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Upstate economic 'czar' to remain on job under new governor: Downstate czar has resigned

Wednesday, March 19, 2008; Posted: 07:21 PM
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Mar 19, 2008 (The Buffalo News - McClatchy-Tribune Information Services via COMTEX) -- NO MATCHES FOUND. | news | PowerRating | PR Charts -- The two-pronged Empire State Development Corp. established by former Gov. Eliot Spitzer is now minus its downstate chief, but the entity's upstate chairman is vowing to continue revitalization efforts.

Upstate ESD Chairman Daniel Gundersen issued a statement indicating he has no plans to follow in the footsteps of his downstate counterpart Patrick Foye, who resigned his post Sunday.

"Our work here has only begun and I am committed to support Gov. [David A.] Paterson as we bring about true revitalization in every upstate community," Gundersen said.

Foye, the Manhattan-based chairman of the ESD's downstate division, cited Spitzer's resignation and the lieutenant governor's move to the governor's office as an appropriate time for him to return to the private sector.

In his letter of resignation, Foye, a former Wall Street lawyer who previously worked with Spitzer in private practice, told Paterson: "You deserve to work with a team of your choosing." Foye, whose office focuses on economic development efforts in the New York metro area and Long Island, has offered to continuing working to insure a smooth transition.

Gundersen, who said it is too early to speculate on any changes Paterson might make in the operational framework of the state's key economic development agency, said early indications are the new governor supports the bifurcated upstate/ downstate development approach.

The Michigan native, who was a development official in Pennsylvania before being tapped by Spitzer in January 2007, said his work has only begun.

"My career as an economic development professional has led me to the challenges we face here in upstate, something for which I hold a great deal of passion," Gundersen said.

In the wake of last week's Spitzer sex scandal revelations and abrupt resignation, Gundersen contacted several upstate mayors and other elected officials to assure them Spitzer's departure would not halt efforts to jump-start the economies of Buffalo, Rochester, Syracuse and other upstate communities.

Under Spitzer, the ESD was overhauled from a Manhattan-based agency with a number of small regional offices, including one in Buffalo, to a two-pronged corporation with separate agendas aimed at lifting the economic health of the entire state. The former governor came to Buffalo in January to deliver a first-ever "State of Upstate Address" that included a $1 billion Upstate Revitalization Fund.

Headquartered in Buffalo, the upstate ESD office currently employs a staff of over 40, with plans to expand to approximately 60 when it moves to larger quarters in the city's Cobblestone District this summer.

In addition to heading Upstate ESD, Gundersen also heads the state's Department of Economic Development.

Earlier this month it was revealed that while Gundersen and Foye have been depicted as equals, the upstate chief earns more. Gundersen's annual paycheck is $187,500, which Foye has been earning $160,000.

ESD spokeswoman Stefanie Zakowicz confirmed Gundersen got a raise last summer to "more accurately reflect his scope of responsibilities."

The upstate development czar, whose territory spans some 40,000 square miles -- from Westchester County through Central and Western New York, and the Southern Tier -- is known for spending the majority of his work week in his car, criss-crossing the state.

slinstedt@buffnews.com

To see more of The Buffalo News, N.Y., or to subscribe to the newspaper, go to http://www.buffalonews.com. Copyright (c) 2008, The Buffalo News, N.Y. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

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