New York State Empire State Development

New York State Empire State Development
Name	New York State Empire State Development
Formed	1968 (as the New York State Urban Development Corporation)
Jurisdiction	State of New York
Headquarters	New York City, New York
Chief1 position	President & CEO
Chief2 position	Chairman
Parent agency	New York State Government
Website	https://esd.ny.gov/

New York State Empire State Development. It is the primary economic development agency for the State of New York, tasked with stimulating business growth, job creation, and community revitalization across the state. The organization administers a wide array of financing programs, tax incentives, and strategic grants to support businesses, from small enterprises to major corporations. Its mission encompasses promoting tourism, fostering innovation, and overseeing significant capital projects, often operating through subsidiary entities like the New York State Urban Development Corporation and the New York State Department of Economic Development.

History

The agency traces its origins to the creation of the New York State Urban Development Corporation (UDC) in 1968 under Governor Nelson Rockefeller, established to address urban decay and housing shortages. In 1995, under the administration of Governor George Pataki, the UDC was merged with the New York State Department of Economic Development to form Empire State Development. This consolidation aimed to streamline the state's economic development efforts. Key historical projects overseen by its predecessors include the development of the Empire State Plaza in Albany and the response to the economic fallout following the September 11 attacks in New York City. The agency's role has continually evolved to meet challenges such as the Great Recession and the COVID-19 pandemic.

Organization and structure

Empire State Development is structured as a public-benefit corporation with a statewide network of regional offices. It is governed by a board of directors appointed by the Governor of New York, with day-to-day operations led by a President and Chief Executive Officer. The agency operates several key subsidiaries, including the New York State Urban Development Corporation, which retains its statutory powers, and ESD International, which focuses on global trade. It also works in close partnership with other state authorities like the New York Power Authority and Port Authority of New York and New Jersey, and oversees regional councils such as the Western New York Regional Economic Development Council.

Major programs and initiatives

The agency administers a complex portfolio of programs designed to spur economic activity. These include the Excelsior Jobs Program, a performance-based tax credit initiative, and the New York State Consolidated Funding Application, a single portal for multiple state resources. It manages significant place-based initiatives like the Buffalo Billion investment in Western New York and the transformative redevelopment of Hudson Yards and Pacific Park in New York City. Other key efforts include the Market New York tourism promotion campaign, support for the film industry through the Governor's Office of Motion Picture and Television Development, and innovation grants through START-UP NY.

Economic impact

The agency's initiatives have been credited with facilitating major corporate investments and expansions within the state, such as securing GlobalFoundries' semiconductor facility in Malta and Tesla's Gigafactory in Buffalo. Its tourism promotion, highlighting destinations like Niagara Falls and the Adirondack Mountains, supports a critical sector of the state economy. Programs like the New York State Venture Capital Fund have aimed to stimulate the technology and startup ecosystems in regions from Albany to Rochester. The agency also plays a central role in administering state recovery funds following disasters.

Leadership and governance

Leadership is appointed by the sitting Governor of New York, making the agency's strategic direction closely aligned with the executive's economic policies. Notable past chairs and CEOs have included Kevin S. Law and Howard Zemsky. The board of directors includes representatives from the New York State Legislature, the New York State Department of Labor, and private sector leaders. The agency regularly testifies before the New York State Senate and the New York State Assembly on budgetary and programmatic matters, and its activities are subject to oversight by the New York State Comptroller and the Authorities Budget Office.

Controversies and criticism

The agency has faced scrutiny over the transparency and efficacy of its economic incentives, particularly following the Buffalo Billion project and investigations led by the United States Attorney for the Southern District of New York. Critics, including good-government groups like Reinvent Albany, have argued that its project selection process can be overly politicized. Specific initiatives, such as the START-UP NY tax-free zones, have been challenged for failing to meet job creation promises. The agency's use of eminent domain for projects like the Atlantic Yards development in Brooklyn has also sparked significant legal and community opposition.

Category:Economic development in the United States Category:Government of New York (state) Category:State agencies of New York (state)