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Dennis M. Mullen, Empire State Development Chairman & CEO designate delivered a speech in Poughkeepsie that was short on specifics, but long on sound bites offering support for the Governor’s just-released state budget.

“Small business is big business in New York,” Mullen told the 250 people in attendance at the Dutchess County Chamber of Commerce monthly breakfast meeting Wednesday morning.

He credited those in attendance for their obvious love of the community, and said that spirit will help the state survive the current economic challenges it faces.

“Anything you love, you have to work at,” he said. “The challenges we’re faced with are no different than the challenges we face in our personal lives.”

He went on to explain that Gov. David Paterson’s proposed budget includes a focused economic development plan, with three key areas: Re-energizing core competencies, a research and development initiative and helping small businesses get access to capital. The proposed Excelsior Program will include a $25 million revolving loan fund and $25 million in seed capital to help colleges and universities develop R&D “in a meaningful way.”

Mullen did not delve into Paterson’s effort to eliminate the troubled Empire Zone fund this June, a year earlier than anticipated. The complex tax credit program has not performed even close to its expectations for sustainable job creation.  Despite incentives offered by state, county and local governments that have included everything from state tax credits for hiring new people; lucrative PILOT (Payment in Lieu of Taxes) schedules for not paying their full share of local and county property taxes; and  tax “holidays” on construction materials and other equipment for building and expansion projects, companies enjoying Empire Zone distinctions have not created the permanent jobs they promised to create. More than a few, in fact, have taken what Paterson and many other state officials have deemed an unfair advantage of the program.

The Empire Zone program, however, will continue for those companies already in the program throughout the next decade. It currently costs the state over $500 million a year in tax credits for employees, investment tax credits and a sales tax exemption on building materials.

“We can place blame, point fingers,” said Mullen, but that will not solve the state’s economic woes, including a 17 percent decrease in revenues.”

On Tuesday, Paterson had revealed a $134 billion budget, which reflects a .6 percent increase in spending. The state is facing a $7.4 billion deficit this year.

Mullen said Paterson is encouraging fiscal responsibility and changes in government ethics. His commitments to investing in nanotechnology, bioengineering and green business practices are “going to change how we do business in the future.”

The state’s priority is job creation Mullen explained and it may come at the expense of some other community development initiatives, such as theaters.

“We will, in better times, make the meaningful investments in our communities,” he said. “Right now we’re making hard choices about cuts and budgets.”

He asked attendees to help Susan Jaffee, the newly appointed Mid-Hudson regional director for the Empire State Development, meet area business leaders. (Jaffee, formerly with the Sullivan County Partnership for Economic Development, explained she could not speak to the press until the ESD public relations department authorized the interview.)

Mullen concluded his speech with a few stories, including his initial interview with Paterson, who brought up Mullen’s 2005 firing by the board of Birds Eye Foods. Mullen did not avoid the situation, instead telling the governor: “I learned from that experience there are no endings, only new beginnings.”

He concluded his talk by taking two questions from the audience. One was a comment by Dutchess County Executive Bill Steinhouse who praised Mullen’s support in bringing a solar company to Southern Dutchess County. The other was an inquiry of how to get a hold of him.

Mullen responded by revealing a busy schedule of trips from his home in Rochester to Poughkeepsie, Albany, and the southern tier of the state. He declined, however, to actually answer the question and give out his contact information.

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One of a handful of independently owned and operated movie house in the valley may soon be shuttered, unless a group of grassroots organizers struggling hard to raise the approximately half million dollars needed to buy the building and the business succeeds in its efforts. For sixty years, the Rosendale Theatre has been a family affair for the extended Cacchio family, Joan and her husband Rocky, their son, Michael and brother-in-law Anthony. But when Rocky Cacchio died last year, the family’s desire to keep the independent theatre going dimmed, as well.

When it became known that the theatre – long a mainstay of Rosendale’s struggling Main Street hamlet – was about to close, local residents and boosters from the area came together as the Rosendale Theatre Cooperative and in slightly over three weeks managed to raise the $25,000 needed to put a  binder on the property. Now, as they are about to launch a multi-hundred thousand dollar capital campaign to actually purchase the theatre, they believe that – despite the lackluster local economy – they can make their goal by the spring deadline.

Many of the folks working to raise the funding have grown up going to the weekly schedule of movies shown at the theatre – many of which have been Indy productions not readily shown at the regional Hoyts or Regal mall chains.

Besides the expanded schedule of movie fare, the Rosendale Theatre, like so many small community houses has also maintained that “small town movie night” experience that the antiseptic mall chains have long-since abandoned.

More importantly, say its supporters, the theatre has long been one of the main reasons people frequent Main Street in Rosendale. It’s continued operation makes other independent businesses, like the Rosendale Café, the gourmet cheese shop and so many other small boutiques viable.

Once a vibrant small town, home of the cement quarries producing one fo the world’s best construction cements, Rosendale has found itself constantly struggling to maintain a local economy and sense fo community in the 21^st century. In the past few decades, it has become known as a haven for artists, as well as a open community with a good housing stock and just enough small business to keep its Main Street going. It is also home to the International Pickle Festival, an annual event that draws thousands of people each year, literally from around world.

