Andrew Cuomo announced an ambitious new job training program in Buffalo, which would include a new Workforce...
A Note from ESD President, CEO and Commissioner Kenneth Adams
Here at Empire State Development, we not only work to provide programs that will support new and growing businesses across New York State, we carefully measure what we do to make sure those programs are achieving their intended results and giving New Yorkers the best ‘bang for their buck.’
To that end, I am pleased to share some key metrics with you surrounding our performance last year in providing incentives to help companies grow and create jobs here in New York.
Driven by Governor Andrew Cuomo’s Regional Council initiative, 2012 was Empire State Development’s biggest year to date: our staff successfully negotiated 237 economic development projects in 50 counties across the state. Our incentive packages included grants, loans and Excelsior tax credits. These resources are committed through our performance-based system in which firms must make their investments and hire the workers they have committed to hiring prior to receiving their state support.
When fully executed over the next several years, our 2012 economic development projects will leverage $3.16 billion in private sector investment and create or retain more than 67,000 jobs, a return of around six dollars in private investment for every dollar invested by the state. This represents almost a doubling of the activity that took place in 2011 — when 123 offers were accepted for projects in 38 counties — and an almost 250% growth in the state’s economic development activity since 2009.
ESD’s efforts to grow our state’s economy and add jobs extend to specialized industries. For example, leveraging the NYS Film & TV Production Tax Credit in 2012, the state issued $220 million in tax credits to support motion picture, television series and television pilot production in New York, resulting in $1.06 billion of film and TV industry spending in the state — a return of almost five dollars of private investment for every dollar of public investment.
The work of ESD’s “I Love NY” marketing campaign helped grow tourism to record levels and kept New York State as a leader in global tourism. The tourism industry is now New York’s fifth largest employer, supporting 694,000 jobs and generating $16.6 billion in wages. In fact, one out of every thirteen jobs in New York is created by the tourism industry.
All this activity is clearly having an effect on job growth. Last month, New York State reached an all-time high private sector job count of 7.4 million jobs. That caps 17-months of private sector job growth. In fact, as of earlier this year, one out of every five jobs added in the nation was created in New York.
No matter how you slice them, our 2012 numbers are impressive. Governor Cuomo’s focus on business and economic growth along with the new Regional Council system and key reforms to improve the state’s business climate are clearly producing important economic development results for New York, and we’ve got the numbers to prove it.
“Bringing the people back into government…” - Governor Andrew M. Cuomo
Last month, Governor Cuomo joined legislative leaders to announce the early passage of the 2013-14 New York State Budget. The enacted budget continues the state’s focus on economic growth through a series of initiatives to create jobs and grow the economy like new tax cuts for small businesses and middle class families, and closes a $1.3 billion gap with no new taxes or fees. The budget passed both houses of the legislature days before the April 1 deadline, marking the first time New York has had three consecutive, on-time budgets since 1984.
“When I took office more than two years ago, New York was at a crossroads, with families and businesses leaving our state and a government that had lost the trust and confidence of the people,” Governor Cuomo said. “With this budget, New York State is continuing to create good jobs, cut taxes for the middle class, lead the nation in education and civil rights reforms, and provide a model for a government that works.”
Some highlights of the budget include:
Regeneron Pharmaceuticals, Inc. is a world leader in biopharmaceutical research and development, and New York State’s largest biotech company.
Earlier this month, Regeneron joined with Governor Cuomo to announce the company will expand its corporate headquarters and laboratories in Westchester County, resulting in more than 400 new high-skill jobs and further cementing the reputation of New York State and the Hudson Valley as an emerging epicenter for biopharmaceutical growth.
The expansion will enable the company to continue to accommodate the rapid growth it has experienced over the last six years – from 682 employees in 2007 to 2,000 today, including more than 1,300 employees in Tarrytown and nearly 600 at its industrial operations and product supply facility in Rensselaer, New York.
The company had also considered expanding outside New York before the state stepped in with $8.5 million in tax credits through the Excelsior Jobs Program to make its expansion possible.
