Changes Will Produce $7.1 Million in New Investment and Up To 200 New Jobs

Governor George E. Pataki today announced the approval of revised boundaries for the Cortland Empire Zone that will bring 8.3 acres of land with solid development potential into the zone. The revisions will enable seven companies to move forward with more than $7.1 million in new investment and expansion plans that will create 51 new jobs, with the potential to create an additional 150 new jobs.

"Our tax-free Empire Zones are one of New York's most powerful and effective tools to fuel new economic growth and job creation," Governor Pataki said. "By making these smart revisions to the boundaries of the Cortland Empire Zone, we will generate millions of dollars in new investment and help create and retain jobs for the residents of Cortland."

Among the employers that will benefit from the revisions to the Cortland Empire Zone are:

• Finger Lakes Business & Technology Park, which plans to invest $1 million and create a projected 150 new jobs
• Cortland Sports Complex, Inc., which plans to invest $3.1 million and create 16 new jobs
• Wilbedone, Inc., which plans to invest $875,000 and create 21 new jobs
• E.L. Braiding Company, Inc., which plans to invest $675,000 and create 11 new jobs
• QuadraFlex Corp, which plans to invest $202,000 and create 3 jobs
• YWCA, which plans to invest $1.3 million

Senator James Seward said, "Expanding the Cortland Empire Zone means more jobs for Cortland's residents, particularly in the high technology sector, and that's good news. I sponsored legislation that led to the approval of the Cortland zone because the potential benefits for the community in terms of business investment and jobs were tremendous. Special thanks to Governor Pataki for his commitment to jobs and economic growth in upstate and his ongoing concern for the people of Cortland."

W. Stephen Harrington, Chairman of the Cortland County Legislature and the Cortland County Zone Advisory Board said, "We welcome the revisions to the existing Cortland Empire Zone. The land that we are acquiring will allow companies to expand and create new jobs in Cortland County. The revisions to our Empire Zone will help retain current jobs and attract new jobs to the area."

Karen Niday, Cortland County Zone Coordinator, managed the zone boundary application process, working with the Cortland County Planning Department and Thoma Development. Each zone is allowed only one revision to its boundary per year, and the application process to New York State is complex.

"Cortland is fortunate to have such an extremely competent zone manager in Karen," said Paul Slowey, BDC/IDA Chairman. "She has worked with 90 Cortland County companies in the past year to take them through the zone local certification process."

Empire Zones are designated areas throughout the State consisting of a maximum of either 2 square miles, or 1,280 acres, or 1 square mile, or 640 acres, that offer significant incentives to encourage economic development, business investment and job creation. Businesses operating inside a zone are eligible for a range of tax benefits that are applied against new capital investments. Benefits include tax reduction credits, real property tax credits, sales tax exemptions, wage tax credits, and utility rate reductions, among others. The tax benefits can reduce a company's tax liability to as little as zero.

The Empire Zone program is administrated by Empire State Development. New zone designations are made by the Governor's Empire Zone Designation Board. The Board consists of the following voting members: the Commissioner of Taxation and Finance, the Commissioner of Labor, the Director of the Division of the Budget, two designees of the Governor, a designee of the Senate Majority Leader, a designee of the Assembly Speaker, and two nonvoting members - including one from the Senate Minority, and one from the Assembly Minority.

There are currently 66 Empire Zones across the State. The 2002 State budget expands the highly successful Empire Zones program by allowing the designation of six new zones, which will bring the total to 72 across the state. Currently, ESD is reviewing applications for the six, new Empire Zones. Announcements of the new Empire Zones are expected to be made in October.

The March issue of Site Selection magazine reported that New York State now ranks 3rd in the nation in attracting new and expanded corporate facilities -- the State's strongest ranking ever and a step above last year's 4th place finish. Cortland was rated as one of the Top 50 US Small Towns for Corporate Facilities in the same issue.