Now, it hopes that the same community spirit that created the strong community can be harnessed to raise the money needed to give the Rosendale Theatre a “second life” as a home for the arts.

The group, so far, has planned a Dance Party on February 6^th at the Rosendale Café, a Valentine’s Art Show and a series of children’s events. The $25,000 binder gives the group exclusive rights to purchase the theatre until April.

Anyone wishing more information about the fundraising campaign or who would like to contribute to the cause may contact the group at (845) 658 – 8513 or log onto their website at: www.rosendaletheatre.org

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Overall number of relocations is down; Midwest losing residents; hot destinations include Southwest, Northeast and Southeast

In the wake of our country's economic downturn, people are moving away from states with high unemployment, according to the 2009 Atlas Van Lines Migration Patterns study. Atlas' annual study has tracked the nation's moves since 1993.

Residents of Rust Belt states continue to relocate in large numbers, as steel and manufacturing industry jobs decline. And while historically the nation has moved westward, heavy job losses, particularly in construction, manufacturing and tourism in California, Nevada and Oregon, have made these states less popular destinations than in years past.

Migration patterns also show that the Southwest pocket--Texas, New Mexico, and for the first time in five years, Oklahoma--continues to attract residents. Also popular are the Northeast and Southeast states. Washington D.C. had the highest percentage of inbound traffic for the fourth year in a row, and Connecticut had the highest percentage of outbound traffic. New Jersey and South Dakota narrowly follow Connecticut to round out the top three outbound states.

As the economy cooled in 2009, so did household moves industry-wide, according to the study. Atlas' total interstate and cross-border moves were down nearly 16 percent from 2008, when Atlas moved 84,447 households. The total for 2009 was 71,301. However, a higher-than-average jump in relocation activity during the summer months may be a sign that the moving market is recovering.

"Atlas' migration study takes the pulse of our nation--it reflects the economic climate and is a guide to the general migration patterns throughout the country," said Glen Dunkerson, chairman and CEO of Atlas World Group. "The results this year are surprising, because many states that have for years been outbound, inbound, or balanced have changed."

Here's a closer look at relocation patterns in 2009 as identified in the Atlas study:

Southwest Fiesta

Texas, New Mexico, and for the first time in five years, Oklahoma, are popular destinations. However, neighboring Colorado, which has historically been an inbound state, became balanced in its number of moves, meaning the numbers of people moving in and out were about equal.

Northeast and Southeast Lure

The South Atlantic states of Virginia, North Carolina and Washington D.C. are popular destinations, with Washington D.C. showing the nation's highest percentage of inbound traffic for the fourth year in a row. For the first time in four years, Maryland joins the Southeast pocket of states as inbound.

In the Northeast, Vermont and New Hampshire have surfaced as popular destinations.

Rust Belt Woes

Outbound moves from the Rust Belt states continue, but for the first time in 10 years, Illinois joins neighbors Indiana, Michigan and Ohio as outbound. Indiana has been an outbound state for more than a decade while Michigan ranks in the top four outbound states.

Down and Out in the Dakotas

Residents are leaving North and South Dakota, an unusual trend because both states have historically been inbound or balanced for more than a decade. Because unemployment rates are low in both states, what's causing the shift is unknown.

For full results of the migration survey and to view a map and annual histories for each state, visit www.atlasworldgroup.com/migration.

How status is determined

Each state/province has a threshold value, which is the total number of shipments multiplied by 0.55 (for example, in a state with 100 moves, at least 55 of them would have to be outgoing to classify the state as outbound). A state/province is considered:

• Outbound when outbound shipments exceed the threshold.
• Inbound when inbound shipments exceed the threshold.

All other states are classified as balanced. Shipments noted for Canada are cross-border-to the United States or from the United States (not inter-provincial).

Atlas Van Lines is the largest subsidiary of Atlas World Group, an Evansville, Ind.-based company that posted revenues of $908 million in 2008.

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Say it isn’t so…oops, wrong sport…but how is it that Pepsi, the soft drink behemoth who is currently running glitzy banner ads for its “throwback” cola – made with cane sugar, not corn syrup -  on the official NFL Super Bowl site(www.nfl.com/superbowl/44) has opted out of purchasing ad time during the actual game?

Last year’s Super Bowl drew more than 95.4 million viewers. With the attention of that many potential buyers of their products, why would Pepsi decide that they want to end their 23-year run of Super Bowl commercials? At a whopping $3 million per 30-second spot, Pepsi has decided to instead plunge their marketing dollars into a new Refresh website, where they give away money to help launch projects. To promote it, they would hit the social marketing vehicles. Was it the right move and what can local businesses take away from Pepsi’s decision?

“It saved the company a lot of money and positioned Pepsi as a global philanthropic leader, in a very different economic time, a time when there are all kinds of stressful and painful situations,” says Janine Agnolet, a media and marketing specialist in Dutchess County.

