New York Governor Spitzer Unveils “City-By-City” Economic Development Plan

Focused On Spurring Private Sector Investment in Core Upstate Communities Four High Priority Projects Discussed in Mohawk Valley

October 25, 2007 -- New York Governor Eliot Spitzer today continued outlining his vision for regionally tailored economic development efforts. At a meeting of business and community leaders at the REACH Micro-Enterprise Center in Rome, the Governor named four projects that would receive funding as part of his long-term strategy for economic expansion in the Mohawk Valley.

The Governor’s “City-by-City” plans, which he has also unveiled in Buffalo, Rochester, Plattsburgh and Syracuse, are a component of the administration’s larger Upstate agenda announced earlier this year, which focuses on reducing the costs of business, adapting to an Innovation Economy, and strengthening infrastructure. The “City-by-City” plans identify priority projects in and around Upstate cities that capitalize on each region's unique assets and are selected based on their potential to spur additional private investment and greater economic development.

“We often talk about the Upstate economy as if it was some monolithic region, but quite the opposite is true,” said Governor Spitzer. “A ‘one size fits all’ approach hasn’t worked. The projects we’re announcing today were selected to build on the strengths of Rome and Utica, and we believe represent public dollars well spent to ‘prime the pump’ for private sector investments in the near term.”

The Governor announced the following specific commitments:

REACH Micro-Enterprise Center, Rome. This building, in the heart of the Rome Entertainment Arts Cultural and Historic (REACH) District, is a joint effort by not-for-profit “Rome Up & Running,” the City of Rome, and the state to reconstruct a long-time vacant 28,000 sq. ft. building as a micro-enterprise center in the center of downtown. The wireless facility is being renovated to accommodate up to 12 start-up or expanding micro enterprises in the incubator space on the lower level; four retail stores, a shared lobby, conference space, classrooms and a black box theater. The state is investing $400,000 in the $1.3 million project.

Harza Building. This is a key building in downtown Utica’s core – across the street from the recently reconstructed Hotel Utica, and two blocks from Utica National Insurance’s new regional headquarters building. Once the Woolworth building for more than five decades, the building now is only 25 percent occupied and sorely in need of structural improvements to entice private sector tenants and investment. The state is committing $1 million to stabilize the structure, starting with a new roof, in order to make it a prime property that maintains the positive momentum already building in the Gateway/Genesee Street corridor.

Downtown Parking, City of Utica. Downtown parking has been identified as a key barrier to private sector development in the city core. The state is moving forward with financial support for the city’s efforts to add parking capacity downtown. The $2 million grant will support rehabilitation of the Hotel Utica’s parking garage and construction of an additional garage in the downtown Utica area for the specific purpose of meeting new private sector parking demands.

Mohawk Valley Psychiatric Center (Utica Campus). The governor also announced that the state is advancing plans to demolish the Brigham Building and the Dunham Building, which are two of the largest structures on the 120 acre Mohawk Valley Psychiatric Center’s Utica campus. There are more than 50 buildings on the property, which is the largest state-owned property within Utica’s city limits. The goal is to create shovel-ready land for private sector investment. The total project cost is estimated to be $3 million.

“While each of our core communities is different, they do have one thing in common -- they have all been held back by too many competing priorities,” continued Governor Spitzer. “Each region has a deep well of potential that has remained untapped because of key projects that have stalled and been mired in gridlock. Our ‘City by City’ plan will break this gridlock because we have established priorities and will provide the leadership, collaborative approach, funding, and the will to get them done.”

Assemblywoman RoAnn M. Destito said: “I am pleased that Governor Spitzer is changing the way the state’s economic development team responds to the needs of individual regions and communities. The Mohawk Valley region, and every other area of upstate New York has unique issues and concerns, and they cannot be addressed through a ‘one strategy fits all’ approach to economic development.”

Rome Mayor James Brown said: “I would like to thank Governor Spitzer and Dan Gunderson, the Empire State Development Corporation’s Upstate Chairman, for their support of the City of Rome, and also Jane Thelan of the regional ESD office. Their support – as shown by their investment in this community – clearly shows their understanding of the role that small business plays in the revitalization of our upstate cities. The REACH Microenterprise Center represents the importance of small business to not just our Rome Main Streets Alliance, but also to the economic health of our City. We have many entrepreneurs in Rome with great ideas and sound business plans – they just need help to turn these ideas into successful businesses. This funding will make a significant impact not only on these new ventures, but on this community as a whole.”

Utica Mayor Timothy Julian said: “Governor Spitzer is showing that he has listened to the needs of the City of Utica by announcing these objectives. Bolstering and in making structural improvements to the Harza Building while creating more parking, will enhance our ability to market our Downtown. Further, committing to demolition vacant buildings on the long neglected site center campus will allow us further economic development opportunities and much needed vacant land. I am highly encouraged by these plans.”

Daniel C. Gundersen, chairman of Upstate Empire State Development, said: “State agencies have a clear directive to focus on the Upstate economy. We are coordinating policies and programs that are focused on producing a better business climate and healthier environment for stimulating private sector growth.”

Today’s announcements follow early successes by the administration: lowering workers compensation rates by 20 percent and saving New York’s businesses $1.2 billion annually; cutting business and property taxes, and reducing the rate of health care spending.

Today marks the 133rd day since the Senate agreed to Wicks Law reforms that are critical to improving the state’s business climate. The Senate’s refusal to enact these reforms has already cost taxpayers at least $34 million dollars and counting.

Source: New York Governor