In a plan to apply jumper cables to anemic economic development across New York state, Gov. Andrew Cuomo has come up with his own solution: creating 10 regional economic councils, incorporating the state”™s 62 counties, to compete for financial grants that will reel in new business.
Good ideas get carrots.
Also-rans get sticks.
Up for grabs: how those carrots and sticks are doled out, the location of the council borders and how much money ”“ $200 million possibly ”“ is involved.
Working regionally, instead of county versus county, the10 councils will vie against each other for the prize: economic stimulus funds, which Cuomo promised in his Jan. 5 “State of the State” address, to help fuel New York”™s desirability as a business destination.
The unanswered question is whether multiple counties can actually work in groups, putting each county”™s interests aside to work for the good of the whole council.
Each county already has its own development team, industrial development agency and others working behind the scenes to bring in business or spur expansion.
Details have been sketchy since the funding is in limbo. Cuomo must first get the Legislature to approve his $132.9 million budget for the upcoming fiscal year, which contains the financial incentives he”™s expecting to parcel out to the regional councils that come up with the most creative economic development plans.
Ken Adams, the former president of the Business Council of New York, has been nominated to head Empire State Development, which would oversee the 10 councils. Lt. Gov. Robert Duffy will maintain a hands-on relationship with the councils.
John D”™Ambrosio, president of the Orange County Chamber of Commerce, said there are rumors that people selected for the councils will have to pay a fee. “It”™s just a rumor, mind you,” said D”™Ambrosio. “I like the idea of regional councils as long as Ken Adams is running it. He”™s run the Brooklyn Chamber of Commerce, so he knows small business. He”™s run the Business Council of New York, so he knows big business. My feeling is with Adams at the helm of these regional councils as president of Empire State Development, he will be fair, honorable and do the job without hurting anyone”
“I would imagine the governor”™s focus right now is in the budget and rightfully so,” said Ron Hicks, president of the Rockland Economic Development Corp. “Once that is passed, I expect economic development, including the regional councils, will be job No. 1. I”™m thrilled that Adams has been nominated by the governor. He understands the challenges businesses face and will be a strong advocate for reform.”
Michael Oates, president and CEO of the Hudson Valley Economic Development Corp. based in New Windsor, believes Cuomo will use the currently existing 10 Empire State Development offices as the map for the proposed councils. “How each region will break up will probably be in the same geographic territory has not been announced, but the governor reiterated this plan for the regional councils when he spoke at Marist on Jan. 20,” Oates said.
Oates said the funding Cuomo wants councils to compete for is tied to the budget, “but my sense is that it will happen. Gov. Cuomo has proposed $200 million ”“ it might be tweaked, depending on what happens during the budget process.”
Oates pointed to Stewart International Airport as a key resource for the mid-Hudson region. “It”™s a critical component for driving economic development. It (the Port Authority) has to have a critical role in the mid-Hudson council, because it offers a great deal to companies that could potentially expand or relocate here. The Hudson Valley regional council, as it starts to come together, wants to be sure all the players participate in the process.”
Paul Vitale, vice president for government and community relations for the Business Council of Westchester, said, “We don”™t know all the facts, these councils are just proposed right now, but the Business Council of Westchester endorses the regional approach. Conceptually, Cuomo”™s plan recognizes each region is unique. We feel Westchester is well positioned to take advantage of the regional approach.”
Vitale said Larry Gottlieb, director of economic development for Westchester, has been marketing the county”™s intellectual property as part of its strategy to attract business. “We are also taking this approach regionally, since we are also a part of the Hudson Valley Economic Development Corp,” said Vitale. “Westchester and the Hudson Valley have a highly-skilled work force, which is one of our greatest strengths; roughly 45 percent of our residents have college degrees. And I think the steps Larry (Gottlieb) and Mike (Oates) have taken in promoting the Bio-Hud Valley campaign will succeed in creating a hub for that development.”
Vitale said that Marsha Gordon, the Business Council of Westchester”™s president and CEO and former board member of the Business Council of New York, as well as D”™Ambrosio and Rockland Business Association President Al Samuels maintain positive relationships with Ken Adams: a plus to the mid-Hudson region. “He knows we work together regionally and have done so for several years. People are commuting from Dutchess to Westchester, from Westchester to Rockland. Getting the companies here is the goal. What county they choose should not be the primary focus, as long as it is within our regional boundaries.”
The recent addition of Contrafect in Yonkers is seen by Oates as a significant investment in the mid-Hudson”™s ESD region. The Manhattan-based company signed a 15-year lease for space in the former Otis Elevator building and plans to invest between $4 million and $5 million retrofitting the space for offices and laboratories. Contrafect has an option on an additional 45,000 square feet. It expects to move into its new space by May 1.
Oates believes the current mid-Hudson ESD will become one of the 10 regional councils and hopes to be part of it. “Right now, several projects are in the pipeline for the mid-Hudson. We have two significant projects we are working on now, one in Orange and another in Rockland.
Contrafect founder and CEO Robert Nowinski “looked at space at a number of locations but agreed to come aboard and make Yonkers its home,” Oates said. “It follows suit that the Hudson Valley is strongly becoming an epicenter for bio-tech. If we are to become one of the 10 councils, Contrafect is  an important addition  already made to the mid-Hudson region.”
Westchester Bureau Chief John Golden contributed to this story.