Just from merely announcing their decision, Pepsi benefited from a great deal of free publicity on their products and their Refresh project. Just about every major media, including newspapers, television and trade magazines, ran the story. It was talked about on Twitter and Facebook. But will the chatter die down by the time the Super Bowl is played and will long-time Pepsi-lovers switch to Coke, simply on the strength of a Super Bowl ad?

“Some believe that not being on the Super Bowl could open the door for Coke to make a splash, but I don’t think so,” says Steve Mayhew of Momentum Advertising in Fishkill. “The Super Bowl spots are all about the creative execution and people often remember the spot itself more than the product. Pepsi was worried that having a glitzy spot, which is expected for the Super Bowl, would reflect poorly on the brand.

Mayhew doesn’t believe Pepsi’s absence during the Super Bowl will amount to much after the Monday conversations around the water cooler fades.

“Their social marketing campaign will likely have great long-term impact on the brand and promote good-will, but it will not have the immediate jolt that a Super Bowl spot has,” he says.

Using social marketing to create awareness doesn’t cost a company a penny, except in the manpower to keep the networks updated. Pepsi already has a Facebook fanpage devoted to Refresh with more than a quarter-million members. Although creating videos have a price, uploading videos on YouTube is free, as is Twitter and MySpace, and customers can watch them over and over again without any additional advertising costs to the company. Even if Pepsi decided to pay for advertising on Facebook, for example, the cost is significantly lower than the one-time $3 million Super Bowl spots.

Pepsi isn’t alone when it comes to advertising on social networks either. Statistics show that in 2009, marketers funneled an estimated $2.2 billion to advertise on social networks worldwide, with $1.2 billion spent in the U.S. In 2010, Facebook will account for nearly 25 percent of all social network ad spending worldwide, up 20 percent from last year.

“I encourage my clients to venture into social marketing too, because it’s really where it’s at right now,” says Agnolet. “You do have to ask yourself if you have the staff to keep it up, but it creates relationships and conversations about your products or services.”

Mayhew says that companies who have always felt the need to be socially responsible and have a reputation for doing so will continue using social marketing to positively position their brand, but it can backfire on those companies who don’t appear to have positive motives. He still suggests that local businesses rely on traditional media.

“They don’t have the mega-advertising budget of the larger organizations who can spend money to sell their product while also having money to portray themselves in a socially responsible way,” says Mayhew. “That being said, there is no reason why any organization can’t do some grass-roots social marketing to support whatever they are doing in the media to promote their brand. Everyone wants to do business or buy products from ‘good’ companies.”

Agnolet reminds companies that most social marketing also opens up opportunities where consumers can talk about your product -- good or bad. “You have to be prepared to deal with the negative,” she says. “You’re opening yourself up to public opinion.”

She also says that only Pepsi can tell if their decision worked for them. “But if you look at the economic climate and what’s going on in the world, I think they served themselves well.” 

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Move over Costa Rica. The latest eco-tour action will be happening in Greene County when New York Zipline Tours opens later this year on Hunter Mountain.

“We were looking for some four-season amenities,” said Brian Czarnecki, director of sales and marketing for the resort, who explained he talked with zipline tour owner Jay Bialsky on a Wednesday, and three days later they met and began planning what will ultimately be the longest and highest zipline canopy tour in North America.

“It’s going to be crazy,” said Czarnecki.

The project, which costs over $1 million to build, will offer three different options, but all will be eco-friendly said Bradd Morse, who will be overseeing construction and operation of the facility once it’s built.

“We’re here to highlight the woods and the forest,” he said. “This is the fastest growing form of eco-tourism, bar none.”
Because the lines run on gravity, there is no increased energy consumption and the platforms throughout the canopy tour are grated, so there is no altered drainage impact when it rains or snows. Morse says the platforms, some of which will have environmentally-educational displays on them, have a negligible impact on the environment, because only the footings will touch the ground.
“Our job is to highlight the area,” he said. Based on its current operations in New Hampshire and Jamaica, company officials estimate up to 30,000 visitors will use the ziplines in the first year of operation, and within two years that will double.

The three options that will be offered at Hunter Mountain include: a base challenge climbing course that will go from ground level up to 50’ high; a mid-mountain experience that will have a zipline that will go from various trees to some platforms and a top-of-the-mountain experience that will extended over four miles of zip lines and could produce speeds up to 50 mph for riders. Each tour is expected to take up to two and half or three hours.

“The top of the mountain tour is not something most people are going to experience in their lifetime,” said Morse, who stressed that tour, some of which will travel 600’ above ground, is not for the faint of heart. But, offered with the other options at the site, the New York Zipline will cater to all ages, as well as diehard adventure seekers.

“The mid-mountain tour is going to be our family tour,” said Morse, adding that it will be the most educational eco-tour. Riders will take zip lines to various platforms in the trees, which will offer a mini-museum experience, as they will have information about the history and the flora and fauna of the mountain. “It’s everything that’s kind of fun for the whole family.”

Organizers expect adventuresome visitors to choose either the mid- or top-of-the-mountain tour when they visit, with the lower challenge course, with its climbing activities rounding out the day. More mild visitors can just visit the lower site.