“This administration has had a laser-like focus on creating an environment where companies, such as Regeneron, can grow and invest,” Governor Cuomo said.
Regeneron discovers, invents, develops, manufactures and commercializes medicines for the treatment of serious medical conditions. It markets medicines for eye diseases, colorectal cancer and a rare inflammatory condition and has product candidates in development in other areas of high unmet medical needs, including hypercholesterolemia, rheumatoid arthritis, asthma and atopic dermatitis. In 2012, Regeneron was voted the world’s #1 biopharmaceutical employer by Science Magazine and Biotech Company of the Year by Scrip Intelligence.
Leonard Schleifer, MD, PhD -President and CEO
“Our recently approved drugs and our robust development pipeline have transformed Regeneron into one of the largest and fastest-growing biopharmaceutical companies in the United States,” said Leonard S. Schleifer, M.D., Ph.D., President and Chief Executive Officer.
Regeneron’s strong commitment to New York was demonstrated just six months ago with the company’s announced plans to invest nearly $70 million to expand its manufacturing capacity in Rensselaer and create 300 new jobs in the Capital Region. With the Rensselaer and Tarrytown expansions, the company is slated to create more than 700 new jobs in New York State and invest approximately $170 million in capital expansion in New York over the next few years.
Dr. Schleifer added, “Regeneron has been based in New York since we began 25 years ago, and we are grateful to Governor Cuomo and New York State for financial support that helps us to continue to expand and create jobs in New York.”
Construction of the new buildings in Westchester is anticipated to begin in late 2013 and to be completed in late 2015.
The Mohawk Valley Regional Economic Development Council (MVREDC) has developed a strong Strategic Plan for job creation and economic growth in the six county Mohawk Valley region. After two rounds of Governor Cuomo’s Regional Economic Development Council initiative, the Mohawk Valley has been awarded over $120 million in economic development resources to support more than 120 projects that will grow key industries, create much-needed jobs and drive the region’s economy forward.
For the last two years, the MVREDC has collaborated with partners across all sectors – business, labor, education and government – as well as consistent public participation from small business owners, local economic development officials, the general public and others. Consistent with Governor Cuomo’s vision for the regional councils serving as a community-based approach to economic development, the Council took public participation very seriously, consistently holding public sessions and Consolidated Funding Application (CFA) workshops to better understand the needs of the region and ensure applicants submitted strong CFAs. As Round II awardees begin signing contracts and starting their projects, the MVREDC has been focused on implementing its Strategic Plan and the projects that support the region’s vision for economic growth and prosperity.
Currently, more than 90 percent of Round I projects are moving forward on time, while many others are well underway, including infrastructure work at the MarcyNanoCenter Site where necessary improvements are being made to prepare the site for large-scale nanotechnology manufacturing; the Griffis Utilities Services combined heat plant; an expansion of DeIorio’s Foods in Utica, which has already completed early milestones and created more than 30 jobs; and work to expand the presence of Fage yogurt in Johnstown. Once completed, the projects awarded funding in the Mohawk Valley region through the 2011 CFA will significantly boost the local economy by creating and retaining 1,800 permanent, non-construction jobs and leveraging more than $364 million in additional private sector investment.
In Round II, the MVREDC was awarded $59.7 million for 70 projects. Projects awarded funding include:
The MVREDC is working harder than ever to spread the word about Round III of the Regional Council competition and is excited about the many new projects and developments that are in its future.
On the heels of the extension of New York State’s film & post-production tax credit program, administered by Empire State Development, NBC’s top-rated summer series “America’s Got Talent” and “The Tonight Show” announced their plans to move from their current locations in New Jersey and California, respectively, and come to New York.
The state’s popular tax credit program was extended through 2019 as part of the third consecutive on-time state budget passed in March. The extension includes several new provisions to enhance and expand the program. There are new incentives, for example, to attract television shows produced in other states to New York to create jobs, spur tourism and generate new investments in New York.
