In the Wilderness of Upstate, Paterson Attempts to Forge a Path
Upstate lawmakers applaud ESDC pick, but say jury is still out on new governor
Fri, 13 Jun 2008 14:24:00
For Gov. David Paterson (D), two heads were not necessarily better than one.
Paterson’s decision to eliminate the two-chair, Upstate-Downstate structure at the Empire State Development Corporation (ESDC) sparked an initial blowback from the Upstate business community. Several Upstate legislators also expressed concern, urging the governor to preserve the two-chair system.
But Paterson stuck by his decision, arguing that the bifurcated structure had left the agency crippled by internal power struggles.
His appointment of former M&T Bank Corp. head Robert Wilmers, a native Manhattanite who currently lives in Buffalo, as the sole chair of ESDC may serve to calm some nerves. Wilmers, who will keep his M&T position and be based in Buffalo, has long championed Upstate issues. He will receive no salary for his ESDC position.
As Wilmers awaits State Senate confirmation, Paterson is undertaking a national search for a chief executive to oversee the day to day economic development duties, and two “leaders” to head Upstate and Downstate divisions. The two division heads will report to Wilmers, according to Paterson’s office.
Upstate leaders say they have confidence in his commitment to Upstate, but are anxious to see if a revamped ESDC can turn around the Upstate economy.
Paterson, apparently sensitive to the thinness of his Upstate credentials, has been traveling around the state recently to pitch his property tax cap legislation. His tour included a stop in Baldwinsville, a town of under 8,000 in Onondaga County.
In fact, since becoming governor in mid-March, Paterson has been appearing across the region.
“He’s been in Buffalo, he’s been in Batavia, he’s been in Rochester, he’s been in Syracuse,” said Assembly Member Susan John (D-Rochester). “He’s made it very clear that he gets it.”
But many Upstate residents are still unsure about the new governor and his commitment to improving the faltering Upstate economy, John said. Paterson, a former state senator from Harlem, is still unknown in many parts of the state, she said.
“They ask me about Gov. Paterson. They ask do I know him?” John said. “They know that I knew Eliot. They ask what he’s like. They’re just trying to get to know him.”
Some Upstate business leaders have already expressed their dissatisfaction with the new governor, calling on him to either reestablish the two-chair system or create a similar position for someone who would report to the chair but still have the authority to hire staff, allocate resources and make development deals.
Andrew Rudnick, president and CEO of the Buffalo Niagara Partnership and a member of Unshackle Upstate, a coalition of 70 Upstate business groups and partnerships, said Upstate business leaders are concerned about letting the agency regress back to a one-chair system, where New York City priorities often overshadowed Upstate economic deals.
“Upstate New York got the shaft,” said Rudnick. “Past cannot be prologue here. We have to have that enduring structure in place no matter what the top of the organization looks like.”
Unshackle Upstate members applauded Paterson for appointing Wilmers as the new chair of ESDC. But how Paterson will respond to other Upstate economic issues remains to be seen, Rudnick said.
“The bottom line is it’s too early to tell,” Rudnick said. “It would be unfair to Gov. Paterson and to the issues to express any conclusive feeling at this point.”
Several Upstate legislators bemoaned the departure of Dan Gunderson, Spitzer’s appointee as Upstate ESDC chair. Gunderson, they said, was a constant and welcome presence Upstate.
“We had seen a lot of Dan Gunderson,” said State Sen. James Seward (R-Otsego/Herkimer). “He was able to zero in on Upstate projects and Upstate concerns and just in the relatively 14-15 months. I think we in Upstate had grown accustomed to that.”
Seward said that Paterson can do much to assuage Upstate anxiety by increasing his own presence around the region.
“He should continue to travel Upstate, be visible Upstate, continue to talk Upstate issues and realize that we’ve lagged behind economically and we need some additional time and attention,” Seward said.
Though also from New York City, Spitzer had established his credibility with Upstate leaders from making regional revival a centerpiece of his 2006 campaign, and enthusiastically tackling Upstate issues once in office. In addition to creating the two-chair ESDC system and appointing Gunderson to oversee Upstate economic development, Spitzer proposed spending $1 billion to revitalize the Upstate economy in the first-ever State of the Upstate address, delivered in January in Buffalo.
But with the Legislature bracing for a worsening economy, that figure has been cut to $700 million.
Assembly Member Sam Hoyt (D-Buffalo), a frequent ally of Spitzer’s, said that despite the cuts, conversations with Paterson and his senior staff have assured him of the new governor’s commitment to the Upstate economy.
“There’s a bit of a risk, a bit of a leap of faith,” Hoyt said, but “I’m willing to give him the benefit of the doubt.”
However, whether Paterson will fulfill the promises laid out by Spitzer is still difficult to predict, he said.
“We got to see in 14 months a previous governor who talked the talk, but in the end walked the walk,” Hoyt said. “Right now, Gov. Paterson can only talk the talk.”
Meanwhile, Senate Democrats are moving to fill the vacuum and shore up their Upstate support in anticipation of tough fights for seats in their efforts to take the majority in November.
Senate Minority Leader Malcolm Smith (D-Queens) recently announced the creation of a special Democratic caucus to concentrate on Upstate issues with State Sens. William Stachowski (Buffalo), Neil Breslin (Albany), David Valesky (Oneida), Antoine Thompson (Niagara Falls/Buffalo) and Darrel Aubertine (Oswego) as members.
Thompson said he was pleased by Paterson’s recent move to bring 500 new jobs to Niagara Falls, but cautioned that Upstate concerns could still get lost in the mix as they have in the past.
“Upstate folks, I believe, want to know that there’s someone they can turn to to make some decisions and that can deliver on jobs,” he said.
