New York

espite steep job losses on Wall Street and a challenging economic environment, New York continues to add jobs and industry in several key sectors. During a recent e-mail interview with Site Selection, Dennis Mullen, Upstate President for Empire State Development Corp., addressed this growth and commented on specific initiatives his state would pursue to keep businesses coming to New York and expanding throughout the state.

SITE SELECTION: What were the top two or three corporate expansion announcements in New York in 2008?

DENNIS MULLEN: Nova Bus will construct a 120,000-sq.-ft. (11,148-sq.-m.) facility in Plattsburgh to house the company’s U.S. bus assembly plant and engineering operations, and will create 300 new, skilled manufacturing jobs. New York State incentives include a $1.3 million capital grant from ESD, up to $900,000 in program funds from NYSERDA (New York State Energy Research and Development Authority) and up to $750,000 from the New York State Office of Community Renewal toward the $25-million project. Upstate has long been a magnet for transportation equipment manufacturing, and this project will help sustain and revitalize this important sector.

      Globe Specialty Metals has committed to investing $60 million to reopen and expand its silicon processing facility in Niagara Falls. The project will create 500 new “green collar” manufacturing jobs and support one of the only silicon suppliers in the region. This material is a critical component in the production of solar energy panels and will be a cornerstone for New York to realize its goal of becoming a major center for the R&D and production of renewable energy products. New York State is providing 40 megawatts of hydropower with an estimated value of $96 million over five years. Local incentives will also help defray the costs of undertaking this project.

      Welch Allyn – a leading global manufacturer of frontline medical products and solution – has agreed to designate Skaneateles Falls in Onondaga County as its global headquarters and will break ground on a $30-million expansion that will create 175 new jobs and help support 1,125 existing jobs.?Additionally, Welch Allyn, in partnership with Syracuse University, has launched a new technology incubator company that will be a wholly owned subsidiary and will foster additional innovations for New York State.?ESD is providing a total of $1.5 million in grants to facilitate job creation and implement productivity improvements.

SS: What are your top two or three goals for economic development for the state in 2009?

MULLEN: In his State of the State address, Governor Paterson outlined several goals for economic development and revitalization within New York State. ESD fully supports the governor in his mission to achieve these goals:

      We must lay the foundation for the economy of the future, and that means investing in infrastructure.

      The Metropolitan Transit Authority has projected that its 2009 budget gap will be at least $1.2 billion. Gov. Paterson will implement the recommendations of the Ravitch Commission to keep the MTA strong.

      Paterson will continue to move forward on major infrastructure projects across New York, including the Second Avenue Subway, the East Side Access, the Tappan Zee Bridge and the Peace Bridge.

      He will also consider the recommendations of the Commission on State Asset Maximization. Paterson is a strong proponent of partnering with the private sector to maximize public assets. The private sector can contribute expertise and much needed capital for existing asset classes, including transportation, higher education, K-12 education, energy, and surplus properties.

      Paterson reiterated his support for property tax relief and the need to lower the cost of doing business in New York.

      Paterson has proposed capping property taxes, relieving state mandates, and helping improve the efficiency of local governments.

      There are more than 4,700 independent local government entities statewide, with municipal borders established centuries ago, supplemented by a tangle of special districts and entities providing a patchwork of services.

      Specifically, Paterson has called on the Legislature to join him in acting on the recommendations of the Commission on Property Tax Relief and the Commission on Local Government Efficiency.

      With one state, one future in mind, Paterson is committed to developing and revitalizing every part of New York.?

      Paterson has reunited New York’s economic development programs, instead of keeping them split into Upstate and Downstate.?

      Paterson remains committed to the Upstate Revitalization Fund, and he has tasked the Empire State Development Corp. with identifying transformational projects Upstate.

SS: What public infrastructure projects are being planned or completed this year to facilitate growth and development in the state?

MULLEN: Paterson has recommitted the state to targeted investments in Upstate New York. These include the $115 million of Upstate City-by-City projects that the governor has already announced for Rochester (Midtown Plaza and the University of Rochester’s Translational Research Facility), Fort Drum infrastructure improvements and Buffalo revitalization. We are also moving ahead components of the Upstate Revitalization Fund enacted in the 2008-09 budget. These funds were earmarked to promote economic growth and opportunity throughout Upstate.

      The Upstate Revitalization Fund was created in direct response to the needs of the Upstate economy. This fund of over $300 million includes capital dollars that will be used to break gridlock on critical economic development projects throughout Upstate cities, support the continued growth of the food and agricultural industry, and address priorities identified in Regional Blueprint Sessions. Along with an additional $200 million in strategic investment included in the governor’s proposed 2009-10 budget, over half a billion dollars is being earmarked by Paterson to spur development. We are also pleased to be announcing the details on the final round of Restore New York over the next few weeks.

      To these points, the governor has tasked Empire State Development with identifying transformational projects across the Upstate region. We’ve already begun that work, building on the information gathered during Regional Blueprint sessions held with local leaders and business and economic development professionals.

SS: What is New York doing to make the state a more attractive home for manufacturing companies and their operations?

MULLEN: The Proposed 2009-10 Executive Budget recognizes the need to provide resources to invest in job creation, especially in our Upstate communities. When fully effective, $100 million of savings from the proposed Empire Zone reforms will become available for reinvestment through the following initiatives:

• A new $50-million grant program known as the New York Growth, Achievement and Investment Strategy (GAINS) Fund, which will be targeted for job creation in strategic industries such as manufacturing, financial services, agri-business, high technology and biotechnology.

• Research and development tax credits totaling $50 million that will allow businesses that invest in innovation in New York State – either at their own facilities or in partnership with colleges and universities in the state – to recoup a portion of their costs.

• Four ESD programs helped 393 NYS manufacturers enhance the global competitiveness of their operations in 2008:

1) The Linked Deposit Program (LDP) reduces the cost of commercial financing for manufacturing investments by 2 to 3 percent. In 2008 LDP assisted 237 manufacturing projects with linked deposits of $68.5 million, leveraging $121.5 million in private investment that helped retain 615 jobs and create 931 new manufacturing jobs.

2) The Environmental Investment Program (EIP) helps manufacturers enhance competitiveness by expanding recycling capacity and reducing industrial pollution and waste. In 2008 EIP assisted 124 manufacturing projects with grants for capital equipment, R&D and technical assistance totaling $4.05 million and leveraging $8.68 million in private investment that helped retain 2,670 jobs and create 10 new jobs.

3) The Manufacturing Assistance Program (MAP) helps manufacturers with 50 or more employees make investments of at least $1M in machinery to expand production output. In 2008 MAP assisted nine manufacturers with $3.6 million that leveraged private investment of $60.85 million, helping to retain 2,483 jobs and create 355 jobs.

4) The Industrial Effectiveness Program (IEP) helps small and medium-sized manufacturers with smaller projects to enhance productivity, product quality and market expansion. In 2008 IEP provided $825,500 in assistance to 23 manufacturers, leveraging $3.37 million in private investment that helped to retain 1,286 jobs.