Moody's: Technology Center a Credit Positive for Utica Region

A newly announced nanotechnology center in a suburb of Utica, N.Y. is credit positive for the region, Moody’s Investors Service said.

Gov. Andrew Cuomo announced recently the establishment of the $1.7 billion public-private initiative aimed at establishing the Utica area as a center for nanotechnology research, education and development.

The State University of New York College of Nanoscale Science and Technology and the SUNY Institute of Science will spearhead the development of a computer chip research center in Marcy, a suburb of Utica. The center, named Nano Utica, is expected to create more than 1,000 high-tech jobs. Completion of the center is expected by the end of 2014.

Six technology companies will provide $1.5 billion for Nano Utica. New York will contribute $200 million over 10 years.

Utica is about 40 miles east of Syracuse and in the Mohawk Valley region. The region has suffered declining population, weak housing values, and little value-added industry in recent years, said Moody’s associate analyst Kristina Piccarreto. Along with Utica, rated Baa2 with a negative outlook, in the Mohawk Valley Moody’s rates Oneida County A1, Rome A1, and Herkimer County Aa3.

“We expect the job creation and private investment related to Nano Utica to help transform regional employment opportunities with higher-value industries and higher-wage jobs and to serve as a stabilizing force for population and housing prices,” Piccarreto said.

New York is using technology investments and university-business partnerships to promote technology-based economic development in upstate New York. It has already had some success in commitments for new technology projects for the Albany region.

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