Paterson has shown that he is aware of the massive job losses and slow economic growth, Thompson said. That will be important, he predicted.
“But,” he added, “it’s early.”
Paterson’s decision to eliminate the two-chair, Upstate-Downstate structure at the Empire State Development Corporation (ESDC) sparked an initial blowback from the Upstate business community. Several Upstate legislators also expressed concern, urging the governor to preserve the two-chair system.
But Paterson stuck by his decision, arguing that the bifurcated structure had left the agency crippled by internal power struggles.

His appointment of former M&T Bank Corp. head Robert Wilmers, a native Manhattanite who currently lives in Buffalo, as the sole chair of ESDC may serve to calm some nerves. Wilmers, who will keep his M&T position and be based in Buffalo, has long championed Upstate issues. He will receive no salary for his ESDC position.
As Wilmers awaits State Senate confirmation, Paterson is undertaking a national search for a chief executive to oversee the day to day economic development duties, and two “leaders” to head Upstate and Downstate divisions. The two division heads will report to Wilmers, according to Paterson’s office.
Upstate leaders say they have confidence in his commitment to Upstate, but are anxious to see if a revamped ESDC can turn around the Upstate economy.
Paterson, apparently sensitive to the thinness of his Upstate credentials, has been traveling around the state recently to pitch his property tax cap legislation. His tour included a stop in Baldwinsville, a town of under 8,000 in Onondaga County.
In fact, since becoming governor in mid-March, Paterson has been appearing across the region.
“He’s been in Buffalo, he’s been in Batavia, he’s been in Rochester, he’s been in Syracuse,” said Assembly Member Susan John (D-Rochester). “He’s made it very clear that he gets it.”
But many Upstate residents are still unsure about the new governor and his commitment to improving the faltering Upstate economy, John said. Paterson, a former state senator from Harlem, is still unknown in many parts of the state, she said.
“They ask me about Gov. Paterson. They ask do I know him?” John said. “They know that I knew Eliot. They ask what he’s like. They’re just trying to get to know him.”
Some Upstate business leaders have already expressed their dissatisfaction with the new governor, calling on him to either reestablish the two-chair system or create a similar position for someone who would report to the chair but still have the authority to hire staff, allocate resources and make development deals.
Andrew Rudnick, president and CEO of the Buffalo Niagara Partnership and a member of Unshackle Upstate, a coalition of 70 Upstate business groups and partnerships, said Upstate business leaders are concerned about letting the agency regress back to a one-chair system, where New York City priorities often overshadowed Upstate economic deals.
“Upstate New York got the shaft,” said Rudnick. “Past cannot be prologue here. We have to have that enduring structure in place no matter what the top of the organization looks like.”
Unshackle Upstate members applauded Paterson for appointing Wilmers as the new chair of ESDC. But how Paterson will respond to other Upstate economic issues remains to be seen, Rudnick said.
“The bottom line is it’s too early to tell,” Rudnick said. “It would be unfair to Gov. Paterson and to the issues to express any conclusive feeling at this point.”
Several Upstate legislators bemoaned the departure of Dan Gunderson, Spitzer’s appointee as Upstate ESDC chair. Gunderson, they said, was a constant and welcome presence Upstate.
“We had seen a lot of Dan Gunderson,” said State Sen. James Seward (R-Otsego/Herkimer). “He was able to zero in on Upstate projects and Upstate concerns and just in the relatively 14-15 months. I think we in Upstate had grown accustomed to that.”
Seward said that Paterson can do much to assuage Upstate anxiety by increasing his own presence around the region.
“He should continue to travel Upstate, be visible Upstate, continue to talk Upstate issues and realize that we’ve lagged behind economically and we need some additional time and attention,” Seward said.
Though also from New York City, Spitzer had established his credibility with Upstate leaders from making regional revival a centerpiece of his 2006 campaign, and enthusiastically tackling Upstate issues once in office. In addition to creating the two-chair ESDC system and appointing Gunderson to oversee Upstate economic development, Spitzer proposed spending $1 billion to revitalize the Upstate economy in the first-ever State of the Upstate address, delivered in January in Buffalo.
But with the Legislature bracing for a worsening economy, that figure has been cut to $700 million.
Assembly Member Sam Hoyt (D-Buffalo), a frequent ally of Spitzer’s, said that despite the cuts, conversations with Paterson and his senior staff have assured him of the new governor’s commitment to the Upstate economy.
“There’s a bit of a risk, a bit of a leap of faith,” Hoyt said, but “I’m willing to give him the benefit of the doubt.”
However, whether Paterson will fulfill the promises laid out by Spitzer is still difficult to predict, he said.
“We got to see in 14 months a previous governor who talked the talk, but in the end walked the walk,” Hoyt said. “Right now, Gov. Paterson can only talk the talk.”
Meanwhile, Senate Democrats are moving to fill the vacuum and shore up their Upstate support in anticipation of tough fights for seats in their efforts to take the majority in November.
Senate Minority Leader Malcolm Smith (D-Queens) recently announced the creation of a special Democratic caucus to concentrate on Upstate issues with State Sens. William Stachowski (Buffalo), Neil Breslin (Albany), David Valesky (Oneida), Antoine Thompson (Niagara Falls/Buffalo) and Darrel Aubertine (Oswego) as members.
Thompson said he was pleased by Paterson’s recent move to bring 500 new jobs to Niagara Falls, but cautioned that Upstate concerns could still get lost in the mix as they have in the past.
“Upstate folks, I believe, want to know that there’s someone they can turn to to make some decisions and that can deliver on jobs,” he said.
Paterson has shown that he is aware of the massive job losses and slow economic growth, Thompson said. That will be important, he predicted.
“But,” he added, “it’s early.”