America’s Got Talent (AGT) is projected to create more than 500 jobs and result in over $100 million in direct economic activity each season. More details can be found in Governor Cuomo’s press release. The governor’s statement on the Tonight Show noted that the show’s return to New York builds upon “the recent surge of television and film production happening here in New York that has restored our state as a global film production capital and driven the creation of new jobs and business growth throughout the state.” The full statement can be found here.
The enhanced and extended film tax credit program also includes the following:
New Opportunities for Post Production
The renewed law includes changes that lower barriers to entry for post-production and visual effects work, making it easier for productions to meet thresholds, and continue to attract more work to New York State.
Productions that film in New York State and qualify for the Production Tax Credit will no longer have to meet any extra thresholds to earn a tax credit on post-production costs incurred in-state. Through extra incentives for post-production work performed upstate, post houses will be able to afford to tap into the state’s higher education assets and compete with facilities overseas in both quality and cost—creating high tech, highly skilled and high paying jobs here in New York State.
Added Benefits for Filming Upstate
New measures added to the law make filming upstate more affordable than ever. Productions that previously could not justify the added cost of bringing crews, equipment and talent to Rochester, Syracuse, Buffalo or the Adirondacks will be able to offset some of the added expense of shooting upstate. Projects that complete post-production only in state will also be eligible for the additional 10% bump on labor in those counties.
The new tax credit is built for the long haul, and aimed at creating jobs in New York State so that five, seven and even ten years from now New York will still be ‘Hollywood East’ and continue to see the economic benefits of its vibrant and productive film and television community.
Empire State Development’s Division of Science, Technology and Innovation, The New York State Science & Technology Law Center and the New York Academy of Sciences are sponsoring the “Building Human Capital to Drive New York’s Innovation” conference Monday, April 15, 2013 from 8am- 5pm at 250 Greenwich Street, New York, NY.
This conference will examine unique programs in New York State universities which are building the professional infrastructure needed to support NY’s innovation economy, examine the needs of companies commercializing new technology and explore potential future public partnerships to accelerate human capital development.
For more information or to register please visit: http://www.nyas.org/Events/Detail.aspx?cid=2f6efe18-596c-4682-8088-f87f7465ba61
New York Makes Largest Single Investment to Close the Digital Divide in the State’s History
Accelerating the availability, affordability and utilization of broadband technologies is a high priority for New York State. Access to the numerous benefits of broadband service, such as e-commerce, e-government, telemedicine and distance learning, will result in job creation, improved healthcare, greater educational opportunities and enhanced economic development.
Recognizing that a strong broadband infrastructure is vital to our state’s economic well-being, on March 5, Governor Cuomo announced $25 million in awards to expand high-speed Internet access in rural upstate and underserved urban areas of New York through the Connect NY Broadband Grant Program. Together, the projects selected to receive these grants will bring broadband service to more than 153,000 households, 8,000 businesses and 400 anchor institutions – many without any means to access the Internet — across more than 6,000 square miles of New York State.
In addition to the vast economic benefits derived from broadband access, the projects being funded by Connect NY will create 1,400 new jobs.
Eighteen broadband projects were selected for the Connect NY grants based on the support of the Regional Economic Development Councils and technical scores awarded by a committee that analyzed and ranked projects competing for the funding. Most of the funding will be for the “last-mile” of broadband service, the most expensive portion of a broadband network which often prevents many rural residents from receiving broadband service, even when service is available to nearby homes.
The $25 million Connect NY awards, combined with additional funding to advance broadband technologies and services, brings the total amount awarded for broadband projects during Governor Cuomo’s administration to more than $56 million, the largest statewide broadband funding commitment in the nation.
To see a list of all Connect NY grant recipients, visit the NYS Broadband Program Office website at http://www.nysbroadband.ny.gov/state-funding.
NuClimate: An Example of What New York State’s Centers of Excellence Can Produce
Governor Cuomo has stressed the importance of partnerships between universities and private industry in growing our innovation economy. Empire State Development’s Centers of Excellence program is a state funded partnership intended to leverage the research strengths of our universities to help companies of all sizes grow and create jobs. One such success story involves a central New York company and the Syracuse Center of Excellence (SyracuseCoE).
