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Empire Zones under fire

by: Hudson

Fri Aug 03, 2007 at 17:12:30 PM EDT


(Ridiculous. I've said before, I'll say it again: reform the Empire Zones or kill them. - promoted by phillip anderson)

A number of papers in the State have reported that Empire State Development has sent out 3,000 letters to recipients of benefits under the Empire Zones program, putting those businesses on notice that they'd failed to meet their goals.

That's almost one-third of all businesses who have joined the Empire Zones roster, which was a pet project of Pataki and the once-powerful Charles Gargano.

Hudson :: Empire Zones under fire
The Syracuse Post-Standard reports:

New York state's economic development agency put 3,000 warning letters in the mail to businesses it said did not meet at least 60 percent of their promises to create jobs and invest money in exchange for Empire Zone tax breaks. The state used the companies' applications and 2005 Business Annual Reports to make the list. Next, the state plans to look at the 2006 annual reports to see if the companies made any progress in the next year. If not, state officials may notify the companies that they will try to revoke their Empire Zone membership.

The paper helpfully (unlike the T-U and others) provides not only the full text of the standard letter sent out, but also to a full Excel file of businesses that received them.

This is particularly helpful to citizen journalists, as many local papers are not reporting the story, perhaps protecting local businesses from embarrassment. I've yet to see a story, for example, in a Columbia County publication, where there are six businesses cited (plus C.H. Evans Brewery, which operates in Albany but has a Hudson ZIP code).

The Empire Zone program has been under fire practically since it's inception as a boondoggle. The agency's action seems like a small start toward reforming it. Some would say it ought to be eliminated altogether. What say you all?

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When this story came to my attention yesterday, I emailed ESD and every reporter that I could find who covered the story, asking how the public could get the data. Among those emailed was the Times-Union, where I also posted a blog comment to the same effect.

Only the Syracuse paper responded.


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I, too, have noticed that the coverage of Empire Zone problems has been uneven across the state, and that some of the best coverage has been in Syracuse.  Thanks for the heads-up on the spreadsheet with the info.

TU blog did post a link to the report to the Governor completed by AT Kearney here, which has a detailed description of the problems associated with this failed program.  But, Spitzer is not reforming economic development in NYS any too fast-- many of the same people who worked under Pataki's dysfunctional Empire State Development still do, and little is apparently different, from the web site to the back-door, insider approach to doing business.  Just try to reach them on the phone to ask a question as a citizen-- good luck.

And, sad to say, "once-powerful" Charles Gargano is not really an accurate thing to say-- while he no longer heads Empire State Development, his position with the Port Authority ensures that "The Ambassador" remains quite a player (which is, I think, good for him and his buddies and real bad for the rest of us).

As far as Empire Zone reforms, I'm hoping that Brodsky will lead the charge.  Spitzer seems only interested in petty personal political jousting, not really mustering the troops to change what has been holding NYS back in terms of economic development.


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