KINGSTON – Governor Andrew Cuomo’s ambitious economic development program, launched in October 2013, has shown exponential growth over the first five quarters, despite criticism from opponents who claim it squelches tax revenue, according to state officials who were in Kingston on Wednesday.
SUNY Tax-free Areas to Revitalize and Transform Upstate NY, or STARTUP-NY for short, partners businesses with public universities, and grants 10-year tax exemptions, in exchange for positive net job growth. Program executives visited Tech City to tout what they claim is their success rate.
Today in its fifth quarter, STARTUP-NY has attracted 110 companies to New York State, up from 54 in the fourth quarter, according to Leslie Whatley, executive vice president for the program. Those numbers translate to 3,000 new jobs, and a $180 million overall investment.
Whatley addresses the panel
“The secret sauce to this program, and what I thought was brilliant
about it, is the requirement that the companies affiliate in some meaningful
fashion with the university system,” Whatley said. “And
that has turned out to be a key benefit to the companies, to the schools,
and to the community. This one, we believe is unique because it takes
empty space, reutilizes it and enjoys no taxes for 10 years.”
A veteran of General Motors in Detroit, Whatley understands upstate’s troubled economic history.
“I would not have gone in to my CEO and try to pitch New York five years ago,” she admitted. “I would not have been credible.”
Things are different today with progressive incentive programs and tax reform, keen marketing, and diversity transforming formerly distressed regions into magnets for growth, Whatley maintained.
Partnership with public universities is the “secret sauce” missing from similar state programs elsewhere, Whatley noted. She cited a high tech “coolness factor” attraction to companies tapping into campus resources.
SUNY Ulster President Donald Katt agreed.
“I’ve heard some business ideas I didn’t even know existed,” Katt said “It’s been a marvelous experience.”
Chris Gillespie, owner of Sustainable Waste Power Systems, said he moved his company over from Connecticut to Tech City, bringing about 40 jobs over the next five years. The company makes agricultural co-generation plants, which sell for millions apiece.
“To compare with our experience in Connecticut, it’s been night and day,” Gillespie said.
An application for $100,000 development grant got whittled down 75 percent, but came attached with $35,000 in red tape. Declining the offer cost $600 in attorney bills. The company plans to expand facilities at Tech City in the future.
