The state Senate last week proposed creating an economic development task force comprising business and community leaders that would come up with recommendations for replacing the Empire Zones program.
A draft of the recommendations would have to be made by the end of the year in the hopes the new program would be included in the next state budget.
“The Empire Zones program has always had the potential to be a valuable economic development program, but it has not always met our expectations,” Senate Majority Leader Malcolm A. Smith said. “Now, with the creation of this task force and engagement of leaders in the business community, we can finally give our state the tools it needs to put New Yorkers back to work and achieve sustainable economic growth.”
The Empire Zones program is set to expire in June 2010. Companies that are currently in the program would remain in it for the duration of their eligible life as they meet the guidelines, Smith said. There are about 9,800 businesses statewide in the Empire Zones program.
According to a statement by the Senate: “A replacement program must maximize the existing assets and growth sectors of the state, while looking ahead to our greatest innovative pathways and opportunities. The rules of the next program should be simple and should stay the same throughout the life of the program, so that businesses come to New York with that understanding that the state will maintain its commitment ”“ and with a better, more effective program, there won”™t be the need for changes as there currently is with the Empire Zones.”
The Senate also proposed moving forward the sunset date of the current program in order to get a better program in place.
“Successful economic development strategies are key to job growth, which in turn, is key to strengthening the economic health and well-being of our communities,” state Sen. Andrea Stewart-Cousins said.
The task force is expected to be composed of 29 members, including:
nine appointments by Gov. David Paterson;
six by Senate Majority Leader Smith;
six by Assembly Speaker Sheldon Silver;
two by Senate Minority Leader Dean Skelos;
two by Assembly Minority Leader Brian Kolb; and
ex-officio members from the Empire State Development Corp., NYStar and the Department of Labor.
“The recent changes in the Empire Zone program have created confusion and doubt about the status of zone benefits among businesses that have created jobs and made investments based on the program,” said Ken Pokalsky, senior director of government affairs for The Business Council of New York State.
“The Senate”™s ”˜clean up”™ legislation will let these companies know where they stand and that the state will honor its economic development commitments.”
