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August 23, 2008

Gov. appoints head of Empire State Development

Crain's
Erik Engquist

Marisa Lago was introduced at a midtown press conference as president and CEO of the Empire State Development Corp. Upstate and downstate ESDC presidents will report to her, unlike in the Spitzer administration, when the agency was bifurcated with two chairmen reporting to the governor. Mr. Paterson had frowned on that arrangement, saying it diluted authority at the agency and led to confusion about who was in charge.

Ms. Lago, the former head of development for the city of Boston and a veteran of two mayoral administrations here, has spent the last seven years in international finance as global head of compliance for Citi Markets & Banking. She will be based in New York City and work under unpaid ESDC Chairman Robert Wilmers, who described his role today as “largely strategic” rather than operational. Mr. Wilmers, who was appointed by Mr. Paterson in June, runs Buffalo, N.Y.-based M&T Bank.
...
Mr. Wilmers said that when he accepted his post, “my first thought was to find out how much we spend on economic development.” More than two months later, he admitted, “I still don’t know the answer.”

The agency has also been trying to hold businesses accountable for the job creation they promise in exchange for receiving grants and tax breaks from ESDC. Spitzer administration officials complained that the rationale behind the agency’s handouts was often questionable and follow-up was virtually nonexistent.

Develop Don't Destroy comments:

Remember that Forest City Ratner promised 10,000 office jobs when it announced its project in 2003. Today, if the thing ever gets built, it is likely to only produce about 375 office jobs.

Since the Atlantic Yards project is stalled, lacking in finance and has numerous contracts remaining to be signed prior to the project moving forward, now is the time when the ESDC can examine—really for the first time—its handouts to Forest City Ratner. There is no need to wait for follow-up.

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Posted by amy at August 23, 2008 8:57 AM