New York’s Spitzer Gives More Details Of $1B Upstate Revitalization Proposal

New York Gov. Eliot Spitzer yesterday outlined in greater detail a $1 billion proposal to revitalize the economically struggling upstate region, which would use a combination of pay-as-you-go financing and bonding.

Spitzer first mentioned the plan in his state of the state speech last week, and new details were in the first “state of the upstate” speech yesterday, which was meant to focus attention on the needs of the region that has suffered a long period of economic decline. For the purposes of his proposal, upstate is defined as the 48 counties north of Dutchess, Ulster, and Sullivan counties.

Spitzer proposed an Upstate Revitalization Fund, an umbrella under which a series of programs and initiatives directed toward upstate development projects would be coordinated by the Empire State Development Corp. The ESDC is the state’s primary agency for economic development projects using tax-exempt bonds.

“ESDC will play an orchestrating role, and in some cases, will be the full orchestra and conductor,” upstate ESDC chairman Daniel Gundersen said.

Though the governor has not said how his proposal would be financed, Gundersen said Spitzer was looking for ways to allocate existing resources from within state government, as well as “looking at assets that we might be able to dispose of without compromising any public services.”

A division of budget spokesman said the proposal would be financed by a combination of pay-as-you-go financing and bonding and that details would be released with the state budget next week.

At the center of the proposal is a $350 million Regional Blueprint Fund that would help finance the construction of sites for development and industrial parks. This could include building water and sewer systems and paying for brownfield remediation.

“We cannot create the jobs our communities need until we create the development-ready sites our businesses need,” Spitzer said.

Included in this regional fund would be a $10 million venture capital fund to provide seed money to 10 to 15 start-up companies.

Other initiatives include: $100 million for maintenance of upstate bridges; $50 million for an upstate agribusiness fund to support developing food markets, new food processing centers, and development of alternative fuel; $15 million for state investment in bringing broadband Internet service to rural areas and inner cities; and $80 million for upstate parks.

Spitzer also proposed directing $100 million from a proposed $400 million housing program to Upstate housing projects that would emphasize rehabilitation. He did not give a dollar amount for funding a program designed to finance certain economic development projects that began last year but will be included in this proposal.

While some of the funding will be distributed as grants, some of it will also come from loans, Gundersen said.

“Our bias here is loans,” he said. “The state needs to be able to make sound investments and that means that it’s returning the money, revolving the money, so it can be used again. We’ve become far too reliant over the years, particular Empire State Development, on grant programs.”

Erie County executive Chris Collins was enthusiastic about the proposal, especially funding for the University at Buffalo’s expansion program as well as infrastructure improvements and loans for start-up businesses.

“The fact that the governor recognizes that there are unique needs of the upstate region contrasted against the downstate region is a very positive step in us revitalizing the upstate portion of New York State that’s really been suffering — in this county for decades,” he said.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER