Assembly Minority Leader Charles H. Nesbitt and members of the Assembly Minority Conference today announced a statewide campaign to support renewal and expansion of New York’s Empire Zone program, the state’s most effective job development tool that has created more than 71,000 jobs. The Conference will also urge expansion of the program into the 11 New York counties that currently do not have an Empire Zone, so those localities are able to compete for jobs and new investments on an equal footing with surrounding communities.

New York’s Empire Zone program is set to expire on March 31st.. Governor Pataki has included a five-year extension of the program in his 2005-06 Executive Budget.

Leader Nesbitt said, "Job creation for New York’s working men and women must be a top priority. The Empire Zone program has helped create numerous economic success stories in communities across the state and created jobs for thousands of New Yorkers. Unfortunately, this valuable program faces an uncertain future. As we approach the expiration date, many companies are wavering on decisions to invest in New York until they know the long-term future of the program. Today, Assembly Minority members stand united in our effort to make sure that there is a promising future for Empire Zones in New York State."

Empire Zones, administered through the Empire State Development Corporation, provide business-friendly combinations of tax reductions, energy savings and other incentives to encourage businesses to locate or expand in New York and create jobs. Since the program’s inception 18 years ago, 72 Empire Zones have been designated throughout the state, providing jobs for well over a quarter of a million hardworking New Yorkers. Yet, there are still 11 counties in the state that do not have Empire Zones, resulting in those localities not being able to compete with neighboring communities.

The Assembly Minority Steering Committee, under the leadership of Assemblyman Patrick R. Manning (R,C-East Fishkill), will visit the New York counties currently without Zones, urging creation of at least one Zone in each county. The counties include: Delaware, Greene, Hamilton, Livingston, Yates, Nassau, Putnam, Rockland, Schoharie, Tompkins and Wyoming. The committee will also highlight the many Empire Zone success stories in New York State that provide proof that the program should be both extended and expanded.

Assemblyman Manning said, "Time and time again, we hear success stories about the enormous benefits created by the Empire Zone program. IBM’s investment in the Hudson Valley is a prime example of how government and industry can work together to create and retain jobs in New York State. But there are also numerous examples of small businesses that continue to grow, prosper and create jobs under the program or have relocated here due to the incentives offered."

In Dutchess County, Empire Zone incentives were instrumental in attracting four new-to-New York companies with total investments of over $530 million and current employment of about 2,000 employees. And Empire Zone credits were helpful in attracting private investors to purchase three former New York State hospital sites which are now on the local tax roles and will be redeveloped as mixed-use projects.

Assemblyman Marc W. Butler (R,C,I-Newport), ranking Minority member of the Assembly Economic Development Committee, who represents Otsego and Fulton Counties, which benefit from Empire Zone designation, said, "Assembly Minority members are committed to the creation of jobs for every New Yorker who wants one. In a highly competitive corporate atmosphere, it helps communities keep the jobs they already have, which, in turn keeps our communities intact."

In 2003, the Otsego County Empire Zone realized $51 million in new investment and the creation of 423 new jobs. The Gloversville Empire Zone, in Fulton County, has a gross payroll exceeding $50 million and the unemployment rates have consistently decreased there since the Gloversville Zone was established.

Assemblywoman Teresa Sayward (R-Willsboro) represents Hamilton County, which currently lacks an Empire Zone. Recently, a group of Syracuse investors planned to buy a 100 acre parcel in the county on which to build a hotel. They scrapped the plan, however, when they found out there were no Empire Zone benefits. Immediately afterwards, a church bought the property and obtained tax exempt status.

Assemblywoman Sayward said, "I have seen first hand what can happen when a business that wants to invest in a particular community doesn’t, because there are greener pastures elsewhere. It is time to level the playing field and give every county the opportunity to gain Empire Zone status."

Assemblyman Daniel J. Burling (R,C-Warsaw) said, "Two of the counties I represent - Livingston and Wyoming - lack an Empire Zone, and that is an anchor weighing down the entire Western New York economy. All 11 counties without Empire Zones are confronted with similar problems. Not only do they face an uphill battle in the competition to lure companies and create jobs, but tax dollars from the jobs they do have go to surrounding counties that have seen economic upturns because they are able to offer these incentives."

Ed Reinfurt, Vice President of The Business Council of New York State said, "Empire Zones are a proven asset in New York’s ongoing effort to attract new jobs and new plants, and we salute the Assembly minority for championing this program. We know New York must cut taxes and costs of doing business. As we try to get those things done, we must also preserve the one program that does the most to offset New York’s competitive disadvantages. Empire Zones must remain a central part of the state’s economic-development strategy."

Peter Winne, Director of Technology for Dutchess County Economic Development Corp., said, "In 1993, downsizing at IBM left over 3 million square feet of vacant office space in Dutchess County. Since 1994, when the county’s Empire Zone was created, employment at IBM alone has grown by 3,500. This is just one example of several that show why this program is vital to the state’s economy and needs to be reauthorized."

Along with renewing the Empire Zone program and expanding benefits into every New York county, Assembly Minority members also propose creation of a statewide "Superzone," which would give the state the ability to offer incentives to more companies, without having to reduce the benefits available in already designated zones. The Empire Zone proposals are included in the Assembly Minority Excelsior 2005 plan, a comprehensive package of legislative priorities for the 2005 session.