“We will offer family rates, packages, and specials,” said Jay Bialsky, president and CEO. Anticipated rates are $29 for the challenge course, $85 for the mid-mountain experience and $119-$129 for the top-of-the mountain package. The company will operate at the base of Hunter and employ 30 to 40 people when in operation. On-line reservations will also be accepted with up to 200 people a day going through each of the courses.

The project received a $200,000 low-interest Quantum Fund loan from Greene County, as well as a $200,000 grant from the New York State Office of Community Renewal.

“This is part of a series of attractions regionally that will boost tourism,” said Assemblyman Pete Lopez. “Public funds are being used to prime the pump, and encourage private investment.”

Morse anticipates opening in late spring or early summer. The cable for the mid-mountain challenge is already installed. The top course is still being engineered, in conjunction with Santos Associates, licensed engineers who operate in the Catskill Region.

“To run the cable is a huge task,” said Bialsky, who explained that the 3,000-foot expanse will be the longest in North America and requires thicker cable. All design and construction meets or exceeds the latest safety standards as outlined by the Association for Challenge Course Technology and Professional Ropes Course Association.

“We produce happy customers,” said Morse. “We keep them safe.”

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A new buyer, who plans to operate an Ellenville hotel without racing or casino activity, has stepped forward to purchase the troubled Nevele Grande Resort, which abruptly shut its doors last summer.
Tricon Development of Brooklyn, in conjunction with the Giluet Foundation announced a joint venture for office and hospitality projects, according to a press release, which would include the Nevele. Repeated calls to Tricon president Raphael Weiss were not returned as of press time.

Lance Matteson, president of the Ulster County Development Corporation, which administers the Industial Development Agency, has been approached about the project.

“It’s early in the process, but we’ve had conversations with the folks,“ he said. “We stand ready to help anybody who buys the Nevele and pays the outstanding debts and comes forward with a redevelopment plan.”

This is not the first time a buyer has been announced for the resort, which is located on 600 acres and once employed hundreds of local residents. Last fall a “mystery” buyer from overseas, who refused to be identified, supposedly made an offer of $15.5 million for the property, pulling it from an auction just days before it was scheduled by Auction America.

It’s unknown whether that offer never materialized, or if legal hurdles proved too cumbersome. Some published reports cited the Patriot Act as causing problems for bringing the money into the country. Also, a judge had halted the sale until all back taxes were paid.

The property, under the ownership of Joel Hoffman and Stratford Business Corp. since 2000, has been embroiled with issues of back taxes. In September the company paid almost $350,000 in back taxes to the county, which had filed a lawsuit seeking the money. It’s believe $250,000 is still owed to the Ellenville School District.

According to the press release Weiss outlined three areas of concern: Reasonable return on capital investment; environmentally conscious projects and projects that will benefit the surrounding communities. He commented in the release "it is not difficult to achieve both parity and a harmonious coexistence between profits and environmental benefits to the advantage of communities within which such projects are ensconced.”

Matteson said the troubled history of the Nevele means the IDA will be exercising more than due diligence in granting any tax exemptions.

“The recent history of the Nevele suggests taxpayers will want to make sure they’re getting good value for the incentives they put in,” he said. “There are appropriate ways of making sure the taxpayers who are supporting the project get value and their money’s worth.”

He added that until a completed project is presented it is premature to discuss any specific projects.

“Once somebody closes the sale and steps forward with a plan to redevelop the property, we will do whatever we can to support that.”

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New York Power Authority (NYPA) President and Chief Executive Officer Richard M. Kessel recently announced the roll-out of NYPA’s Sustainability Action Plan to formalize the implementation of future energy saving and environmental initiatives. NYPA showed its commitment to this effort by introducing a new clean operating fuel cell just installed at its White Plains office.
Kessel was joined by City of White Plains Mayor Adam Bradley, other elected officials, representatives from Federated Conservationists of Westchester County, Inc., other environmental organizations and Robert Byron, product manager, UTC Power stationary fuel cell business, to announce the new plan for future energy and environmental programs to be undertaken by NYPA.
Highlighting the announcement was the new energy saving 200 kilowatt (kw) fuel cell at NYPA’s downtown White Plains office building, which will generate 200 kw continuously, or about 1.6 million kilowatt hours annually, to supply approximately 20 percent of the building’s annual energy requirement. Waste heat from the unit will be used to heat and cool the office’s lobby areas.
This is the first fuel cell to be installed at an office building in Westchester County and its operation is expected to offset about 1,116 tons of carbon dioxide annually contributing to a cleaner environment.
“Leading by example is the way to show others of the benefits of making sustainability a part of everyday life—whether at work or in the home,” said Richard M. Kessel, president and chief executive officer, NYPA. “Sustainability is a practice long followed by the Power Authority. Today’s document formalizes the sustainability practices already underway and, most importantly, provides guidance on accomplishing even more in the future.”
“The new fuel cell is a physical demonstration showing NYPA is not only ‘talking the talk’ but ‘walking the walk’ when it comes to continuing sustainability efforts at the Power Authority,” Kessel added. “Sustainability is not new to the Power Authority but with the Sustainability Action Plan, we are saying to the public there is more we can do and more we will do to ensure a better environment for future generations,” said Michael Townsend, chair, Board of Trustees, NYPA.
“The City of White Plains is delighted to be the host of NYPA's new energy saving fuel cell and appreciates NYPA's commitment to sustainability and energy savings,” said Adam Bradley, mayor, City of White Plains. “As always, White Plains will look to NYPA for ways that it can improve its environmental footprint.”
“NYPA has been a long-time customer and champion of using fuel cells to generate clean on-site power, and UTC Power is extremely pleased to have our fuel cell system powering this sustainable building,” said Neal Montany, director, UTC Power stationary fuel cell business.
The NYPA Sustainability Action Plan was developed, written and produced by a diverse team of NYPA employees—ranging from environmental scientists to workplace safety professionals to facilities management experts to communication specialists. The plan combines NYPA’s longstanding energy saving and environmental conservation practices with future initiatives under one sustainability umbrella to achieve the goals of environmental stewardship, social equity and economic prosperity. The plan was reviewed by a wide-range of individuals and organizations across New York State to get community input prior to it being finalized.
The plan, entitled Generating Sustainability, is comprised of five sections representing NYPA’s major areas of activities: workplace, community, environment, marketplace and operations. It includes 21 key focus areas ranging from health and safety to stakeholder engagement to climate change adaptation. While the plan establishes a long-term framework, in order to make an immediate impact NYPA has identified 41 separate actions that it will strive to complete between 2010 and 2012.
Among the focus areas includes continuing attention to Green Workspaces to keep work environments healthy for NYPA employees and building visitors. Currently, NYPA’s White Plains office uses environmentally-friendly cleaning products and materials. In addition, the plan seeks to develop green guidelines for office renovations which will incorporate LEED (Leadership in Energy and Environmental Design) Commercial Interior standards and is being implemented in the renovation underway on the building’s fifth floor.
In 2006, the NYPA White Plains office building received Gold-EB (existing building) certification from the U.S. Green Building Council’s LEED Program. It was the first building in New York State to receive this designation. The Gold designation signifies that that the Clarence D. Rappleyea Building, which is the name of NYPA’s White Plains office building, at 123 Main Street, meets the rigorous LEED performance standards for five key areas: sustainable site development, energy efficiency, water savings, materials selection and indoor environmental quality. NYPA has also installed a solar system and microturbine that generate energy used in the building.
The plan can be viewed on the Web at www.nypa.gov/sustainability/plan.pdf
NYPA has been a pioneer in demonstrating and installing fuel cells. Westchester County is home to the world’s first fuel cell operating using anaerobic digester gas (ADG), installed by NYPA in 1997, at the county’s waste water treatment facility in Yonkers where it continues to operate. ADG is a byproduct of sewage treatment and a renewable energy source. For more information about the NYPA fuel in Yonkers, see http://www.nypa.gov/services/profiles/yonkersfuelcell.htm.
The new NYPA fuel cell in White Plains is a demonstration model of a new generation of fuel cells.
Including the new fuel cell, NYPA has installed about 16 fuel cells. The Central Park Police Station was one of the only buildings in New York City to have lights during the August 2003 black-out due to a fuel cell installed by NYPA. NYPA has also installed fuel cells at the New York Aquarium, Bronx Zoo, North Central Bronx Hospital, the State University of New York, College of Environmental Science and Forestry, and four waste water treatment complexes in New York City. An ongoing project has NYPA providing fuel cells for the World Trade Center site.
Fuel cells generate electricity by combining hydrogen and oxygen in a chemical reaction without combustion. They are exceptionally clean and efficient, and require few moving parts, making them a quiet, reliable and safe source of power suitable for around-the-clock operation.





STATEMENTS OF SUPPORT

“The Federated Conservationists of Westchester County (FCWC) applauds NYPA for its long standing dedication to sustainability and clean energy efforts, as they are crucial to building a sustainable future for New York State. FCWC views NYPA as a partner in promoting and implementing sustainability initiatives, as well as a leader, continuing to set standards for industry, by integrating clean, energy efficient technologies into their own buildings," stated Steven Levy, co-president, FCWC.

“NYPA’s environmental leadership at the state level is critical to ensuring that policies and practices safeguard future generations of New Yorkers,” says Kyle Rabin, director of the Manhattan-based Network for New Energy Choices. “The comprehensive Sustainability Action Plan illustrates the authority’s commitment to environmental stewardship, social equity and economic prosperity. Notably, the plan embraces the interconnections between energy and water and the importance of factoring both into policies, practices, and planning.”

“NYPA's Sustainability Action Plan illustrates proactive leadership in meeting the needs of today without harming our future” said Miquela Craytor, executive director, Sustainable South Bronx. This plan represents a concentrated effort to ensure the Power Authority’s relationship for all New Yorkers is a sustainable one. We applaud their efforts and look forward to assisting in the implementation of the plan in our communities.

“This plan is a testament to NYPA practicing what they preach, and putting sustainability into action,” said Adrienne Esposito, Executive Director for Citizens Campaign for the Environment. “NYPA’s Sustainability Action Plan demonstrates needed leadership from the public sector to help fight climate change, create good jobs, and promote energy independence. It really is good planning that can reshape our future and bring us a better tomorrow.”

"We commend NYPA's efforts to prioritize sustainability across the board, from daily operations and community investments to its major role in New York's energy marketplace," said Carol E. Murphy, Executive Director of the Alliance for Clean Energy New York (ACE NY). "Generating Sustainability shows an important emphasis on demand response and other energy efficiency initiatives, a commitment to expanding NYPA's renewable generation portfolio through projects like Great Lakes Offshore Wind, and a renewed focus on clean energy procurements. With initiatives such as these, NYPA continues to lead the State in developing a thriving clean energy economy that will benefit New Yorkers for generations to come."

"The New York Power Authority has always been a major producer of clean, renewable hydropower at its Niagara power generating facility. Over the course of the last year, the Power Authority has moved into the vanguard of efforts to make New York State a national leader in all forms of renewable energy and related technology, including wind and solar power,” said Paul Dyster, mayor, City of Niagara Falls. “The City of Niagara Falls looks forward to working closely with NYPA in the future to create hundreds of sustainable "Green Collar" jobs, reduce our carbon footprint, and increase our state and nation's supply of clean, renewable energy. We believe the Authority shares our "Green-to-Green" philosophy, recognizing that the highest best use for today's renewable energy is to create renewable energy for the future, and we commend Governor Paterson and President and CEO Richard Kessel for their vision and leadership on energy issues."

"NYPA's commitment to sustainability in New York State is a positive step forward for the Buffalo Niagara region," said Andrew J. Rudnick, President and CEO of the Buffalo Niagara Partnership. "Our employers will have greater opportunity for cost savings from energy efficiency through the sharing of best practices and expertise; and the greater emphasis on renewable energy provides outstanding opportunity for manufacturers and other suppliers in Buffalo Niagara. For our employers, the economic impact of this action plan is a significant added benefit to the overall environmental strategy."

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Opposition to drilling for natural gas in the Catskill Watershed is gaining momentum as a unified voice in lower New York, but few leaders in other areas that will be directly impacted have weighed in on the situation.

“The southern tier towns (along the Marcellus Shale) are just going to get the traffic impacts and virtually no benefit,” says Ramsey Adams, executive director of Catskill Mountainkeeper.

Last week downstate officials joined with environmentalists at a press conference at New York City Hall to express dismay about the quality of an environmental study on the gas drilling, which was released last September.

Many of their concerns about the Draft Generic Environmental Impact Study focused on the watershed area, which directly impacts their constituents. However, the Marcellus Shale study addresses high-impact horizontal natural gas drilling on land from the Pennsylvania border north to the watershed.

“It will get the attention of DEC that New York City is serious about protecting its watershed,” James Simpson, staff attorney for Riverkeeper said on the unified opposition. But the watchdog group is now reaching out to elected officials, both in Albany and locally-impacted areas to also become involved says Simpson.

“Why they haven’t spoken up more, I’m not quite sure,” he says. “They’ve been surprisingly silent.”

Washington leaders, including Rep. Maurice Hinchey, have been pushing for changes in federal law that would require drilling companies to cite the chemicals they use in the high-pressure underground hydraulic fracturing, or “fracking” process. Currently, the chemicals do not have to be disclosed.

Although the watershed is Riverkeeper’s primary focus, the group joined forces with other environmental agencies to address concerns about the study. A petition to withdraw the study in its entirety was signed by 25 environmental groups and submitted to Gov. David Patterson, who has not yet responded.

Concerns about the study include:

It does not address the cumulative impact of drilling.

It should study the reasonable expected development rate as well as alternatives, such as making certain areas off limits for drilling.

It does not address how to treat the highly-polluted wastewater that will be generated by the process.

“Even if the watershed is off limits, I still think there is a threat to the watershed,” says Simpson. “Thousands of trucks will be used to haul in fresh water and to haul out highly-polluted wastewater. Traveling on rural county roads, there will be accidents and those accidents could easily happen within the watershed.”

State officials say up to 2,500 wells could be drilled annually to tap into the reserve of natural gas, with each well producing up to 1.2 million gallons of wastewater.

“The impacts from the bridges, to the towns, to the water supply are significant, “says Adams of Mountainkeeper.

Simpson says getting a unified voice on any issue is always challenging, but he believes there are certain things everyone can agree on.

“We’re not anti-gas, but any drilling that goes forward must be held to the most stringent practices possible. The watershed is not something that can be tinkered with,” he said. “Take it off the table and then implement the most stringent safeguards throughout the state, so that no one’s drinking water will be impacted."

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One of the more interesting, if glossed over, ideas for reinventing New York’s financial economy suggested in Gov. David Paterson’s State of the State address last week was the concept of developing an insurance exchange. Some definitions: An insurance exchange is not really a traditional insurance comnpany, but rather a marketplace where private, corporate or hedgefund investors, along with traditional mainline insurance companies can underwrite projects or other properties that would be too large – or too risky – for a single insurer to undertake. Think “The World Trade Center – pre 9/11” or gigantic oil tankers….or Celine Dion’s vocal chords, for that matter. These properties – and many others have been insured by, perhaps, the best known insurance exchange in the world: Lloyd’s of London.

