Two years ago, Gov. Andrew Cuomo signed legislation approving the pro-economic development Start-Up NY program on the SUNY Purchase campus and said to the audience that it would be a “game-changer for the people of this state.”
Not much has changed in Westchester County since the more than two years following that signature. In fact, statewide fewer than 80 jobs have been created.
SUNY Purchase and three other participating schools in Westchester County have not yet finalized company collaborations through the program ”“ though partnerships may be on the horizon, according to some of the schools.
The higher education-business alliance program has taken flak in the media for its overall slow start, but proponents of Start-Up, which is run by the Empire State Development Corp., have said this is a program that is supposed to take time.
Start-Up NY was created to spur economic growth, especially upstate, through partnerships among higher education schools and businesses by creating tax-free zones with the promise of thousands of jobs and millions of dollars in investment. Start-Up NY companies that open an office or start a business on an approved campus do not pay business, corporate, sales, property, state or local taxes and no franchise fees for 10 years. In addition, there is no income tax for the company or its employees over those 10 years.
To take part in the program, a company must meet the following requirements:
- Be a new business in the state or an existing one relocating or expanding within the state.
- Partner with a state college or university.
- Create new jobs and contribute to the economic development of the community in which they are located.
In its first year with 30 companies enlisted, the program netted 76 jobs at a taxpayer cost of $45.1 million in advertising, according to an audit released in May by the office of state Comptroller Thomas P. DiNapoli.
As of the end of July more than 120 businesses have signed on across the state, though disproportionately. Of New York”™s 10 regions, the Mid-Hudson has logged four business collaborations at Mount St. Mary College in Newburgh and Ulster County Community College in Stone Ridge. The Western region has approved the highest number of companies with 49.
Westchester could have its first Start-Up NY partnership before the end of year.
The College of New Rochelle had its campus plan for the program approved in 2014 and the school”™s president, Judith Huntington, told the Business Journal that the school has been in active conversation with the Montefiore Health System.
“It”™s in the very early stages of development because as you can imagine these are very complex partnerships,” she said.
The complexity, Huntington said, is a dialogue between eligible companies and the campuses. These partnerships take into account the business”™ needs, the mission of the school and its stakeholders, whether the space allotted by the school is right for the company and whether the business fits in with the community.
When asked if she had any reservations about the program, Huntington said no, but that the college is being careful in choosing what company would be the best fit.
“You”™re going to be with them for 10 years so you want to make sure the vetting process is robust and you have a partner that will complement and enhance your mission,” she said. “So while I”™m very enthusiastic because I think the health-care piece excited me, we”™re very deliberate and careful about selecting a Start-Up NY relationship.”
Iona College is also nearing a possible deal with a company and an announcement could be made as soon as September, according to Dan Konopka, the school”™s director of government relations.
New York Medical College”™s BioInc@NYMC incubator has been approved for Start-Up and its six companies are working on applying for tax-free status, but they have to have revenue and job creation to be considered, said Joline Johannes, an administrator for the incubator program.
For SUNY Purchase, the challenge has been space.
Purchase”™s Start-Up campus plan is a 97-square-foot unused conference room. By comparison, The College of New Rochelle designated more than 20,000 square feet of vacant space for the program.
Betsy Robertson, who is the director of government relations for Purchase, said the school does not have any extra space.
“We applied with this room and got our Start-Up NY status with the hopes that at least we had our foot in the door because once your application is approved you can always amend it,” Robertson said. “Despite our very small, little spot on campus, we”™re very much open and receptive to companies talking to us and working with companies to find other space.”
The program regulations allow SUNY and community college campuses in Westchester and Nassau and Suffolk counties on Long Island to submit plans to the approval board for land that is directly adjacent to the campus. The rules also make clear that schools are not allowed to relocate or create vacant land or space that actively serves students or faculty.
Lisa Whatley, executive vice president of Start-Up NY, said she was picked for this job ”“ her first one in government ”“ because of her background at General Motors and in real estate, and she took it because the program had real promise.
“I am a business person and I came to run this program because I believe it has the right science to make this long term,” she said. “We tried to do this in a thoughtful way so it would have a long-term, sustainable future.”
And that takes time, she said.
“Economic development is new to a lot of these schools. The first business they work with they want to get it right,” she said. “They”™re actually being prudent.”
Whatley said the program”™s concept has strength in that vacant spaces are being used and the rules require that there be a meaningful affiliation between the company and the college.
“It”™s not just giving money to a company, getting them to come to town. You”™re requiring them to become part of the community,” she said.