Armed with an idea for a new energy-efficient commercial heating, ventilation and air conditioning system for schools and office buildings, NuClimate utilized the resources and expertise of the SyracuseCoE in growing its business. The CoE assisted NuClimate at several stages of product development and commercialization, including simulation and modeling of their initial concept, testing of a proof-of-concept prototype and providing independent testing to assist NuClimate in accessing its initial markets.
Despite achieving sales in multiple areas across the northeast, NuClimate had not been successful in breaking into the New York City market. In 2010, SyracuseCoE worked with more than 100 organizations, institutions and firms to develop the New York Energy Regional Innovation Cluster. The Cluster’s “Bridge to Markets” program connected upstate companies to stakeholders in New York City, including building owners, building and construction trade unions, technology experts, architecture/engineering firms, utilities, bankers and investors. The prototype Bridge to Markets program opened the doors that allowed NuClimate systems to be used in renovations of New York City public schools and other city buildings.
NuClimate products are now expected to be installed in more than 100 schools in New York City in the next five years. The first seven schools have already begun construction, and the next nineteen are in design. NuClimate has also become the preferred product for the school systems of Plymouth and Boston in Massachusetts; Lancaster, Pennsylvania; and Seattle, Washington.
NuClimate has also found higher education and health care to be fantastic markets for their chilled beams. They recently completed projects at SUNY Cortland, SUNY Alfred State, SUNY Buffalo, Ithaca College, Cornell University, SUNY Fredonia, SUNY Oswego, Clemson University, Roanoke College and Worchester Polytechnic institute. On June 1, 2012, NuClimate announced a new private branding partnership with the Carrier Corporation, giving NuClimate access to a worldwide market.
“Since the beginning, SyracuseCoE has remained an instrumental part of NuClimate’s growth,” said John DeMilo, NuClimate Vice President. “From setting up meetings with potential clients to offering publicity, SyracuseCoE has demonstrated time and time again the strength of its support and network. NuClimate would not have achieved what it has without the help we received from SyracuseCoE.”
ESD Launches One Stop Shop for the State’s Wine, Beer and Spirits Industry
In another example of how New York State continues to find ways to cut red tape, increase demand for locally grown farm products and expand industry-related tourism and economic development, on March 4, Governor Cuomo announced the launch of a “One Stop Shop” designed to provide the wine, beer and spirits industry with a single point of government contact.
The “One Stop Shop” was created as a result of suggestions made during Governor Cuomo’s Wine, Beer and Spirits Summit held in Albany in October 2012. Summit participants raised concerns about the number of different state agencies they needed to navigate not only to go into business, but also to stay in state compliance. These businesses, many of whom are small and do not retain attorneys on a full time basis, sometimes found themselves unnecessarily subject to avoidable fines because of a lack of knowledge about the multi-agency oversight regulating their industry.
To address this issue, a website has been established at Empire State Development: esd.ny.gov/NYSBeverageBiz. The website provides a single point of contact for beverage industry members, as well as a combined list of incentives, grants, loans and special permits available through many different state agencies to beverage producers. The one-stop also features a special FAQ section that provides immediate answers to some of the most common industry related questions, which will be updated on a continuing basis.
Governor Cuomo said: “The Wine, Beer and Spirits summit brought together industry leaders and state government officials in one room to discuss the difficulties facing our state’s beverage producers and to find new ways for the state to reduce barriers and support the industry’s growth. With this one stop shop, the days when our state’s beverage producers have to navigate a complicated bureaucratic process to find answers to their questions are coming to an end. The New NY supports and invests in our niche industries, and that is what this new service is all about.”
The Empire State!
New York State made a number of appearances during this year’s Oscar award ceremonies.
The 2013 Oscar for Best Visual Effects was won by Life of Pi, which received rave reviews for its digital depiction of a Bengal tiger created by three alumni from the Rochester Institute of Technology (RIT). The digital tiger appeared in all but 24 of the 170 shots in the movie, and blended seamlessly into two dozen other shots of a real life tiger.
