Coalition calls for restructuring of ESDC to retain strong Upstate focus

For more information:

Kate Lewis Torok, Travers Collins & Company

716-842-2222, ext. 320 (office)

Maggie Kuffner, Buffalo Niagara Partnership

716-852-7100

FOR IMMEDIATE RELEASE:

May 20, 2008

***NEWS RELEASE***

Coalition calls on Governor to ensure that restructuring at Empire State Development retains strong Upstate focus

Unshackle Upstate leaders ask Paterson for meeting to address concerns

Leaders of Unshackle Upstate said they remain cautiously optimistic about Governor Paterson's recent public and private statements that any governance restructuring of Empire State Development Corp. (ESD) will not diminish the state's commitment to economic development in Upstate New York.

Coalition leaders from Buffalo, Rochester, Syracuse, Binghamton and Utica reiterated their earlier statement that any restructuring at ESD must maintain a strong Upstate presence, which includes a high-level executive with the full authority to hire and fire staff, allocate resources and approve projects.

"Governor Paterson made a point of traveling Upstate last week in an effort to explain his commitment to our region. While his words were encouraging, his actions regarding ESD will show the extent of that commitment," said Andrew J. Rudnick, President and CEO of the Buffalo Niagara Partnership.

The more than 45,000 businesses and 1.5 million employees represented by Unshackle Upstate do not want to see ESD return to its former days in which Upstate needs were largely ignored through decades of a Manhattan-centric approach which controlled economic development initiatives.

"Who reports to whom, who is the top ESD executive and where that executive has his or her office is not what's important," said Sandy Parker, president and CEO of the Rochester Business Alliance. "What matters is that ESD is structured so that Upstate New York gets the attention needed to move our economy forward."

A strong Upstate presence for ESD will allow projects to move along with greater ease and speed, resulting in the creation of much-needed jobs through business expansions or the attraction of new employers to the region.

"The appointment and presence of an Upstate Chairman and staff has been a breath of fresh air to the regional business community," stated Randy Wolken, President of MACNY - the Manufacturers Association. "With the inception of a Chairman and dedicated Upstate staff focused solely on our regional interests, Upstate finally has a voice at the decision making table on state-wide issues and the staff to implement projects, much-needed and critical components to the future economic success of our region."

Darlene Kerr, president of the Greater Syracuse Chamber of Commerce, said, "It's vital that Governor Paterson stand by his commitment to remain focused on the economical development of Upstate. A focus on Upstate from ESD will ensure that the economy continues to move forward. A lack of focus will undo all the progress made by Dan Gunderson and his team over the past 18 months."

Only last month Governor Paterson visited Upstate cities, and held events at ESD's new office in Buffalo. Coalition leaders said that in public and private statements, Governor Paterson offered few specifics of his plans for restructuring ESD, but did stress that he remains committed to revitalizing the Upstate economy. Unshackle Upstate leaders said they plan to hold him to his word, and have requested a meeting with the governor to discuss this most important matter.

"The Southern Tier of New York Stateis far removed fromNew York City," said Catherine Glover, President and CEO of the Greater Binghamton Chamber of Commerce. "Our economic development situation needs to be addressed by someone who is immersed in thearea and, equally important, has the authority to do something without a negotiation with New York City."

Unshackle Upstate will also continue to send out email messages to its partner organizations, encouraging their members to voice their concern directly to the Governor and his team of advisors. Over the past year, the coalition has drawn thousands of voters to its website and in turn, been responsible for more than 200,000 email messages sent to officials in Albany.

For further information, visit http://www.unshackleupstate.com/

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