Cuomo announces competition for $1.5B upstate fund

Gov. Andrew M. Cuomo apparently believes the spirit of competition is good for upstate's economic woes.

Allocating $1.5 billion in economic development funding to three winning upstate regions via a competitive grant program will force local governments and officials to "make hard decisions" they otherwise might not, Cuomo said Thursday.

Cuomo outlined his Upstate New York Economic Revitalization Competition during a visit to the Wegmans corporate facilities in Gates and lauded the success of his "Buffalo Billion" program to draw new jobs and investment to that area of the state.

And, he said, he wanted to replicate that success in other distressed regions. By starting with Buffalo — which he said was the state's most economically depressed area at the time — he said he could gain credibility for the process worked out by the Western New York Regional Economic Development Council to honestly scrutinize the area's strengths and weaknesses.

"You have to get away from the 'if you build it, they will come'" attitude toward economic development, Cuomo said, saying the state already has too many empty shopping malls and business parks waiting for a savior to come along. "Instead, you have to identify the business and then build for that business."

According to a news release from Cuomo's office, the Buffalo Billion has so far resulted in:

$11.3 billion in regional private investment

3,772 jobs and 812 new firms moved into the area

4 percent increase in regional wages

The Upstate Economic Revitalization Competition splits the state into seven competing regions: Mid-Hudson, Capital Region, Mohawk Valley, Central New York, North Country, Southern Tier and Finger Lakes. If approved by lawmakers, the program would formally launch on April 15, with submissions due July 1 and winners announced in the fall.

The proposal, which would need state legislative approval, would be similar to Cuomo's regional economic development councils, which he started when he took office in 2011. The 10 regional councils each year compete for more than $700 million in economic development grants and tax breaks for local projects. Applications for the new program would go through the regional council process and the money would come from a pot of more than $5 billion the state has received over the past year in bank settlements.

In a statement, Rochester Mayor Lovely Warren applauded the competition.

"We look forward to competing with our region for these additional dollars," she said. "Our city has traditionally fared well in competition for funding, and the resulting dollars have been invested in innovative projects that led to job creation, safer streets and a better education for our children."

State Sen. Joseph Robach, R-Greece, said Rochester, part of the Finger Lakes region, holds a unique position of strength in any competition.

"We have all these assets, great universities and colleges, the energy cluster at Eastman Business Park, strong food businesses like Barilla, Wegmans and LiDestri; there's already so much here to build on," he said.

Cuomo has been under pressure to help other upstate cities after his administration put a heavy focus on Buffalo during his first term. In November, Cuomo lost Monroe County to Republican Rob Astorino in a Democratic county, becoming the first Democratic gubernatorial candidate to lose there since 1998.

In written remarks, Monroe County Executive Maggie Brooks said she was encouraged by the opportunity to seek funding for "transformational projects" that will bring jobs and economic growth to the area, and was looking forward to working with other leaders to "put forth a winning plan that unites behind our shared vision of a vibrant local economy based on growth and innovation."

The announcement was the second part of Cuomo's 2015 Opportunity Agenda he announced this week. On Wednesday, Cuomo outlined his plans for a $1.7 billion property-tax relief program for homeowners and renters.

In his remarks Thursday, Cuomo continued to hammer on the taxes-too-high theme, noting again that "you have no economic future if you are the taxation capital of the nation." And, he said that for far too long, leaders in Albany have turned a blind eye to the economic plight of upstate and western New York as businesses fled and young people left in search of better opportunities.

The upstate economy continues to lag, while New York City and its suburbs have largely rebounded from the recession in 2008 and 2009.

Rochester has among the worst poverty rates in the nation, and other upstate cities, including Binghamton, Poughkeepsie and Syracuse, have struggled with job losses, infrastructure needs and population declines.

Cuomo urged the regions to battle for the economic development money.

"You can do it with $500 million. So all the opportunity you need is there. It is up to you," Cuomo said.

State Sen. Rich Funke, R-Perinton, said in a statement that he appreciated the governor made the success of upstate a priority, but Buffalo got a billion dollars and Rochester didn't.

"The real issue," the statement said, "is that Monroe and Ontario counties deserve their fair share, but today we were presented with what is essentially an Upstate timeshare — with a lot of strings attached."

MCDERMOT@DemocratandChronicle.com

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