ESD issues projects report outlining plans for state's future

Real Estate Weekly, April 4, 2001

Empire State Development (ESD) Chairman Charles A. Gargano issued the annual '"Major Projects Report," which shows that economic development projects the agency initiated in 2000 will create 25,000 new jobs, retain 37,000 existing jobs, leverage $1 billion in direct private-sector investments, and generate $14. billion in new, overall economic activity for the New York State economy.

"ESD's job is to market New York's low-tax, business-friendly message to the private sector," said Gargano. "Governor Pataki's economic policies are clearly paying off for New Yorkers. The State economy has more jobs than ever before in its history and in each of the past two years has beat the national average for private-sector job growth. For the first time in two generations, the state's job growth rate exceeded 2.2 percent for three straight years.

The annual Major Projects Report includes all economic development projects in 2000 that involve a State investment of at least $100,000, and an analysis of each to determine the economic and fiscal benefits to the State economy during the next seven years. The analysis was conducted using a cost benefit model developed by PolicySource, Inc., which specializes in regional modeling and cost benefit analysis for public agencies and private corporations. Key findings of the analysis include:

* Projects approved by the ESD Board in 2600 will create 25,000 new jobs and retain 37,000 existing jobs.

* Fiscal benefits (mostly taxes) to New York and its local governments generated by ESD projects will exceed $2.3 billion over the seven years following project completion.

* Personal income benefits to New Yorkers resulting from ESD projects are expected to be more than $13 billion over the seven years following completion.

* ESD projects will provide a return of more than $16 in fiscal (tax) benefits to New York State and its localities during the period following project completion for each dollar invested by State and local government.

* The Upstate economy now has more private-sector jobs than at any time in its history. From 1990 to 1995, private sector jobs upstate dropped by 1.2 percent. From 1995-2000, upstate private sector jobs increased by 6.9 percent. ESD projects continue to help Upstate, considering that:

* Projects approved by ESD in 2000 will create or retain nearly 50,000 jobs Upstate, and stimulate nearly $11 billion in overall economic activity in the region.

* Since 1995, Empire State Development's approved projects for Up-state have leveraged $4.2 billion in private sector investments, which will create or retain a combined 175,000 jobs throughout the region. In addition, these projects will generate $38.5 billion in Upstate economic activity.

ESD major projects in 2000 reflect the overall performance of New York State's job growth in 2000:

* The State's private sector added 158, 700 new jobs in 2000, amounting to a 2.3 percent job growth rate, better than the nation's 2.1 percent growth rate. This is first time since the post World War II economic expansion that the State job rate grew faster than 2.2 percent for three straight years.

* Until 1999, New York's employment growth had lagged the nation's growth every year since 1983. New York State ended last year with another all-time high in private-sector employment -- with more than 7,168,900 jobs.

To obtain a copy of the ESD's 2000 Major Projects Report, call 292-5115.