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CAPITOL
Paterson planning to put ESDC back under one leader, not two
BY BOB CONNER Gazette Reporter
Reach Gazette reporter Bob Conner at 462-2499 or bconner@dailygazette.net.

    Gov. David Paterson is planning to change the structure of the Empire State Development Corp., his press secretary confirmed Friday.
    The plan is to return the ESDC to direction by one chairperson, rather than the upstate and downstate co-chairmen installed by former Gov. Eliot Spitzer. The downstate co-chairman, Pat Foye, resigned following Spitzer’s resignation in March, while the upstate co-chairman, Daniel Gundersen, remains at his Buffalo headquarters.
    Press secretary Errol Cockfi eld said the governor “wants to make sure there is an integrated approach to economic development throughout the state,” thus improving the ESDC’s accountability and effectiveness.
    The planned change drew protests Friday from Unshackle Upstate, a pro-business group that focuses mostly on western and central New York.
    Sandy Parker, president and CEO of the Rochester Business Alliance, a founding partner in Unshackle Upstate, said “Gundersen understands upstate. ... He’s a pro.”
    Andrew Rudnick, president of the Buffalo-Niagara Partnership and another Unshackle Upstate leader, agreed that the ESDC “has been so much better with Gundersen.” But, said Rudnick, it is not so much a question of who is in charge upstate or where he or she is headquartered but of what authority that person has. The upstate ESDC leader needs the power to hire and fire and make deals, he said.
    Cockfield responded that Paterson does intend for the upstate ESDC leader to retain that authority, even if he or she is reporting to a new boss.
    According to an Unshackle Upstate statement released Friday, “Coalition leaders said that under the current structure, upstate Empire Development has been able to move projects along with greater ease and more speed, closing promptly on deals that will spur job creation.”
    Paterson is not seeking Gundersen’s resignation, Cockfield said, but it has not yet been decided who will be the overall head of the ESDC or where he or she will be located. Cockfield said the planned change does not reflect any reduced commitment to upstate economic development.
    There has been some confusion locally about the geographic responsibilities of the two ESDC co-chairmen, with the Manhattanbased Foye in charge of projects in Albany, Rensselaer, Greene and Columbia counties, even though those counties are upstate. Foye’s acting successor is Avi Schick.
    All of the Capital Region, including the four southeastern counties, will be eligible for projects under the $700 million upstate revitalization fund passed as part of this year’s state budget, said Stefanie Zakowicz, vice president for communications for Upstate Empire State Development.
    However, it is expected that the focus of the state’s redevelopment efforts will be in more depressed parts of upstate, from the Mohawk Valley west, rather than in the Albany area.
    Gundersen issued a statement saying: “I share Governor Paterson’s view that New York must be unified to compete effectively in the global marketplace. ... As upstate chairman of ESD, my charge has been to focus on the ailing upstate economy to create jobs and improve communities and, in so doing, better position all of New York to compete for economic opportunities. Significant improvements have already been realized in these communities. I look forward to working with the governor on his vision to position all of New York state so that it can compete as a leader in the global economy.”