New York state has an opportunity to put in place a powerful economic development strategy.
Several months ago, Gov. Andrew Cuomo announced plans to create 10 regional economic development councils under the chairmanship of Lt. Gov. Robert Duffy. The state would provide upward of $200 million for competitively determined economic development projects recommended by the councils.
We were pleased to hear funds would be earmarked for attraction and retention efforts. These are predatory times for sure.
In the ensuing weeks and months, though, there was little more said. And that gave us pause and concern, particularly given the timing as several of our corporate neighbors plan to exit the state ”“ Bayer from Tarrytown, Nokia from Harrison and Starwood from White Plains.
The Business Journal caught up with Lt. Gov. Duffy just as the legislative session was winding down in June (see story on page 19). We asked him the status of the councils and why the plan has taken so long to roll out.
“The governor will announce these in the coming weeks,” Duffy told us. “The only reason they have not been announced so far is the governor and our team has been intensely focused on the legislative priorities. Once the session ends, it will probably be a quick catch of our breath and then the governor will kick off the councils.”
We understand the governor and his team were occupied with other matters and we do give credit for a legislative session that was productive. But we”™re focused on business and six months have passed and thousands of people are out of work and losing their homes. We believe jobs and economic development are an imperative of equal if not higher priority than some of the legislation passed.
We”™ll even venture that perhaps economic development should have been dealt with earlier even if the Legislature had to stay in session longer to get everything done.
But we don”™t call the shots. We can only ask what”™s happening.
“At this point, there”™ll be 10 councils,” Duffy explained. “The boundaries have been established. It mirrors the Empire State Development and Department of Labor boundaries in terms of how they”™re set up.”
Where will we be?
“You”™ll (Westchester) be in the Hudson Valley group. There could be some adjustments down the road (but) the geography is pretty well established.
“Westchester is going to be a huge catalyst for change in the Hudson Valley ”¦ but it”™s also going to be able to help lift all the boats in the harbor up.”
New York City and Long Island will each have its own council. Empire State Development Corp. will manage the day-to-day operations of each council.
Who will be at the table?
“(That) has not been finalized yet,” Duffy said, but members would be “leaders” in business, education, government, small business ”“ including representation from women- and minority-owned businesses ”“ and large business.
We hope the appointments will not be of a political nature but rather of people who understand the inner workings of economic development and preferably those who have skin in the game.
For too long, it seems, there has been a disconnect between all the players on the economic development field. Deals have been lost. Companies lured away. Opportunities squandered.
Will things change ”“ and, if so, how?
“The situation that we are in today in New York state is far less about the economic recession that we”™re hopefully pulling through,” the lieutenant governor told us. “In so many ways we”™re suffering from self-inflicted wounds. It is very clear that while a lot of hard work has been done by a lot of people over the years, and I would never discount that, I think we have just a long list of missed opportunities.”
It”™s like courtship, he said.
“This is my 26th year of marriage and one thing about marriage, it requires communication and consensus. If one party feels the other party doesn”™t care about them, sometimes that”™s when relationships tend to deteriorate. It”™s no different with business. If a business is trying to exist in a very tough economic climate ”¦ and they feel they”™re not getting the attention of the state, well when Pennsylvania, New Jersey, Texas or Indiana comes calling then all of a sudden they are looking (to move on). I think we have missed so many opportunities ”¦ by not nurturing relationships.”
Duffy recounted a recent meeting with a group of McDonald”™s executives.
“Two owners were there. One owns a series of restaurants in Manhattan, the other in upstate New York. The gentleman from Manhattan came in my office and said, ”˜I want you to know one thing. I know you know about McDonald”™s and I want to tell you our No. 1 competitor is not Burger King. Our No. 1 competitor is New York state and its regulations.”™”
A profound statement, Duffy acknowledged.
“When you add up in the aggregate how many employees they (McDonald”™s restaurants) have, it”™s a tremendous impact across the state. And here”™s somebody saying that our biggest competitor is not the person selling the same product across the street or down the block, it”™s New York state.
“We have to learn. When we talk about mandates and regulations, they”™re not just words.”
We hope so. The business community has been talking for a long time. It”™s time government listens.
The state could set up all the economic development councils it wants and have meetings 24/7. But unless those charged with authority act on the moves of the moment, it will do little to help a state that is down on its luck.
The stakes are high. We cannot afford to break even, let alone walk away from the table.
These councils could hold all the aces ”“ if they play their cards right.