For the past few years, the New York State Insurance Department has been toying with the notion of creating a similar exchange in New York – and siting its main office squarely in the city’s financial district.

It had been a pet project of former NYS Insurance Superintendent Eric DiNallo, who had gone so far as to get the enabling legislation he needed from the NYS Legislature to set up the exchange several years ago. But, as the world’s financial services industry unraveled in 2008, current NYS Insurance Superintendent James Wrynn explained that DiNallo – like every other state and federal official even remotely involved in the financial industry  - had been sucked into spending every waking minute dealing with the crises, and any plans for developing an insurance exchange went by the boards.

Now Wrynn , with the governor and Deputy Secretary for Labor and Financial Regulation Jeffrey Manns, are putting some more air in that trial balloon.

“What better place to locate a global insurance exchange than in New York, the world’s financial capital?” asked Wrynn.

Installing one, he stressed, would pour billion of dollars n fresh capital into the state’s ailing financial services industry, create thousands of new jobs and stem the flow of money leaving the country for similar exchanges in other parts of the world. While the state envisions an actual center squarely in lower Manhattan, Wrynn also said that the plan would be to put much of the back office operations – and jobs – in Upstate New York.

Insurance Exchanges are necessary, said Wrynn, because it is th eonly viable way to successfully insure projects against the ongoing threats of things like cyber-terrorism, natural disasters and other forms of catastrophic risk. Exchanges allow insurers of such massive projects to spread the risk around to a range of shareholder investors.

The concept is as old as the rise of corporations and global commerce in the Western World. The most famous exchange being Lloyd’s of London. That exchange began in 1688 in Edward lloyd’s coffeehouse in Tower Street, London. The establishment was a popular hang-out for ship owners, sailors and the merchants that used their services to ship their goods around the world. It was a dangerous business, what with everything from storms to privateers and other hostile forces to contend with at sea. Ships and their cargoes were routinely lost and merchants and ship owners alike sought a viable way to recoup staggering losses when the worst happened.

Insuring this trade could be amazingly profitable – as the underwriting was lucrative and most ships did ultimately make port unharmed. But it was also amazingly risky and too large an undertaking for a single investor or company. So, a market of investors (or “Names”) was established to spread both the risks – and the rewards – around the house and the first modern insurance exchange was born.

In 1871, the first Lloyd’s Act was passed by Parliament, which gave the loosely organized society a sound legal footing. In 1911, a subsequent Act of Parliament set out the society’s goals and objectives..

What’s different today, said Wrynn, is technology. Just as the stock and bond trading floor has been revolutionized by the 24-7, online trading and programmed  strategies, the collective and re-insurance industry could be transformed in New York. While current insurance markets are as soft as much of the rest of the financial services industry, so much economy could be gained by bringing this specialized sector into the 21^st Century that there is a real industry here to be developed – and one that would help top re-establish New York, again, as the Empire State.

In the next few days and weeks, said Wrynn, his department will be naming a working group of professional investors, insurance executives and regulatory people to push the plan forward to the next step.

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“There is too much redundancy” in services, said County Executive Mike Hein. “Reinventing government is essential.”
Currently, Ulster County employs 140 people in the highway department and maintains 460 miles of road. The altered arrangement could result in shifting personnel and downsizing of the department, said Hein, although no specifics have yet been reached.

A study on the effort was just released and a committee has been created to review the proposal. They will report back in 45 days with the goal of reaching a final agreement before the end of September, when towns need to adopt their budgets. Any changes would require approval of individual town boards, as well as the county legislature, before being adopted.

The issues of liability and reimbursement rates will be critical topics the committee will address. The implementation committee consists of two officers from the association of supervisors and mayors, two from the association of highway superintendents, one from the legislature’s public works committee and representatives from the county, including the commissioner of the department of public works.

Although the towns assuming responsibility for county roads is a new concept, in fact many of the towns already have cooperative agreements in regards to snow removal and sharing equipment among themselves said Hein.

The highway effort is just one part of a government efficiency effort that is being undertaken in Ulster. Funded through a $261,000 grant from the New York Secretary of State, the delivery of highway services, courts and economic development within Ulster are all being reviewed. The county went to an executive form of government last year, after voters supported the change.

“There are numerous opportunities and there are numerous barriers,” said Heinz. He insists taxpayers are worried about efficient services, not which jurisdiction delivers the service. He cited a recent example of inefficiencies during a December snowstorm when town plows traveled along county roads but did not sand or salt or plow, beacuse it was not their jurisdictions.

Jonathan Drapkin, president of Pattern for Progress, is overseeing the efficiency effort, along with Professor Gerald Benjamin, associate vice president, regional engagement at the Center for Research, Regional Education and Outreach at SUNY New Paltz.