Scott Vosbury ’04 (film and animation), Rich Enders ’02 (computer graphic animation) and Jen Stratton ’05 (film and animation) helped create the digital Bengal tiger in Life of Pi, which has been nominated for 11 Academy Awards, including Best Picture and Best Visual Effects.
Photo Credit: Rhythm & Hues
RIT alums Scott Vosbury, Rich Enders and Jen Stratton work for the character and visual effects studio that supplied about 600 people to work on the film. Of his New York-based training, Vosbury, lead digital composer on the film, said: “RIT gives students what I call a ‘real world’ education – that is a combination of a great academic program combined with practical filming experience from Day One. There aren’t many other universities in the U.S. that do that.”
“I feel by letting us make our own films within the first two weeks, we ended up getting a Masters level of education within the confines of a four-year Bachelors program,” he said. “I would recommend RIT to any high school student who knew they were passionate about filmmaking and animation.”
ChaRon Brabham is another New Yorker who graced the stage at the Oscars – multiple times! The Brooklyn native and State University of New York at Potsdam student won first place in the national “Oscar Experience College Search”— a contest sponsored by the Academy of Motion Picture Arts and Sciences and mtvU, MTV’s 24-hour college network. She was one of 1,100 other college students across the country who submitted a 30-second video answering the question, “How will you contribute to the future of movies?”
Winners of the Oscar Experience College Search, including SUNY Potsdam student ChaRon Brabham (third from the right). Photo Credit: Richard Harbaugh / ©A.M.P.A.S.
As part of the prize package, ChaRon, along with five other contest winners, was on stage to deliver Oscar statuettes to ceremony presenters at the Academy Awards on February 24, 2013. They were also introduced during the live ceremony by Hawk Koch, President of the Academy of Motion Picture Arts and Sciences.
ChaRon walking with Oscar in hand on the Dolby Theatre stage at rehearsals for the 85th Academy Awards. Photo Credit: Richard Harbaugh/©A.M.P.A.S.
ChaRon was ecstatic about her experience: “Nothing can ever compare to what I experienced there from the day I arrived at LAX to the day after the Oscars when I left. It kept getting better and better and better and better. Spending that time with all these people who love film and meeting the other winners, producers, directors, actors was so inspiring. It was a dream come true!”
Accomplished Industry Professionals Tapped to Lead NYS Tourism Team
Tourism is a huge economic driver in New York, and the state’s fifth largest employer. The millions of visitors drawn to the Empire State in 2011 resulted in $53.9 billion in direct spending and $6.9 billion in state and local tax revenue, representing a significant impact on the state’s economic growth.
Since taking office, Governor Cuomo has launched a series of initiatives to further grow tourism, particularly upstate, including new marketing and advertising campaigns to showcase New York’s many assets and attractions. Now, two new leaders have joined the New York State tourism team to help further that momentum: Gavin Landry has joined Empire State Development as Executive Director of Tourism and Cristyne Nicholas was appointed by Governor Cuomo to serve as Chair of the New York State Tourism Advisory Council.
As Executive Director, Mr. Landry will work with members of the Tourism Division to lead the iconic I LOVE NY program, and develop and implement new strategies to support the growth of the tourism industry all across the state. Before joining Empire State Development, Mr. Landry was principal of Landry Hospitality Consulting Services and before that, spent more than a decade as president of the Saratoga Convention and Tourism Bureau. Empire State Development President, CEO & Commissioner Kenneth Adams said, “With more than 25 years of experience in the tourism and hospitality industry, on both the private and non-profit side, Mr. Landry is a tremendous asset to the Division and its goals.”
Ms. Nicholas is the co-founder and CEO of Nicholas & Lence Communications, a New York based strategic communications firm. Previously, Ms. Nicholas spent seven years as President and CEO of NYC & Company, New York City’s official tourism and marketing organization. As Chair of the Tourism Advisory Council, Ms. Nicholas will lead the council in advising the governor and providing input regarding the state’s tourism efforts.
“Cristyne’s expertise in strategic marketing and tourism promotion has already had a major impact in building New York City into the one of the world’s leading tourist destinations,” said Governor Cuomo.
