Challenging times are becoming more challenging, said Michael Oates, president and CEO of the Hudson Valley Economic Development Corp. and the headlines out of Albany are not helping.
At a luncheon held by the Rockland Business Association at Nyack Seaport recently, Oates told business leaders and nonprofits representatives that Albany”™s “clutter of dysfunction ”“ between the coups and counter-coups in the Senate ”“ has been so creative that it has made doing business in New York even more difficult than before.”
Some of what Oates coined as “Albany”™s creativity” includes the MTA payroll tax, the proposed soda tax and the uncertainty swirling around the end of the Empire Zone program.
“There are over 1,000 state agencies here ”“ what do they do? Does anyone know? This is just one area where we can simplify the process. New York is at a tipping point ”“ putting time and energy into changing prospective businesses perception of New York is needed to tip the scales in the right direction.”
It seems every maneuver Albany has made has only helped to sow seeds of discontent, said Oates. “When Pfizer merged with Wyeth, that $68 billion deal created a lot of synergy. There will be corrections on a worldwide level. We should be putting our hands out to this company. Instead, Gov. Paterson wants to ban ”˜swag”™ at pharmaceutical conventions.”
The result is corporations like Pfizer and other pharmaceutical companies will look outside the state to hold their meetings, hurting tourism and local business with a stinging blow, he said.
Oates, who lives in northern Westchester, says that county”™s coming loss of Starwood Hotels and Resorts, taking nearly 1,000 jobs with it, along with Pfizer”™s downsizing of its current work force, is “putting New York behind the eight ball.”
He also railed at the proposed tax on soda and other beverages containing sugar, saying its passage may push Pepsi Bottling out of the region. “They are in the final stages of preparing to relocate their headquarters,” he said. “If this soda tax passes, we will likely see them move out of the state, taking 2,000 jobs with it in the process.”
Oates praised the recent town of Clarkstown”™s business forum, saying municipalities need to streamline their processes to become much friendlier to commercial developers. “That”™s the kind of partnership we should be looking for ”“ a solid working relationship between the public and privately held companies.”
Shovel-ready and “green” tech locations are being sought by site selectors, said Oates. While attracting companies like Spectrawatt to Fishkill and Solar Tech Renewables, which is moving to Kingston, New York needs to do more to attract what are quickly becoming the region”™s major clusters: solar/renewable energy and biotech.
“We attracted OSI Pharmaceuticals from Long Island; instead of moving out of state, they are bringing their $95 million investment and 600 jobs slated to be created to the Hudson Valley,” Oates said. “We don”™t want to see them leave us in 10 years; we want to continue to work on growing clusters by making New York a business-friendly state to do business in.”
Oates has concerns about U.S. Rep Maurice Hinchey”™s efforts to have the Hudson Valley become designated as part of the National Parks system. “This could jeopardize economic development. When companies hear ”˜national park,”™ it immediately conjures up the perception of being a problem.”
Al Samuels, president of the RBA agreed, saying that a mention in HV Biz about Hinchey”™s national park proposal brought him several calls ”“ two from Washington ”“ “is a cause for business to be concerned. Why is a small mention getting so much attention?” (The region is already designated as a National Heritage Area.)
Oates urged businesses and colleagues to continue working to change the state”™s current business culture “so we”™re not on the wrong side of the tipping point. We need to get the word out to our elected officials that what”™s going on is not working for us. And if we don”™t get through to them, take it to the voters.”
The Hudson Valley Economic Development Corp. works to attract business to Dutchess, Orange, Putnam, Rockland, Sullivan, Ulster and Westchester counties in tandem with those counties”™ local economic development corporations.
