Two men arrested after allegedly causing car crash during police chase Scanlon authorizes emergency action at 2 St. Louis Place City of Buffalo condemns Allentown apartment building Kayleigh Hunter-Gasperini joined the News 4 team in 2024 as a Digital Video Producer. She is a graduate of Chatham University. ...read more read less