“There is something historic about this,” says Drapkin, who sees the effort as being beneficial. “They (towns) aren’t being forced to do this and we’re pleasantly surprised with the willingness of most municipalities. We got 100% participation (for discussions).”

Other areas already conduct their highway operations in similar manners. Even though there are more people, Orange County uses just three salt sheds, while there are 11 facilities within Ulster.

“This is an important movement within the county. We’re looking for the best, and most cost-effective collaborative solution,” said Benjamin, who stressed participation in the effort is entirely voluntary. “If they don’t want to come to the table, they don’t have to.”

He added that having local people involved in altering the way government operates creates a sense of accountability, instead of just bringing in outside consultants.

“We’re going to live with the actions. In the scope of this effort, we can model for the state,” which operates with an all-encompassing Home Rule Law. Because the consolidation actions are innovative, he believes it will put Ulster in a positive position.

“We can make a claim upon the state for these opportunities that couldn’t be given under (traditional) state law.”

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A regional study reveals job creation is not keeping pace in the Hudson Valley, forcing residents to rely more heavily on opportunities in the Albany and New York City areas. The job losses are also creating an increased demand on social services, such as food stamps.

“We’re not creating enough jobs in this region to support our labor force,” says Dr. Christy Huebner Caridi who conducted the study for the Marist Bureau of Economic Research.

The quarterly report, which used data from July-September 2009, reveals an unsettling trend that she says is being replicated nationwide.

“We are relying much more on retail and hospitality and that’s not a good thing,” says Caridi. “You’re not going to be able to support a family… As a nation, we need to consider what kind of country we intend to be in the future. We (the United States) are very large and in many respects, very unruly.”

Since economic and social problems are so pervasive, she believes solutions will come from within smaller areas. “The bright spot is regions have the ability to do this. If they have the will they can move this economic ship so that it can bring everybody along.” The Hudson Valley is in a unique position to buck what many consider is a nationwide decline, Caridi said, thanks to the highly-educated workers who call the region home, as well as abundant infrastructure.

“We have important resources up here. We need to handle the resources and create high-paying jobs,” she said. “The Hudson Valley has a tremendous amount going for it. If it just does the right things it’ll be better than the rest of the nation.”

The current challenge is to re-focus.

“People need to take a deep breath and look at economic growth in the long run,” she said. Part of the problem is that the latest economic boom was not based on production or manufacturing, but rather the “fool’s game” of real estate said Caridi. “What’s important about a building is what happens in it, not the building itself.”

According to the study, Dutchess County manufacturing is slightly above the national average. In Westchester, financial services has a 2.5 to 1 “location quotient” meaning for every one job in the nation in financial services, Westchester actually has 2.5 of those jobs.

“Essentially, they export their product,” says Caridi. So the “product” goes out, but the income is created internally, which in turn supports other businesses, such as restaurants, dry cleaners, etc.

“Even with the current decline, they’re still above the national average,” she says. “My greatest hope is it stays above the national average.”

Orange County is an anomaly, since there is more retail and employment than residents require, while Sullivan and Green counties are in the unenviable position of having government as a top employer.

“It (government) literally supports the average wage,” explained Caridi.

In addition to the fiscal dependence on real estate, another shift occurred because of changing consumer activity. Big box stores have a huge impact on the local economy she said.

“These operations import their product from overseas, so we don’t get the benefit from producing the product. Their corporate headquarters aren’t here so we don’t get the benefit from that. The only thing we get is wages, which aren’t that high, and in some cases they even got tax breaks so in many respects they are net losses,” she said, adding that the stores also create a bigger impact on public services. Since December 2007, the number of people on public assistance has increased 15.53 percent in the region.

“Food stamps have gone through the roof,” she said. “A lot has to do with the fact people aren’t paid enough to feed their family. Essentially the public, you and I, through our tax revenues, subsidize big business. … We set up social systems, which is morally correct, but the burden goes on the taxpayer, not the corporate player. The question is: do we stop that pattern?”

She is seeing some positive signs.

“You’re seeing a lot of people definitely trying to do the right thing by this region,” she says, although the challenge is great. She credits the work of Jonathan Drapkin and Pattern for Progress, for their attempt to coordinate services and create a regional voice

“It’s going to take vision and stamina to ensure the members of the population all come along together and are not left behind.”

Other study findings:

·         The Hudson River Valley labor force has grown from 1.2 million in December 2007,  the peak of the previous business cycle, to 1.23 million participants in the third quarter of 2009, a 2.42 percent increase.

·         The largest percentage increase occurred in Sullivan County at 5.56 percent.

·         The labor force in Dutchess County was virtually unchanged. The Putnam-Rockland-Westchester metropolitan statistical area (MSA) have experienced a lower rate of joblessness than their counterparts in the Upper Hudson Valley.

·         Total non-farm employment in the Hudson Valley has fallen 2.96 percent, from 981,000 in December of 2007 to 952,000 in October of 2009.

·         Private employment has dropped from 798,500 in December 2007 to 770,200 in October 2009, a 3.54 percent decline.

·         The Bureau’s report can be accessed online at www.marist.edu/management/bureau.

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