New UCDC head seeks diverse economy for Ulster County

Lance Matteson, the new president and CEO of Ulster County Development Corporation (UCDC), brings a fresh perspective to the county”™s economic development challenges and an impressive resume. As president of the Bennington County Microtechnology Center in Vermont, he worked with partners RPI and the University of Texas successfully to recruit a technology startup to the region. Prior to that, from 1995 to 2004, he was executive director of the Bennington County Industrial Corp. The BCIC was recognized by the U.S. Small Business Administration as a Vision 2000 Center of Excellence in 2004.

 

Matteson started his career in economic development on the other side of the world. After practicing law in Seattle, he joined the Peace Corps with his wife, serving in Mali for two years before working in Jerusalem as a regional representative for a nonprofit agency funding and implementing economic and community development projects. Throughout his career, the Harvard graduate has won numerous awards, including a Bennington County Community Service Award in 2004 from Vermont Gov. James Douglas.

 

HVB recently spoke with Matteson in his office at the Business Resource Center in the town of Ulster:

 

What was the microtechnology center in Bennington, exactly?

Micro electric mechanical systems, or MEMS, are sensors and actuators. They are important industrial and security devices used in applications across all sectors.

MEMS is a growth sector we targeted in Vermont because it was ready for prime time in terms of manufacturing. What the nonprofit did was focus on the packaging of these components, which was a very specific niche. Our first client was the Navy, which had a specific technology need in this sphere. That project helped fund the startup for the whole infrastructure. Our research colleagues had a vision and saw an opportunity to commercialize these products.

 

What are the opportunities for tech development here in Ulster County?

There”™s absolutely no question there are huge opportunities in microelectronics, which is the focus of Albany NanoTech, and the micro-tech area, which is slightly different. There are all kinds of niches and lots of work to go around, as you apply partnering with research institutions and private for-profit corporations. That”™s what we want to cultivate. I”™m absolutely certain there are opportunities for that here, in some ways more than in southwestern Vermont.

 

How so?

Our location here is excellent. There are all kinds of tech expertise and world-class institutions around us. You have terrific institutions like IBM in the neighborhood. There are a lot of spinoffs from the former IBM presence.

 

 

But many of these new tech companies gravitate to Albany, it seems.

There is that perception. But that could change over time. If the Saratoga fab project materializes ”“ that”™s the AMB processed chip fabrication plant that”™s been proposed ”“ it would have a very wide impact on the area.

 

What other sectors do you plan to focus on?

Ulster Tomorrow (a report on future growth sponsored by the county, which was recently completed) identified four strong sectors. One is green and renewal technologies and products. Ulster County is known as the place where the Catskills are, so this is a natural fit for us. We already have a few businesses working in this sector and it”™s growing. This sector is poised for big growth even if we do nothing, but if we target it significantly we”™ll get more than our share.

Other sectors are travel and tourism, agriculture, and the creative economy. Kingston, Woodstock and the rest of the county are known as a place of artistic activity. But part of what is meant by “creative economy” is innovation of any kind, including tech. A good example of this is Precision Flow in Saugerties, which manufactures components for iPods and LEDs. Sometimes people get discouraged: Our wages are 76 percent of the national average. Companies like Precision Flow are pulling us toward higher-wage jobs with benefits.

 

Does the economic development model for the county include manufacturing? There was a time when the UCDC was actively wooing large industry.

We need a diverse business base, and that includes appropriate manufacturing. The old economic development model put more stress on smokestack industries, which is not the answer for our communities.

However, manufacturing has high-paying jobs compared to other sectors. Even retail can”™t do well if you don”™t have disposable income. Those key industries are the ones that drive the economy and manufacturing is one of them. Manufacturing can be pottery. Bailey Pottery, for example, makes kilns for potters. That”™s the creative economy.

 

You mention that the average wage in Ulster County is 76 percent of the national average. How can the UCDC help change that?

From a taxpayer point of view, if money goes into developing subsidized jobs, if one job is $8 an hour and the other pays $18 an hour, it makes sense to subsidize the higher wage. However, it”™s also important to nurture creative economic or agricultural jobs, which are  sometimes low paying. If the business prospers, it can pay to help it develop.

 

How does the UCDC get its funding?

The county legislature supports us with $200,000 a year. We also get fees from administrating revolving loan funds countywide. We also administer the loans of the Ulster County Industrial Development Agency and take a percentage fee.

In addition, we do fundraising in the business community and get grants here and there. We do projects funded by the Empire State Development Agency, such as the Hudson Valley Center for Innovation. We also get leads through the Hudson Valley Economic Development Corp. from interested firms.

 

 

Any other priorities for promoting economic development in the county?

We need to create a dynamic economy and market our strengths, such as the fact that the county has cheaper real estate prices than downstate.

In some places, a wage of $12 to $16 an hour would seem like a bargain, but many people in this community are happy to get that. If we have well-qualified workers who are affordable, that is a market strength. We want more income in people”™s pockets. A  lot of other issues would be solved if the pay were higher.

 

What about the possibilities for Tech City?

I”™m hopeful something positive can happen there. Millions of dollars have been put into upgrading the place. One challenge is the environmental remediation permit, which is very restrictive: The entire site is treated as one site, even though only a portion of it has pollution. These issues make it harder to market. We need more flexibility. We”™ve requested the Department of Environmental Conservation to modify the permit. We”™re hoping the community rallies around the permit change.

 

Any other sites you”™re focused on?

There are lots of good sites. There are lots of buildings around the county, including some old manufacturing ones. Most are appropriately zoned. Saugerties has a corridor that is on the cusp of getting full funding for a sewer and water project. From the business development point of view, this would provide a huge stimulus to growth and redevelopment of a dormant site. It could also help existing businesses to expand.

 

What are your initial impressions of the Ulster County community?

Coming into this county as a newcomer is a humbling thing. There”™s a very definite effort on the part of leaders from different perspectives to sit down at the table and try to work together. To lift up the economy is not always easy, but pretty much everyone agrees on the end goal, which is to see the creation of living-wage jobs.