Upstate needs big projects, Wilmers says

Dec 03, 2008 (The Buffalo News - McClatchy-Tribune Information Services via COMTEX) -- MTB | Quote | Chart | News | PowerRating -- Upstate and Western New York need "some large projects to change the dynamics" of the region and revitalize the economy -- but the state's fiscal crisis means it must rely on the federal government for help, Robert Wilmers said Tuesday evening.

Speaking to about 125 venture capitalists from across New York, the state's top economic development official and CEO of M&T Bank Corp. said upstate has to reverse the flow of young people out of the region in order to restore its vibrancy and growth. To do so, the state has to bring businesses and jobs back.

He pointed out that New York City's economy -- until recently -- had been doing "a lot better than the economy upstate."

Part of that is due to what he called the "innate attributes" of the city itself, but he also cited the "billions and billions of dollars" spent on projects such as the 42nd Street revival, the South Street Seaport, the Jacob Javits Center and Ground Zero.

By contrast, "in upstate, including Western New York, we have not seen any large projects."

Indeed, Wilmers said he was told by former downstate Empire State Development chairman Patrick Foye that up to 70 percent of the agency's money was spent upstate, but "I was having trouble finding that."

But the situation may be difficult to change in the near future, as the state is facing a $50 billion deficit over the next three years as a result of the national financial crisis. "The state is in a horrible financial bind, so a lot of what we are able to do depends on the federal government," said Wilmers, the current chairman of the Empire State Development Corp.

"A crisis provides an opportunity, and we've got to make the most of it. I'll make sure upstate doesn't get short-changed."

Wilmers was asked when he believed the recession will end. "The recession will last for a long time, and I don't think 2009 will be a good year economically," he responded.

As a result, while he again criticized high taxes as the cause of businesses and jobs leaving, he didn't hold out much hope for tax cuts because of the budget shortfall. "It'll be hard to lower taxes," he said. "We can only pray they don't increase."

Wilmers' remarks came during an open-ended question-and-answer forum at the Upstate Venture Association of New York's Buffalo Capital Forum, held at the Hyatt Regency.

The longtime banker who turned M&T from a small local institution in- to the nation's 18th-largest bank added the part-time Empire State Development role in July at the behest of Gov. David A. Paterson. Wilmers has kept his full-time job running the bank, relying instead on a team of executives to run the day-to-day operations of the state agency.

Wilmers has long used his M&T position as a bully pulpit to criticize the tax and spending practices of both state and local governments. He's also lamented the loss of 23 percent of the population aged 18 to 44 and the $1 billion decline in the assessed value of Buffalo's real estate, even while the rest of the nation was prospering.

"I believe in Buffalo, and we all share the same goal of having a strong and vibrant economy," he said. "But we've been losing population for 50 years. The demographics are working against us. We're older, poorer and sicker than we were."

To revive Western New York, he said the state and the region need to focus on its strengths. For example, Niagara Falls is the No. 2 tourist destination in the state, but three-fourths of visitors go to the Canadian side.

"The city of Niagara Falls doesn't have much to show for itself," he said. "A huge amount could be spent to renovate the town and make a fantastic tourist attraction."

The region also has a "huge plus" with its undeveloped waterfront, and "it will be dumb not to continue" to improve it.

He said the state agency also finds companies ready to move to upstate New York, but "there are no shovel-ready sites for them." And the region also has a strong health care system, with hospitals, medical schools and health-related businesses, as well as University at Buffalo.

Finally, the region should combine tourism and its renowned architecture to draw in visitors. "We've been less successful than most communities in upstate New York," he said dryly. "We have not destroyed as many architectural sites as other parts of the country."

And while he used Western New York to explain what he wants to do, "the examples I used can be transferred in one way, shape or form to other cities or towns," he said.

But any expansion must be done "in a way that makes sense," pushing newer technologies such as wind energy.

And he called on his audience to do their part. "Each and every one of you should start up a Web site businesses," he said. "One of you might be the next Amazon."

jepstein@buffnews.com

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