Ms. Nicholas said, “I am pleased to support the governor’s work to increase tourism statewide, and I look forward to working with the administration and Empire State Development to make sure our state’s natural beauty and tourist assets are known around the world.”
Empire State Development events around New York State that you can attend.
The Governor’s Regional Economic Development Councils had a busy month with many holding their first meeting of the New Year in February. The Councils are back in full swing, continuing to implement their Strategic Plans and the projects that support their vision for economic growth and prosperity.
Kenneth Adams, Western NY Regional President Sam Hoyt and other New York State agency officials continued to meet with the public and present Governor Cuomo’s 2013-2014 Executive Budget agenda.
As the work of the Regional Councils continue, several groups held various public meetings and outreach forums across the state. In the Capital Region, the Workforce & Education Workgroup held three public forums in Saratoga, Columbia and Schenectady Counties to further its goals of preparing the workforce of today and tomorrow for the existing and emerging needs of business and industry in the Capital Region. The Mid-Hudson Regional Council held a public working meeting to discuss 2013 initiatives. And in Western New York, the Path through History Work Groups held public meetings to gain input for the development of a $100,000 marketing plan to encourage tourism and local economic development, and serve as an educational tool as part of Governor Cuomo’s Path Through History initiative. To keep up to date on the Regional Council events, including meetings you can attend, please visit here.
Governor Cuomo’s New York State Tourism Advisory Council (TAC) met in early March and Cristyne Nicholas was announced as the newly appointed TAC Chair. See Governor Andrew M. Cuomo’s press release.
Empire State Development co-hosted the 2013 New York Farm-to-City Expo with New York City Council Speaker Christine Quinn and the New York State Department of Agriculture and Markets on March 4 at the Jacob K. Javits Convention Center in New York City. The event was held in conjunction with the 2013 New York International Restaurant and Food Service Show — a three-day trade show for New York’s restaurant and food service industry — as well as the Pride of New York MarketPlace, a pavilion comprised of New York State farmers, producers and processors.
ESD will participate in the New York City Economic Development Corporation’s 8th Annual Development Finance Conference on April 16. Over the past eight years, NYCEDC’s annual New Markets Tax Credits (“NMTC”) conference has grown from a 20-person workshop into a 500+ person conference. This year, they are expanding their focus beyond NMTC to provide a full day of programming on a wide range of development finance tools and incentives. Additional event information and agenda can be found by clicking on the link.
Check in at www.workforsuccess.ny.gov for updates on a new statewide employer outreach tour — “Work For Success” — that provides training and employment for the formerly incarcerated. The tour will begin with outreach events in New York City, Albany, Syracuse, Rochester and Buffalo.
CitizenConnects empowers you with the information you need to actively participate in your state government. In the spirit of the old town green, CitizenConnects provides a way for you to participate in state government and share your thoughts, opinions and ideas for New York’s future. Get involved in your community, come out and participate!
Find events going on in your community that you can participate in! Search by region, by date, by agency or by the event time. You can even conduct your own search by typing in keywords for the location or type of event you are looking for! http://www.governor.ny.gov/citizenconnects/
On February 28th 2013, Governor Andrew M. Cuomo formally announced open registrations for the State of New York Superstorm Sandy Small Business Recovery Program. By registering, New York’s small businesses can provide the information necessary to determine eligibility for financial assistance once the federal government has given final approval for the Small Business Recovery Program. No benefits will be awarded until after federal approval.
This program is intended primarily to assist independently owned and operated businesses that have fewer than 100 employees and are located in the counties designated as disaster areas as a result of Superstorm Sandy, Hurricane Irene or Tropical Storm Lee but excluding the 5 counties of New York City (Bronx, Kings, New York, Queens, Richmond). Small businesses located in New York City should the New York City Department of Small Business Services at www.nyc.gov/sbs.
Other assistance is already available from the federal, state and local governments. To learn more about existing programs, please visit here.
How to submit a pre-application
Types of assistance under the Small Business Recovery Program
To learn more about the Small Business Grant, Small Business Loan and Small Business Coaching Programs, please click here for the Program Fact Sheet.