New York State Commission On Asset Maximization Delivers Final Report To Governor Paterson

Report Contains 27 Major Recommendations to Help Create Jobs, Generate Economic Activity, Benefit Colleges and Universities across New York State

June 1, 2009 -- New York Governor David A. Paterson today accepted the final report from the New York State Commission on Asset Maximization. The Commission was charged with broadly examining whether asset maximization can benefit the State, as well as whether any specific New York assets are suitable candidates for Public-Private Partnerships (PPPs).

The final report contains 27 major recommendations to help create jobs, generate economic activity and benefit colleges and universities across New York State. Some of the key recommendations include: school construction and renovation in Syracuse and Yonkers; 300 bridge renovations in all corners of the State; wind power on the Great Lakes; and high speed rail.

In addition to outlining specific project ideas that could be effective long-term projects, the report also recommends the creation of a State Asset Maximization Board to screen, oversee and implement PPPs. The State Asset Maximization Board will serve as an entry point for new ideas, provide continuous oversight and transparency, and enable New York State to tap into New York’s best and brightest minds – across the public and private sectors. The Board would be unsalaried.

“In the midst of these economic challenges, we must now, more than ever, make long-term investments to spur economic growth and think creatively about innovative ways to enhance the performance of vital infrastructure assets,” said Governor Paterson. “This report provides us with a series of ideas for asset maximization projects that could accelerate construction, jumpstart job creation, and provide for substantial savings in the years to come.”

“I want to thank Commission Chairman Carl McCall, Executive Director Samara Barend and all of the Commission members for their diligent and thorough work over the past several months to evaluate New York State’s assets and to determine the types of projects that could be effective,” the Governor added. “We must identify creative funding solutions to help pay for the State’s vital infrastructure needs and this report has done just that. It will serve as an important first step to develop a broad, long-term plan that will help secure our State’s finances for years to come.”

Commission Chairman H. Carl McCall said: “After consulting a wide variety of public and private entities throughout New York, across the country and beyond our own borders, we are pleased to present Governor Paterson with a report that we strongly believe will position New York State to take advantage of numerous opportunities and provide a roadmap for long-term, strategic investment in our assets. I want to thank the members and staff of this commission who have devoted substantial time and effort to understand these complex issues, asset classes and the successes and failures associated with other public-private collaborations. I look forward to continuing to work with the Administration to move these ideas forward.”

The Commission recognizes that New York has extensive experience with PPPs across a variety of asset classes including both the creation and operation of new assets and the reallocation of operational responsibility of existing assets. Some of the most effective examples of successful PPPs across the State include reducing the public costs of maintaining Central Park and the construction of new schools in Rensselaer, leveraging human capital at New York State Office of Science, Technology and Academic Research (NYSTAR), and utilizing private investment to complete JFK Terminal 4. These examples highlight the value and importance of successful PPPs and also the need for a more comprehensive and strategic approach to future projects.

The Final Report develops a framework for identifying future asset maximization projects, assessing the value of these projects, and ensuring the protection of public policy values throughout the entire process. Additionally, the Commission has identified several labor and environmental protections that should be considered in every asset maximization project. The 27 recommendations included in the report span six asset classes ranging from transportation, social infrastructure and higher education to energy, information technology and underutilized property. The pilot projects were selected as potential demonstration projects for PPPs based upon the spending need addressed, cost savings delivered, the private sector’s ability to partner, and the project’s regulatory and political feasibility. Each of these projects could be delivered in an accelerated time frame by utilizing the alternative financing and procurement approaches presented in the Report.

Some of the most innovative recommendations include:

* Allowing certain SUNY schools to lease campus property to private entities, providing new revenue streams to fend off future tuition hikes and keep campuses in pristine condition;
* Renovating hundreds of bridges across the state, from the Kosciuszko Bridge in New York City to the Robert Moses Causeway and many more;

* Placing privately owned wind turbines on offshore state property, generating clean, low cost energy while raising revenue for the state; and
* Bringing together the State Department of Transportation, private railroad companies and rail service providers to develop a high-speed rail link from New York City, to Albany to Buffalo.

On October 2, 2008, Governor Paterson created the New York State Commission on State Asset Maximization by Executive Order No. 11. The Commission issued a Preliminary Report on December 15, 2008, which outlined the Commission’s Guiding Principles, a set of criteria to be considered for determining whether a project is suitable for asset maximization, as well as opportunities for consideration in several asset classes.

The Commission held five hearings across the State in Albany, Buffalo, Long Island, New York City and Westchester. It received input through testimony, presentations, meetings, panels and its Request for Participation process from over 120 individuals and companies.

For more information about the New York State Commission on State Asset Maximization please visit: www.nysamcommission.org. The Commission’s final report is available on: http://nysamcommission.org/pdf/SAM_FINAL_REPORT.pdf.

Source: New York Governor